(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | Emerging growth company |
Page No. | |||||
Type of Significant Property | |||||||||||||||||||||||
Manufacturing | Warehouse | Other(3) | Total | ||||||||||||||||||||
Industrial Technologies and Services | |||||||||||||||||||||||
Americas | 16 | 4 | 34 | 54 | |||||||||||||||||||
EMEA(1) | 23 | 2 | 20 | 45 | |||||||||||||||||||
APAC(2) | 6 | — | 7 | 13 | |||||||||||||||||||
Industrial Technologies and Services Total | 45 | 6 | 61 | 112 | |||||||||||||||||||
Precision and Science Technologies | |||||||||||||||||||||||
Americas | 6 | — | — | 6 | |||||||||||||||||||
EMEA(1) | 6 | — | 1 | 7 | |||||||||||||||||||
APAC(2) | 3 | — | — | 3 | |||||||||||||||||||
Precision and Science Technologies Total | 15 | — | 1 | 16 | |||||||||||||||||||
Specialty Vehicle Technologies | |||||||||||||||||||||||
Americas | 1 | 3 | 2 | 6 | |||||||||||||||||||
EMEA(1) | — | — | — | — | |||||||||||||||||||
APAC(2) | 1 | — | — | 1 | |||||||||||||||||||
Specialty Vehicle Technologies Total | 2 | 3 | 2 | 7 | |||||||||||||||||||
High Pressure Solutions | |||||||||||||||||||||||
Americas | 3 | 2 | 6 | 11 | |||||||||||||||||||
EMEA(1) | — | — | — | — | |||||||||||||||||||
APAC(2) | — | — | — | — | |||||||||||||||||||
High Pressure Solutions Total | 3 | 2 | 6 | 11 | |||||||||||||||||||
Total (All Segments) | |||||||||||||||||||||||
Americas | 26 | 9 | 42 | 77 | |||||||||||||||||||
EMEA(1) | 29 | 2 | 21 | 52 | |||||||||||||||||||
APAC(2) | 10 | — | 7 | 17 | |||||||||||||||||||
Company Total | 65 | 11 | 70 | 146 |
2020 Fourth Quarter Months | Total Number of Shares Purchased(1) | Average Price Paid Per Share(2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
October 1, 2020 - October 31, 2020 | — | $ | — | — | $ | — | |||||||||||||||||
November 1, 2020 - November 30, 2020 | — | $ | — | — | $ | — | |||||||||||||||||
December 1, 2020 - December 31, 2020 | 16,315 | $ | 45.56 | — | $ | — |
(in millions, except per share amounts) | For the Years Ended December 31, | ||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
Consolidated Statements of Operations: | |||||||||||||||||||||||||||||
Revenues | $ | 4,910.2 | $ | 2,451.9 | $ | 2,689.8 | $ | 2,375.4 | $ | 1,939.4 | |||||||||||||||||||
Cost of sales | 3,296.8 | 1,540.2 | 1,677.3 | 1,477.5 | 1,222.7 | ||||||||||||||||||||||||
Gross profit | 1,613.4 | 911.7 | 1,012.5 | 897.9 | 716.7 | ||||||||||||||||||||||||
Selling and administrative expenses | 894.8 | 436.4 | 434.6 | 446.2 | 415.1 | ||||||||||||||||||||||||
Amortization of intangible assets | 395.8 | 124.3 | 125.8 | 118.9 | 124.2 | ||||||||||||||||||||||||
Impairment of goodwill | — | — | — | — | — | ||||||||||||||||||||||||
Impairment of other intangible assets | 19.9 | — | — | 1.6 | 25.3 | ||||||||||||||||||||||||
Other operating expense, net | 217.2 | 75.7 | 9.1 | 222.1 | 48.6 | ||||||||||||||||||||||||
Operating income (loss) | 85.7 | 275.3 | 443.0 | 109.1 | 103.5 | ||||||||||||||||||||||||
Interest expense | 111.1 | 88.9 | 99.6 | 140.7 | 170.3 | ||||||||||||||||||||||||
Loss on extinguishment of debt | 2.0 | 0.2 | 1.1 | 84.5 | — | ||||||||||||||||||||||||
Other income, net | (8.0) | (4.7) | (7.2) | (3.4) | (3.6) | ||||||||||||||||||||||||
Income (loss) before income taxes | (19.4) | 190.9 | 349.5 | (112.7) | (63.2) | ||||||||||||||||||||||||
Provision (benefit) for income taxes | 13.0 | 31.8 | 80.1 | (131.2) | (31.9) | ||||||||||||||||||||||||
Net income (loss) | (32.4) | 159.1 | 269.4 | 18.5 | (31.3) | ||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 0.9 | — | — | 0.1 | 5.3 | ||||||||||||||||||||||||
Net income (loss) attributable to Ingersoll Rand Inc. | $ | (33.3) | $ | 159.1 | $ | 269.4 | $ | 18.4 | $ | (36.6) | |||||||||||||||||||
Earnings (loss) per share, basic | $ | (0.09) | $ | 0.78 | $ | 1.34 | $ | 0.1 | $ | (0.25) | |||||||||||||||||||
Earnings (loss) per share, diluted | $ | (0.09) | $ | 0.76 | $ | 1.29 | $ | 0.1 | $ | (0.25) | |||||||||||||||||||
Weighted average shares, basic | 382.8 | 203.5 | 201.6 | 182.2 | 149.2 | ||||||||||||||||||||||||
Weighted average shares, diluted | 382.8 | 208.9 | 209.1 | 188.4 | 149.2 | ||||||||||||||||||||||||
Statement of Cash Flow Data: | |||||||||||||||||||||||||||||
Cash flows - operating activities | $ | 914.3 | $ | 343.3 | $ | 444.5 | $ | 200.5 | $ | 165.6 | |||||||||||||||||||
Cash flows - investing activities | (37.9) | (54.3) | (235.0) | (60.8) | (82.1) | ||||||||||||||||||||||||
Cash flows - financing activities | 328.7 | (11.5) | (373.0) | (17.4) | (43.0) | ||||||||||||||||||||||||
Balance Sheet Data (at period end): | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 1,750.9 | $ | 505.5 | $ | 221.2 | $ | 393.3 | $ | 255.8 | |||||||||||||||||||
Total assets | 16,058.6 | 4,628.4 | 4,487.1 | 4,621.2 | 4,316.0 | ||||||||||||||||||||||||
Total liabilities | 6,869.1 | 2,758.5 | 2,811.1 | 3,144.4 | 4,044.2 | ||||||||||||||||||||||||
Total stockholders’ equity | 9,189.5 | 1,869.9 | 1,676.0 | 1,476.8 | 271.8 | ||||||||||||||||||||||||
Other Financial Data (unaudited): | |||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 1,017.6 | $ | 561.7 | $ | 683.4 | $ | 561.5 | $ | 400.7 | |||||||||||||||||||
Adjusted net income(1) | 599.0 | 329.3 | 396.3 | 249.3 | 133.6 | ||||||||||||||||||||||||
Capital expenditures | 48.7 | 43.2 | 52.2 | 56.8 | 74.4 | ||||||||||||||||||||||||
Free cash flow(1) | 865.6 | 300.1 | 392.3 | 143.7 | 91.2 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Consolidated Statements of Operations | |||||||||||
Revenues | $ | 4,910.2 | $ | 2,451.9 | |||||||
Cost of sales | 3,296.8 | 1,540.2 | |||||||||
Gross Profit | 1,613.4 | 911.7 | |||||||||
Selling and administrative expenses | 894.8 | 436.4 | |||||||||
Amortization of intangible assets | 395.8 | 124.3 | |||||||||
Impairment of other intangible assets | 19.9 | — | |||||||||
Other operating expense, net | 217.2 | 75.7 | |||||||||
Operating Income | 85.7 | 275.3 | |||||||||
Interest expense | 111.1 | 88.9 | |||||||||
Loss on extinguishment of debt | 2.0 | 0.2 | |||||||||
Other income, net | (8.0) | (4.7) | |||||||||
Income (Loss) Before Income Taxes | (19.4) | 190.9 | |||||||||
Provision for income taxes | 13.0 | 31.8 | |||||||||
Net Income (Loss) | (32.4) | 159.1 | |||||||||
Less: Net income attributable to noncontrolling interests | 0.9 | — | |||||||||
Net Income (Loss) Attributable to Ingersoll Rand Inc. | $ | (33.3) | $ | 159.1 | |||||||
Percentage of Revenues | |||||||||||
Gross profit | 32.9 | % | 37.2 | % | |||||||
Selling and administrative expenses | 18.2 | % | 17.8 | % | |||||||
Operating income | 1.7 | % | 11.2 | % | |||||||
Net income | (0.7) | % | 6.5 | % | |||||||
Adjusted EBITDA(1) | 20.7 | % | 22.9 | % | |||||||
Other Financial Data | |||||||||||
Adjusted EBITDA(1) | $ | 1,017.6 | $ | 561.7 | |||||||
Adjusted net income(1) | 599.0 | 329.3 | |||||||||
Cash flows - operating activities | 914.3 | 343.3 | |||||||||
Cash flows - investing activities | (37.9) | (54.3) | |||||||||
Cash flows - financing activities | 328.7 | (11.5) | |||||||||
Free cash flow(1) | 865.6 | 300.1 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Net Income (Loss) | $ | (32.4) | $ | 159.1 | |||||||
Plus: | |||||||||||
Interest expense | 111.1 | 88.9 | |||||||||
Provision for income taxes | 13.0 | 31.8 | |||||||||
Depreciation expense(a) | 97.1 | 53.8 | |||||||||
Amortization expense(b) | 395.8 | 124.3 | |||||||||
Impairment of other intangible assets | 19.9 | — | |||||||||
Restructuring and related business transformation costs(c) | 97.9 | 25.6 | |||||||||
Acquisition related expenses and non-cash charges(d) | 233.2 | 54.6 | |||||||||
Stock-based compensation(e) | 50.8 | 20.7 | |||||||||
Foreign currency transaction losses (gains), net | 20.9 | 8.1 | |||||||||
Loss on extinguishment of debt(f) | 2.0 | 0.2 | |||||||||
Shareholder litigation settlement recoveries(g) | — | (6.0) | |||||||||
Establish public company financial reporting compliance | — | 0.6 | |||||||||
Other adjustments(h) | 8.3 | — | |||||||||
Adjusted EBITDA | $ | 1,017.6 | $ | 561.7 | |||||||
Minus: | |||||||||||
Interest expense | $ | 111.1 | $ | 88.9 | |||||||
Income tax provision, as adjusted(i) | 192.0 | 77.9 | |||||||||
Depreciation expense | 97.1 | 53.8 | |||||||||
Amortization of non-acquisition related intangible assets | 18.4 | 11.8 | |||||||||
Adjusted Net Income | $ | 599.0 | $ | 329.3 | |||||||
Free Cash Flow | |||||||||||
Cash flows - operating activities | $ | 914.3 | $ | 343.3 | |||||||
Minus: | |||||||||||
Capital expenditures | 48.7 | 43.2 | |||||||||
Free Cash Flow | $ | 865.6 | $ | 300.1 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Restructuring charges | $ | 92.9 | $ | 17.1 | |||||||
Facility reorganization, relocation and other costs | 2.1 | 2.4 | |||||||||
Other, net | 2.9 | 6.1 | |||||||||
Total restructuring and related business transformation costs | $ | 97.9 | $ | 25.6 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Provision (benefit) for income taxes | $ | 13.0 | $ | 31.8 | |||||||
Tax impact of pre-tax income adjustments | 184.0 | 45.6 | |||||||||
Discrete tax items | (5.0) | 0.5 | |||||||||
Income tax provision, as adjusted | $ | 192.0 | $ | 77.9 |
Years Ended December 31, | Percent Change | ||||||||||||||||
2020 | 2019 | 2020 vs. 2019 | |||||||||||||||
Segment Revenues | $ | 3,248.2 | $ | 1,700.9 | 91.0 | % | |||||||||||
Segment Adjusted EBITDA | $ | 759.8 | $ | 391.4 | 94.1 | % | |||||||||||
Segment Margin | 23.4 | % | 23.0 | % | 40 bps |
Years Ended December 31, | Percent Change | ||||||||||||||||
2020 | 2019 | 2020 vs. 2019 | |||||||||||||||
Segment Revenues | $ | 725.0 | $ | 316.6 | 129.0 | % | |||||||||||
Segment Adjusted EBITDA | $ | 220.2 | $ | 95.8 | 129.9 | % | |||||||||||
Segment Margin | 30.4 | % | 30.3 | % | 10 bps |
Years Ended December 31, | Percent Change | ||||||||||||||||
2020 | 2019 | 2020 vs. 2019 | |||||||||||||||
Segment Revenues | $ | 195.6 | $ | 434.4 | (55.0) | % | |||||||||||
Segment Adjusted EBITDA | $ | 12.1 | $ | 117.0 | (89.7) | % | |||||||||||
Segment Margin | 6.2 | % | 26.9 | % | (2,070) bps |
(in millions, except per share amounts) | Year Ended December 31, 2020(1) | Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||||||||||||||||
Revenues | $ | 799.9 | $ | 1,264.4 | $ | 1,335.2 | $ | 1,510.7 | $ | 620.3 | $ | 629.1 | $ | 596.7 | $ | 605.8 | |||||||||||||||||||||||||||||||
Gross profit | $ | 244.5 | $ | 360.0 | $ | 482.0 | $ | 526.9 | $ | 230.5 | $ | 234.4 | $ | 221.5 | $ | 225.3 | |||||||||||||||||||||||||||||||
Operating income (loss) | $ | (66.8) | $ | (52.2) | $ | 74.3 | $ | 130.4 | $ | 80.2 | $ | 74.6 | $ | 72.9 | $ | 47.6 | |||||||||||||||||||||||||||||||
Net income (loss) | $ | (36.8) | $ | (176.6) | $ | 29.9 | $ | 151.1 | $ | 47.1 | $ | 44.9 | $ | 41.3 | $ | 25.8 | |||||||||||||||||||||||||||||||
Net income (loss) attributable to Ingersoll Rand Inc. | $ | (36.8) | $ | (177.6) | $ | 29.5 | $ | 151.6 | $ | 47.1 | $ | 44.9 | $ | 41.3 | $ | 25.8 | |||||||||||||||||||||||||||||||
Weighted average shares, basic | 277.3 | 417.0 | 417.6 | 418.4 | 201.6 | 203.4 | 204.2 | 204.8 | |||||||||||||||||||||||||||||||||||||||
Weighted average shares, diluted | 277.3 | 417.0 | 422.0 | 424.5 | 207.7 | 208.9 | 209.0 | 209.4 | |||||||||||||||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | (0.13) | $ | (0.43) | $ | 0.07 | $ | 0.36 | $ | 0.23 | $ | 0.22 | $ | 0.20 | $ | 0.13 | |||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (0.13) | $ | (0.43) | $ | 0.07 | $ | 0.36 | $ | 0.23 | $ | 0.21 | $ | 0.20 | $ | 0.12 | |||||||||||||||||||||||||||||||
Adjusted EBITDA(2) | $ | 147.8 | $ | 241.2 | $ | 284.2 | $ | 344.4 | $ | 139.0 | $ | 146.3 | $ | 141.8 | $ | 134.6 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) | $ | (36.8) | $ | (176.6) | $ | 29.9 | $ | 151.1 | $ | 47.1 | $ | 44.9 | $ | 41.3 | $ | 25.8 | |||||||||||||||||||||||||||||||
Plus: | |||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 27.1 | 30.8 | 28.8 | 24.4 | 22.4 | 22.4 | 23.2 | 20.9 | |||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | (58.9) | 95.9 | 18.2 | (42.2) | 12.0 | 8.3 | 9.0 | 2.5 | |||||||||||||||||||||||||||||||||||||||
Depreciation expense | 15.9 | 28.4 | 25.9 | 26.9 | 14.1 | 13.5 | 12.7 | 13.5 | |||||||||||||||||||||||||||||||||||||||
Amortization expense | 55.2 | 114.6 | 114.2 | 111.8 | 31.4 | 30.9 | 30.4 | 31.6 | |||||||||||||||||||||||||||||||||||||||
Impairment of other intangible assets | — | — | 19.9 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Restructuring and related business transformation costs (a) | 42.2 | 32.2 | 12.3 | 11.2 | 4.1 | 2.0 | 9.9 | 9.6 | |||||||||||||||||||||||||||||||||||||||
Acquisition related expenses and non-cash charges (b) | 96.1 | 96.0 | 15.3 | 25.8 | 1.6 | 17.1 | 15.9 | 20.0 | |||||||||||||||||||||||||||||||||||||||
Environmental remediation loss reserve (c) | — | — | — | — | — | — | — | 0.1 | |||||||||||||||||||||||||||||||||||||||
Establish public company financial reporting compliance(d) | — | — | — | — | 0.6 | — | — | — | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation(e) | 3.0 | 12.7 | 12.8 | 22.3 | 8.7 | 6.2 | — | 5.8 | |||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt(f) | 2.0 | — | — | — | — | 0.2 | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency transaction losses (gains), net | 2.6 | 5.2 | 6.2 | 6.9 | 3.1 | 0.6 | (0.6) | 5.0 | |||||||||||||||||||||||||||||||||||||||
Shareholder litigation settlement recoveries(g) | — | — | — | — | (6.0) | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other adjustments(h) | (0.6) | 2.0 | 0.7 | 6.2 | (0.1) | 0.2 | — | (0.2) | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 147.8 | $ | 241.2 | $ | 284.2 | $ | 344.4 | $ | 139.0 | $ | 146.3 | $ | 141.8 | $ | 134.6 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Cash and cash equivalents | $ | 1,750.9 | $ | 505.5 | |||||||
Short-term borrowings and current maturities of long-term debt | $ | 40.4 | $ | 7.6 | |||||||
Long-term debt | 3,859.1 | 1,603.8 | |||||||||
Total debt | $ | 3,899.5 | $ | 1,611.4 |
For the Years Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Net Working Capital | |||||||||||
Current assets | $ | 3,862.1 | $ | 1,543.9 | |||||||
Less: Current liabilities | 1,498.6 | 574.6 | |||||||||
Net working capital | $ | 2,363.5 | $ | 969.3 | |||||||
Operating Working Capital | |||||||||||
Accounts receivable and contract assets | $ | 1,027.1 | $ | 488.1 | |||||||
Plus: Inventories (excluding LIFO) | 934.8 | 489.5 | |||||||||
Less: Accounts payable | 671.1 | 322.9 | |||||||||
Less: Contract liabilities | 172.8 | 51.7 | |||||||||
Operating working capital | $ | 1,118.0 | $ | 603.0 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows - operating activities | $ | 914.3 | $ | 343.3 | |||||||
Cash flows - investing activities | (37.9) | (54.3) | |||||||||
Cash flows - financing activities | 328.7 | (11.5) | |||||||||
Free cash flow (1) | 865.6 | 300.1 |
Payments Due by Period | |||||||||||||||||||||||||||||
Contractual Obligations | Total | 2021 | 2022-2023 | 2024-2025 | More than 5 years | ||||||||||||||||||||||||
Debt(1) | $ | 3,933.1 | $ | 39.6 | $ | 79.3 | $ | 79.2 | $ | 3,735.0 | |||||||||||||||||||
Estimated interest payments(2) | 586.1 | 80.4 | 169.6 | 206.1 | 130.0 | ||||||||||||||||||||||||
Finance leases | 17.2 | 0.8 | 1.8 | 2.2 | 12.4 | ||||||||||||||||||||||||
Operating leases | 159.2 | 57.4 | 66.2 | 23.5 | 12.1 | ||||||||||||||||||||||||
Purchase obligations(3) | 394.4 | 343.9 | 46.6 | 3.7 | 0.2 | ||||||||||||||||||||||||
Total | $ | 5,090.0 | $ | 522.1 | $ | 363.5 | $ | 314.7 | $ | 3,889.7 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Increase (decrease) in market interest rates | |||||||||||
100 basis points | $ | 35.1 | $ | 4.7 | |||||||
(100) basis points(1) (2) | (4.7) | (1.0) |
U.S. Dollar | Euro | British Pound | Chinese Renminbi | Other | |||||||||||||||||||||||||
Years Ended December 31, 2020 | |||||||||||||||||||||||||||||
Revenues | 51 | % | 24 | % | 3 | % | 12 | % | 10 | % | |||||||||||||||||||
Gross profit | 47 | % | 27 | % | 3 | % | 15 | % | 8 | % | |||||||||||||||||||
Years Ended December 31, 2019 | |||||||||||||||||||||||||||||
Revenues | 44 | % | 31 | % | 5 | % | 6 | % | 14 | % | |||||||||||||||||||
Gross profit | 42 | % | 35 | % | 6 | % | 7 | % | 10 | % |
Year Ended December 31, 2020 | |||||||||||||||||
Euro | British Pound | Chinese Renminbi | |||||||||||||||
Revenues | $ | (116.3) | $ | (16.2) | $ | (59.4) | |||||||||||
Gross profit | (43.1) | (5.7) | (23.9) |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Revenues | $ | $ | $ | ||||||||||||||
Cost of sales | |||||||||||||||||
Gross Profit | |||||||||||||||||
Selling and administrative expenses | |||||||||||||||||
Amortization of intangible assets | |||||||||||||||||
Impairment of other intangible assets | |||||||||||||||||
Other operating expense, net | |||||||||||||||||
Operating Income | |||||||||||||||||
Interest expense | |||||||||||||||||
Loss on extinguishment of debt | |||||||||||||||||
Other income, net | ( | ( | ( | ||||||||||||||
Income (Loss) Before Income Taxes | ( | ||||||||||||||||
Provision for income taxes | |||||||||||||||||
Net Income (Loss) | ( | ||||||||||||||||
Less: Net income attributable to noncontrolling interests | |||||||||||||||||
Net Income (Loss) Attributable to Ingersoll Rand Inc. | $ | ( | $ | $ | |||||||||||||
Basic income (loss) per share | $ | ( | $ | $ | |||||||||||||
Diluted income (loss) per share | $ | ( | $ | $ |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Comprehensive Income Attributable to Ingersoll Rand Inc. | |||||||||||||||||
Net income (loss) attributable to Ingersoll Rand Inc. | $ | ( | $ | $ | |||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments, net | ( | ( | |||||||||||||||
Unrecognized gains on cash flow hedges, net | |||||||||||||||||
Pension and other postretirement prior service cost and gain or loss, net | ( | ( | ( | ||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||
Comprehensive income attributable to Ingersoll Rand Inc. | $ | $ | $ | ||||||||||||||
Comprehensive Loss Attributable to Noncontrolling Interests | |||||||||||||||||
Net income attributable to noncontrolling interests | $ | $ | $ | ||||||||||||||
Other comprehensive loss, net of tax: | |||||||||||||||||
Foreign currency translation adjustments, net | ( | ||||||||||||||||
Total other comprehensive loss, net of tax | ( | ||||||||||||||||
Comprehensive loss attributable to noncontrolling interests | $ | ( | $ | $ | |||||||||||||
Total Comprehensive Income | $ | $ | $ |
December 31, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance for credit losses of $ | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net of accumulated depreciation of $ | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Deferred tax assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Equity | |||||||||||
Current liabilities | |||||||||||
Short-term borrowings and current maturities of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, less current maturities | |||||||||||
Pensions and other postretirement benefits | |||||||||||
Deferred income taxes | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 20) | |||||||||||
Stockholders’ equity | |||||||||||
Common stock, $ | |||||||||||
Capital in excess of par value | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Treasury stock at cost; | ( | ( | |||||||||
Total Ingersoll Rand Inc. stockholders' equity | |||||||||||
Noncontrolling interests | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Ingersoll Rand Inc. Stockholders' Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Shares Issued | Par | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for stock-based compensation plans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Share repurchase program | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of treasury stock for stock-based compensation plans | — | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
— | — | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for stock-based compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of treasury stock for stock-based compensation plans | — | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
— | — | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Ingersoll Rand Industrial (Note 3) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Costs of issuing equity securities (Note 3) | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for stock-based compensation plans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of treasury stock for stock-based compensation plans | — | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
— | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments for shares tendered in open offer (Note 12) | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Adjustments for shares sold in offer for sale (Note 12) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||
Net income (loss) | $ | ( | $ | $ | |||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||||||||
Amortization of intangible assets | |||||||||||||||||
Depreciation | |||||||||||||||||
Impairment of other intangible assets | |||||||||||||||||
Non-cash restructuring charges | |||||||||||||||||
Stock-based compensation expense | |||||||||||||||||
Foreign currency transaction losses (gains), net | ( | ||||||||||||||||
Non-cash adjustments to carrying value of LIFO inventories | |||||||||||||||||
Deferred income taxes | ( | ( | |||||||||||||||
Other non-cash adjustments | |||||||||||||||||
Changes in assets and liabilities | |||||||||||||||||
Receivables | |||||||||||||||||
Inventories | ( | ||||||||||||||||
Accounts payable | ( | ( | |||||||||||||||
Accrued liabilities | ( | ( | |||||||||||||||
Other assets and liabilities, net | ( | ( | ( | ||||||||||||||
Net cash provided by operating activities | |||||||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||
Net cash acquired (paid) in business combinations | ( | ( | |||||||||||||||
Disposals of property, plant and equipment | |||||||||||||||||
Net cash used in investing activities | ( | ( | ( | ||||||||||||||
Cash Flows From Financing Activities | |||||||||||||||||
Principal payments on long-term debt | ( | ( | ( | ||||||||||||||
Proceeds from long-term debt | |||||||||||||||||
Purchases of treasury stock | ( | ( | ( | ||||||||||||||
Proceeds from stock option exercises | |||||||||||||||||
Payments of contingent consideration | ( | ( | ( | ||||||||||||||
Payments of debt issuance costs | ( | ( | |||||||||||||||
Payments of costs incurred to issue shares for Ingersoll Rand Industrial acquisition | ( | ||||||||||||||||
Purchase of shares from noncontrolling interests | ( | ||||||||||||||||
Proceeds from sale of noncontrolling interests | |||||||||||||||||
Other financing | ( | ||||||||||||||||
Net cash from (used in) financing activities | ( | ( | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||||||||
Cash and cash equivalents, beginning of year | |||||||||||||||||
Cash and cash equivalents, end of year | $ | $ | $ | ||||||||||||||
Supplemental Cash Flow Information | |||||||||||||||||
Cash paid for income taxes | $ | $ | $ | ||||||||||||||
Cash paid for interest | |||||||||||||||||
Debt issuance costs in accounts payable | |||||||||||||||||
Debt issuance costs in accrued liabilities | |||||||||||||||||
Capital expenditures in accounts payable | |||||||||||||||||
Purchase Price | Estimated Fair Value, as Previously Reported | Measurement Period Adjustments(4) | Estimated Fair Value, as Adjusted | ||||||||||||||
Fair value of Ingersoll Rand common stock issued for Ingersoll Rand Industrial outstanding common stock(1) | $ | $ | — | $ | |||||||||||||
Fair value attributable to pre-merger service for replacement equity awards(2) | — | ||||||||||||||||
Fair value attributable to pre-merger service for deferred compensation plan(3) | — | ||||||||||||||||
Total purchase consideration | $ | $ | — | $ | |||||||||||||
Purchase Price Allocation | |||||||||||||||||
Cash | $ | $ | ( | $ | |||||||||||||
Accounts receivable | |||||||||||||||||
Inventories | |||||||||||||||||
Other current assets | ( | ||||||||||||||||
Property, plant and equipment | ( | ||||||||||||||||
Goodwill | |||||||||||||||||
Intangible assets | ( | ||||||||||||||||
Other noncurrent assets | |||||||||||||||||
Total current liabilities, including current maturities of long-term debt of $ | ( | ( | |||||||||||||||
Deferred tax liability | ( | ( | |||||||||||||||
Long-term debt, net of debt issuance costs and an original issue discount | ( | — | ( | ||||||||||||||
Other noncurrent liabilities | ( | ( | ( | ||||||||||||||
Noncontrolling interest | ( | — | ( | ||||||||||||||
$ | $ | — | $ |
Land and buildings | $ | ||||
Machinery and equipment | |||||
Office furniture and equipment | |||||
Other | |||||
Construction in progress | |||||
Total property, plant and equipment | $ |
Fair Value | Weighted Average Useful Life (Years) | ||||||||||
Tradenames(1) | $ | Indefinite | |||||||||
Developed technology(2) | |||||||||||
Customer relationships(3) | |||||||||||
Backlog(4) | <1 | ||||||||||
Other(5) | |||||||||||
Total identifiable intangible assets | $ |
2020 | 2019 | ||||||||||
Revenues | $ | $ | |||||||||
Net Income (Loss) |
2020 | 2019 | ||||||||||
Increase (decrease) to revenue as a result of deferred revenue fair value adjustment, net of tax | $ | $ | ( | ||||||||
Increase (decrease) to expense as a result of inventory fair value adjustment, net of tax | ( | ||||||||||
Increase (decrease) to expense as a result of transaction costs, net of tax | ( |
2020 | 2019 | ||||||||||
Balance at beginning of the period | $ | $ | |||||||||
Charged to expense - termination benefits | |||||||||||
Charged to expense - other(1) | |||||||||||
Acquired restructuring | |||||||||||
Payments | ( | ( | |||||||||
Other, net | |||||||||||
Balance at end of the period | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Balance at beginning of the period | $ | $ | $ | ||||||||||||||
Acquisition - Ingersoll Rand Industrial | |||||||||||||||||
Provision charged to expense | |||||||||||||||||
Write-offs, net of recoveries | ( | ( | ( | ||||||||||||||
Foreign currency translation and other | ( | ( | |||||||||||||||
Balance at end of the period | $ | $ | $ |
2020 | 2019 | ||||||||||
Raw materials, including parts and subassemblies | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
Excess of LIFO costs over FIFO costs | |||||||||||
Inventories | $ | $ |
2020 | 2019 | ||||||||||
Land and land improvements | $ | $ | |||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Office furniture and equipment | |||||||||||
Construction in progress | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
Industrial Technologies and Services | Precision and Science Technologies | Specialty Vehicle Technologies | High Pressure Solutions | Total | |||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||
Foreign currency translation and other(1) | ( | ( | ( | ||||||||||||||||||||||||||
Balance as of December 31, 2019 | |||||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||
Foreign currency translation | |||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | $ | $ | $ | $ |
2020 Acquisitions | Industrial Technologies and Services | Precision and Science Technologies | Specialty Vehicle Technologies | High Pressure Solutions | Total | |||||||||||||||||||||||||||
Ingersoll Rand Industrial | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Albin Pump SAS | ||||||||||||||||||||||||||||||||
Other acquisitions | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
2019 Acquisitions | Industrial Technologies and Services | Precision and Science Technologies | Specialty Vehicle Technologies | High Pressure Solutions | Total | |||||||||||||||||||||||||||
Oina | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
ACBN | ||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ |
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||
Amortized intangible assets: | |||||||||||||||||||||||||||||||||||
Customer lists and relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Technology | ( | ( | |||||||||||||||||||||||||||||||||
Tradenames | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||
Unamortized intangible assets: | |||||||||||||||||||||||||||||||||||
Tradenames | — | — | |||||||||||||||||||||||||||||||||
Total other intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
2020 | 2019 | ||||||||||
Salaries, wages, and related fringe benefits | $ | $ | |||||||||
Contract liabilities | |||||||||||
Product warranty | |||||||||||
Operating lease liabilities | |||||||||||
Restructuring | |||||||||||
Taxes | |||||||||||
Other | |||||||||||
Total accrued liabilities | $ | $ |
2020 | 2019 | ||||||||||
Balance at the beginning of period | $ | $ | |||||||||
Product warranty accruals | |||||||||||
Acquired warranty | |||||||||||
Settlements | ( | ( | |||||||||
Charged to other accounts(1) | ( | ||||||||||
Balance at the end of period | $ | $ |
2020 | 2019 | ||||||||||
Short-term borrowings | $ | $ | |||||||||
Long-term debt | |||||||||||
Dollar Term Loan, due 2024(1) | $ | $ | |||||||||
Euro Term Loan, due 2024(2) | |||||||||||
Dollar Term Loan B, due 2027(3) | |||||||||||
Dollar Term Loan, due 2027(4) | |||||||||||
Euro Term Loan, due 2027(5) | |||||||||||
Dollar Term Loan Series A, due 2027(6) | |||||||||||
Finance leases and other long-term debt | |||||||||||
Unamortized debt issuance costs | ( | ( | |||||||||
Total long-term debt, net, including current maturities | |||||||||||
Current maturities of long-term debt | |||||||||||
Total long-term debt, net | $ | $ |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Reconciliation of Benefit Obligations: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Service cost | |||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Plan amendments | ( | ||||||||||||||||||||||||||||||||||
Actuarial losses (gains) | |||||||||||||||||||||||||||||||||||
Benefit payments | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||||||||
Plan settlements | ( | ( | |||||||||||||||||||||||||||||||||
Effect of foreign currency exchange rate changes | |||||||||||||||||||||||||||||||||||
Benefit obligations ending balance | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Reconciliation of Fair Value of Plan Assets: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Actual return on plan assets | |||||||||||||||||||||||||||||||||||
Employer contributions | |||||||||||||||||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||||||||||||||
Plan settlements | ( | ( | |||||||||||||||||||||||||||||||||
Benefit payments | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Effect of foreign currency exchange rate changes | |||||||||||||||||||||||||||||||||||
Fair value of plan assets ending balance | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Funded Status as of Period End | $ | ( | $ | $ | ( | $ | ( | $ | ( | $ | ( |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||
Net actuarial losses (gains) | $ | ( | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Prior service cost | ( | ||||||||||||||||||||||||||||||||||
Amounts included in accumulated other comprehensive income (loss) | $ | ( | $ | $ | $ | $ | $ |
2020 | 2019 | ||||||||||
Other assets | $ | $ | |||||||||
Accrued liabilities | ( | ( | |||||||||
Pension and other postretirement benefits | ( | ( |
U.S. Pension Plans | Non-U.S. Pension Plans | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Projected benefit obligations | $ | $ | $ | $ | |||||||||||||||||||
Accumulated benefit obligation | |||||||||||||||||||||||
Fair value of plan assets |
U.S. Pension Plans | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net Periodic Benefit Cost (Income): | |||||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | ( | ( | ( | ||||||||||||||
Amortization of prior-service cost | |||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||
Net periodic benefit cost (income) | ( | ||||||||||||||||
Loss due to settlement | |||||||||||||||||
Total net periodic benefit cost (income) recognized | $ | $ | $ | ( | |||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): | |||||||||||||||||
Net actuarial (gain) loss | $ | ( | $ | ( | $ | ||||||||||||
Amortization of net actuarial loss | ( | ||||||||||||||||
Prior service cost | |||||||||||||||||
Amortization of prior service cost | |||||||||||||||||
Effect of foreign currency exchange rate changes | |||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | ( | $ | ( | $ | ||||||||||||
Total recognized in net periodic benefit (income) cost and other comprehensive income (loss) | $ | ( | $ | ( | $ |
Non-U.S. Pension Plans | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net Periodic Benefit Cost (Income): | |||||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | ( | ( | ( | ||||||||||||||
Amortization of prior-service cost | |||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||
Net periodic benefit cost (income) | ( | ||||||||||||||||
Loss due to curtailments | |||||||||||||||||
Total net periodic benefit cost (income) recognized | $ | $ | $ | ( | |||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): | |||||||||||||||||
Net actuarial loss (gain) | $ | $ | $ | ||||||||||||||
Amortization of net actuarial loss | ( | ( | ( | ||||||||||||||
Prior service cost | |||||||||||||||||
Amortization of prior service cost | ( | ( | |||||||||||||||
Effect of foreign currency exchange rate changes | ( | ||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | $ | $ | ||||||||||||||
Total recognized in net periodic benefit cost (income) and other comprehensive income (loss) | $ | $ | $ |
Other Postretirement Benefits | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net Periodic Benefit Cost: | |||||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost | |||||||||||||||||
Expected return on plan assets | |||||||||||||||||
Amortization of prior-service cost | |||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||
Net periodic benefit cost | $ | $ | $ | ||||||||||||||
Loss due to curtailments or settlements | |||||||||||||||||
Total net periodic benefit cost recognized | $ | $ | $ | ||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss): | |||||||||||||||||
Net actuarial loss (gain) | $ | $ | $ | ( | |||||||||||||
Amortization of net actuarial loss | |||||||||||||||||
Prior service cost | ( | ||||||||||||||||
Amortization of prior service cost | |||||||||||||||||
Effect of foreign currency exchange rate changes | |||||||||||||||||
Total recognized in other comprehensive income (loss) | $ | $ | $ | ||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ | $ | $ |
Pension Benefits - U.S. Plans | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Discount rate | % | % | % | ||||||||||||||
Expected long-term rate of return on plan assets | % | % | % |
Pension Benefits - Non-U.S. Plans | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Discount rate | % | % | % | ||||||||||||||
Expected long-term rate of return on plan assets | % | % | % | ||||||||||||||
Rate of compensation increases | % | % | % |
Other Postretirement Benefits | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Discount rate | % | % |
Pension Benefits - U.S. Plans | |||||||||||
2020 | 2019 | ||||||||||
Discount rate | % | % |
Pension Benefits - Non-U.S. Plans | |||||||||||
2020 | 2019 | ||||||||||
Discount rate | % | % | |||||||||
Rate of compensation increases | % | % |
Other Postretirement Benefits | |||||||||||
2020 | 2019 | ||||||||||
Discount rate | % |
Other Postretirement Benefits | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Healthcare cost trend rate assumed for next year | % | % | % | ||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | % | % | % | ||||||||||||||
Year that the date reaches the ultimate trend rate | 2029 | 2021 | 2020 |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||
U.S. Plans | Non-U.S. Plans | ||||||||||||||||
2021 | $ | $ | $ | ||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
Aggregate 2025-2029 |
U.S. Plans | UK Plan | ||||||||||
Asset category: | |||||||||||
Cash and cash equivalents | % | % | |||||||||
Equity | % | % | |||||||||
Fixed income | % | % | |||||||||
Real estate and other | % | % | |||||||||
Total | % | % |
December 31, 2020 | |||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Investments Measured at NAV (5) | Total | |||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||||||
Cash and cash equivalents(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Equity funds: | |||||||||||||||||||||||||||||
U.S. large-cap | |||||||||||||||||||||||||||||
International equity(2) | |||||||||||||||||||||||||||||
Total equity funds | |||||||||||||||||||||||||||||
Fixed income funds: | |||||||||||||||||||||||||||||
Corporate bonds - international | |||||||||||||||||||||||||||||
UK index-linked gilts | |||||||||||||||||||||||||||||
U.S. fixed income - government securities | |||||||||||||||||||||||||||||
U.S. fixed income - short duration | |||||||||||||||||||||||||||||
U.S. fixed income - intermediate duration | |||||||||||||||||||||||||||||
U.S. fixed income - long corporate | |||||||||||||||||||||||||||||
Total fixed income funds | |||||||||||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||||||
International real estate(3) | |||||||||||||||||||||||||||||
Other(4) | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Investments Measured at NAV (5) | Total | |||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||||||
Cash and cash equivalents(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Equity funds: | |||||||||||||||||||||||||||||
U.S. large-cap | |||||||||||||||||||||||||||||
International equity(2) | |||||||||||||||||||||||||||||
Total equity funds | |||||||||||||||||||||||||||||
Fixed income funds: | |||||||||||||||||||||||||||||
Corporate bonds - international | |||||||||||||||||||||||||||||
UK index-linked gilts | |||||||||||||||||||||||||||||
U.S. fixed income - government securities | |||||||||||||||||||||||||||||
U.S. fixed income - short duration | |||||||||||||||||||||||||||||
U.S. fixed income - intermediate duration | |||||||||||||||||||||||||||||
U.S. fixed income - long corporate | |||||||||||||||||||||||||||||
Total fixed income funds | |||||||||||||||||||||||||||||
Other types of investments: | |||||||||||||||||||||||||||||
International real estate(3) | |||||||||||||||||||||||||||||
Other(4) | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Foreign Currency Translation Adjustments, Net | Unrealized Gains (Losses) on Cash Flow Hedges | Pension and Postretirement Benefit Plans | Total | ||||||||||||||||||||
Balance as of December 31, 2017 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Before tax income | ( | ( | ( | ||||||||||||||||||||
Income tax effect | ( | ( | ( | ||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2017-12) | |||||||||||||||||||||||
Balance as of December 31, 2018 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Before tax income (loss) | ( | ||||||||||||||||||||||
Income tax effect | ( | ( | ( | ||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2018-02) | ( | ( | ( | ||||||||||||||||||||
Balance as of December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Before tax income (loss) | ( | ||||||||||||||||||||||
Income tax effect | ( | ||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance as of December 31, 2020 | $ | $ | $ | ( | $ |
Foreign Currency Translation Adjustments, Net | Unrealized Gains (Losses) on Cash Flow Hedges | Pension and Postretirement Benefit Plans | Total | ||||||||||||||||||||
Balance as of December 31, 2017 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income before reclassifications | ( | ( | ( | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2017-12) | |||||||||||||||||||||||
Balance as of December 31, 2018 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||||||||||||
Other comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Cumulative effect adjustment upon adoption of new accounting standard (ASU 2018-02) | ( | ( | ( | ||||||||||||||||||||
Balance as of December 31, 2019 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive loss before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance as of December 31, 2020 | $ | $ | $ | ( | $ |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | 2020 | 2019 | 2018 | Affected Line(s) in the Statement Where Net Income is Presented | ||||||||||||||||||||||
Loss on cash flow hedges (interest rate swaps) | $ | $ | $ | Interest expense | ||||||||||||||||||||||
Benefit for income taxes | ( | ( | ( | Benefit for income taxes | ||||||||||||||||||||||
Loss on cash flow hedges (interest rate swaps), net of tax | $ | $ | $ | |||||||||||||||||||||||
Amortization of defined benefit pension and other postretirement benefit items(1) | $ | $ | $ | Cost of sales and Selling and administrative expenses | ||||||||||||||||||||||
Benefit for income taxes | ( | ( | ( | Benefit for income taxes | ||||||||||||||||||||||
Amortization of defined benefit pension and other postretirement benefit items, net of tax | $ | $ | $ | |||||||||||||||||||||||
Total reclassifications for the period | $ | $ | $ |
Industrial Technologies and Services | Precision and Science Technologies | Specialty Vehicle Technologies | High Pressure Solutions | Total | |||||||||||||||||||||||||
Primary Geographic Markets | |||||||||||||||||||||||||||||
United States | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other Americas | |||||||||||||||||||||||||||||
Total Americas | |||||||||||||||||||||||||||||
EMEIA | |||||||||||||||||||||||||||||
Asia Pacific | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Product Categories | |||||||||||||||||||||||||||||
Original equipment(1) | |||||||||||||||||||||||||||||
Aftermarket(2) | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Pattern of Revenue Recognition | |||||||||||||||||||||||||||||
Revenue recognized at point in time(3) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Revenue recognized over time(4) | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Industrial Technologies and Services | Precision and Science Technologies | Specialty Vehicle Technologies | High Pressure Solutions | Total | |||||||||||||||||||||||||
Primary Geographic Markets | |||||||||||||||||||||||||||||
United States | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Other Americas | |||||||||||||||||||||||||||||
Total Americas | |||||||||||||||||||||||||||||
EMEIA | |||||||||||||||||||||||||||||
Asia Pacific | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Product Categories | |||||||||||||||||||||||||||||
Original equipment(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Aftermarket(2) | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Pattern of Revenue Recognition | |||||||||||||||||||||||||||||
Revenue recognized at point in time(3) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Revenue recognized over time(4) | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
December 31, 2020 | December 31, 2019 | ||||||||||
Accounts receivable, net | $ | $ | |||||||||
Contract assets | |||||||||||
Contract liabilities |
2020 | 2019 | 2018 | |||||||||||||||
U.S. | $ | ( | $ | $ | |||||||||||||
Non-U.S. | |||||||||||||||||
Income (loss) before income taxes | $ | ( | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Current: | |||||||||||||||||
U.S. federal | $ | $ | $ | ||||||||||||||
U.S. state and local | |||||||||||||||||
Non-U.S. | |||||||||||||||||
Deferred: | |||||||||||||||||
U.S. federal | ( | ( | |||||||||||||||
U.S. state and local | ( | ( | |||||||||||||||
Non-U.S. | ( | ( | ( | ||||||||||||||
Provision for income taxes | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
U.S. federal corporate statutory rate | % | % | % | ||||||||||||||
State and local taxes, less federal tax benefit | ( | ||||||||||||||||
U.S. deferred change due to U.S. tax law change | |||||||||||||||||
Net effects of foreign tax rate differential | ( | ||||||||||||||||
Withholding tax | ( | ||||||||||||||||
Repatriation cost | ( | ||||||||||||||||
U.S. transition tax toll charge net of FTC | ( | ||||||||||||||||
Global Intangible Low-Tax Income (“GILTI”) | ( | ( | |||||||||||||||
ASC 740-30 (formerly APB 23) | ( | ( | |||||||||||||||
Valuation allowance changes | ( | ( | |||||||||||||||
Uncertain tax positions | ( | ||||||||||||||||
Equity compensation | ( | ( | |||||||||||||||
Nondeductible foreign interest expense | |||||||||||||||||
Capital gain | |||||||||||||||||
Nondeductible acquisition costs | ( | ||||||||||||||||
Foreign Derived Intangible Income (“FDII”) deduction | ( | ( | |||||||||||||||
Tax credits | ( | ( | |||||||||||||||
Other, net | ( | ( | ( | ||||||||||||||
Effective income tax rate | ( | % | % | % |
2020 | 2019 | ||||||||||
Deferred Tax Assets: | |||||||||||
Reserves and accruals | $ | $ | |||||||||
Bad debts | |||||||||||
Inventory reserve | |||||||||||
Postretirement benefits - pensions | |||||||||||
Tax loss carryforwards | |||||||||||
Deferred taxes recorded in other comprehensive income | |||||||||||
Foreign tax credit carryforwards | |||||||||||
Other | |||||||||||
Total deferred tax assets | |||||||||||
Valuation allowance | ( | ( | |||||||||
Deferred Tax Liabilities: | |||||||||||
LIFO inventory | ( | ( | |||||||||
Property, plant and equipment | ( | ( | |||||||||
Intangibles | ( | ( | |||||||||
Unremitted foreign earnings | ( | ( | |||||||||
Deferred taxes recorded in other comprehensive income | ( | ||||||||||
Other | ( | ||||||||||
Total deferred tax liabilities | ( | ( | |||||||||
Net deferred income tax liability | $ | ( | $ | ( |
Tax Benefit | Valuation Allowance | Carryforward Period Ends | |||||||||||||||
Tax Attributes to be Carried Forward | |||||||||||||||||
U.S. federal net operating loss | $ | $ | Unlimited | ||||||||||||||
U.S. federal net operating loss | ( | 2030-2039 | |||||||||||||||
U.S. federal capital loss | ( | 2021 | |||||||||||||||
U.S. federal capital loss | ( | 2030-2039 | |||||||||||||||
U.S. federal tax credit | ( | 2021-2037 | |||||||||||||||
Alternative minimum tax credit | ( | Unlimited | |||||||||||||||
U.S. state and local net operating losses | ( | 2021-2039 | |||||||||||||||
U.S. state and local tax credit | 2021-2039 | ||||||||||||||||
Non U.S. net operating losses | ( | Unlimited | |||||||||||||||
Non U.S. capital losses | ( | Unlimited | |||||||||||||||
Excess interest | ( | Unlimited | |||||||||||||||
Other deferred tax assets | ( | Unlimited | |||||||||||||||
Total tax carryforwards | $ | $ | ( |
2020 | 2019 | 2018 | |||||||||||||||
Valuation allowance for deferred tax assets at beginning of the period | $ | $ | $ | ||||||||||||||
Revaluation or additions due to acquisitions or mergers(1) | |||||||||||||||||
Change due to U.S. Tax Reform | |||||||||||||||||
Charged to tax expense | ( | ( | |||||||||||||||
Charged to other accounts | ( | ||||||||||||||||
Deductions(2) | |||||||||||||||||
Valuation allowance for deferred tax assets at end of the period | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Beginning balance | $ | $ | $ | ||||||||||||||
Gross increases for tax positions of prior years | |||||||||||||||||
Gross decreases for tax positions of prior years | |||||||||||||||||
Gross increases for tax positions of current year | |||||||||||||||||
Settlements | |||||||||||||||||
Lapse of statute of limitations | ( | ( | |||||||||||||||
Changes due to currency fluctuations | ( | ||||||||||||||||
Ending balance | $ | $ | $ |
2020 | 2019 | ||||||||||
Operating lease cost | $ | $ | |||||||||
Finance lease cost | |||||||||||
Amortization of right-of-use assets | $ | $ | |||||||||
Interest on lease liabilities | |||||||||||
Total finance lease cost | $ | $ | |||||||||
Short-term lease cost | $ | $ |
2020 | 2019 | ||||||||||
Supplemental Cash Flows Information | |||||||||||
Cash Paid for Amounts Included in the Measurement of Lease Liabilities | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Operating cash flows from finance leases | |||||||||||
Financing cash flows from finance leases | |||||||||||
Leased Assets Obtained in Exchange for New Operating Lease Liabilities(1) |
December 31, 2020 | December 31, 2019 | ||||||||||
Operating leases | |||||||||||
Other assets | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Total operating lease liabilities | $ | $ | |||||||||
Finance Leases | |||||||||||
Property, plant and equipment | $ | $ | |||||||||
Short-term borrowings and current maturities of long-term debt | |||||||||||
Long-term debt, less current maturities | |||||||||||
Total finance lease liabilities | $ | $ | |||||||||
Weighted Average Remaining Lease Term (in years) | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted Average Discount Rate | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
Operating Leases | Finance Leases | ||||||||||
2021 | $ | $ | |||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
Thereafter | |||||||||||
Total lease payments | $ | $ | |||||||||
Less imputed interest | ( | ( | |||||||||
Total | $ | $ |
Converted Stock Option Awards Assumptions: | |||||
Expected life of options (in years) | |||||
Risk-free interest rate | % | ||||
Assumed volatility | % | ||||
Expected dividend rate | % |
Shares | Weighted-Average Exercise Price (per share) | Wtd. Avg. Remaining Contractual Term (years) | Aggregate Intrinsic Value of In-The-Money Options (in millions) | ||||||||||||||||||||
Outstanding at December 31, 2019 | $ | ||||||||||||||||||||||
Converted Ingersoll Rand Industrial stock options | |||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised or Settled | ( | ||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Expired | ( | ||||||||||||||||||||||
Outstanding at December 31, 2020 | $ | ||||||||||||||||||||||
Vested at December 31, 2020 | $ |
2020 | 2019 | 2018 | |||||||||||||||
Assumptions: | |||||||||||||||||
Expected life of options (in years) | |||||||||||||||||
Risk-free interest rate | |||||||||||||||||
Assumed volatility | |||||||||||||||||
Expected dividend rate | % | % | % |
Shares | Weighted-Average Grant-Date Fair Value | ||||||||||
Non-vested as of December 31, 2019 | |||||||||||
Converted Ingersoll Rand Industrial restricted stock units | |||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Non-vested as of December 31, 2020 |
Shares | Weighted-Average Grant-Date Fair Value | ||||||||||
Non-vested as of December 31, 2019 | $ | ||||||||||
Granted | |||||||||||
Vested | |||||||||||
Forfeited | ( | ||||||||||
Non-vested as of December 31, 2020 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Derivative Classification | Notional Amount(1) | Fair Value(1) Other Current Assets | Fair Value(1) Other Assets | Fair Value(1) Accrued Liabilities | Fair Value(1) Other Liabilities | ||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
Foreign currency forwards | Fair Value | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Foreign currency forwards | Fair Value | $ | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||||||||||||||
Derivative Classification | Notional Amount(1) | Fair Value(1) Other Current Assets | Fair Value(1) Other Assets | Fair Value(1) Accrued Liabilities | Fair Value(1) Other Liabilities | ||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
Interest rate swap contracts | Cash Flow | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||||
Foreign currency forwards | Fair Value | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Foreign currency forwards | Fair Value | $ | $ | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Interest Rate Swap Contracts | |||||||||||||||||
Gain (loss) recognized in AOCI on derivatives | $ | ( | $ | ( | $ | ||||||||||||
Loss reclassified from AOCI into income (effective portion)(1) | ( | ( | ( | ||||||||||||||
Loss reclassified from AOCI into income (missed forecast)(2) | ( |
2020 | 2019 | 2018 | |||||||||||||||
Foreign currency forward contracts gains (losses) | ( | ||||||||||||||||
Total foreign currency transaction gains (losses), net | ( | ( |
2020 | 2019 | ||||||||||
Gain (loss), net of income tax, recorded through other comprehensive income | $ | ( | $ | ||||||||
Balance included in accumulated other comprehensive income (loss) as of December 31, 2020 and 2019, respectively |
December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Foreign currency forwards(1) | $ | $ | $ | $ | |||||||||||||||||||
Trading securities held in deferred compensation plan(2) | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Foreign currency forwards(1) | $ | $ | $ | $ | |||||||||||||||||||
Deferred compensation plan(2) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
December 31, 2019 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||
Foreign currency forwards(1) | $ | $ | $ | $ | |||||||||||||||||||
Trading securities held in deferred compensation plan(2) | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||
Foreign currency forwards(1) | $ | $ | $ | $ | |||||||||||||||||||
Interest rate swaps(3) | |||||||||||||||||||||||
Deferred compensation plan(2) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Other Operating Expense, Net | |||||||||||||||||
Foreign currency transaction losses (gains), net | $ | $ | $ | ( | |||||||||||||
Restructuring charges (1) | |||||||||||||||||
Shareholder litigation settlement recoveries(2) | ( | ( | |||||||||||||||
Acquisition related expenses(3) | |||||||||||||||||
(Gains) losses on asset and business disposals | ( | ||||||||||||||||
Other, net | ( | ||||||||||||||||
Total other operating expense, net | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Revenue | |||||||||||||||||
Industrial Technologies and Services | $ | $ | $ | ||||||||||||||
Precision and Science Technologies | |||||||||||||||||
Specialty Vehicle Technologies | |||||||||||||||||
High Pressure Solutions | |||||||||||||||||
Total Revenue | $ | $ | $ | ||||||||||||||
Segment Adjusted EBITDA | |||||||||||||||||
Industrial Technologies and Services | $ | $ | $ | ||||||||||||||
Precision and Science Technologies | |||||||||||||||||
Specialty Vehicle Technologies | |||||||||||||||||
High Pressure Solutions | |||||||||||||||||
Total Segment Adjusted EBITDA | |||||||||||||||||
Less items to reconcile Segment Adjusted EBITDA to Income (Loss) Before Income Taxes: | |||||||||||||||||
Corporate expenses not allocated to segments(1) | |||||||||||||||||
Interest expense | |||||||||||||||||
Depreciation and amortization expense(2) | |||||||||||||||||
Impairment of other intangible assets(3) | |||||||||||||||||
Restructuring and related business transformation costs(4) | |||||||||||||||||
Acquisition related expenses and non-cash charges(5) | |||||||||||||||||
Expenses related to public stock offerings(6) | |||||||||||||||||
Establish public company financial reporting compliance(7) | |||||||||||||||||
Stock-based compensation(8) | ( | ||||||||||||||||
Loss on extinguishment of debt(9) | |||||||||||||||||
Foreign currency transaction losses (gains), net | ( | ||||||||||||||||
Shareholder litigation settlement recoveries(10) | ( | ( | |||||||||||||||
Other adjustments(11) | |||||||||||||||||
Income (Loss) Before Income Taxes | $ | ( | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Restructuring charges | $ | $ | $ | ||||||||||||||
Severance, sign-on, relocation and executive search costs | |||||||||||||||||
Facility reorganization, relocation and other costs | |||||||||||||||||
Information technology infrastructure transformation | |||||||||||||||||
Losses (gains) on asset and business disposals | ( | ||||||||||||||||
Consultant and other advisor fees | |||||||||||||||||
Other, net | |||||||||||||||||
Total restructuring and related business transformation costs | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Industrial Technologies and Services | $ | $ | $ | ||||||||||||||
Precision and Science Technologies | |||||||||||||||||
Specialty Vehicle Technologies | |||||||||||||||||
High Pressure Solutions | |||||||||||||||||
Total | |||||||||||||||||
General corporate (unallocated) | |||||||||||||||||
Total identifiable assets | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Industrial Technologies and Services | $ | $ | $ | ||||||||||||||
Precision and Science Technologies | |||||||||||||||||
Specialty Vehicle Technologies | |||||||||||||||||
High Pressure Solutions | |||||||||||||||||
Total depreciation and amortization expense | $ | $ | $ |
2020 | 2019 | 2018 | |||||||||||||||
Industrial Technologies and Services | $ | $ | $ | ||||||||||||||
Precision and Science Technologies | |||||||||||||||||
Specialty Vehicle Technologies | |||||||||||||||||
High Pressure Solutions | |||||||||||||||||
Total capital expenditures | $ | $ | $ |
Property, Plant and Equipment, net | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
United States | $ | $ | $ | ||||||||||||||
Other Americas | |||||||||||||||||
Total Americas | |||||||||||||||||
EMEA(1) | |||||||||||||||||
Asia Pacific | |||||||||||||||||
Total | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income (loss) attributable to Ingersoll Rand Inc. | $ | ( | $ | $ | |||||||||||||
Average shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted | |||||||||||||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | ( | $ | $ | |||||||||||||
Diluted | $ | ( | $ | $ |
Plan Category | Number of Securities to be issued upon Exercise of Outstanding Options, Warrants And Rights(1) | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights(2) | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (excluding Securities reflected in the first column)(3) | ||||||||||||||
Equity compensation plans approved by securityholders | 13,722,414 | $ | 18.57 | 11,218,665 |
Consolidated Statements of Operations - For the years ended December 31, 2020, 2019 and 2018 | ||||||||
Consolidated Statements of Comprehensive Income - For the years ended December 31, 2020, 2019 and 2018 | ||||||||
Consolidated Balance Sheets - As of December 31, 2020 and 2019 | ||||||||
Consolidated Statements of Stockholders’ Equity - For the years ended December 31, 2020, 2019 and 2018 | ||||||||
Consolidated Statements of Cash Flows - For the years ended December 31, 2020, 2019 and 2018 | ||||||||
Notes to Consolidated Financial Statements | ||||||||
Report of Independent Registered Public Accounting Firm |
Schedule I - Condensed Financial Statements Ingersoll Rand Inc. (Parent Company Only) |
Exhibit Number | Exhibit Description | |||||||
Agreement and Plan of Merger, dated as of April 30, 2019, by and among Ingersoll-Rand plc, Ingersoll-Rand U.S. Holdco, Inc., Gardner Denver Holdings, Inc. and Charm Merger Sub Inc. (incorporated by reference to Exhibit 2.1 of the Current Report on Form 8-K filed by Ingersoll-Rand plc on May 6, 2019 (File No. 001-34400)) | ||||||||
Separation and Distribution Agreement, dated as of April 30, 2019, by and between Ingersoll-Rand plc and Ingersoll-Rand U.S. HoldCo, Inc. (incorporated by reference to Exhibit 2.2 to the Current Report on Form 8-K filed by Ingersoll-Rand plc on May 6, 2019 (File No. 001-34400)) | ||||||||
Second Amended and Restated Certificate of Incorporation of Gardner Denver Holdings, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on May 17, 2017 (File no. 001-38095)) | ||||||||
Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation of Gardner Denver Holdings, Inc. (incorporated by reference to Exhibit 4.2 to the Registration Statement on Form S-8 filed by the registrant on March 2, 2020 (File no. 333-236801)) | ||||||||
Amended and Restated Bylaws of Gardner Denver Holdings, Inc. (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed on May 17, 2017 (File no. 001-38095)) | ||||||||
Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to Amendment No. 4 to the Registrant’s Registration Statement on Form S-1 filed on May 3, 2017 (File no. 333-216320)) | ||||||||
Amended and Restated Registration Rights Agreement, dated as of May 17, 2017, by and among KKR Renaissance Aggregator L.P.; KKR Renaissance Aggregator GP LLC; Gardner Denver Holdings, Inc. and each of the other parties thereto (incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed on May 17, 2017 (File no. 001-38095)) | ||||||||
Description of Ingersoll Rand Inc.’s Securities | ||||||||
2013 Stock Incentive Plan for Key Employees of Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) and its Subsidiaries (incorporated by reference to Exhibit 10.1 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Senior Secured Credit Agreement, dated as of July 30, 2013, among Renaissance Acquisition Corp., the foreign borrowers described therein, Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.), UBS AG, Stamford Branch, as administrative agent, and other agents and lenders party thereto (incorporated by reference to Exhibit 10.2 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Amendment No. 1, dated as of March 4, 2016, to the Senior Secured Credit Agreement, among Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.), Gardner Denver, Inc., GD German Holdings II GmbH (as successor in interest to Gardner Denver Holdings GmbH & Co. KG), GD First (UK) Limited, UBS AG, Stamford Branch, as administrative agent, and other agents and lenders party thereto (incorporated by reference to Exhibit 10.3 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Amendment No. 2, dated as of August 17, 2017, to the Senior Secured Credit Agreement, among Gardner Denver Holdings, Inc., Gardner Denver, Inc., GD German Holdings II GmbH, GD First (UK) Limited, UBS AG, Stamford Branch, as administrative agent, and the other parties and lenders party thereto (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on August 18, 2017 (File no. 001-38095)) | ||||||||
Amendment No. 3, dated as of December 13, 2018, to the Senior Secured Credit Agreement dated as of July 30, 2013, among Gardner Denver Holdings, Inc., Gardner Denver, Inc., GD German Holdings II GmbH, GD First (UK) Limited, UBS AG, Stamford Branch, as administrative agent, and the other parties and lenders part thereto (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on December 14, 2018 (File no. 001-38095) | ||||||||
Amendment No. 4 to the Credit Agreement, dated as of June 28, 2019, among Gardner Denver Holdings, Inc., GD German Holdings II GmbH, Gardner Denver Holdings Ltd., UBS AS, Stamford Branch as the Resigning Agent, Citibank, N.A. as the Successor Agent and the lenders and other entities party thereto (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on July 2, 2019 (File No. 001-38095)) | ||||||||
Amendment No. 5 to Credit Agreement and Joinder Agreement dated as of February 28, 2020, by and among Gardner Denver Holdings, Inc., Gardner Denver, Inc., GD German Holdings II GmbH, Gardner Denver Holdings, Ltd., Citibank, N.A. as administrative agent, and the other parties and lenders party thereto (incorporated by reference to Exhibit 10.10 to the Registrant’s Quarterly Report on Form 10-Q filed on May 15, 2020 (File No. 001-38095)) | ||||||||
Joinder Agreement and Amendment No. 6 to Credit Agreement, dated as of June 29, 2020, among Ingersoll Rand Inc., Gardner Denver, Inc., Ingersoll-Rand Services Company, GD German Holdings II GmbH, Gardner Denver Holdings Ltd., Citibank, N.A., and the lenders and other parties party thereto (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on July 1, 2020 (File No. 001-38095)) |
Pledge Agreement, dated as of July 30, 2013, among Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.), Renaissance Acquisition Corp., the subsidiary pledgors identified therein and UBS AG, Stamford Branch, as collateral agent (incorporated by reference to Exhibit 10.4 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Security Agreement, dated as of July 30, 2013, among Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.), Renaissance Acquisition Corp., the subsidiary grantors identified therein and UBS AG, Stamford Branch, as collateral agent (incorporated by reference to Exhibit 10.5 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Guarantee Agreement, dated as of July 30, 2013, among Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.), the subsidiary guarantors identified therein and UBS AG, Stamford Branch, as administrative agent and collateral agent (incorporated by reference to Exhibit 10.6 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Amendment No. 3 to Receivables Financing Agreement dated as of February 27, 2020, by and among Gardner Denver, Inc., as initial servicer, Gardner Denver Finance II LLC, as borrower, and PNC Bank, National Association, as lender, LC participant, LC bank, and administrative agent (incorporated by reference to Exhibit 10.11 to the Registrant’s Quarterly Report on Form 10-Q filed on May 15, 2020 (File No. 001-38095)) | ||||||||
Indemnification Agreement, dated as of July 30, 2013, by and among KKR Renaissance Aggregator L.P.; KKR Renaissance Aggregator GP LLC; Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.); Gardner Denver, Inc. and Kohlberg Kravis Roberts & Co. L.P. (incorporated by reference to Exhibit 10.10 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Stockholders Agreement, dated as of May 17, 2018, between Gardner Denver Holdings, Inc. and KKR Renaissance Aggregator L.P. (incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed on May 17, 2017 (File no. 001-38095)) | ||||||||
Form of Management Stockholder’s Agreement (incorporated by reference to Exhibit 10.13 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Form of Director Stockholder’s Agreement (incorporated by reference to Exhibit 10.14 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Form of Advisor Stockholder’s Agreement (incorporated by reference to Exhibit 10.15 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Form of Director Stock Option Agreement under the 2013 Stock Incentive Plan for Key Employees of Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) and its Subsidiaries (incorporated by reference to Exhibit 10.16 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Form of Management Stock Option Agreement (December 2013) under the 2013 Stock Incentive Plan for Key Employees of Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) and its Subsidiaries (incorporated by reference to Exhibit 10.17 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Form of Management Stock Option Agreement (May 2015) under the 2013 Stock Incentive Plan for Key Employees of Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) and its Subsidiaries (incorporated by reference to Exhibit 10.18 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Form of Management Stock Option Agreement (May 2016, 3 year vesting) under the 2013 Stock Incentive Plan for Key Employees of Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) and its Subsidiaries (incorporated by reference to Exhibit 10.19 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Form of Management Stock Option Agreement (May 2016, 5 year vesting) under the 2013 Stock Incentive Plan for Key Employees of Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) and its Subsidiaries (incorporated by reference to Exhibit 10.20 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Form of Management Stock Option Agreement (December 2016) under the 2013 Stock Incentive Plan for Key Employees of Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) and its Subsidiaries (incorporated by reference to Exhibit 10.21 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Form of Amendment to Stock Option Agreement or Stock Appreciation Right Agreement under the 2013 Stock Incentive Plan for Key Employees of Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) and its Subsidiaries (incorporated by reference to Exhibit 10.22 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Stock Option Agreement, dated as of March 7, 2014, under the 2013 Stock Incentive Plan for Key Employees of Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) between Gardner Denver Holdings, Inc. (formerly known as Renaissance Parent Corp.) and Andrew Schiesl (incorporated by reference to Exhibit 10.23 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) |
Form of Sale Participation Agreement (incorporated by reference to Exhibit 10.24 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Offer Letter, dated April 17, 2015, between Vicente Reynal and Gardner Denver, Inc. (incorporated by reference to Exhibit 10.25 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Offer Letter, dated November 19, 2015, between Vicente Reynal and Gardner Denver, Inc. (incorporated by reference to Exhibit 10.26 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Offer Letter, dated November 25, 2013, between Gardner Denver, Inc. and Andy Schiesl (incorporated by reference to Exhibit 10.31 to the Registrant’s Registration Statement on Form S-1 filed on February 28, 2017 (File no. 333-216320)) | ||||||||
Employment Contract, dated September 11, 2018 between Gardner Denver Deutschland GmbH and Enrique Miñarro Viseras (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on October 29, 2018 (File No. 001-38095)) | ||||||||
Ingersoll Rand Inc. Amended and Restated 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 4.4 to the Registrant’s Registration Statement on Form S-8 filed on March 2, 2020 (File No. 001-38095)) | ||||||||
Form of Restricted Stock Unit Grant Notice and Agreement (2018) under the Gardner Denver Holdings, Inc. 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on April 27, 2018 (File No. 001-38095)) | ||||||||
Form of Director Restricted Stock Unit Grant Notice and Agreement under the Gardner Denver Holdings, Inc. 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on April 27, 2018 (File no. 001-38095)) | ||||||||
Form of Stock Option Grant Notice and Agreement under the Gardner Denver Holdings, Inc. 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.42 to the Registrant’s Annual Report on Form 10-K filed on February 16, 2018 (File no. 001-38095)) | ||||||||
Gardner Denver, Inc. Supplemental Excess Defined Contribution Plan (January 1, 2019 Restatement) (incorporated by reference to Exhibit 10.36 to the Registrants Annual Report on Form 10-K filed on February 27, 2019 (File no. 001-38095)) | ||||||||
Amendment No. 1 to the Stockholders Agreement, dated as of April 30, 2019, between Gardner Denver Holdings, Inc. and KKR Renaissance Aggregator L.P. (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on May 6, 2019 (File No. 001-38095)) | ||||||||
Transition Agreement, dated June 12, 2020, between Ingersoll Rand Inc. and Emily Weaver (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on August 4, 2020 (File No. 001-38095)) | ||||||||
Form of Stock Option Grant Notice and Agreement under the Gardner Denver Holdings, Inc. 2017 Omnibus Incentive Plan | ||||||||
Form of Restricted Stock Unit Grant Notice and Agreement (2019) under the Gardner Denver Holdings, Inc. 2017 Omnibus Incentive Plan | ||||||||
Transition Services Agreement, dated as of February 29, 2020, by and between Ingersoll-Rand plc and Ingersoll-Rand U.S. Holdco, Inc. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on March 4, 2020 (File No. 001-38095)) | ||||||||
Tax Matters Agreement, dated as of February 29, 2020, by and among Ingersoll-Rand plc, Ingersoll-Rand Lux International Holding Company S.A.R.L, Ingersoll-Rand Services Company, Ingersoll-Rand U.S. HoldCo, Inc. and Gardner Denver Holdings, Inc. (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on March 4, 2020 (File No. 001-38095)) | ||||||||
Employee Matters Agreement, dated as of February 29, 2020, by and among Ingersoll-Rand plc, Ingersoll-Rand U.S. HoldCo, Inc. and Gardner Denver Holdings, Inc. (incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed on March 4, 2020 (File No. 001-38095)) | ||||||||
Real Estate Matters Agreement, dated February 29, 2020, by and between Ingersoll-Rand plc, and Ingersoll-Rand U.S. HoldCo, Inc. and Gardner Denver Holdings, Inc. (incorporated by reference to Exhibit 10.4 to the Registrant’s Current Report on Form 8-K filed on March 4, 2020 (File No. 001-38095)) | ||||||||
Intellectual Property Matters Agreement, dated as of February 29, 2020, by and between Ingersoll-Rand plc, Ingersoll-Rand U.S. HoldCo, Inc., and solely for the purposes of Section 5.06, Gardner Denver Holdings, Inc. (incorporated by reference to Exhibit 10.5 to the Registrant’s Current Report on Form 8-K filed on March 4, 2020 (File No. 001-38095)) | ||||||||
Trademark License Agreement, dated as of February 29, 2020, by and between Ingersoll-Rand U.S. HoldCo, Inc. and Ingersoll-Rand plc (incorporated by reference to Exhibit 10.6 to the Registrant’s Current Report on Form 8-K filed on March 4, 2020 (File No. 001-38095)) | ||||||||
Omnibus Transaction Side Letter, dated February 29, 2020, by and among Ingersoll-Rand plc, Ingersoll-Rand U.S. Holdco Inc., Gardner Denver Holdings, Inc. and Charm Merger Sub Inc. (incorporated by reference to Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q filed on May 15, 2020 (File No. 001-38095)) |
Side Letter to the Employee Matters Agreement, dated July 11, 2019, by and among Ingersoll-Rand plc and Gardner Denver Holdings, Inc. (incorporated by reference to Exhibit 10.8 to the Registrant’s Quarterly Report on Form 10-Q filed on May 15, 2020 (File No. 001-38095)) | ||||||||
Side Letter to the Employee Matters Agreement, dated February 29, 2020, by and among Ingersoll-Rand plc, Ingersoll-Rand U.S. Holdco, Inc. and Gardner Denver Holdings, Inc. (incorporated by reference to Exhibit 10.9 to the Registrant’s Quarterly Report on Form 10-Q filed on May 15, 2020 (File No. 001-38095)) | ||||||||
Form of Performance Stock Unit Grant Notice and Agreement under the Ingersoll Rand Inc. Amended and Restated 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.13 to the Registrant’s Quarterly Report on Form 10-Q filed on May 15, 2020 (File No. 001-38095)) | ||||||||
Form of Restricted Stock Unit Grant Notice and Agreement (2-yr vesting) under the Ingersoll Rand Inc. Amended and Restated 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.14 to the Registrant’s Quarterly Report on Form 10-Q filed on May 15, 2020 (File No. 001-38095)) | ||||||||
Form of Restricted Stock Unit Grant Notice and Agreement (4-yr vesting) under the Ingersoll Rand Inc. Amended and Restated 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.15 to the Registrant’s Quarterly Report on Form 10-Q filed on May 15, 2020 (File No. 001-38095)) | ||||||||
Form of Stock Option Grant Notice and Agreement under the Ingersoll Rand Inc. Amended and Restated 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.16 to the Registrant’s Quarterly Report on Form 10-Q filed on May 15, 2020 (File No. 001-38095)) | ||||||||
Subsidiaries of Ingersoll Rand Inc. as of December 31, 2020 | ||||||||
Consent of Independent Registered Public Accounting Firm | ||||||||
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) | ||||||||
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) | ||||||||
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 | ||||||||
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101) |
Ingersoll Rand Inc. | ||||||||
By: | /s/ Vicente Reynal | |||||||
Name: Vicente Reynal | ||||||||
Title: Chief Executive Officer |
Signature | Capacity | |||||||
/s/ Vicente Reynal | Chief Executive Officer and Director | |||||||
Vicente Reynal | (Principal Executive Officer), Director | |||||||
/s/ Vikram U. Kini | Vice President and Chief Financial Officer | |||||||
Vikram U. Kini | (Principal Financial Officer) | |||||||
/s/ Michael J. Scheske | Vice President and Corporate Controller | |||||||
Michael J. Scheske | (Principal Accounting Officer) | |||||||
/s/ Peter Stavros | Director | |||||||
Peter Stavros | ||||||||
/s/ Kirk E. Arnold | Director | |||||||
Kirk E. Arnold | ||||||||
/s/ Elizabeth Centoni | Director | |||||||
Elizabeth Centoni | ||||||||
/s/ William P. Donnelly | Director | |||||||
William P. Donnelly | ||||||||
/s/ Gary D. Forsee | Director | |||||||
Gary D Forsee | ||||||||
/s/ John Humphrey | Director | |||||||
John Humphrey | ||||||||
/s/ Marc E. Jones | Director | |||||||
Marc E. Jones | ||||||||
/s/ Joshua T. Weisenbeck | Director | |||||||
Joshua T. Weisenbeck | ||||||||
/s/ Tony L. White | Director | |||||||
Tony L. White |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Revenues | $ | $ | $ | ||||||||||||||
Cost of sales | |||||||||||||||||
Gross Profit | ( | ( | |||||||||||||||
Operating costs | ( | ||||||||||||||||
Other operating expense, net | ( | ( | ( | ||||||||||||||
Operating Income (Loss) | ( | ||||||||||||||||
Interest income | |||||||||||||||||
Income Before Income Taxes | |||||||||||||||||
Income tax provision (benefit) | ( | ( | |||||||||||||||
Income (Loss) of Parent Company | |||||||||||||||||
Equity in undistributed income of subsidiaries | ( | ||||||||||||||||
Net Income (Loss) | ( | ||||||||||||||||
Other comprehensive income (loss) | ( | ( | |||||||||||||||
Comprehensive Income | $ | $ | $ |
As of December 31, | |||||||||||
2020 | 2019 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Equity in net assets of subsidiaries | |||||||||||
Intercompany receivables | |||||||||||
Deferred tax assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders' Equity | |||||||||||
Other liabilities | $ | $ | |||||||||
Total liabilities | |||||||||||
Stockholders' equity: | |||||||||||
Common stock, $ | |||||||||||
Capital in excess of par value | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ||||||||||
Treasury stock at cost; | ( | ( | |||||||||
Total Ingersoll Rand Inc. stockholders' equity | |||||||||||
Total liabilities and equity | $ | $ |
For the Years Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Cash Flows From Operating Activities: | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | ( | $ | ( | $ | ||||||||||||
Cash Flows From Investing Activities: | |||||||||||||||||
Advances to subsidiaries | ( | ( | ( | ||||||||||||||
Net cash provided by (used in) investing activities | ( | ( | ( | ||||||||||||||
Cash Flows From Financing Activities: | |||||||||||||||||
Proceeds from stock option exercises | |||||||||||||||||
Purchases of treasury stock | ( | ( | ( | ||||||||||||||
Purchase of shares from noncontrolling interest | ( | ||||||||||||||||
Proceeds from sale of noncontrolling interest | |||||||||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||||||||
Increase (decrease) in cash and cash equivalents | ( | ||||||||||||||||
Cash and cash equivalents, beginning of year | |||||||||||||||||
Cash and cash equivalents, end of year | $ | $ | $ |
Entity Name | Domestic Jurisdiction | |||||||
211 E. Russell Road LLC | Ohio | |||||||
Accudyne Industries Acquisition S.à r.l | Luxembourg | |||||||
Accudyne Industries Asia Pte. Ltd. | Singapore | |||||||
Accudyne Industries Borrower S.C.A. | Luxembourg | |||||||
Accudyne Industries Canada Inc. | Canada | |||||||
Accudyne Industries India Private Limited | India | |||||||
Accudyne Industries Middle East FZE | United Arab Emirates | |||||||
Accudyne Industries S.à r.l. | Luxembourg | |||||||
Accudyne Industries Services Limited | United Kingdom | |||||||
Accudyne Industries, LLC | Delaware | |||||||
Albin Pump SAS | France | |||||||
Boardwalk Enterprises, LLC | Texas | |||||||
Club Car Limited | New Zealand | |||||||
Club Car, LLC | Delaware | |||||||
Comercial Ingersoll-Rand (Chile) Limitada | Chile | |||||||
Comingersoll-Comercio E Industria De Equipamentos S.A. | Portugal | |||||||
CompAir (Hankook) Korea Co. Ltd. | Korea | |||||||
CompAir Acquisition (No. 2) Ltd. | United Kingdom | |||||||
CompAir Acquisition Ltd. | United Kingdom | |||||||
CompAir BroomWade Ltd. | United Kingdom | |||||||
CompAir Finance Ltd. | United Kingdom | |||||||
CompAir GmbH | Austria | |||||||
CompAir Holdings Limited | United Kingdom | |||||||
CompAir International Trading (Shanghai) Co Ltd | China | |||||||
CompAir Korea Ltd | Korea | |||||||
CompAir South Africa (SA) (Pty) Ltd. | South Africa | |||||||
Consolidated Distribution Holdings, Ltd. | United Kingdom | |||||||
Dosatron International SAS | France | |||||||
Emco Wheaton Gmbh | Germany | |||||||
Emco Wheaton USA Inc | Texas | |||||||
Enza Air Proprietary Limited | South Africa | |||||||
FlexEnergy Holdings, LLC | Delaware | |||||||
Gardner Denver (Thailand) Co. Ltd. | Thailand | |||||||
Gardner Denver Austria GmbH | Austria | |||||||
Gardner Denver Bad Neustadt Real Estate GmbH & Co KG | Germany | |||||||
Gardner Denver Belgium NV | Belgium | |||||||
Gardner Denver Brasil Industria E Comercio de Maquinas Ltda. | Brazil | |||||||
Gardner Denver Canada Corp (Canada) | Canada | |||||||
Gardner Denver Cyprus Investments II Limited | Cyprus | |||||||
Gardner Denver Cyprus Investments Limited | Cyprus | |||||||
Gardner Denver CZ + SK sro | Czech Republic | |||||||
Gardner Denver Deutschland GmbH | Germany | |||||||
Gardner Denver Engineered Products India Private Limited | India | |||||||
Gardner Denver Finance II LLC | Delaware | |||||||
Gardner Denver Finance Inc & Co KG | Germany |
Entity Name | Domestic Jurisdiction | |||||||
Gardner Denver France SAS | France | |||||||
Gardner Denver FZE | United Arab Emirates | |||||||
Gardner Denver Group Svcs Ltd | United Kingdom | |||||||
Gardner Denver Holdings Limited | United Kingdom | |||||||
Gardner Denver Hong Kong Investments Limited | Hong Kong | |||||||
Gardner Denver Hong Kong Ltd | Hong Kong | |||||||
Gardner Denver Iberica, SL | Spain | |||||||
Gardner Denver Industries Ltd. | United Kingdom | |||||||
Gardner Denver Industries Pty Ltd. | Australia | |||||||
Gardner Denver International Ltd. | United Kingdom | |||||||
Gardner Denver International, Inc. | Delaware | |||||||
Gardner Denver Investments, Inc. | Delaware | |||||||
Gardner Denver Italy Holdings S.r.L. | Italy | |||||||
Gardner Denver Japan, Ltd. | Japan | |||||||
Gardner Denver Kirchhain Real Estate GmbH & Co KG | Germany | |||||||
Gardner Denver Korea, Ltd. | Korea | |||||||
Gardner Denver Ltd. | United Kingdom | |||||||
Gardner Denver Ltd. (South Africa) | South Africa | |||||||
Gardner Denver Machinery (Shanghai) Co., Ltd. | China | |||||||
Gardner Denver Nash Brasil Industria E Comercio De Bombas Ltda | Brazil | |||||||
Gardner Denver Nash LLC | Delaware | |||||||
Gardner Denver Nash Machinery Ltd. | China | |||||||
Gardner Denver Nederland BV | Netherlands | |||||||
Gardner Denver Nederland Investments B.V. | Netherlands | |||||||
Gardner Denver Oy | Finland | |||||||
Gardner Denver Petroleum Pumps, LLC | Oklahoma | |||||||
Gardner Denver Polska Sp z.o.o. | Poland | |||||||
Gardner Denver Pte. Ltd. | Singapore | |||||||
Gardner Denver S.r.l. | Italy | |||||||
Gardner Denver Schopfheim GmbH | Germany | |||||||
Gardner Denver Schopfheim Real Estate GmbH & Co KG | Germany | |||||||
Gardner Denver Schweiz AG | Switzerland | |||||||
Gardner Denver Slovakia, s.r.o. | Slovakia | |||||||
Gardner Denver SudAmerica S.r.l. | Argentina | |||||||
Gardner Denver Sweden AB | Sweden | |||||||
Gardner Denver Taiwan Ltd. | Taiwan | |||||||
Gardner Denver Thomas GmbH (f/k/a ILMVAC GmbH) | Germany | |||||||
Gardner Denver Thomas Pneumatic Systems (Wuxi) Co., Ltd. | China | |||||||
Gardner Denver Thomas Real Estate GmbH & Co KG | Germany | |||||||
Gardner Denver Thomas, Inc. | Delaware | |||||||
Gardner Denver, Inc. | Delaware | |||||||
Garo Dott. Ing. Roberto Gabbioneta S.r.l. | Italy | |||||||
GD Aria Holdings #2 Limited | United Kingdom |
Entity Name | Domestic Jurisdiction | |||||||
GD Aria Holdings Limited | United Kingdom | |||||||
GD Aria Investments Limited | United Kingdom | |||||||
GD First (UK) Ltd | United Kingdom | |||||||
GD German Holdings GmbH | Germany | |||||||
GD German Holdings I GmbH | Germany | |||||||
GD German Holdings II GmbH | Germany | |||||||
GD German Investments GmbH | Germany | |||||||
GD Global Holdings II, Inc. | Delaware | |||||||
GD Global Holdings UK II Ltd. | United Kingdom | |||||||
GD Global Holdings, Inc. | Delaware | |||||||
GD Global Ventures I B.V. | Netherlands | |||||||
GD Global Ventures II B.V. | Netherlands | |||||||
GD Global Ventures III B.V. | Netherlands | |||||||
GD Industrial Products Malaysia SDN. BHD. | Malaysia | |||||||
GD Investment KY | Finland | |||||||
GD UK Finance Ltd. | United Kingdom | |||||||
GHH-Rand Schraubenkompressoren Gmbh | Germany | |||||||
Golf Academies Limited | United Kingdom | |||||||
GPS Industries, LLC | Delaware | |||||||
Haskel Europe Ltd. | United Kingdom | |||||||
Haskel France SAS | France | |||||||
Haskel Holdings UK, Limited | United Kingdom | |||||||
Haskel International, LLC | California | |||||||
Haskel Sistemas de Fluidos España, S.R.L. | Spain | |||||||
Hibon Inc. | Canada | |||||||
ILMVAC (UK) Ltd. | United Kingdom | |||||||
ILS Inovative Laborsysteme GmbH | Germany | |||||||
Ingersoll Rand Cyprus Investments Ltd. | Cyprus | |||||||
Ingersoll Rand Global Investments, LLC | Delaware | |||||||
Ingersoll Rand Global Ventures, LLC | Delaware | |||||||
Ingersoll Rand Inc. | Delaware | |||||||
Ingersoll Rand Investments (SG) Pte. Ltd. | Singapore | |||||||
Ingersoll Rand Investments B.V. | Netherlands | |||||||
Ingersoll Rand ITS Japan Ltd. | Japan | |||||||
Ingersoll Rand Schweiz Investments Gmbh | Switzerland | |||||||
Ingersoll-Rand (Australia) Ltd. | Australia | |||||||
Ingersoll-Rand (Chang Zhou) Tools Co., Ltd. | China | |||||||
Ingersoll-Rand (China) Industrial Equipment Manufacturing Co., Ltd. | China | |||||||
Ingersoll-Rand (China) Investment Company Limited | China | |||||||
Ingersoll-Rand (Guilin) Tools Company Limited | China | |||||||
Ingersoll-Rand (Hong Kong) Holding Company Limited | Hong Kong | |||||||
Ingersoll-Rand (India) Limited | India | |||||||
Ingersoll-Rand (Shanghai) Trading Co., Ltd. | China |
Entity Name | Domestic Jurisdiction | |||||||
Ingersoll-Rand AB | Sweden | |||||||
Ingersoll-Rand Air Solutions Hibon Sarl | France | |||||||
Ingersoll-Rand Beteiligungs Und Grundstucksverwaltungs Gmbh | Germany | |||||||
Ingersoll-Rand China, LLC | Delaware | |||||||
Ingersoll-Rand Colombia S.A.S. | Colombia | |||||||
Ingersoll-Rand Company Limited (UK) | United Kingdom | |||||||
Ingersoll-Rand Company South Africa (Pty) Limited | South Africa | |||||||
Ingersoll-Rand Comércio E Serviços De Máquinas E Equipamentos Industriais Ltda. | Brazil | |||||||
Ingersoll-Rand Cz S.R.O. | Czech Republic | |||||||
Ingersoll-Rand De Mexico, S.A. De C.V. | Mexico | |||||||
Ingersoll-Rand De Puerto Rico, Inc. | Puerto Rico | |||||||
Ingersoll-Rand Equipements De Production S.A.S. | France | |||||||
Ingersoll-Rand Holdings Limited | United Kingdom | |||||||
Ingersoll-Rand Industrial Company B.V. | Netherlands | |||||||
Ingersoll-Rand Industrial Ireland Limited | Ireland | |||||||
Ingersoll-Rand Industrial Sp. Z O.O. | Poland | |||||||
Ingersoll-Rand Industrial U.S., Inc. | Delaware | |||||||
Ingersoll-Rand International (India) Private Limited | India | |||||||
Ingersoll-Rand International Holding LLC | New Jersey | |||||||
Ingersoll-Rand Italia S.R.L. | Italy | |||||||
Ingersoll-Rand Italiana Manufacturing S.R.L. | Italy | |||||||
Ingersoll-Rand Korea Holding LLC | Delaware | |||||||
Ingersoll-Rand Korea Limited | Korea, Republic Of | |||||||
Ingersoll-Rand Lux Investments II S.À R.I. | Luxembourg | |||||||
Ingersoll-Rand Lux Investments S.À R.L. | Luxembourg | |||||||
Ingersoll-Rand Luxembourg Industrial Company S.À R.L. | Luxembourg | |||||||
Ingersoll-Rand Machinery (Shanghai) Company Limited | China | |||||||
Ingersoll-Rand Malaysia Co. Sdn. Bhd. | Malaysia | |||||||
Ingersoll-Rand Philippines, Inc. | Philippines | |||||||
Ingersoll-Rand S.A. De C.V. | Mexico | |||||||
Ingersoll-Rand Services And Trading Limited Liability Company | Russian Federation | |||||||
Ingersoll-Rand Services Company | Delaware | |||||||
Ingersoll-Rand Services Limited | United Kingdom | |||||||
Ingersoll-Rand Singapore Enterprises Pte. Ltd. | Singapore | |||||||
Ingersoll-Rand South East Asia (Pte.) Ltd. | Singapore | |||||||
Ingersoll-Rand Spain, S.A. | Spain | |||||||
Ingersoll-Rand Superay Holdings Limited | Hong Kong | |||||||
Ingersoll-Rand Technical And Services Limited | Ireland | |||||||
Ingersoll-Rand Technical And Services S.Á.R.L. | Switzerland | |||||||
Ingersoll-Rand Technologies And Services Private Limited | India | |||||||
Ingersoll-Rand Tool Holdings Limited | Hong Kong | |||||||
Ingersoll-Rand Trading Gmbh | Germany | |||||||
Ingersoll-Rand U.S. Holdco, Inc. | Delaware |
Entity Name | Domestic Jurisdiction | |||||||
Ingersoll-Rand Vietnam Company Limited | Vietnam | |||||||
IR Canada Holdings ULC | Canada | |||||||
IR Canada Sales & Service ULC | Canada | |||||||
IR France SAS | France | |||||||
LeRoi International Inc | Delaware | |||||||
MB Air Systems Limited | United Kingdom | |||||||
Milton Roy (Hong Kong) Limited | Hong Kong | |||||||
Milton Roy (UK) Limited | United Kingdom | |||||||
Milton Roy Europa B.V. | Netherlands | |||||||
Milton Roy Europe SAS | France | |||||||
Milton Roy Industrial (Shanghai) Co., Ltd. | China | |||||||
Milton Roy US Purchaser, Inc. | Delaware | |||||||
Milton Roy, LLC | Pennsylvania | |||||||
Officina Meccaniche Industriali Srl | Italy | |||||||
Oina VV Aktiebolag | Sweden | |||||||
Plurifilter D.O.O. | Slovenia | |||||||
PT Ingersoll-Rand Indonesia | Indonesia | |||||||
Runtech Systems (Shanghai) Co. Ltd. | China | |||||||
Runtech Systems OY | Finland | |||||||
Runtech Systems, Inc. | Delaware | |||||||
Shanghai CompAir Compressors Co Ltd | China | |||||||
Shanghai Compressors & Blowers Ltd. | United Kingdom | |||||||
Shanghai Ingersoll-Rand Compressor Limited | China | |||||||
Tamrotor Marine Comp AS Norway | Norway | |||||||
Tecno Matic Europe s.r.o. | Czech Republic | |||||||
Thomas Industries, Inc. | Delaware | |||||||
TIWR Real Estate GmbH & Co. KG | Germany | |||||||
Tri-Continent Scientific, Inc. | California | |||||||
Welch Vacuum Equipment (Shanghai) Co., Ltd. | China | |||||||
ZEKS Compressed Air Solutions LLC | Delaware | |||||||
Zinsser Analytik GmbH | Germany | |||||||
Zinsser NA, Inc. | California |
Date: February 26, 2021 | |||||
/s/ Vicente Reynal | |||||
Vicente Reynal | |||||
Chief Executive Officer and Director | |||||
(Principal Executive Officer) |
Date: February 26, 2021 | |||||
/s/ Vikram U. Kini | |||||
Vikram U. Kini | |||||
Vice President and Chief Financial Officer | |||||
(Principal Financial Officer) |
Date: February 26, 2021 | |||||
/s/ Vicente Reynal | |||||
Vicente Reynal Chief Executive Officer and Director (Principal Executive Officer) |
Date: February 26, 2021 | |||||
/s/ Vikram U. Kini | |||||
Vikram U. Kini Vice President and Chief Financial Officer (Principal Financial Officer) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 67.6 | $ 18.4 |
Accumulated depreciation on property, plant and equipment | $ 373.3 | $ 298.4 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock authorized (shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (shares) | 420,123,978 | 206,767,529 |
Treasury stock (shares) | 1,496,169 | 1,701,785 |
Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Overview and Basis of Presentation On February 29, 2020, Ingersoll Rand Inc. (formerly known as Gardner Denver Holdings, Inc.) completed the acquisition of the Ingersoll Rand Industrial business (“Ingersoll Rand Industrial”) by way of merger and changed its name from Gardner Denver Holdings, Inc. to Ingersoll Rand Inc. The consolidated financial statements as of and for the year ended December 31, 2020 include the financial results of Ingersoll Rand Industrial from the date of acquisition. Ingersoll Rand Inc. is a global market leader with a broad range of innovative and mission-critical air, fluid, energy, specialty vehicle and medical technologies, providing services and solutions to increase industrial productivity and efficiency. The accompanying consolidated financial statements include the accounts of Ingersoll Rand Inc. and its consolidated subsidiaries (collectively referred to herein as “Ingersoll Rand” or the “Company”). The results of operations for the year ended December 31, 2020 are not necessarily indicative of future results. The COVID-19 pandemic continues to have a significant adverse impact on many areas of the global economy. The Company’s operating results will be subject to fluctuations based on general economic conditions, and the extent to which COVID-19 may ultimately impact its business will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the ultimate extent of the spread of the disease and the duration of the outbreak and business closures or business disruptions for the Company, suppliers and customers. Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany transactions and accounts have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The Company regularly evaluates the estimates and assumptions related to the allowance for credit losses, inventory valuation, warranty reserves, fair value of stock-based awards, goodwill, intangible asset, and long-lived asset valuations, employee benefit plan liabilities, over time revenue recognition, income tax liabilities and deferred tax assets and related valuation allowances, uncertain tax positions, restructuring reserves, and litigation and other loss contingencies. Actual results could differ materially and adversely from those estimates and assumptions, and such results could affect the Company’s consolidated net income, financial position, or cash flows. Foreign Currency Translation Assets and liabilities of the Company’s foreign subsidiaries, where the functional currency is not the U.S. Dollar (“USD”), are translated at the exchange rate in effect at the balance sheet date, while revenues and expenses are translated at average rates prevailing during the year. Adjustments resulting from the translation of the assets and liabilities of foreign operations into USD are excluded from the determination of net income (loss), and are reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, and included as a component of other comprehensive income (loss). Assets and liabilities of subsidiaries that are denominated in currencies other than the subsidiaries’ functional currency are remeasured into the functional currency using end of period exchange rates, or historical rates for certain balances, where applicable. Gains and losses related to these remeasurements are recorded within the Consolidated Statements of Operations as a component of “Other operating expense, net.” Revenue Recognition On January 1, 2018, the Company adopted the Financial Accounting Standards Board (“FASB”) ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). The Company adopted the guidance using a modified retrospective approach. Results for the years ended December 31, 2020, 2019 and 2018 were recorded under ASC 606 in the Consolidated Statements of Operations. See Note 14 “Revenue from Contracts with Customers” for more discussion of the adoption of ASC 606 and the related significant accounting policies. Leases On January 1, 2019, the Company adopted FASB ASU 2016-02, Leases (Topic 842) (“ASC 842”) utilizing the optional transition method. The guidance required the Company to recognize right-of-use lease assets and lease liabilities on the balance sheet for those leases classified as operating leases. The Consolidated Balance Sheets as of December 31, 2020 and 2019 reflect the adoption of ASC 842. See Note 16 “Leases” for further discussion of the Company’s operating and financing leases. Cost of Sales Cost of sales includes the costs the Company incurs, including purchased materials, labor and overhead related to manufactured products and aftermarket parts sold during a period. Depreciation related to manufacturing equipment and facilities is included in cost of sales. Purchased materials represent the majority of costs of sales, with steel, aluminum, copper and partially finished castings representing the most significant materials inputs. Cost of sales for services includes the direct costs the Company incurs including direct labor, parts and other overhead costs including depreciation of equipment and facilities to deliver repair, maintenance, and other field services to the Company’s customers. Selling and Administrative Expenses Selling and administrative expenses consist of (i) employee related salary, stock-based compensation expense, benefits and other expenses for selling, administrative functions and other activities not associated with the manufacture of products or delivery of services to customers; (ii) the costs of marketing and direct costs of selling products and services to customers including internal and external sales commissions; (iii) facilities costs including office rent, maintenance, depreciation, and insurance for selling and administrative activities; (iv) research and development expenditures; (v) professional and consultant fees; (vi) expenses related to the Company’s public stock offerings and to establish public company reporting compliance; and (vii) other miscellaneous expenses. Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments primarily consisting of demand deposits and have original maturities of three months or less. Accordingly, the carrying amount of such instruments is considered a reasonable estimate of fair value. As of December 31, 2020 and 2019, cash of $3.1 million and $3.4 million, respectively, was pledged to financial institutions as collateral to support the issuance of standby letters of credit and similar instruments on behalf of the Company. Accounts Receivable Trade accounts receivable consist of amounts owed for products shipped to or services performed for customers. Reviews of customers’ creditworthiness are performed prior to order acceptance or order shipment. Trade accounts receivable are recorded net of an allowance for expected credit losses. The allowance for credit losses is based on the Company's assessment of losses that will result from its customers' inability or unwillingness to pay amounts owed to the Company. The allowance is determined using a combination of factors, including historical credit loss experience and the length of time that the trade receivables are past due, supplemented by the Company’s knowledge of customer-specific information, current market conditions and reasonable and supportable forecasts of future events and economic conditions. Inventories Inventories, which consist primarily of raw materials and finished goods, are carried at the lower of cost or net realizable value. Fixed manufacturing overhead is allocated to the cost of inventory based on the normal capacity of production facilities. Unallocated overhead during periods of abnormally low production levels is recognized as cost of sales in the period in which it is incurred. Property, Plant and Equipment Property, plant and equipment includes the historical cost of land, buildings, equipment, and significant improvements to existing plant and equipment or in the case of acquisitions, a fair market value of assets at the time of acquisition. Repair and maintenance costs that do not extend the useful life of an asset are recorded as an expense as incurred. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are generally as follows: buildings — 10 to 30 years, machinery and equipment — 7 to 10 years, and office furniture and equipment — 3 to 10 years. Goodwill and Indefinite-Lived Intangible Assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired, liabilities assumed, and non-controlling interests, if any. Intangible assets, including goodwill, are assigned to the Company’s reporting units based upon their fair value at the time of acquisition. Goodwill and indefinite-lived intangibles such as tradenames are not subject to amortization but are assessed for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired or that there is a probable reduction in the fair value of a reporting unit below its aggregate carrying value. The Company tests goodwill for impairment annually in the fourth quarter of each year using data as of October 1 of that year and whenever events or changes in circumstances indicate the carrying value may not be recoverable. The impairment test consists of comparing the fair value of the reporting unit to the carrying value of the reporting unit. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; provided, the loss recognized cannot exceed the total amount of goodwill allocated to the reporting unit. If applicable, the Company considers income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The Company determined fair values for each of the reporting units using a combination of the income and market multiple approaches which are weighted 75% and 25%, respectively. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The Company uses its internal forecasts to estimate future cash flows and includes an estimate of long-term future growth rates based on its most recent views of the long-term outlook for each reporting unit. Actual results may differ from those assumed in the Company’s forecasts. The Company derives its discount rates using a capital asset pricing model and analyzing published rates for industries relevant to its reporting units to estimate the cost of equity financing. The Company uses discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in its internally developed forecasts. Under the market approach, the Company applies performance multiples from comparable public companies, adjusted for relative risk, profitability, and growth considerations, to the reporting units to estimate fair value. The Company tests intangible assets with indefinite lives annually for impairment using a relief from royalty discounted cash flow fair value model. The quantitative impairment test for indefinite-lived intangible assets involves a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The relief from royalty method requires the Company to estimate forecasted revenues and determine appropriate discount rates, royalty rates, and terminal growth rates. See Note 8 “Goodwill and Other Intangible Assets” for additional information related to impairment testing for goodwill and other intangible assets. Long-Lived Assets Including Intangible Assets With Finite Useful Lives Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives, which vary depending on the type of intangible assets. In determining the estimated useful lives of definite-lived intangibles, we consider the nature, competitive position, life cycle position and historical and expected future operating cash flows of each acquired assets, as well as our commitment to support these assets through continued investment and legal infringement protection. The Company reviews long-lived assets, including identified intangible assets with finite useful lives and subject to amortization for impairment, whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires comparing the carrying amount to the sum of undiscounted cash flows expected to be generated by the asset. Such events and circumstances include the occurrence of an adverse change in the market involving the business employing the related long-lived assets or a situation in which it is more likely than not that the Company will dispose of such assets. If the comparison indicates that there is impairment, the impairment loss to be recognized as a non-cash charge to earnings is measured by the amount by which the carrying amount of the assets exceeds their fair value and the impaired assets are written down to their fair value or, if fair value is not readily determinable, to an estimated fair value based on discounted expected future cash flows. Assets to be disposed are reported at the lower of the carrying amount or fair value, less costs to dispose. Warranty Reserves Most of the Company’s product sales are covered by warranty provisions that generally provide for the repair or replacement of qualifying defective items for a specified period after the time of sale, typically 12 months. The Company establishes reserves for estimated product warranty costs at the time revenue is recognized based upon historical warranty experience and additionally for any known product warranty issues. The Company’s warranty obligation has been and may in the future be affected by product failure rates, repair or field replacement costs, and additional costs incurred in correcting any product failure. Stock-Based Compensation Stock-based compensation is measured for all stock-based equity awards made to employees and non-employee directors based on the estimated fair value as of the grant date. The determination of the fair values of stock-based awards at the grant date requires judgment, including estimating the expected term of the relevant stock-based payment awards and the expected volatility of the Company’s stock. The fair value of each stock option grant under the stock-based compensation plans is estimated on the date of grant or modification using the Black-Scholes-Merton option-pricing model. The expected stock volatility assumption was based on an average of the historical volatility over the expected term of the stock options. Forfeitures of stock options are accounted for as they occur. Restricted stock units are valued at the share price on the date of grant. See Note 17 “Stock-Based Compensation Plans” for additional information regarding the Company’s equity compensation plans. Pension and Other Postretirement Benefits The Company sponsors a number of pension plans and other postretirement benefit plans worldwide. The calculation of the pension and other postretirement benefit obligations and net periodic benefit cost under these plans requires the use of actuarial valuation methods and assumptions. These assumptions include the discount rates used to value the projected benefit obligations, future rate of compensation increases, expected rates of return on plan assets and expected healthcare cost trend rates. The discount rates selected to measure the present value of the Company’s benefit obligations as of December 31, 2020 and 2019 were derived by examining the rates of high-quality, fixed income securities whose cash flows or duration match the timing and amount of expected benefit payments under the plans. In accordance with GAAP, actual results that differ from the Company’s assumptions are recorded in accumulated other comprehensive income (loss) and amortized through net periodic benefit cost over future periods. While management believes that the assumptions are appropriate, differences in actual experience or changes in assumptions may affect the Company’s pension and other postretirement benefit obligations and future net periodic benefit cost. See Note 11 “Benefit Plans” for disclosures related to the Company’s benefit plans, including quantitative disclosures reflecting the impact that changes in certain assumptions would have on service and interest costs and benefit obligations. Income Taxes The Company has determined income tax expense and other deferred income tax information based on the asset and liability method. Deferred income taxes are provided on temporary differences between assets and liabilities for financial and tax reporting purposes as measured by enacted tax rates expected to apply when temporary differences are settled or realized. A valuation allowance is established for the portion of deferred tax assets for which it is not more likely than not that a tax benefit will be realized. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. The Company believes that its income tax liabilities, including related interest, are adequate in relation to the potential for additional tax assessments. There is a risk, however, that the amounts ultimately paid upon resolution of audits could be materially different from the amounts previously included in income tax expense and, therefore, could have a material impact on the Company’s tax provision, net income, and cash flows. The Company reviews its liabilities quarterly, and may adjust such liabilities due to proposed assessments by tax authorities, changes in facts and circumstances, issuance of new regulations or new case law, negotiations between tax authorities of different countries concerning transfer prices, the resolution of audits, or the expiration of statutes of limitations. Adjustments are most likely to occur in the year during which major audits are closed. On December 22, 2017, the Tax Act was enacted into law and the new legislation contains several key tax provisions that affected the Company, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. The Company was required to recognize the effect of the Tax Act in the period of enactment. This included the determination of the transition tax, remeasurement of the Company’s U.S. deferred tax assets and liabilities as well as the reassessment of the net realizability of the Company’s deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Job Act (“SAB 118”), which allowed the Company to record provisional amounts during a measurement period not to extend more than one year subsequent to the enactment date. As a result, the Company previously provided a provisional estimate of the effect of the Tax Act in its financial statements for 2017 and through the first nine months of 2018. In the fourth quarter of 2018, the Company completed its accounting for all of the enactment-date income tax effects of the Tax Act and increased the total benefit taken in 2017 of $95.3 million to $96.5 million. Due to the Tax Act, the total U.S. deferred changed from a tax benefit of $89.6 million in 2017 to $74.5 million in 2018, with a 2018 measurement-period adjustment of $15.1 million. The ASC 740-30 (formally APB 23) liability reduction, relating to the permanently reinvested earnings in foreign subsidiaries assertion, changed from a tax benefit of $69.0 million in 2017 to $72.5 million in 2018, with a 2018 measurement-period adjustment of $3.5 million due to the policy change that occurred in 2018. The provisional one-time transition tax of $63.3 million in 2017 decreased to $50.5 million in 2018, with a 2018 measurement-period adjustment of $12.8 million. The total $1.2 million benefit had a (0.3)% impact to the overall rate in 2018. The Tax Act creates a new requirement that certain income (i.e., Global intangible low taxed income (“GILTI”)) earned by controlled foreign corporations (“CFC”) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the shareholder’s “net CFC tested income” over the net deemed tangible income return, which is currently defined as the excess of (1) 10% of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). The Company has determined that it will follow the period cost method (option 1 above) going forward. The tax provision for the year ended December 31, 2020 reflects this decision. All of the additional calculations and rule changes found in the Tax Act have been considered in the tax provision for the year ended December 31, 2020. The Company recorded a tax expense of $5.3 million in 2020 for the GILTI provisions of the Tax Act that were effective for the first time during 2018. Research and Development For the years ended December 31, 2020, 2019 and 2018, the Company spent approximately $71 million, $25 million, and $24 million, respectively, on research activities relating to the development of new products and new product applications. All such expenditures were funded by the Company, expensed as incurred and recorded to “Selling and administrative expenses” in the Consolidated Statements of Operations. Derivative Financial Instruments All derivative financial instruments are reported on the balance sheet at fair value. For derivative instruments that are not designated as hedges, any gain or loss on the derivatives is recognized in earnings in the current period. A derivative instrument may be designated as a hedge of the exposure to: (1) changes in the fair value of an asset, liability, or firm commitment, or (2) variability in expected future cash flows, if the hedging relationship is expected to be highly effective in offsetting changes in fair value or cash flows attributable to the hedged risk during the period of designation or as a hedge of a net investment in a foreign operation. If a derivative is designated as a fair value hedge, the gain or loss on the derivative and the offsetting loss or gain on the hedged asset, liability, or firm commitment are recognized in earnings. For derivative instruments designated as a cash flow hedge or an eligible net investment in a foreign operation, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income and reclassified to earnings in the same period that the hedged transaction affects earnings. The ineffective portion of the gain or loss is immediately recognized in earnings. Gains or losses on derivative instruments recognized in earnings are reported in the same line item as the associated hedged transaction in the Consolidated Statements of Operations. Hedge accounting is discontinued prospectively when (1) it is determined that a derivative is no longer effective in offsetting changes in the fair value or cash flows of a hedged item; (2) the derivative is sold, terminated, or exercised; (3) the hedged item no longer meets the definition of a firm commitment; or (4) it is unlikely that a forecasted transaction will occur within two months of the originally specified time period. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the derivative continues to be carried on the balance sheet at its fair value, and the changes in the fair value of the hedged asset or liability is recorded to the Consolidated Statements of Operations. When cash flow hedge accounting is discontinued because the derivative is sold, terminated, or exercised, the net gain or loss remains in accumulated other comprehensive income and is reclassified into earnings in the same period that the hedged transaction affects earnings or until it becomes unlikely that a hedged forecasted transaction will occur within two months of the originally scheduled time period. When hedge accounting is discontinued because a hedged item no longer meets the definition of a firm commitment, the derivative continues to be carried on the Consolidated Balance Sheet at its fair value, and any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized as a gain or loss currently in earnings. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur within two months of the originally specified time period, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses reported in accumulated other comprehensive income are recognized immediately in the Consolidated Statements of Operations. Comprehensive Income The Company’s comprehensive income consists of net income (loss) and other comprehensive income (loss), consisting of (i) unrealized foreign currency net gains and losses on the translation of the assets and liabilities of its foreign operations; (ii) realized and unrealized foreign currency gains and losses on intercompany notes of a long-term nature and hedges of net investments in foreign operations, net of income taxes; (iii) unrealized gains and losses on cash flow hedges (consisting of interest rate swaps), net of income taxes; and (iv) pension and other postretirement prior service cost and actuarial gains or losses, net of income taxes. See Note 13 “Accumulated Other Comprehensive Income (Loss).” Restructuring Charges The Company incurs costs in connection with workforce reductions, facility consolidations and other actions. Such costs include employee termination benefits (one-time arrangements and benefits attributable to prior service), termination of contractual obligations, non-cash asset charges and other direct incremental costs. A liability is established through a charge to operations for (i) one-time employee termination benefits when management commits to a plan of termination; (ii) employee termination benefits that accumulate or vest based on prior service when it becomes probable that such termination benefits will be paid and the amount of the payment can be reasonably estimated; and (iii) contract termination costs when the contract is terminated or the Company becomes contractually obligated to make such payment. Other direct incremental costs are charged to operations as incurred. Charges recorded in connection with restructuring plans are included in “Other operating expense, net” in the Consolidated Statements of Operations. Business Combinations The Company accounts for business combinations by applying the acquisition method. The Company’s consolidated financial statements include the operating results of acquired entities from the respective dates of acquisition. The Company recognizes and measures the identifiable assets acquired, liabilities assumed, and any non-controlling interest as of the acquisition date at fair value. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed, and any non-controlling interest is recognized as goodwill in the Consolidated Balance Sheets. Costs incurred by the Company to effect a business combination other than costs related to the issuance of debt or equity securities are included in the Consolidated Statements of Operations in the period the costs are incurred. Earnings per Share The calculation of earnings per share (“EPS”) is based on the weighted-average number of the Company’s shares outstanding for the applicable period. The calculation of diluted earnings per share reflects the effect of all dilutive potential shares that were outstanding during the respective periods, unless the effect of doing so is antidilutive. The Company uses the treasury stock method to calculate the effect of outstanding share-based compensation awards.
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New Accounting Standards |
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Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting Standards Adopted Accounting Standard Updates (“ASU”) In August 2018, the FASB issued ASU 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this update eliminate, add and modify certain disclosure requirements for defined benefit pension plans. The guidance is effective for public companies beginning with its annual report for fiscal year 2020. This ASU did not have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for a limited time to ease the potential burden of accounting for reference rate reform on financial reporting. This guidance applies to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates. The guidance is effective beginning on March 12, 2020 through December 31, 2022. The Company has not utilized any of the optional expedients or exceptions available under this ASU. The Company will continue to assess whether this ASU is applicable throughout the effective period. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40); Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update require implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the noncancelable term of the cloud computing arrangement plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The Company adopted this guidance prospectively on January 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update eliminate, add and modify certain disclosure requirements for fair value measurements as part of its disclosure framework project. The Company adopted this guidance on January 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which added an impairment model that is based on expected losses rather than incurred losses and is called the Current Expected Credit Losses (“CECL”) model. This impairment model is applicable to loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables as well as any other financial asset with the contractual right to receive cash. Under the new model, an allowance equal to the estimate of lifetime expected credit losses is recognized which will result in more timely loss recognition. The guidance is intended to reduce complexity by decreasing the number of credit impairment models. The Company adopted this guidance on January 1, 2020, using a modified retrospective transition method. The Company recorded a cumulative-effect adjustment on the adoption date increasing “Accumulated deficit” in the Consolidated Balance Sheets by $1.0 million and decreasing “Accounts receivable, net of allowance for credit losses” in the Consolidated Balance Sheets by $1.0 million. On January 1, 2019, the Company adopted FASB ASU 2016-02, Leases (Topic 842) (“ASC 842”) utilizing the optional transition method. The amendments in this update replaced most of the existing GAAP lease accounting guidance in order to increase transparency and comparability among organizations by recognizing right-of-use lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under current GAAP. The amendments also expanded disclosure requirements for key information about leasing arrangements. The Company elected the package of practical expedients in transition for leases that commenced prior to January 1, 2019 whereby these contracts were not reassessed or reclassified from their previous assessment as of December 31, 2018. The Company updated its internal lease accounting policy to address the new standard, revised the Company’s business processes and controls and completed the implementation and data input for the Company’s lease accounting software solution. The most significant impact of the standard on the Company was the recognition of an approximate $61.3 million operating right of use (“ROU”) asset and an approximate $61.4 million operating lease liability on the Consolidated Balance Sheet. The standard did not have a material impact on the Company’s Consolidated Statements of Operations or the Company’s Consolidated Statements of Cash Flows. See Note 16 “Leases” for further discussion of the Company’s operating and financing leases. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and amending and clarifying existing guidance. The guidance is effective for public companies beginning with the first quarter of 2021. Early adoption is permitted. The Company will adopt this amendment in the first quarter of 2021. The adoption is not expected to have a material impact on our consolidated financial statements.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting A description of the Company’s four reportable segments, including the specific products manufactured and sold follows below. In the Industrial Technologies and Services segment, the Company designs, manufactures, markets and services a broad range of compression and vacuum equipment as well as fluid transfer equipment and loading systems. The Company’s compression and vacuum products are used worldwide in industrial manufacturing, transportation, chemical processing, food and beverage production, energy, environmental and other applications. In addition to equipment sales, the Company offers a broad portfolio of service options tailored to customer needs and complete range of aftermarket parts, air treatment equipment, controls and other accessories. The Company’s engineered loading systems and fluid transfer equipment ensure the safe handling and transfer of crude oil, liquefied natural gas, compressed natural gas, chemicals, and bulk materials. In the Precision and Science Technologies segment, the Company designs, manufactures and markets a broad range of specialized positive displacement pumps, fluid management equipment and aftermarket parts for medical, laboratory, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture and other markets. The Company’s products are used for a diverse set of applications including precision dosing of chemicals and supplements, blood dialysis, oxygen therapy, food processing, fluid transfer and dispensing, spray finishing and coating, mixing, high-pressure air and gas management and others. The Company sells primarily through a broad global network of specialized and national distributors and original equipment manufacturers (“OEM”) who integrate the Company’s products into their devices and systems. In the Specialty Vehicle Technologies segment, the Company designs, manufactures and markets Club Car ® golf, utility and consumer low-speed vehicles. The Company has a long-standing track record as a leading premium manufacturer with strong brand recognition. Its customers include golf course operators, resorts and hospitality sites, government agencies and municipalities, manufacturing and construction firms, sports and other arenas, colleges and universities and other commercial establishments, as well as individual consumers. The Company sells its products primarily through independent distributors in over eighty countries worldwide and also sells its products directly to consumers. In the High Pressure Solutions segment, the Company designs, manufactures, markets and services a diverse range of positive displacement pumps, integrated systems and associated aftermarket parts, consumables and services. Its positive displacement pump offering includes mission-critical oil and gas drilling pumps, frac pumps and well servicing pumps, in addition to sales of associated consumables used in the operation of the Company’s pumps and aftermarket parts, consumables and services. The products the Company sells into upstream energy applications are highly aftermarket-intensive and so the Company supports these products in the field with one of the industry’s most comprehensive service networks. The Company’s customers provide drilling, completions and well services to oil and gas operators, particularly in the major basins and plays in the North American land market. The Company is one of the leading suppliers in these upstream energy applications and has long-standing customer relationships. The Chief Operating Decision Maker (“CODM”) evaluates the performance of the Company’s reportable segments based on, among other measures, Segment Adjusted EBITDA. Management closely monitors the Segment Adjusted EBITDA of each reportable segment to evaluate past performance and actions required to improve profitability. Inter-segment sales and transfers are not significant. Administrative expenses related to the Company’s corporate offices and shared service centers in the United States and Europe, which includes transaction processing, accounting and other business support functions, are allocated to the business segments. Certain administrative expenses, including senior management compensation, treasury, internal audit, tax compliance, certain information technology, and other corporate functions, are not allocated to the business segments. The following table provides summarized information about the Company’s operations by reportable segment and reconciles Segment Adjusted EBITDA to Income (Loss) Before Income Taxes for the years ended December 31, 2020, 2019 and 2018.
(1)Includes insurance recoveries of asbestos legal fees of $8.2 million in the year ended December 31, 2018. (2)Depreciation and amortization expense excludes $8.0 million of depreciation of rental equipment for the year ended December 31, 2020. (3)Represents non-cash charges for impairment of intangible assets other than goodwill. (4)Restructuring and related business transformation costs consist of the following.
(5)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. (6)Represents expenses related to the Company’s initial stock offering and subsequent secondary offerings. (7)Represents third party expenses to comply with the requirements of Sarbanes-Oxley and the accelerated adoption of the new accounting standards (ASC 606 – Revenue from Contracts with Customers and ASC 842 – Leases) in the first quarter of 2019 and 2020, respectively, one year ahead of the required adoption dates for a private company. (8)Represents stock-based compensation expense recognized for stock options outstanding for the year ended December 31, 2020 of $51.3 million decreased by $0.5 million due to costs associated with employer taxes. Represents stock-based compensation expense recognized for stock options outstanding for the year ended December 31, 2019 of $19.2 million and associated employer taxes of $1.5 million. Represents stock-based compensation expense recognized for the year ended December 31, 2018 for stock options outstanding of $2.8 million, reduced by of $5.6 million primarily due to a decrease in the estimated accrual for employer taxes related to DSUs as a result of a lower per share price. (9)Represents losses on the extinguishment of a portion of the U.S. Term Loan, and the refinancing of the Original Dollar Term Loan Facility and the Original Euro Term Loan Facility as well as losses reclassified from AOCI into income related to the amendment of the interest rate swaps in conjunction with the debt repayment. (10)Represents insurance recoveries of the Company’s shareholder litigation settlement in 2014. (11)Includes (i) non-cash impact of net LIFO reserve adjustment, (ii) effects of amortization of prior service costs and amortization of losses in pension and other postretirement benefits (“OPEB”) expense, (iii) certain legal and compliance costs and (iv) other miscellaneous adjustments. The following tables provide summarized information about the Company’s reportable segments. Identifiable Assets
Depreciation and Amortization Expense
Capital Expenditures
The following table presents property, plant and equipment by geographic region for the years ended December 31, 2020, 2019 and 2018.
(1)Europe, Middle East and Africa (“EMEA”)
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Business Combinations |
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Business Combinations | Business Combinations Ingersoll Rand Industrial Acquisition On February 29, 2020 Ingersoll Rand completed the acquisition of Ingersoll Rand Industrial for the total estimated purchase consideration of approximately $6,937.0 million which represents Ingersoll Rand common stock with a fair value of $6,919.5 million and the balance equal to the fair value attributable to pre-acquisition service for replacement equity awards and deferred compensation arrangements settled in shares (or valued by reference to shares) of Ingersoll Rand common stock. Ingersoll Rand Industrial is a global provider of mission-critical flow control and compression equipment and associated aftermarket parts, consumables and services. Ingersoll Rand acquired Ingersoll Rand Industrial to extend and enhance its portfolio of products to address market opportunities in the compressor, blower, pump and other industrial product markets. Immediately prior to the merger, Trane Technologies plc (formerly known as Ingersoll-Rand plc) (“Old IR” or “Trane Technologies”) completed a spin-off in which it distributed one share of common stock of Ingersoll-Rand Industrial US. Holdco, Inc. (“SpinCo”), par value $0.01 per share, for each share of Old IR, outstanding as of the record date for the spin-off on February 24, 2020. In accordance with the merger agreement by and among Ingersoll Rand, Old IR, SpinCo and Charm Merger Sub Inc., a wholly owned subsidiary of Ingersoll Rand (“Merger Sub”), Merger Sub merged with and into SpinCo (the “acquisition”) and each share of common stock of SpinCo, par value $0.01 per share (“SpinCo common stock”), issued and outstanding immediately prior to the acquisition was converted into the right to receive 0.8824 shares of common stock of Ingersoll Rand, par value $0.01 per share (“Ingersoll Rand common stock”). Immediately after the consummation of the acquisition, approximately 50.1% of the outstanding shares of Ingersoll Rand common stock on a fully-diluted basis was held by SpinCo stockholders and approximately 49.9% of the outstanding shares of the Company common stock on a fully-diluted basis was held by pre-acquisition Ingersoll Rand stockholders. Since Ingersoll Rand (formerly named Gardner Denver Holdings, Inc.) is the accounting acquirer, the fair value of the equity issued by Ingersoll Rand to SpinCo stockholders in the acquisition was determined by reference to the market price of Ingersoll Rand common stock. Accordingly, the purchase consideration below reflects the estimated fair value of the Ingersoll Rand shares issued in exchange for shares of SpinCo common stock in the acquisition, which is based on the final closing price of shares of Ingersoll Rand common stock prior to the effective time of the acquisition on February 28, 2020 of $32.79 per share. The Company incurred acquisition costs of $87.3 million, including $42.3 million and $45.0 million in the years ended December 31, 2020 and 2019, respectively. These costs are presented within “Other operating expenses, net” in the Consolidated Statements of Operations. In addition, the Company incurred $1.0 million in registration fees to issue shares for the acquisition of Ingersoll Rand Industrial. The $1.0 million reduced “Capital in excess of par value” of the Consolidated Balance Sheets. The agreements between Ingersoll Rand and Trane Technologies contain customary post-closing procedures covering the measurement of working capital and the funded status of benefits plan obligations of Ingersoll Rand Industrial at the time of the spin-off. These post-closing procedures are ongoing as of December 31, 2020 and, upon completion, may result in payments to or proceeds from Trane Technologies. Should any payments or proceeds arise after the end of the measurement period, the Company will recognize any related adjustments to acquired assets or assumed liabilities within earnings in the period the adjustments are determined. Purchase Price Allocation In accordance with the FASB’s ASC 805 Business Combinations, Ingersoll Rand was determined to be the accounting acquirer. As such, the Company applied the acquisition method of accounting to the identifiable assets and liabilities of Ingersoll Rand Industrial, which have been measured at estimated fair value as of the date of the business combination. Ingersoll Rand Industrial’s assets and liabilities were measured at estimated fair values at February 29, 2020, primarily using Level 3 inputs except for debt, which was measured using Level 2 inputs and noncontrolling interests, which was measured using Level 1 inputs. Estimates of fair value represent management’s best estimate of assumptions about future events and uncertainties, including significant judgments related to future cash flows, discount rates, competitive trends, margin and revenue growth assumptions including royalty rates and customer attrition rates and others. Inputs used were generally obtained from historical data supplemented by current and anticipated market conditions and growth rates expected as of the acquisition date. The following table summarizes the allocation of consideration to the identifiable assets acquired and liabilities assumed by the Company, with the excess of purchase price over the fair value of Ingersoll Rand Industrial’s net assets recorded as goodwill. The initial accounting for the acquisition is substantially complete and no material changes are anticipated.
(1)Represents the fair value of 211,023,522 shares of the Company’s common stock issued for Ingersoll Rand Industrial outstanding common stock multiplied by $32.79, the price per share of common stock as of the closing price on February 28, 2020. (2)Represents the fair value of the replacement equity awards to the extent those related to services provided by the employee of Ingersoll Rand Industrial prior to closing. See Note 17 “Stock-Based Compensation Plans” for additional information about the replacement equity awards. (3)Represents the fair value of the deferred compensation plan liabilities that must be settled in shares of the plan sponsor's common stock. See Note 11 “Benefit Plans” for additional information on assumed deferred compensation plan liabilities. (4)The measurement period adjustments were to refine fair value measurements of intangible assets and carrying amounts of certain assets and liabilities, as well as adjustments to related deferred tax liabilities. Summary of Significant Fair Value Methods The methods used to determine the fair value of significant identifiable assets and liabilities included in the allocation of purchase price are discussed below. Inventories Acquired inventory was comprised of finished goods, work in process and raw materials. The fair value of finished goods was calculated as the estimated selling price, adjusted for costs of the selling effort and a reasonable profit allowance relating to the selling effort. The fair value of work in process inventory was primarily calculated as the estimated selling price, adjusted for estimated costs to complete the manufacturing, estimated costs of the selling effort, as well as a reasonable profit margin on the remaining manufacturing and selling effort. The fair value of raw materials and supplies was determined based on replacement cost which approximates historical carrying value. The fair value step-up of inventory of $116.2 million is comprised of step-up of inventory measured on a First In First Out (“FIFO”) basis of $70.3 million and inventories measured on a Last In First Out (“LIFO”) basis of $45.9 million. Inventory measured on a FIFO basis was amortized to “Cost of sales” in the consolidated financial statements as the inventory is sold. For inventories measured on a LIFO basis, the acquired inventory became the LIFO base layer inventory and is evaluated for lower-of-cost-or-market adjustments in subsequent periods as necessary. Property, Plant and Equipment The fair value of property, plant and equipment was primarily calculated using replacement costs adjusted for the age and condition of the asset, with the exception of real property which was calculated using the market approach, and is summarized below.
Identifiable Intangible Assets The fair value and weighted average useful life of the Ingersoll Rand Industrial identifiable intangible assets are as follows.
(1)Tradenames were identified from brands of Ingersoll Rand Industrial. The fair value of tradenames were determined using a relief from royalty methodology which estimates the cost savings generated by a company related to the ownership of an asset for which it would otherwise have had to pay royalties or license fees on revenues earned through the use of the asset. The discount rate used was determined at the time of measurement based on an analysis of the implied internal rate of return of the transaction, weighted average cost of capital and weighted average return on assets. Tradenames are expected to have an indefinite useful life. (2)Developed technology was identified from the products of Ingersoll Rand Industrial. Fair values were determined using a relief from royalty methodology with similar methodology and assumptions as described in the tradename description above. The economic useful lives were determined based on the technology cycle related to each developed technology, as well as the cash flows over the forecast period. (3)Customer relationships represent the fair value of existing relationships with the Ingersoll Rand Industrial customers. Their fair values were determined using the Multi-Period Excess Earning Method which involves isolating the net earnings attributable to the asset being measured based on present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. This method includes a valuation of the assembled workforce, using the Cost Approach, for purposes of calculating contributory asset charges to be used in the Multi-Period Excess Earning Method valuations. The economic useful lives were determined based on historical customer attrition rates. (4)Backlog primarily relates to the dollar value of purchase arrangements with customers, effective, as of a given point in time, that are based on mutually agreed terms which, in some cases, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty. Ingersoll Rand Industrial’s backlog consists of these arrangements with assigned shipment dates expected, in most cases, within three to twelve months. The fair value were determined using the Multi-Period Excess Earning Method. The economic useful lives were based on the time to fulfill the outstanding order backlog obligation. (5)Other intangible assets is primarily comprised of software. The Company believes that the amounts of purchased intangible assets recorded represent the fair values of and approximates the amounts a market participant would pay for these intangible assets as of the acquisition date. Leases, including lease liabilities and right-of-use (“ROU”) assets Lease liabilities, included in “Accrued liabilities” and “Other non-current liabilities” in the Consolidated Balance Sheets, at the acquisition date, were measured at the present value of the future minimum lease payments over the remaining lease term and the incremental borrowing rate of Ingersoll Rand as if the acquired leases were new leases as of the acquisition date. ROU assets included in “Other assets” in the Consolidated Balance Sheets as of the acquisition date, are equal to the amount of the lease liability at the acquisition date adjusted for any off-market terms of the lease. The remaining lease term was based on the remaining term at the acquisition date plus any renewal or extension options that the Company is reasonably certain will be exercised. Pension and Other Postretirement Liabilities Ingersoll Rand recognized a pretax net liability representing the net funded status of Ingersoll Rand Industrial’s defined-benefit pension and other postretirement benefit (“OPEB”) plans. See Note 11 “Benefit Plans” for further information on the pension and OPEB arrangements. Long-Term Debt Ingersoll Rand Services Company incurred $1,900.0 million of indebtedness under the Credit Agreement dated as of February 28, 2020 among Ingersoll Rand Services Company, as borrower, Citibank, N.A. as administrative agent and collateral agent and the lenders party thereto (the “Senior Secured Credit Facility”) prior to the closing of the acquisition, and the indebtedness under the Senior Secured Credit Facility will mature February 28, 2027. Ingersoll Rand incurred a total of $26.9 million debt issuance costs associated with the $1,900.0 million loan under the Senior Secured Credit Facility. The $1,900.0 million of indebtedness under the Credit Agreement was reduced by a $2.4 million original issue discount. The fair value for long term debt was determined based on the total indebtedness less debt issuance costs as the debt consummated at the time of closing of the acquisition. Deferred Income Tax Assets and Liabilities The acquisition was structured as a merger and therefore, the Company assumed the historical tax basis of Ingersoll Rand Industrial’s assets and liabilities. The deferred income tax assets and liabilities include the expected future federal, state and foreign tax consequences associated with temporary differences between the fair values of the assets acquired and liabilities assumed and the respective tax bases. Tax rates utilized in calculating deferred income taxes generally represent the enacted statutory tax rates at the effective date of the acquisition in the jurisdictions in which legal title of the underlying asset or liability resides. See Note 15 “Income Taxes” for further information related to income taxes. Noncontrolling Interests As of the date of acquisition, Ingersoll Rand Industrial assumed a controlling interest of approximately 74% in Ingersoll-Rand India Limited. The remaining shares were owned by unaffiliated shareholders and traded on India stock exchanges, representing a noncontrolling interest. Ingersoll Rand’s fair value of noncontrolling interest was based on market quote of Indian Rupee 639.2 per share, available on the last trading day on February 28, 2020 prior to the closing date of the acquisition. Considering noncontrolling shares of 8.2 million, the fair value of noncontrolling interest is $73.3 million. Other Assets Acquired and Liabilities Assumed (excluding Goodwill) The Company utilized the carrying values, net of allowances, to value accounts receivable and accounts payable as well as other current assets and liabilities as it was determined that carrying values represented the fair value of those items at the acquisition date. Goodwill The excess of the consideration for the acquisition over the fair value of net assets acquired was recorded as goodwill. The goodwill is attributable to expected synergies and expanded market opportunities from combining the Company’s operations with those of Ingersoll Rand Industrial. The goodwill created in the acquisition is not expected to be deductible for tax purposes. See Note 8 “Goodwill and Other Intangible Assets” for the allocation of goodwill among the Company's segments. Results of Ingersoll Rand Industrial Subsequent to the Acquisition The operating results of Ingersoll Rand Industrial have been included in the Company’s consolidated financial statements from the date of acquisition through December 31, 2020. The Company’s consolidated statements of operations for the year ended December 31, 2020 included revenues of $2,930.3 million and net loss of $10.8 million, which includes the effects of purchase accounting adjustments, primarily the amortization of intangible assets and the impacts on operating expenses of fair value adjustments to acquired inventory and property, plant and equipment. Unaudited Pro Forma Information The following unaudited pro forma financial information summarizes the combined results of operations for the Company and Ingersoll Rand Industrial as if the acquisition had been completed on January 1, 2019. The pro forma results have been prepared for comparative purposes only and do not necessarily represent what the revenue or results of operations would have been had the acquisition been completed on January 1, 2019. In addition, these results are not intended to be a projection of future operating results and do not reflect synergies that might be achieved.
The unaudited pro forma information includes adjustments for the purchase price allocation (including, but not limited to, amortization and depreciation for intangible assets and property, plant and equipment acquired, adjustments to stock-based compensation expense, fair value adjustments to acquired inventories, the purchase accounting effect on deferred revenue, interest expense and amortization of debt issuance costs, transaction costs and related tax impacts) and the alignment of accounting policies. The table below reflects the impact of material and nonrecurring adjustments to the unaudited pro forma results for the years ended December 31, 2020 and 2019 that are directly attributable to the acquisition.
Transactions with Trane Technologies Ingersoll Rand and Trane Technologies plc entered into several agreements as of February 29, 2020 covering administrative, tax and supply arrangements. These include a Transition Services Agreement to provide corporate function support for a period of not longer than calendar months. During the year ended December 31, 2020, the Company incurred expenses of $25.1 million for services received under the Transition Service Agreement and related agreements. Other Acquisitions The Company acquired the following businesses during the three years ended December 31, 2020. Proforma information has not been provided as the acquisitions did not have a material impact on the Company’s Consolidated Statements of Operations individually or in the aggregate. The revenues and operating income of each of the acquisitions below are included in the Company’s consolidated financial statements from the acquisition date. Acquisition of Albin Pump SAS On September 1, 2020, the Company acquired Albin Pump SAS (“Albin”), a manufacturer of electric peristaltic pumps. The company acquired Albin for cash consideration, net of cash acquired, of $15.5 million and deferred consideration of $0.9 million. The results of this business are reported within the Precision and Science Technologies segment from the date of acquisition. Other Acquisitions in 2020 The Company acquired two sales and service businesses, one in the United States and one in Europe, in the Industrial Technologies and Services segment for cash consideration of $15.0 million and deferred consideration of $5.1 million. Acquisition of Air Compressors and Blowers North Limited On August 19, 2019, the Company acquired Air Compressors and Blowers North Limited (“ACBN”), a provider of vacuum pumps, blowers and compressors. The Company acquired certain assets of ACBN for total consideration of $7.0 million. The results of ACBN are included in the Industrial Technologies and Services segment. None of the goodwill resulting from this acquisition is deductible for tax purposes. Acquisition of Oina VV AB On July 3, 2019, the Company acquired Oina VV AB (“Oina”) which specializes in customized pump solutions for liquid handling processes for use in medical, process and industrial applications. The Company acquired all of the assets and assumed certain liabilities of Oina for total consideration, net of cash acquired, of $10.0 million. The results of Oina are included in the Precision and Science Technologies segment. None of the goodwill resulting from this acquisition is deductible for tax purposes. Acquisition of MP Pumps, Inc. On December 12, 2018, the Company acquired MP Pumps, Inc. (“MP Pumps”), a leading manufacturer of specialty industrial pumps and associated aftermarket parts. The Company acquired all of the assets and assumed certain liabilities of MP Pumps for total consideration, net of cash acquired, of $58.5 million. The results of MP Pumps are included in the Precision and Science Technologies segment. None of the goodwill resulting from this acquisition is deductible for tax purposes. Acquisition of DV Systems, Inc. On November 2, 2018, the Company acquired DV Systems, Inc. (“DV Systems”), a leading manufacturer of rotary screws and piston compressors and associated aftermarket parts. The Company acquired all of the assets and assumed certain liabilities of DV Systems for total consideration, net of cash acquired, of $16.1 million. The results of DV Systems are included in the Industrial Technologies and Services segment. None of the goodwill resulting from this acquisition is deductible for tax purposes. Acquisition of PMI Pump Parts On May 29, 2018, the Company acquired PMI Pump Parts (“PMI”), a leading manufacturer of plungers and other well service pump consumable products. The Company acquired all of the assets and assumed certain liabilities of PMI for total consideration, net of cash acquired, of $21.0 million. The results of PMI are included in the High Pressure Solutions segment. None of the goodwill resulting from this acquisition is deductible for tax purposes. Acquisition of Runtech Systems Oy On February 8, 2018, the Company acquired 100% of the stock of Runtech Systems Oy (“Runtech”), a leading global manufacturer of turbo vacuum technology systems and optimization solutions for industrial applications. The Company acquired all of the assets and assumed certain liabilities of Runtech for total cash consideration of $94.9 million, net of cash acquired. The results of Runtech are included in the Industrial Technologies and Services segment. The purchase price allocation resulted in the recording of $63.6 million of goodwill and $31.3 million of amortizable intangible assets as of the acquisition date. None of the goodwill resulting from this acquisition is deductible for tax purposes. Acquisition Revenues and Operating Income The revenue included in the financial statements for these acquisitions subsequent to their acquisition date was $105.8 million, $137.6 million and $96.2 million for the years ended December 31, 2020, 2019 and 2018, respectively. For the years ended December 31, 2020, 2019 and 2018, operating income included in the financial statements for the acquisitions described above, subsequent to their date of acquisition was $14.0 million, $19.1 million and $8.3 million, respectively.
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Restructuring |
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Restructuring | Restructuring Restructuring Program 2018 to 2019 In the third quarter of 2018, the Company announced a restructuring program that primarily involved workforce reductions and facility consolidation. This restructuring program was completed as of December 31, 2020. Restructuring Program 2020 to 2022 Subsequent to the acquisition of Ingersoll Rand Industrial, the Company announced a restructuring program (“2020 Plan”) to create efficiencies and synergies, reduce the number of facilities and optimize operating margin within the merged Company. The Company expects to incur total expenses of approximately $350.0 million related to workforce reductions, lease termination costs, other facility rationalization costs and other business related transformation costs from 2020 until 2022. The Company expects to realize approximately $300.0 million in annualized cost synergies by the end of 2022. The Company continues to evaluate operating efficiencies and anticipates incurring additional costs in the coming years in connection with these activities, but is unable to estimate those amounts at this time as such plans are not yet finalized. For the year ended December 31, 2020, $92.9 million was charged to expense through “Other operating expense, net” in the Consolidated Statements of Operations ($70.3 million for Industrial Technologies and Services, $8.9 million for High Pressure Solutions, $6.9 million for Precision and Science Technologies, $6.0 million for Corporate and $0.8 million for Specialty Vehicle Technologies). The following table summarizes the activity associated with the Company’s restructuring programs for the years ended December 31, 2019 and 2020, respectively.
(1)Excludes $9.2 million and $3.3 million of non-cash charges that impacted restructuring expense but not the restructuring liabilities during the years ended December 31, 2020 and 2019, respectively. The restructuring reserve related to these programs was $17.5 million and $5.0 million as of December 31, 2020 and 2019, respectively, and recorded in “Accrued liabilities” in the Consolidated Balance Sheets.
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Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses for the years ended December 31, 2020, 2019 and 2018 consisted of the following.
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Inventories |
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Inventories | Inventories Inventories as of December 31, 2020 and 2019 consisted of the following.
As of December 31, 2020, $646.8 million, or 69%, of the Company’s inventory is accounted for on a first-in, first-out (“FIFO”) basis and the remaining $296.8 million, or 31%, is accounted for on a last-in, first-out (“LIFO”) basis. As of December 31, 2019, $371.3 million, or 74%, of the Company’s inventory is accounted for on a first-in, first-out (“FIFO”) basis and the remaining $131.2 million, or 26%, is accounted for on a last-in, first-out (“LIFO”) basis. Approximately $447.4 million of the increase in inventories from December 31, 2019 to December 31, 2020 is related to the acquisition of Ingersoll Rand Industrial. In the year ended December 31, 2020, the Company recorded non-cash adjustments of $45.9 million to reduce the carrying value of inventories acquired in the merger with Ingersoll Rand Industrial accounted for under the LIFO liquidation method, all of which was recognized in Cost of sales in the three month period ended June 30, 2020.
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Property, Plant and Equipment |
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Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net as of December 31, 2020 and 2019 consisted of the following.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill attributable to each reportable segment for the years ended December 31, 2020 and 2019 are as follows.
(1) During the year ended December 31, 2019, the Company recorded immaterial measurement period adjustments. The Company acquired four businesses during the year ended December 31, 2020. The excess of the purchase price over the estimated fair values of intangible assets, identifiable assets and assumed liabilities was recorded as goodwill. The allocation of the purchase price was preliminary for certain of these acquisitions and is subject to refinement based on final fair values of the identified assets acquired and liabilities assumed. The goodwill attributable to the four businesses is as follows.
The Company acquired two businesses during the year ended December 31, 2019. The excess of the purchase price over the estimated fair values of intangible assets, identifiable assets and assumed liabilities was recorded as goodwill. The goodwill attributable to the two businesses is as follows.
As of December 31, 2020 and 2019, goodwill included a total of $563.9 million of accumulated impairment losses. Of the total accumulated impairment losses incurred, $343.3 million was within the High Pressure Solutions segment and $220.6 million was within the Industrial Technologies and Services segment. Goodwill Impairment Tests Consistent with our accounting policy in Note 1, we performed our annual goodwill impairment testing as of the first day of our fiscal fourth quarters of 2020, 2019 and 2018. For the years ended December 31, 2020, 2019 and 2018, each reporting unit’s fair value was in excess of its net carrying value, and therefore, no goodwill impairment was recorded. Other Intangible Assets Other intangible assets as of December 31, 2020 and 2019 consisted of the following.
Amortization of intangible assets was $395.8 million, $124.3 million and $125.8 million for the years ended December 31, 2020, 2019 and 2018, respectively. Amortization of intangible assets is anticipated to be approximately $340 million in each of 2021 and 2022, $320 million in each of 2023 and 2024 and $240 million in 2025 based upon currency exchange rates as of December 31, 2020. Other Intangible Asset Impairment Tests During the third quarter, the Company developed a revised outlook that considered the impacts of the COVID-19 global pandemic and related geopolitical events on the demand for certain of our products. The Company determined that indicators of impairment existed for goodwill and indefinite-lived tradenames of certain reporting units. As of September 30, 2020, quantitative impairment tests were performed and the fair values of the reporting units and tradenames were estimated. As a result of the quantitative impairment tests of goodwill and indefinite-lived intangibles assets, we determined that the fair value of all reporting units exceeded their carrying value and therefore no impairments of goodwill were recognized. However, the Company recognized an impairment in the third quarter of 2020 of $19.9 million to reduce the carrying value of two tradenames in the Industrial Technologies and Services segment. Consistent with our accounting policy in Note 1, we performed our annual intangible asset impairment testing as of the first day of our fiscal fourth quarters of 2020, 2019 and 2018. For the years ended December 31, 2020, 2019 and 2018, other than as discussed above, each tradename’s fair value was in excess of its net carrying value, and therefore, no impairment was recorded. Other Considerations Related to COVID-19 Pandemic As of December 31, 2020, there were no indications that the carrying value of any goodwill or other intangible assets may not be recoverable and no further impairment charges were booked in 2020. However, continued adverse impacts of the COVID-19 pandemic on the Company’s consolidated financial results could require an impairment charge related to one or more of these intangible assets in a future period.
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Accrued Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued Liabilities Accrued liabilities as of December 31, 2020 and 2019 consisted of the following:
A reconciliation of the changes in the accrued product warranty liability for the years ended December 31, 2020 and 2019 is as follows.
(1)Includes primarily the effects of foreign currency translation adjustments for the Company’s subsidiaries with functional currencies other than the USD and changes in the accrual related to acquisitions or divestitures of businesses.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt as of December 31, 2020 and 2019 consisted of the following.
(1)The weighted-average interest rate was 4.47% for the period from January 1, 2020 through February 27, 2020. (2)The weighted-average interest rate was 3.00% for the period from January 1, 2020 through February 27, 2020. (3)As of December 31, 2020, this amount is presented net of unamortized discounts of $2.1 million. As of December 31, 2020, the applicable interest rate was 1.90% and the weighted-average rate was 2.16% for the year ended December 31, 2020. (4)As of December 31, 2020, this amount is presented net of unamortized discounts of $1.0 million. As of December 31, 2020, the applicable interest rate was 1.90% and the weighted-average rate was 2.16% for the year ended December 31, 2020. (5)As of December 31, 2020, this amount is presented net of unamortized discounts of $0.7 million. As of December 31, 2020, the applicable interest rate was 2.00% and the weighted-average rate was 2.00% for the year ended December 31, 2020. (6)As of December 31, 2020, this amount is presented net of unamortized discounts of $5.6 million. As of December 31, 2020, the applicable interest rate was 2.90% and the weighted-average rate was 2.91% for the year ended December 31, 2020. Senior Secured Credit Facilities The Company entered into a senior secured credit agreement with UBS AG, Stamford Branch, as administrative agent, and other agents and lenders party thereto (the “Senior Secured Credit Facilities”) on July 30, 2013. The Senior Secured Credit Facilities entered into on July 30, 2013 provided senior secured financing in the equivalent of approximately $2,825.0 million, consisting of: (i) a senior secured term loan facility denominated in U.S. Dollars (the “Original Dollar Term Loan Facility”) in an aggregate principal amount of $1,900.0 million; (ii) a senior secured term loan facility denominated in Euros (the “Original Euro Term Loan Facility”) in an aggregate principal amount of €400.0 million; and (iii) a senior secured revolving credit facility (the “Revolving Credit Facility”) in an aggregate principal amount of $400.0 million available to be drawn in U.S. dollars (“USD”), Euros (“EUR”), Great British Pounds (“GBP”) and other reasonably acceptable foreign currencies, subject to certain sublimits for the foreign currencies. The Revolving Credit Facility includes borrowing capacity available for letters of credit up to $200.0 million and for borrowings on same-day notice, referred to as swingline loans. The borrower of the Dollar Term Loan Facility and the Euro Term Loan Facility is Gardner Denver, Inc. Prior to the Company entering into Amendment No. 1, GD German Holdings II GmbH became an additional borrower and successor in interest to Gardner Denver Holdings GmbH & Co. KG. GD German Holdings II GmbH, GD First (UK) Limited and Gardner Denver, Inc. are the listed borrowers under the Revolving Credit Facility. The Company entered into Amendment No. 1 to the Senior Secured Credit Facilities with UBS AG, Stamford Branch, as administrative agent, and the lenders and other parties thereto on March 4, 2016 (“Amendment No.1”), Amendment No. 2 on August 17, 2017 (“Amendment No.2”) and Amendment No. 3 on December 13, 2018 (“Amendment No.3”). Amendment No. 1 reduced the aggregate principal borrowing capacity of the Revolving Credit Facility by $40.0 million to $360.0 million, extended the term of the Revolving Credit Facility to April 30, 2020 with respect to consenting lenders and provided for customary bail-in provisions to address certain European regulatory requirements. On July 30, 2018, the Revolving Credit Facility principal borrowing capacity decreased to $269.9 million resulting from the maturity of the tranches of the Revolving Credit Facility which were owned by lenders that elected not to modify the original Revolving Credit Facility maturity date. Amendment No. 1 reduced the minimum aggregate principal amount for extension amendments to the facilities from $50.0 million to $35.0 million. Amendment No. 2 refinanced the Original Dollar Term Loan Facility with a replacement $1,285.5 million senior secured U.S. dollar term loan facility (the “New Dollar Term Loan Facility”) and the Original Euro Term Loan Facility with a replacement €615.0 million senior secured euro term loan facility (the “New Euro Term Loan Facility”). Further the maturity for both term loan facilities was extended to July 30, 2024 and LIBOR Floor was reduced from 1.0% to 0.0%. Amendment No. 3 amended the definition of “Change of Control” to (i) remove the requirement that certain specified equity holders maintain a minimum ownership level of the outstanding voting stock of the Company, (ii) increase the threshold at which the acquisition of ownership by a person, entity or group of other equity holders constitutes a “Change of Control” from 35% of the outstanding voting stock of the Company to 50% of the outstanding voting stock of the Company and (iii) make certain other corresponding technical changes and updates. The Company entered into Amendment No. 4 to the Senior Secured Credit Facilities with UBS AG, Stamford Branch, as Resigning Agent and Citibank, N.A. as Successor Agent on June 28, 2019 (“Amendment No. 4”). Amendment No. 4 (i) refinanced the existing senior secured revolving credit facility with a replacement $450.0 million senior secured revolving credit facility (the “New Revolving Credit Facility”); (ii) extended the maturity of the revolving credit facility to June 28, 2024, (iii) terminated the revolving credit facility commitments of certain lenders under the existing senior secured revolving credit facility under the Senior Secured Credit Facilities, (iv) provided for up to $200.0 million of the New Revolving Credit Facility to be available for the purpose of issuing letters of credit; (v) provided for the replacement of GD First (UK) Limited by Gardner Denver Holdings, Ltd. as the UK Borrower under the Senior Secured Credit Facilities; (vi) transferred the Administrative Agent, Collateral Agent and Swingline Lender roles under the Senior Secured Credit Facilities to Citibank, N.A; and (vii) made certain other corresponding technical changes and updates. At the consummation of the pending merger between Gardner Denver Holdings, Inc., and Ingersoll-Rand plc, Amendment No. 4 increased the aggregate amount of the New Revolving Credit Facility to $1,000.0 million and increases the capacity under the New Revolving Credit Facility to issue letters of credit to $400.0 million. As a result of Amendment No. 4, the Company wrote off $0.2 million of debt issuance costs to the “Loss on extinguishment of debt” in the Consolidated Statements of Operations for the year ended December 31, 2019. On February 28, 2020, the Company entered into Amendment No. 5 to the Credit Agreement (“Amendment No. 5”). Amendment No. 5 refinanced the existing New Dollar Term Loan Facility and New Euro Term Loan Facility. The proceeds from the replacement $927.6 million Dollar Term Loan (“Dollar Term Loan”) and replacement €601.2 million Euro Term Loan (“Euro Term Loan”) were used to refinance the outstanding New Dollar Term Loan Facility and New Euro Term Loan Facility. The proceeds from the Dollar Term Loan and the Euro Term Loan were reduced by an original issue discount of $1.2 million and €0.8 million, respectively. The Euro Term Loan and Dollar Term Loan will mature on February 28, 2027. The refinancing of the New Dollar Term Loan and the New Euro Term Loan resulted in the write off of unamortized debt issuance costs of $2.0 million which was presented within “Loss on extinguishment of debt” in the Consolidated Statements of Operations. At the time of the acquisition of Ingersoll Rand Industrial, the Credit Agreement was amended to include an additional $1,900.0 million senior secured term loan (“Dollar Term Loan B”) by and among Ingersoll-Rand Services Company, as the borrower, the lenders party thereto and Citi, as the administrative agent. Further, Ingersoll-Rand Services Company, the borrower with respect to the Dollar Term Loan B, was designated as an additional borrower under the Credit Agreement. The Dollar Term Loan B and the Dollar Term Loan and the Euro Term Loan have guarantees from the same credit parties and are secured by the same collateral. The Dollar Term Loan B will mature on February 28, 2027. The proceeds from the $1,900.0 million Dollar Term Loan B were reduced by a $2.4 million original issue discount. On February 29, 2020, the aggregate amount of the Revolving Credit Facility increased to $1,000.0 million and the capacity under the Revolving Credit Facility to issue letters of credit increased to $400.0 million. On June 29, 2020, the Company entered into Amendment No. 6 to the Credit Agreement (“Amendment No. 6”). Amendment No. 6 (i) provided for $400.0 million of incremental term loans (“Dollar Term Loan Series A”), reduced by an original issue discount of $6.0 million, and (ii) established an increase of $100.0 million to the Revolving Credit Facility, bringing the total sum of the Revolving Credit Facility to $1,100.0 million. No specific use of proceeds arising from Amendment No. 6 has been identified. The proceeds are expected to be used for general business purposes, including providing incremental liquidity in the event of a prolonged adverse impact of the COVID-19 pandemic. The Senior Secured Credit Facilities provide that the Company will have the right at any time to request incremental term loans and/or revolving commitments in an aggregate principal amount of up to (i) the greater of (a) $1,600 million and (b) 100% of Consolidated EBITDA (as defined in the Senior Secured Credit Facilities) for the most recently ended four consecutive fiscal quarter period plus (ii) voluntary prepayments and voluntary commitment reductions of the Senior Secured Credit Facilities and certain other permitted indebtedness prior to the date of any such incurrence plus (iii) an additional amount equal to (a) in the case of incremental loans and/or commitments that are secured on an equal priority basis with the Senior Secured Credit Facilities, an amount such that after giving effect to the incurrence of such additional amount, the Company does not exceed a Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio (as defined in the Senior Secured Credit Facilities) of 4.50 to 1.00 or the Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio immediately prior to any such incurrence and all transactions consummated in connection therewith or (b) in the case of incremental loans and/or commitments that are secured on a junior priority basis to the Senior Secured Credit Facilities, an amount such that after giving effect to the incurrence of such additional amount, the Company does not exceed a Consolidated Total Debt to Consolidated EBITDA Ratio (as defined in the Senior Secured Credit Facilities) of 5.00 to 1.00 or the Consolidated Total Debt to Consolidated EBITDA Ratio immediately prior to any such incurrence and all transactions consummated in connection therewith. The lenders under the Senior Secured Credit Facilities are not under any obligation to provide any such incremental commitments or loans, and any such addition of, or increase in commitments or loans, will be subject to certain customary conditions. As of December 31, 2020, the aggregate amount of commitments under the Revolving Credit Facility was $1,100.0 million and the capacity under the Revolving Credit Facility to issue letters of credit was $400.0 million. As of December 31, 2020, the Company had no outstanding borrowings, $101.9 million of outstanding letters of credit under the New Revolving Credit Facility and unused availability of $998.1 million. Interest Rate and Fees Borrowings under the Dollar Term Loan, Dollar Term Loan B, Dollar Term Loan Series A, and Revolving Credit Facility bear interest at a rate equal to, at the Company’s option, either (a) the greater of LIBOR for the relevant interest period or 0.00% per annum, in each case adjusted for statutory reserve requirements, plus an applicable margin or (b) a base rate (the “Base Rate”) equal to the highest of (1) the rate of interest publicly announced by the administrative agent as its prime rate in effect at its principal office, (2) the federal funds effective rate plus 0.50%, (3) LIBOR for an interest period of one month, adjusted for statutory reserve requirements, plus 1.00% and (4) 1.00%, in each case, plus an applicable margin. Borrowings under the Euro Term Loan bear interest at a rate equal to the greater of LIBOR for the relevant interest period, or 0.00% per annum, in each case adjusted for statutory reserve requirements, plus an applicable margin. The applicable margin for (i) the Dollar Term Loan is 1.75% for LIBOR loans and 0.75% for base rate loans, (ii) the Dollar Term Loan B is 1.75% for LIBOR loans and 0.75% for base rate loans, (iii) the Dollar Term Loan Series A is 2.75% for LIBOR loans and 1.75% for base rate loans, (iv) the Revolving Credit Facility is 2.00% for LIBOR loans and 1.00% for Base Rate loans and (v) the Euro Term Loan is 2.00% for LIBOR loans. In addition to interest payments on outstanding principal under the Senior Secured Credit Facilities, the Company is required to pay a commitment fee of 0.375% per annum to the lenders under the Revolving Credit Facility in respect of the unutilized commitments thereunder. The commitment fee reduces to 0.25% or 0.125% upon the achievement of a Level I or Level II status, respectively. Level I status means that the Company’s Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio (as defined in the Senior Secured Credit Facilities) is less than or equal to 1.75 to 1.00. Level II status means that the Company’s Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio is less than or equal to 1.50 to 1.00. The Company must also pay customary letter of credit fees. Prepayments The Senior Secured Credit Facilities require the Company to prepay outstanding term loans, subject to certain exceptions, with (i) 50% of annual excess cash flow (as defined in the Senior Credit Facilities) commencing with the fiscal year ending December 31, 2021 (which percentage will be reduced to 25% if the Company’s Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio is less than or equal to 2.25 to 1.00 but greater than 2.00 to 1.00, and which prepayment will not be required if the Company’s Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio is less than or equal to 2.00 to 1.00), (ii) 100% of the net cash proceeds of non-ordinary asset sales or other dispositions of property, subject to reinvestment rights (which percentage will be reduced to 50% if the Company’s Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio is less than or equal to 2.25 to 1.00 but greater than 2.00 to 1.00 and which prepayment will not be required if the Company’s Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio is less than or equal to 2.00 to 1.00), and (iii) 100% of the net cash proceeds of any incurrence of debt, other than proceeds from debt permitted under the Credit Agreement. The mandatory prepayments will be applied to the scheduled installments of principal of the term loans in direct order of maturity. The Company may voluntarily repay outstanding loans under the Senior Secured Credit Facilities at any time without premium or penalty, subject to certain customary conditions, including reimbursements of the lenders’ redeployment costs actually incurred in the case of a prepayment of LIBOR borrowings other than on the last day of the relevant interest period, provided that (i) any voluntary prepayment of the Dollar Term Loan, the Dollar Term Loan B or the Euro Term Loan prior to August 28, 2020, in connection with a repricing transaction would have been subject to a prepayment premium of 1.00% of the principal amount so prepaid and (ii) any voluntary prepayment of Dollar Term Loan Series A prior to December 29, 2020, in connection with a repricing transaction would have been subject to a prepayment premium of 1.00% of the principal amount so prepaid. Amortization and Final Maturity The Dollar Term Loan, Dollar Term Loan B, Dollar Term Loan Series A, and Euro Term Loan amortize in equal to quarterly installments in aggregate annual amounts equal to 1.00% of the original principal amount of such term loan, with the balances payable on February 28, 2027. Guarantee and Security All obligations of the borrowers under the Senior Secured Credit Facilities are unconditionally guaranteed by the Company and all of its material, wholly-owned U.S. restricted subsidiaries, with customary exceptions including where providing such guarantees are not permitted by law, regulation or contract or would result in adverse tax consequences. All obligations of the borrowers under the Senior Secured Credit Facilities, and the guarantees of such obligations, are secured, subject to permitted liens and other exceptions, by substantially all of the assets of the borrowers and each guarantor, including but not limited to: (i) a perfected pledge of the capital stock issued by the borrowers and each subsidiary guarantor and (ii) perfected security interests in substantially all other tangible and intangible assets of the borrowers and the guarantors (subject to certain exceptions and exclusions). The obligations of the non-U.S. borrowers are secured by certain assets in jurisdictions outside of the United States. Certain Covenants and Events of Default The Senior Secured Credit Facilities contain a number of covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability to: incur additional indebtedness and guarantee indebtedness; create or incur liens; engage in mergers or consolidations; sell, transfer or otherwise dispose of assets; create limitations on subsidiary distributions; pay dividends and distributions or repurchase its own capital stock; and make investments, loans or advances, prepayments of junior financings, or other restricted payments. The Revolving Credit Facility requires that, if the sum of the aggregate principle amount of all borrowings under the Revolving Credit Facility and non-cash collateralized letters of credit outstanding under the Revolving Credit Facility (less the amount of letters of credit outstanding as of June 28, 2019) exceeds 40% of the commitments under the Revolving Credit Facility, the Company’s Consolidated First Lien Secured Debt to Consolidated EBITDA Ratio shall not exceed 6.25 to 1.00 as of the last day of the fiscal quarter. The Senior Secured Credit Facilities also contain certain customary affirmative covenants and events of default. Receivables Financing Agreement In May 2016, the Company entered into the Receivables Financing Agreement with PNC Bank, National Association (the “Receivables Financing Agreement”), providing for aggregated borrowing of up to $75.0 million governed by a borrowing base. The Receivables Financing Agreement provided for a lower cost alternative for the issuance of letters of credit with the remaining unused capacity providing additional liquidity. On June 30, 2017, the Company signed the first amendment of the Receivables Financing Agreement which increased the aggregated borrowing capacity by $50.0 million to $125.0 million governed by a borrowing base and extended the term to June 30, 2020. On February 27, 2020, Gardner Denver, Inc., as initial servicer, Gardner Denver Finance II LLC, as borrower, and PNC Bank, National Association as lender, LC participant, LC bank, and administrative agent, entered into the third amendment (the “Third Amendment”) to the Receivables Financing Agreement dated as of May 17, 2016. Among other changes, the Third Amendment extended the scheduled termination date of the Receivables Financing Agreement from September 30, 2020 to December 31, 2020 and amended the definition of “Change of Control” to (i) remove the requirement that certain specified equity holders maintain a minimum ownership level of the outstanding voting stock of the Company, (ii) increase the threshold at which the acquisition of ownership by a person, entity or group of other equity holders constitutes a “Change of Control” and (iii) make certain other technical changes and updates. On August 13, 2020, the Company terminated the Receivables Financing Agreement with PNC Bank, National Association. As part of the termination, the Company paid all outstanding liabilities, obligations, and other indebtedness under the Receivables Financing Agreement. Total Debt Maturities Total debt maturities for the five years subsequent to December 31, 2020 and thereafter are approximately $40.4 million, $40.5 million, $40.6 million, $40.7 million, $40.8 million and $3,747.3 million, respectively.
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Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit Plans | Benefit Plans Pension and Postretirement Benefit Plans The Company sponsors a number of pension and postretirement plans worldwide. Pension plan benefits are provided to employees under defined benefit pay-related and service-related plans, which are non-contributory in nature. The Company’s funding policy for the U.S. defined benefit pension plans is to contribute at least the minimum required contribution required by Employee Retirement Income Security Act (“ERISA”), as amended by the Pension Protection Act of 2016 (as amended by MAP-21, HAFTA, and BBA 15). The Company intends to make additional contributions, as necessary, to prevent benefit restrictions in the plans. The Company’s annual contributions to the non-U.S. pension plans are consistent with the requirements of applicable local laws. The Company also provides postretirement healthcare and life insurance benefits in the United States and South Africa to a limited group of current and retired employees. All of the Company’s postretirement benefit plans are unfunded. The following table provides a reconciliation of the changes in the benefit obligations and in the fair value of the plan assets for the periods described below.
Amounts recognized as a component of accumulated other comprehensive income (loss) as of December 31, 2020 and 2019 that have not been recognized as a component of net periodic benefit cost are presented in the following table.
For defined benefit pension plans, the Company estimates that $5.6 million of net losses and $0.1 million of prior service costs will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during the year ending December 31, 2021. For other postretirement benefit plans, the Company estimates no net losses and prior service costs will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during the year ending December 31, 2021. Pension and other postretirement benefit liabilities and assets are included in the following captions in the Consolidated Balance Sheets as of December 31, 2020 and 2019.
The following table provides information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31, 2020 and 2019.
The accumulated benefit obligation for all U.S. defined benefit pension plans was $478.0 million and $59.8 million as of December 31, 2020 and 2019, respectively. The accumulated benefit obligation for all non-U.S. defined benefit pension plans was $426.7 million and $339.1 million as of December 31, 2020 and 2019, respectively. The following tables provide the components of net periodic benefit cost (income) and other amounts recognized in other comprehensive income (loss), before income tax effects, for the years ended December 31, 2020, 2019 and 2018.
The discount rate selected to measure the present value of the Company’s benefit obligations was derived by examining the rates of high-quality, fixed income securities whose cash flows or duration match the timing and amount of expected benefit payments under a plan. The Company selects the expected long-term rate of return on plan assets in consultation with the plans’ actuaries. This rate is intended to reflect the expected average rate of earnings on the funds invested or to be invested to provide plan benefits and the Company’s most recent plan assets target allocations. The plans are assumed to continue in force for as long as the assets are expected to be invested. In estimating the expected long-term rate of return on plan assets, appropriate consideration is given to historical performance of the major asset classes held or anticipated to be held by the plans and to current forecasts of future rates of return for those asset classes. Because assets are held in qualified trusts, expected returns are not adjusted for taxes. The following weighted-average actuarial assumptions were used to determine net periodic benefit cost (income) for the years ended December 31, 2020, 2019 and 2018.
The following weighted-average actuarial assumptions were used to determine benefit obligations for the years ended December 31, 2020 and 2019:
The following actuarial assumptions were used to determine other postretirement benefit plans costs and obligations for the years ended December 31, 2020, 2019 and 2018.
A one-percentage-point increase or decrease in assumed healthcare cost trend rates as of December 31, 2020 would have less than a $0.1 million impact on total service and interest cost components of net periodic benefit costs and less than a $0.1 million impact on the postretirement benefit obligation. The following table reflects the estimated benefit payments for the next five years and for the years 2025 through 2029. The estimated benefit payments for the non-U.S. pension plans were calculated using foreign exchange rates as of December 31, 2020.
In 2021, the Company expects to contribute approximately $11.2 million to the U.S. pension plans, approximately $8.2 million to the non-U.S. pension plans, and $3.3 million to the other postretirement benefit plans. Plan Asset Investment Strategy The Company’s overall investment strategy and objectives for its pension plan assets is to (i) meet current and future benefit payment needs through diversification across asset classes, investing strategies and investment managers to achieve an optimal balance between risk and return and between income and growth of assets through capital appreciation, (ii) secure participant retirement benefits, (iii) minimize reliance on contributions as a source of benefit security, and (iv) maintain sufficient liquidity to pay benefit obligations and proper expenses. The composition of the actual investments in various securities changes over time based on short and long-term investment opportunities. None of the plan assets of Ingersoll Rand’s defined benefit plans are invested in the Company’s common stock. The Company uses both active and passive investment strategies. Plan Asset Risk Management The target financial objectives for the pension plans are established in conjunction with periodic comprehensive reviews of each plan’s liability structure. The Company’s asset allocation policy is based on detailed asset and liability model (“ALM”) analyses. A formal ALM study of each major plan is undertaken every 2-5 years or whenever there has been a material change in plan demographics, benefit structure, or funded status. In order to determine the recommended asset allocation, the advisors model varying return and risk levels for different theoretical portfolios, using a relative measure of excess return over treasury bills, divided by the standard deviation of the return (the “Sharpe Ratio”). The Sharpe Ratio for different portfolio options was used to compare each portfolio’s potential return, on a risk-adjusted basis. The Company selected a recommended portfolio that achieved the targeted composite return with the least amount of risk. The Company’s primary pension plans are in the U.S. and UK which together comprise approximately 80% of the total benefit obligations and 92% of total plan assets as of December 31, 2020. The following table presents the long-term target allocations for these plans as of December 31, 2020.
Fair Value Measurements The following tables present the fair values of the Company’s pension plan assets as of December 31, 2020 and 2019 by asset category within the ASC 820 hierarchy (as defined in Note 19 “Fair Value Measurements”).
(1)Cash and cash equivalents consist of traditional domestic and foreign highly liquid short-term securities with the goal of providing liquidity and preservation of capital while maximizing return on assets. (2)The International category consists of investment funds focused on companies operating in developed and emerging markets outside of the U.S. These investments target broad diversification across large and mid/small-cap companies and economic sectors. (3)International real estate consists primarily of equity and debt investments made, directly or indirectly, in various interests in unimproved and improved real properties. (4)Other investments consist of insurance and reinsurance contracts securing the retirement benefits. The fair value of these contracts was calculated at the discount value of premiums paid by the Company, less expenses charged by the insurance providers. The insurance providers with which the Company has placed these contracts are well-known financial institutions with an established history of providing insurance services. (5)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. Defined Contribution Plans The Company also sponsors defined contribution plans at various locations throughout the world. Benefits are determined and funded regularly based on terms of the plans or as stipulated in a collective bargaining agreement. The Company’s full-time salaried and hourly employees in the U.S. are eligible to participate in Company-sponsored defined contribution savings plans, which are qualified plans under the requirements of Section 401(k) of the Internal Revenue Code. The Company’s contributions to the savings plans are in the form of cash. The Company’s total contributions to all worldwide defined contribution plans for the years ended December 31, 2020, 2019, and 2018 were $40.4 million, $19.5 million and $15.9 million, respectively. Other Benefit Plans The Company offers a long-term service award program for qualified employees at certain of its non-U.S. locations. Under this program, qualified employees receive a service gratuity (“Jubilee”) payment once they have achieved a certain number of years of service. The Company’s actuarially calculated obligation equaled $4.4 million and $4.3 million as of December 31, 2020 and 2019, respectively. There are various other employment contracts, deferred compensation arrangements, covenants not to compete, and change in control agreements with certain employees and former employees. The liabilities associated with such arrangements are not material to the Company’s consolidated financial statements.
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Stockholders' Equity and Noncontrolling Interests |
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Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity and Noncontrolling Interests | Stockholders' Equity and Noncontrolling Interests Stockholders' Equity As of December 31, 2020 and 2019, 1,000,000,000 shares of voting common stock were authorized. Shares of common stock outstanding were 418,627,809 and 205,065,744 as of December 31, 2020 and 2019, respectively. The Company is governed by the General Corporation Law of the State of Delaware. All authorized shares of voting common stock have a par value of $0.01. Shares of common stock reacquired are considered issued and reported as Treasury shares. Noncontrolling Interests The Company has a controlling interest of approximately 75% in Ingersoll-Rand India Limited (“IR India Limited”). The remaining shares are owned by unaffiliated shareholders and traded on India stock exchanges regulated by Securities and Exchange Board of India (“SEBI”). The Company’s acquisition of Ingersoll Rand Industrial discussed in Note 2 “Business Combinations” resulted in an indirect change in control of IR India Limited as defined by SEBI Substantial Acquisition of Shares and Takeovers (“SAST”) regulations. As a result, the Company was required to pursue either a tender offer for a certain number of noncontrolling shares or a voluntary delisting of the entity from India stock exchanges. In June 2020, the Company initiated a tender offer to purchase up to 26% of outstanding shares of Ingersoll-Rand India Limited from eligible noncontrolling shareholders. The offer price was determined in accordance with SEBI (SAST) regulations as the average market price of shares of IR India Limited on India stock exchanges for a period of sixty days preceding the announcement of the Ingersoll Rand Industrial merger transaction, adjusted for imputed interest for the period of time between announcement of the merger and announcement of the tender offer. The Company determined this offer was a freestanding financial instrument and not a contractual redemption right embedded in the related equity securities. The noncontrolling interest remained classified and measured in accordance with ASC 810 Consolidation with the carrying value presented in permanent equity. The tender offer concluded and was settled in July 2020. Approximately 6% of outstanding shares were tendered for an aggregate purchase price of $14.9 million. As a result, the Company’s ownership interest in IR India Limited increased from approximately 74% as of June 30, 2020 to approximately 80%. The Company was required by SEBI regulations to take necessary steps to decrease the non-public shareholding of IR India Limited to at or below 75% within twelve months of the date the non-public shareholding exceeded 75%. In November 2020, the Company initiated an offer to sell up to 5% of the total shares of IR India Limited on India stock exchanges. The offer for sale concluded and was settled in November 2020. Approximately 5% of outstanding shares were sold for an aggregate purchase price of $11.9 million. As a result, the Company’s ownership interest in IR India Limited decreased from approximately 80% as of September 30, 2020 to approximately 75% after the sale. Share Repurchase Program On August 1, 2018, the Board of Directors of Ingersoll Rand authorized a share repurchase program pursuant to which the Company may repurchase up to $250.0 million of its common stock effective through July 31, 2020, the date on which the repurchase program expired. Under the repurchase program, Ingersoll Rand was authorized to repurchase shares through open market purchases, privately-negotiated transactions or otherwise in accordance with all applicable securities laws and regulations, including through Rule 10b5-1 trading plans and under Rule 10b-18 of the Securities Act of 1934. There were no shares repurchased under the August 1, 2018 program for the years ended December 31, 2020 and 2019, respectively.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The Company’s other comprehensive income (loss) consists of (i) unrealized foreign currency net gains and losses on the translation of the assets and liabilities of its foreign operations; (ii) realized and unrealized foreign currency gains and losses on intercompany notes of a long-term nature and certain hedges of net investments in foreign operations, net of income taxes; (iii) unrealized gains and losses on cash flow hedges (consisting of interest rate swaps), net of income taxes; and (iv) pension and other postretirement prior service cost and actuarial gains or losses, net of income taxes. See Note 11 “Benefit Plans” and Note 18 “Hedging Activities, Derivative Instruments and Credit Risk.” On January 1, 2019, the Company adopted ASU 2018-02 which reclassified stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income (loss) to retained (deficit) earnings. The Company recorded a cumulative-effect adjustment which increased “Accumulated other comprehensive loss” in the Consolidated Balance Sheet by $8.2 million. On January 1, 2018, the Company adopted FASB ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities using the modified retrospective approach. The Company recorded a cumulative effect-adjustment on the adoption date increasing the opening balance of “Accumulated deficit” in the Consolidated Balance Sheets by $0.3 million and decreasing “Accumulated other comprehensive loss” in the Consolidated Balance Sheet by $0.3 million. The before tax income (loss) and related income tax effect are as follows.
The tables above include only the other comprehensive income (loss), net of tax, attributable to Ingersoll Rand Inc. Other comprehensive loss, net, attributable to noncontrolling interest holders was $1.4 million for the year ended December 31, 2020 and related entirely to foreign currency translation adjustments. Changes in accumulated other comprehensive income (loss) by component for the periods described below are presented in the following table(1).
(1)All amounts are net of tax. Amounts in parentheses indicate debits. Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018 are presented in the following table.
(1)These components are included in the computation of net periodic benefit cost. See Note 11 “Benefit Plans” for additional details.
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Revenue from Contracts with Customers |
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Revenue from Contracts with Customers | Revenue from Contracts with Customers Overview The Company recognizes revenue when the Company has satisfied its obligation and control is transferred to the customer. The amount of revenue recognized includes adjustments for any variable consideration, such as rebates, sales discounts, liquidated damages, etc., which are included in the transaction price, and allocated to each performance obligation. The variable consideration is estimated throughout the course of the contract using the Company’s best estimates. Judgements impacting variable consideration related to material rebate and sales discount programs, and significant contracts containing liquidated damage clauses are governed by management review processes. The majority of the Company’s revenues are derived from short duration contracts and revenue is recognized at a single point in time when control is transferred to the customer, generally at shipment or when delivery has occurred or services have been rendered. The Company has certain long duration engineered to order (“ETO”) contracts that require highly-engineered solutions designed to customer specific applications. For contracts where the contractual deliverables have no alternative use and the contract termination clauses provide for the recovery of cost plus a reasonable margin, revenue is recognized over time based on the Company’s progress in satisfying the contractual performance obligations, generally measured as the ratio of actual costs incurred to date to the estimated total costs to complete the contract. For contracts with termination provisions that do not provide for recovery of cost and a reasonable margin, revenue is recognized at a point in time, generally at shipment or delivery to the customer. Identification of performance obligations, determination of alternative use, assessment of contractual language regarding termination provisions, and estimation of total project costs are all significant judgments required in the application of ASC 606. Contractual specifications and requirements may be modified. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. In the event a contract modification is for goods or services that are not distinct in the contract, and therefore, form part of a single performance obligation that is partially satisfied as of the modification date, the effect of the contract modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates, is recognized on a cumulative catch-up basis. Taxes assessed by a government authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Sales commissions are due at either collection of payment from customers or recognition of revenue. Applying the practical expedient from ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in “Selling and administrative expenses” in the Consolidated Statements of Operations. Disaggregation of Revenue The following table provides disaggregated revenue by reportable segment for the year ended December 31, 2020.
The following table provides disaggregated revenue by reportable segment for the year ended December 31, 2019.
(1)Revenues from sales of capital equipment within the Industrial Technologies and services and High Pressure Solutions segments and sales of components to original equipment manufacturers in the Precision and Science Technologies segment. (2)Revenues from sales of spare parts, accessories, other components and services in support of maintaining customer owned, installed base of the Company’s original equipment. Service revenue represents less than 10% of consolidated revenue. (3)Revenues from short and long duration product and service contracts recognized at a point in time when control is transferred to the customer generally when product delivery has occurred and services have been rendered. (4)Revenues primarily from long duration ETO product contracts, certain multi-year service contracts, and certain contracts for the delivery of a significant volume of substantially similar products recognized over time as contractual performance obligations are completed. Performance Obligations The majority of the Company’s contracts have a single performance obligation as the promise to transfer goods and/or services. For contracts with multiple performance obligations, the Company utilizes observable prices to determine standalone selling price or cost plus margin if a standalone price is not available. The Company has elected to account for shipping and handling activities as fulfillment costs and not a separate performance obligation. If control transfers and related revenue is recognized for the related good before the shipping and handling activities occur, the related costs of those shipping and handling activities are accrued. The Company’s primary performance obligations include delivering standard or configured to order (“CTO”) goods to customers, designing and manufacturing a broad range of equipment customized to a customer’s specifications in ETO arrangements, rendering of services (maintenance and repair contracts), and certain extended or service type warranties. For incidental items that are immaterial in the context of the contract, costs are expensed as incurred or accrued at delivery. As of December 31, 2020, for contracts with an original duration greater than one year, the Company expects to recognize revenue in the future related to unsatisfied (or partially satisfied) performance obligations of $405.1 million in the next twelve months and $322.5 million in periods thereafter. The performance obligations that are unsatisfied (or partially satisfied) are primarily related to orders for goods or services that were placed prior to the end of the reporting period and have not been delivered to the customer, on-going work on ETO contracts where revenue is recognized over time and service contracts with an original duration greater than one year. Contract Balances The following table provides the contract balances as of December 31, 2020 and December 31, 2019 presented in the Consolidated Balance Sheets.
Accounts receivable, net – Amounts due where the Company’s right to receive cash is unconditional. Customer receivables are recorded at face amount less an allowance for credit losses. The Company maintains an allowance for credit losses as a result of customers’ inability to make required payments. Management evaluates the aging of customer receivable balances, the financial condition of its customers, historical trends and the time outstanding of specific balances to estimate the amount of customer receivables that may not be collected in the future and records the appropriate provision. As of December 31, 2020, approximately $599.9 million of the increase in accounts receivable related to the acquisition of Ingersoll Rand Industrial. In the year ended December 31, 2020, the Company increased its allowance for credit losses by $12.5 million in response to a filing for Chapter 11 bankruptcy protection of a customer in the High Pressure Solutions segment. Contract assets – The Company’s rights to consideration for the satisfaction of performance obligations subject to constraints apart from timing. Contract assets are transferred to receivables when the right to collect consideration becomes unconditional. Contract assets are presented net of progress billings and related advances from customers. As of December 31, 2020, approximately $18.2 million of the increase in contract assets related to the acquisition of Ingersoll Rand Industrial. Contract liabilities – Advance payments received from customers for contracts for which revenue is not yet recognized. Contract liability balances are generally recognized in revenue within twelve months. Of the $51.7 million in contract liabilities as of December 31, 2019, we recognized substantially all as revenue in the year ended December 31, 2020. As of December 31, 2020, approximately $113.9 million of the increase in contract liabilities related to the acquisition of Ingersoll Rand Industrial. Contract assets and liabilities are reported on the Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Contract assets and liabilities are presented net on a contract level, where required. Payments from customers are generally due 30-60 days after invoicing. Invoicing for sales of standard products generally coincides with shipment or delivery of goods. Invoicing for CTO and ETO contracts typically follows a schedule for billing at contractual milestones. Payment milestones normally include down payments upon the contract signing, completion of product design, completion of customer’s preliminary inspection, shipment or delivery, completion of installation, and customer’s on-site inspection. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheets. The Company has elected the practical expedient from ASC 606-10-32-18 and does not adjust the transaction price for the effects of a financing component if, at contract inception, the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income (loss) before income taxes for the years ended December 31, 2020, 2019 and 2018 consisted of the following.
The following table details the components of the Provision for income taxes for the years ended December 31, 2020, 2019 and 2018.
Certain prior period amounts within this Note have been reclassified to conform to the current period presentation. The U.S. federal corporate statutory rate is reconciled to the Company’s effective income tax rate for the years ended December 31, 2020, 2019 and 2018 as follows.
The principal items that gave rise to deferred income tax assets and liabilities as of December 31, 2020 and 2019 are as follows.
The Company believes that it is more likely than not that it will realize its deferred tax assets through the reduction of future taxable income, other than for the deferred tax assets reflected below. Tax attributes and related valuation allowances as of December 31, 2020 were as follows.
A reconciliation of the changes in the valuation allowance for deferred tax assets for the years ended December 31, 2020, 2019 and 2018 are as follows.
(1)Revaluation for the tax year ended December 31, 2020 relates to the inclusion of Ingersoll Rand's opening balance sheet (“OBS”) beginning valuation allowance. (2)Deductions relate to the realization of net operating losses or the removal of deferred tax assets. Total unrecognized tax benefits were $27.8 million, $12.5 million and $11.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The net increase in this balance primarily relates to increases related to current-year positions of $16.8 million assumed in the acquisition of Ingersoll Rand Industrial and currency fluctuations of $2.0 million. Included in total unrecognized benefits at December 31, 2020 is $27.8 million of unrecognized tax benefits that would affect the Company's effective tax rate if recognized, of which $0.1 million would be offset by a reduction of a corresponding deferred tax asset. The balance of total unrecognized tax benefits is expected to decrease $11 million to $15 million within the next twelve months. Below is a tabular reconciliation of the changes in total unrecognized tax benefits during the years ended December 31, 2020, 2019 and 2018.
The Company includes interest expense and penalties related to unrecognized tax benefits as part of the provision for income taxes. The Company's income tax liabilities at December 31, 2020 and 2019 include accrued interest and penalties of $2.3 million and $1.3 million, respectively. The statutes of limitations for U.S. Federal tax returns are open beginning with the 2017 tax year, and state returns are open beginning with the 2016 tax year. The Company is subject to income tax in approximately 46 jurisdictions outside the U.S. The statute of limitations varies by jurisdiction with 2015 being the oldest year still open. The Company's significant operations outside the U.S. are located in the United Kingdom, Germany, China, Ireland and Singapore. The Company is no longer subject to audit or inquiry in the United Kingdom (all prior year tax audits were concluded as of the date of these financial statements. In Germany, generally, the tax years 2011 and beyond remain open, as tax years 2011-2014 are still under audit, and a new tax audit covering tax years 2015-2019 was notified to the Company in 2020. The Company is under audit in Italy for tax years 2016 – 2018. However, as this audit covers pre-merger tax years for legacy Ingersoll Rand Industrial entities, the Company has been indemnified by Trane Technologies for any future liability arising from the audit. Note that any other liabilities arising from pre-merger tax years for legacy Ingersoll Rand Industrial entities would be similarly indemnified. The Company does not assert the ASC 740-30 (formerly APB 23) indefinite reinvestment of the Company’s historical non-U.S. earnings or future non-U.S. earnings. This assertion has not changed following the merger. The Company records a deferred foreign tax liability to cover all estimated withholding, state income tax and foreign income tax associated with repatriating all non-U.S. earnings back to the United States. The Company’s deferred income tax liability as of December 31, 2020 was $32.5 million which is a significant increase over prior year due mainly to increased foreign operations as a result of the Ingersoll Rand Industrial acquisition.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company adopted ASC 842 on January 1, 2019 using the optional transition method. See Note 2 “New Accounting Standards” for further discussion of the adoption. The Company has operating and financing leases for real estate, vehicles, IT equipment, office equipment and production equipment. The Company determines if an arrangement is a lease and identifies the classification of the lease as a financing lease or an operating lease at inception. Operating leases are recorded as operating lease right-of-use assets (“ROU assets”) in “Other assets” and operating lease liabilities in “Accrued liabilities” and “Other liabilities” in the Consolidated Balance Sheets. Financing leases are recorded as financing ROUs in “Property, plant and equipment” and lease liabilities in “Short-term borrowings and current maturities of long-term debt” and “Long-term debt, less current maturities” in the Consolidated Balance Sheets. At the date of commencement, lease liabilities are recorded at the present value of the future minimum lease payments over the lease term. The lease term is equal to the initial term at commencement plus any renewal or extension options that the Company is reasonably certain will be exercised. ROU assets at the date of commencement are equal to the amount of the initial lease liability, the initial direct costs incurred by the Company and any prepaid lease payments less any incentives received. Subsequent to the commencement date, operating lease liabilities are recorded at the present value of unpaid lease payments discounted at a discount rate established at the commencement date. Due to the absence of an implicit rate in the Company’s lease contracts, an incremental borrowing rate is used in the determination of the present value of future lease payments. Incremental borrowing rates for a lease are based on the lease term, lease currency and the Company’s credit spread. Operating ROU assets are recorded as the beginning balance less accumulated amortization with accumulated amortization equaling the straight-lined lease expense less the periodic accretion of the lease liability using the effective interest rate method. Subsequent to the commencement date, financing lease liabilities are increased to reflect interest on the lease liability and decreased for principal lease payments made. The financing ROU asset is measured at cost less amortization expense and any accumulated impairment loss. Amortization expense is calculated on a straight-line basis over the lease term or remaining useful life. The Company’s lease terms allow for the extension or termination of its leases and accounts for the extension and termination when it is reasonably certain that the Company will exercise the option or terminate the lease. Reassessment of the lease term occurs when there is a significant event or a significant change in circumstances that is within the control of the Company that directly affects whether the Company is reasonably certain to exercise or not to exercise an option to extend or terminate the lease or to purchase the underlying asset. Contractual specifications and requirements may be modified. The Company considers contract modifications to exist when the modification includes a change to the contractual terms, scope of the lease or the consideration given. In the event that the right to use an additional asset is granted and the lease payments associated with the additional asset are commensurate with the ROU asset’s standalone price, the modification is accounted for as a separate contract and the original contract remains unchanged. In the event that a single lease is modified, the Company reassessed the classification of the modified lease as of the effective date of the modification based on the modified terms and accounts for initial direct costs, lease incentives and any other payments made to or by the Company in connection with the modification in the same manner that items would be accounted for in connection with a new lease. If there is an additional ROU asset included, the lease term is extended or reduced, or the consideration is the only change in the contract, the Company reallocates the remaining consideration in the contract and remeasures the lease liability using a discount rate determined at the effective date of the modification. The remeasured lease liability for the modified lease is an adjustment to the corresponding ROU asset and does not impact the Consolidated Statements of Operations. In the event of a full or partial termination, the carrying value of the ROU asset decreases on a basis proportionate to the full or partial termination and any difference between the reduction in the lease liability and the proportionate reduction of the ROU asset is recognized as a gain or loss at the effective date of the modification. The Company elected not to recognize short-term leases on its balance sheet and continues to expense such leases. The Company also elected the practical expedient allowing the Company to account for each separate lease component of a contract and its associated non-lease component as a single lease component. This practical expedient was applied to all underlying asset classes. Variable lease expense was not material. The components of lease expense for the years ended December 31, 2020 and 2019 was as follows.
Supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 was as follows.
(1)For the year ended December 31, 2020, this included leases related to the acquisition of Ingersoll Rand Industrial. Supplemental balance sheet information related to leases was as follows.
Maturities of lease liabilities as of December 31, 2020 were as follows.
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Leases | Leases The Company adopted ASC 842 on January 1, 2019 using the optional transition method. See Note 2 “New Accounting Standards” for further discussion of the adoption. The Company has operating and financing leases for real estate, vehicles, IT equipment, office equipment and production equipment. The Company determines if an arrangement is a lease and identifies the classification of the lease as a financing lease or an operating lease at inception. Operating leases are recorded as operating lease right-of-use assets (“ROU assets”) in “Other assets” and operating lease liabilities in “Accrued liabilities” and “Other liabilities” in the Consolidated Balance Sheets. Financing leases are recorded as financing ROUs in “Property, plant and equipment” and lease liabilities in “Short-term borrowings and current maturities of long-term debt” and “Long-term debt, less current maturities” in the Consolidated Balance Sheets. At the date of commencement, lease liabilities are recorded at the present value of the future minimum lease payments over the lease term. The lease term is equal to the initial term at commencement plus any renewal or extension options that the Company is reasonably certain will be exercised. ROU assets at the date of commencement are equal to the amount of the initial lease liability, the initial direct costs incurred by the Company and any prepaid lease payments less any incentives received. Subsequent to the commencement date, operating lease liabilities are recorded at the present value of unpaid lease payments discounted at a discount rate established at the commencement date. Due to the absence of an implicit rate in the Company’s lease contracts, an incremental borrowing rate is used in the determination of the present value of future lease payments. Incremental borrowing rates for a lease are based on the lease term, lease currency and the Company’s credit spread. Operating ROU assets are recorded as the beginning balance less accumulated amortization with accumulated amortization equaling the straight-lined lease expense less the periodic accretion of the lease liability using the effective interest rate method. Subsequent to the commencement date, financing lease liabilities are increased to reflect interest on the lease liability and decreased for principal lease payments made. The financing ROU asset is measured at cost less amortization expense and any accumulated impairment loss. Amortization expense is calculated on a straight-line basis over the lease term or remaining useful life. The Company’s lease terms allow for the extension or termination of its leases and accounts for the extension and termination when it is reasonably certain that the Company will exercise the option or terminate the lease. Reassessment of the lease term occurs when there is a significant event or a significant change in circumstances that is within the control of the Company that directly affects whether the Company is reasonably certain to exercise or not to exercise an option to extend or terminate the lease or to purchase the underlying asset. Contractual specifications and requirements may be modified. The Company considers contract modifications to exist when the modification includes a change to the contractual terms, scope of the lease or the consideration given. In the event that the right to use an additional asset is granted and the lease payments associated with the additional asset are commensurate with the ROU asset’s standalone price, the modification is accounted for as a separate contract and the original contract remains unchanged. In the event that a single lease is modified, the Company reassessed the classification of the modified lease as of the effective date of the modification based on the modified terms and accounts for initial direct costs, lease incentives and any other payments made to or by the Company in connection with the modification in the same manner that items would be accounted for in connection with a new lease. If there is an additional ROU asset included, the lease term is extended or reduced, or the consideration is the only change in the contract, the Company reallocates the remaining consideration in the contract and remeasures the lease liability using a discount rate determined at the effective date of the modification. The remeasured lease liability for the modified lease is an adjustment to the corresponding ROU asset and does not impact the Consolidated Statements of Operations. In the event of a full or partial termination, the carrying value of the ROU asset decreases on a basis proportionate to the full or partial termination and any difference between the reduction in the lease liability and the proportionate reduction of the ROU asset is recognized as a gain or loss at the effective date of the modification. The Company elected not to recognize short-term leases on its balance sheet and continues to expense such leases. The Company also elected the practical expedient allowing the Company to account for each separate lease component of a contract and its associated non-lease component as a single lease component. This practical expedient was applied to all underlying asset classes. Variable lease expense was not material. The components of lease expense for the years ended December 31, 2020 and 2019 was as follows.
Supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 was as follows.
(1)For the year ended December 31, 2020, this included leases related to the acquisition of Ingersoll Rand Industrial. Supplemental balance sheet information related to leases was as follows.
Maturities of lease liabilities as of December 31, 2020 were as follows.
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Plans The Company has outstanding stock-based compensation awards granted under the 2013 Stock Incentive Plan (“2013 Plan”) and the 2017 Omnibus Incentive Plan (“2017 Plan”). Following the Company’s initial public offering, the Company grants stock-based compensation awards pursuant to the 2017 Plan and ceased granting new awards pursuant to the 2013 Plan. 2017 Omnibus Incentive Plan In May 2017, the Company’s Board approved the 2017 Plan. Additionally, in February 2020, the Company’s stockholders approved the amendment and restatement of the 2017 Plan. Under the terms of the Plan, the Company’s Board may grant up to 19.6 million stock based and other incentive awards. Any shares of common stock subject to outstanding awards granted under the Company’s 2013 plan that, after the effective date of the 2017 Plan, expire or are otherwise forfeited or terminated in accordance with their terms are also available for grant under the 2017 Plan. All stock options were granted to employees, directors and advisors with an exercise price equal to the fair value of the Company’s per share common stock at the date of grant. Stock option awards typically vest over or five years and expire ten years from the date of grant. 2013 Stock Incentive Plan The Company adopted the 2013 Plan on October 14, 2013 as amended on April 27, 2015 under which the Company had the ability to grant stock-based compensation awards to employees, directors and advisors. The total number of shares available for grant under the 2013 Plan and reserved for issuance was 20.9 million shares. All stock options were granted to employees, directors and advisors with an exercise price equal to the fair value of the Company’s per share common stock at the date of grant. Stock option awards vested over either five, four, or three years with 50% of each award vesting based on time and 50% of each award vesting based on the achievement of certain financial targets. Acquisition of Ingersoll Rand Industrial As of the acquisition date of February 29, 2020, Ingersoll Rand Industrial employees’ unvested equity awards and a limited number of vested awards were converted into equity awards denominated in shares of the Company’s common stock based on a defined exchange ratio. Ingersoll Rand Industrial employees’ equity awards were converted into Ingersoll Rand stock options and restricted stock units. For converted restricted stock units, the fair value of the equity award is based on the market price of the common stock on the grant date. The replacement restricted stock units will generally be governed by the same terms and conditions as those applicable prior to the acquisition. The portion of fair value of the replacement awards related to services provided prior to the acquisition was accounted for as consideration transferred. The remaining portion of the fair value is associated with future service and is recognized as compensation expense over the vesting period. For converted stock options, the exercise price per share of the converted award was equal to the exercise price per share of the stock option award immediately prior to the completion of the acquisition divided by the exchange ratio. The replacement options will generally be governed by the same terms and conditions as those applicable prior to the acquisition. The portion of fair value of the replacement awards related to services provided prior to the acquisition was accounted for as consideration transferred. The remaining portion of fair value is associated with future service and is recognized as compensation expense over the vesting period. The fair value of stock options that the Company assumed in connection with the acquisition of Ingersoll Rand Industrial was estimated using the Black-Scholes model with the following assumptions.
Stock-Based Compensation Expense The Company recognized $51.3 million, $19.2 million and $2.8 million of stock-based compensation expense for the years ended December 31, 2020, 2019 and 2018. For the year ended December 31, 2020, the $51.3 million of stock-based compensation expense included expense for modifications of certain equity awards for certain former employees of $2.9 million, expense for equity awards granted under the 2013 Plan and 2017 Plan of $47.1 million and an increase in the liability for stock appreciation rights (“SAR”) of $1.3 million. The $2.9 million of stock-based compensation expense for modifications provided continued vesting through scheduled vesting dates of certain equity awards for certain former employees. These costs are included in “Selling and administrative expenses” in the Consolidated Statements of Operations. Of the $47.1 million of expense for equity awards granted under the 2013 Plan and 2017 Plan, $19.0 million related to the $150 million equity grant to nearly 16,000 employees worldwide announced in the third quarter of 2020. For the year ended December 31, 2019, the $19.2 million of stock-based compensation expense included expense for modifications of equity awards for certain former employees of $1.0 million, expense for equity awards granted under the 2013 Plan and 2017 Plan of $10.2 million reduced by a benefit for a reduction in the liability for SARs of $8.0 million. The $1.0 million of stock-based compensation expense for modifications provided continued vesting through scheduled vesting dates of certain equity awards for certain former employees. These costs are included in “Cost of sales” and “Selling and administrative expenses” in the Consolidated Statements of Operations. For the year ended December 31, 2018, the $2.8 million of stock-based compensation expense included expense for modifications of equity awards for certain former employees of $3.8 million, expense for equity awards granted under the 2013 Plan and 2017 Plan of $7.2 million reduced by a benefit for a reduction in the liability for SARs of $(8.2) million. The $3.8 million of stock-based compensation expense for modifications provided continued vesting through scheduled vesting dates and extended expiration dates for certain former employees. The incremental stock-based compensation was determined using the Black-Scholes option pricing model based on assumptions which included expected lives of 1.0 to 1.3 years, a risk-free rate of 2.0%, assumed volatility of 26.8% to 27.3% and an expected dividend rate of 0.0%. As of December 31, 2020, there was $166.9 million of total unrecognized compensation expense related to outstanding stock option, restricted stock unit and performance share unit awards. SARs, granted under the 2013 Plan are expected to be settled in cash and are accounted for as liability awards. As of December 31, 2020 and 2019 a liability of approximately $3.5 million and $7.8 million, respectively, for SARs was included in “Accrued liabilities” in the Consolidated Balance Sheets. Stock Option Awards A summary of the Company’s stock option (including SARs) activity for the year ended December 31, 2020 is presented in the following table (underlying shares in thousands).
The per-share weighted average grant date fair value of stock options granted during the years ended December 31, 2020, 2019 and 2018 was $9.29, $10.16 and $13.67, respectively. The intrinsic value of stock options exercised was $66.0 million, $109.8 million and $20.8 million during the years ended December 31, 2020, 2019 and 2018, respectively. The following assumptions were used to estimate the fair value of options granted during the years ended December 31, 2020, 2019 and 2018.
Restricted Stock Unit Awards Restricted stock units are typically granted in the first quarter of the year to employees and non-employee directors based on the market price of the Company’s common stock on the grant date and recognized in compensation expense over the vesting period. Eligible employees were also granted restricted stock units, during the third quarter of 2020, that vest ratably over two years, subject to the passage of time and the employee's continued employment during such period. In some instances, such as death, awards may vest concurrently with or following an employee's termination. A summary of the Company’s restricted stock unit activity for the year ended December 31, 2020 is presented in the following table (underlying shares in thousands).
Performance Share Unit Awards Performance share units are granted to certain key employees and are subject to a three years performance period. The number of shares issued at the end of the performance period is determined by the Company’s total shareholder return percentile rank versus the S&P 500 index for the three year performance period. The grant date fair value of these awards is determined using a Monte Carlo simulation pricing model and compensation cost is recognized straight-line over a three year period. The Monte Carlo simulation pricing model for the fiscal year 2020 grants utilized the following assumptions: (i) expected term of 2.82 years (equal to the remaining performance measurement period at the grant date), (ii) volatility of 35.2%, (iii) risk-free interest rate of 0.5% and (iv) expected dividend rate of 0.0%. Compensation expense is recognized based on the grant date fair value. A summary of the Company’s performance stock unit activity for the year ended December 31, 2020 is presented in the following table (underlying shares in thousands).
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Hedging Activities, Derivative Instruments and Credit Risk |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedging Activities, Derivative Instruments and Credit Risk | Hedging Activities, Derivative Instruments and Credit Risk Hedging Activities The Company is exposed to certain market risks during the normal course of its business arising from adverse changes in interest rates and foreign currency exchange rates. The Company selectively uses derivative financial instruments (“derivatives”), including foreign currency forward contracts and interest rate swaps, to manage the risks from fluctuations in foreign currency exchange rates and interest rates, respectively. The Company does not purchase or hold derivatives for trading or speculative purposes. Fluctuations in interest rates and foreign currency exchange rates can be volatile, and the Company’s risk management activities do not totally eliminate these risks. Consequently, these fluctuations could have a significant effect on the Company’s financial results. The Company’s exposure to interest rate risk results primarily from its variable-rate borrowings. The Company manages its debt centrally, considering tax consequences and its overall financing strategies. The Company manages its exposure to interest rate risk by using pay-fixed interest rate swaps from time to time as cash flow hedges of variable rate debt in order to adjust the relative fixed and variable proportions. A substantial portion of the Company’s operations is conducted by its subsidiaries outside of the United States in currencies other than the USD. Almost all of the Company’s non-U.S. subsidiaries conduct their business primarily in their local currencies, which are also their functional currencies. Other than the USD, the EUR, GBP, and Chinese Renminbi are the principal currencies in which the Company and its subsidiaries enter into transactions. The Company is exposed to the impacts of changes in foreign currency exchange rates on the translation of its non-U.S. subsidiaries’ assets, liabilities and earnings into USD. The Company has certain U.S. subsidiaries borrow in currencies other than the USD. The Company and its subsidiaries are also subject to the risk that arises when they, from time to time, enter into transactions in currencies other than their functional currency. To mitigate this risk, the Company and its subsidiaries typically settle intercompany trading balances at least quarterly. The Company also selectively uses forward currency contracts to manage this risk. These contracts for the sale or purchase of non-functional currencies generally mature within one year. Derivative Instruments The following table summarizes the notional amounts, fair values and classification of the Company’s outstanding derivatives by risk category and instrument type within the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019.
(1)Notional amounts represent the gross contract amounts of the outstanding derivatives excluding the total notional amount of positions that have been effectively closed through offsetting positions. The net gains and net losses associated with positions that have been effectively closed through offsetting positions but not yet settled are included in the asset and liability derivatives fair value columns, respectively. Gains and losses on derivatives designated as cash flow hedges included in the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2020, 2019 and 2018 are presented in the table below.
(1)Losses on derivatives reclassified from accumulated other comprehensive income (“AOCI”) into income were included in “Interest expense” in the Consolidated Statements of Operations. (2)In the third quarter of 2018, the Company used excess cash to pay down $150.0 million of its Dollar Term Loan Facility. Due to this unforecasted pay down of debt, the Company paid $2.7 million in the amendment of the interest rate swap contracts to reflect the updated forecasted cash flows. The updated forecasts caused certain hedged items to be deemed probable of not occurring in the future and thus, the Company accelerated the release of AOCI related to those hedged items. Losses reclassified from AOCI into income (missed forecast) were included in “Loss on extinguishment of debt” in the Consolidated Statements of Operations. As of December 31, 2020, the Company has no interest rate swap contracts. Our previous interest rate swap contracts expired during the third quarter of 2020 and the remaining amounts in AOCI were reclassified to Interest Expense during the same period. The Company’s LIBOR-based variable rate borrowings outstanding as of December 31, 2020 were $3,204.4 million and €596.7 million. The Company had ten foreign currency forward contracts outstanding as of December 31, 2020 with notional amounts ranging from $10.3 million to $79.5 million. These contracts are used to hedge the change in fair value of recognized foreign currency denominated assets or liabilities caused by changes in currency exchange rates. The changes in the fair value of these contracts generally offset the changes in the fair value of a corresponding amount of the hedged items, both of which are included within “Other operating expense, net” in the Consolidated Statements of Operations. The Company’s foreign currency forward contracts are subject to master netting arrangements or agreements between the Company and each counterparty for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract with that certain counterparty. It is the Company’s practice to recognize the gross amounts in the Consolidated Balance Sheets. The amount available to be netted is not material. The Company’s gains (losses) on derivative instruments not designated as accounting hedges and total net foreign currency transaction gains (losses) for the years ended December 31, 2020, 2019 and 2018 were as follows.
The Company has a significant investment in consolidated subsidiaries with functional currencies other than the USD, particularly the EUR. On August 17, 2017, the Company designated the €615.0 million Euro Term Loan as a hedge of the Company’s net investment in subsidiaries with EUR functional currencies. As of December 31, 2020, the Euro Term Loan of €596.7 million remained designated. The Company’s gains, net of income tax, associated with changes in the value of debt for the years ended December 31, 2020 and 2019, and the net balance of such gains included in accumulated other comprehensive income (loss) as of December 31, 2020 and 2019 were as follows.
With the exception of the cash proceeds from the termination of the interest rate swap contracts described earlier, all cash flows associated with derivatives are classified as operating cash flows in the Consolidated Statements of Cash Flows. There were no off-balance sheet derivative instruments as of December 31, 2020 or 2019. Credit Risk Credit risk related to derivatives arises when amounts receivable from a counterparty exceed those payable. Because the notional amount of the derivative instruments only serves as a basis for calculating amounts receivable or payable, the risk of loss with any counterparty is limited to a fraction of the notional amount. The Company minimizes the credit risk related to derivatives by transacting only with multiple, high-quality counterparties that are major financial institutions with investment-grade credit ratings. The Company has not experienced any financial loss as a result of counterparty nonperformance in the past. The majority of the derivative contracts to which the Company is a party, settle monthly or quarterly, or mature within one year. Because of these factors, the Company believes it has minimal credit risk related to derivative contracts as of December 31, 2020. Concentrations of credit risk with respect to trade receivables are limited due to the wide variety of customers and industries to which the Company’s products and services are sold, as well as their dispersion across many different geographic areas. As a result, the Company does not believe it has any significant concentrations of credit risk as of December 31, 2020 or 2019.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements A financial instrument is defined as cash or cash equivalents, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from another party. The Company’s financial instruments consist primarily of cash and cash equivalents, trade accounts receivables, trade accounts payables, deferred compensation assets and obligations, derivatives and debt instruments. The carrying values of cash and cash equivalents, trade accounts receivables, trade accounts payables, and variable rate debt instruments are a reasonable estimate of their respective fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or more advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value as follows. Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities as of the reporting date. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities as of the reporting date. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company assessed indefinite-lived intangible assets, tradenames, in conjunction with the 2020 and 2019 annual goodwill impairment tests. The valuation of tradenames was based upon current sales projections and the relief from royalty method was applied. No impairment charges were recorded as a result of the 2019 analysis. As a result of the 2020 analysis, two trademarks were determined to have a carrying amount above their estimated fair value. These represented Level 3 assets measured on a nonrecurring basis subsequent to their original recognition. This resulted in a total non-cash impairment charge of $19.9 million. The fair value was determined using the relief from royalty method. Refer to Note 1 “Summary of Significant Accounting Policies” for a discussion of the valuation assumptions utilized in the valuation of goodwill and indefinite-lived intangible assets. The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis.
(1)Based on calculations that use readily observable market parameters as their basis, such as spot and forward rates. (2)Based on the quoted price of publicly traded mutual funds which are classified as trading securities and accounted for using the mark-to-market method. (3)Measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curves as of December 31, 2020. The present value calculation uses discount rates that have been adjusted to reflect the credit quality of the Company and its counterparties.
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Contingencies |
12 Months Ended |
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Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is a party to various legal proceedings, lawsuits and administrative actions, which are of an ordinary or routine nature for a company of its size and sector. The Company believes that such proceedings, lawsuits and administrative actions will not materially adversely affect its operations, financial condition, liquidity or competitive position. A more detailed discussion of certain of these proceedings, lawsuits and administrative actions is set forth below. Asbestos and Silica Related Litigation The Company has been named as a defendant in a number of asbestos-related and silica-related personal injury lawsuits. The plaintiffs in these suits allege exposure to asbestos or silica from multiple sources and typically the Company is one of approximately 25 or more named defendants. Predecessors to the Company sometimes manufactured, distributed and/or sold products allegedly at issue in the pending asbestos and silica-related lawsuits (the “Products”). However, neither the Company nor its predecessors ever mined, manufactured, mixed, produced or distributed asbestos fiber or silica sand, the materials that allegedly caused the injury underlying the lawsuits. Moreover, the asbestos-containing components of the Products, if any, were enclosed within the subject Products. Although the Company has never mined, manufactured, mixed, produced or distributed asbestos fiber or silica sand nor sold products that could result in a direct asbestos or silica exposure, many of the companies that did engage in such activities or produced such products are no longer in operation. This has led to law firms seeking potential alternative companies to name in lawsuits where there has been an asbestos or silica related injury. The Company believes that the pending and future asbestos and silica-related lawsuits are not likely to, in the aggregate, have a material adverse effect on its consolidated financial position, results of operations or liquidity, based on: the Company’s anticipated insurance and indemnification rights to address the risks of such matters; the limited potential asbestos exposure from the Products described above; the Company’s experience that the vast majority of plaintiffs are not impaired with a disease attributable to alleged exposure to asbestos or silica from or relating to the Products or for which the Company otherwise bears responsibility; various potential defenses available to the Company with respect to such matters; and the Company’s prior disposition of comparable matters. However, inherent uncertainties of litigation and future developments, including, without limitation, potential insolvencies of insurance companies or other defendants, an adverse determination in the Adams County Case (discussed below), or other inability to collect from the Company’s historical insurers or indemnitors, could cause a different outcome. While the outcome of legal proceedings is inherently uncertain, based on presently known facts, experience, and circumstances, the Company believes that the amounts accrued on its balance sheet are adequate and that the liabilities arising from the asbestos and silica-related personal injury lawsuits will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. “Accrued liabilities” and “Other liabilities” in the Consolidated Balance Sheets include a total litigation reserve of $131.4 million and $118.1 million as of December 31, 2020 and December 31, 2019 respectively, with regards to potential liability arising from the Company’s asbestos-related litigation. Asbestos related defense costs are excluded from the asbestos claims liability and are recorded separately as services are incurred. In the event of unexpected future developments, it is possible that the ultimate resolution of these matters may be material to the Company’s consolidated financial position, results of operation or liquidity. The Company has entered into a series of agreements with certain of its or its predecessors’ legacy insurers and certain potential indemnitors to secure insurance coverage and/or reimbursement for the costs associated with the asbestos and silica-related lawsuits filed against the Company. The Company has also pursued litigation against certain insurers or indemnitors, where necessary. The Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $132.1 million and $122.4 million as of December 31, 2020 and December 31, 2019, respectively, which was included in “Other assets” in the Consolidated Balance Sheets. During the year ended December 31, 2018, the Company received asbestos related insurance recoveries of $14.4 million, of which $6.2 million related to the recovery of indemnity payments, and was recorded as a reduction of the insurance recovery receivable in “Other assets” in the Consolidated Balance Sheets, and $8.2 million related to the reimbursement of previously expensed legal defense costs, and was recorded as a reduction of “Selling and administrative expenses” in the Consolidated Statements of Operations. There were no material recoveries received in the years ended December 31, 2020 and December 31, 2019. The most recent significant action brought by the Company against an insurer, Gardner Denver, Inc. v. Certain Underwriters at Lloyd’s, London, et al., was filed on July 9, 2010, in the Eighth Judicial Circuit, Adams County, Illinois, as case number 10-L-48 (the “Adams County Case”). In the lawsuit, the Company seeks, among other things, to require certain excess insurer defendants to honor their insurance policy obligations to the Company, including payment in whole or in part of the costs associated with the asbestos-related lawsuits filed against the Company. In October 2011, the Company reached a settlement with one of the insurer defendants, which had issued both primary and excess policies, for approximately the amount of such defendant’s policies that were subject to the lawsuit. Since then, the case has been proceeding through the discovery and motions process with the remaining insurer defendants. On January 29, 2016, the Company prevailed on the first phase of that discovery and motions process (“Phase I”). Specifically, the Court in the Adams County Case ruled that the Company has rights under all of the policies in the case, subject to their terms and conditions, even though the policies were sold to the Company’s former owners rather than to the Company itself. On June 9, 2016, the Court denied a motion by several of the insurers who sought permission to appeal the Phase I ruling immediately rather than waiting until the end of the whole case as is normally required. The case is now proceeding through the discovery process regarding the remaining issues in dispute (“Phase II”). A majority of the Company’s expected future recoveries of the costs associated with the asbestos-related lawsuits are the subject of the Adams County Case. The amounts recorded by the Company for asbestos-related liabilities and insurance recoveries are based on currently available information and assumptions that the Company believes are reasonable based on an evaluation of relevant factors. The actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. There are a number of key variables and assumptions including the number and type of new claims to be filed each year, the resolution or outcome of these claims, the average cost of resolution of each new claim, the amount of insurance available, allocation methodologies, the contractual terms with each insurer with whom the Company has reached settlements, the resolution of coverage issues with other excess insurance carriers with whom the Company has not yet achieved settlements, and the solvency risk with respect to the Company’s insurance carriers. Other factors that may affect the future liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, legal rulings that may be made by state and federal courts, and the passage of state or federal legislation. The Company makes the necessary adjustments for the asbestos liability and corresponding insurance recoveries on an annual basis unless facts or circumstances warrant assessment as of an interim date. Environmental Matters The Company has been identified as a potentially responsible party (“PRP”) with respect to several sites designated for cleanup under U.S. federal “Superfund” or similar state laws that impose liability for cleanup of certain waste sites and for related natural resource damages. Persons potentially liable for such costs and damages generally include the site owner or operator and persons that disposed or arranged for the disposal of hazardous substances found at those sites. Although these laws impose joint and several liability on PRPs, in application the PRPs typically allocate the investigation and cleanup costs based upon the volume of waste contributed by each PRP. Based on currently available information, the Company was only a small contributor to these waste sites, and the Company has, or is attempting to negotiate, de minimis settlements for their cleanup. The cleanup of the remaining sites is substantially complete and the Company’s future obligations entail a share of the sites’ ongoing operating and maintenance expense. The Company is also addressing several on-site cleanups for which it is the primary responsible party. The Company has undiscounted accrued liabilities of $13.7 million and $6.6 million as of December 31, 2020 and December 31, 2019, respectively, on its Consolidated Balance Sheets to the extent costs are known or can be reasonably estimated for its remaining financial obligations for the environmental matters discussed above and does not anticipate that any of these matters will result in material additional costs beyond amounts accrued. Based upon consideration of currently available information, the Company does not anticipate any material adverse effect on its results of operations, financial condition, liquidity or competitive position as a result of compliance with federal, state, local or foreign environmental laws or regulations, or cleanup costs relating to these matters.
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Other Operating Expense, Net |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating Expense, Net | Other Operating Expense, Net The components of “Other operating expense, net” for the years ended December 31, 2020, 2019 and 2018 were as follows.
Certain prior period amounts have been reclassified to conform to the current period presentation. (1)See Note 4 “Restructuring.” (2)Represents insurance recoveries of the Company’s shareholder litigation settlement in 2014. (3)Represents costs associated with successful and/or abandoned acquisitions, including third-party expenses, and post-closure integration costs (including certain incentive and non-incentive cash compensation costs)
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Related Party |
12 Months Ended |
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Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party | Related Party Affiliates of Kohlberg Kravis Roberts & Co. L.P. (“KKR”) own 44,788,635 shares of common stock, or approximately 11% of the total outstanding common stock based on the number of shares outstanding as of December 31, 2020. Affiliates of KKR participated as (i) a lender in the Company’s Senior Secured Credit Facilities discussed in Note 10 “Debt,” (ii) an underwriter in the Company’s initial public offering and its secondary offering by certain selling stockholders in May 2018, and (iii) a provider of services for the fiscal years 2020, 2019 and 2017 debt refinancing transactions. KKR held a position in the Euro Term Loan Facility of €43.3 million and €49.0 million as of December 31, 2020 and 2019, respectively, as well as a position in the Dollar Term Loan B of $39.7 million as of December 31, 2020. In May 2018, KKR Capital Markets LLC acted as an underwriter in connection with the secondary offering of the Company’s stock by certain selling stockholders and received underwriter discounts and commissions of approximately $5.2 million. In June 2019, KKR Capital Markets LLC was the joint lead arranger and bookrunner of Amendment No. 4 to the Credit Agreement and earned $0.4 million in structuring fees for their involvement in the Amendment. During 2020, KKR Capital Markets LLC earned $7.5 million in underwriting fees for their involvement in Amendment No. 5 and Amendment No. 6 to the Credit Agreement.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The computations of basic and diluted income per share are as follows.
For the year ended December 31, 2020, there were 4.4 million potentially dilutive stock-based awards that were not included in the computation of diluted loss per share as we incurred a net loss during the period. For the years ended December 31, 2019 and 2018, there were 1.8 million and 0.8 million anti-dilutive shares that were not included in the computation of diluted earnings per share.
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Subsequent Events |
12 Months Ended |
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Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn January 31, 2021, the Company completed the acquisition of Tuthill Vacuum and Blower Systems for approximately $184 million in cash, subject to post-closing adjustments. Tuthill Vacuum and Blower Systems is a leader in the design and production of positive displacement blowers, mechanical vacuum pumps, vacuum boosters and engineered systems. The initial accounting for the business combination, including the estimated fair value of assets and liabilities acquired, is incomplete as a result of the timing of the acquisition. The results of operations of the acquired business will be reported within the Industrial Technologies and Services segment beginning in the first quarter of 2021. On February 14, 2021, the Company entered into an agreement to sell its High Pressure Solutions (“HPS”) business to private equity firm American Industrial Partners (“AIP”). Under the agreement, the Company will receive cash consideration of $300 million at close for its majority interest and retain a 45% ownership interest in the HPS business. The HPS business did not meet the criteria for assets held for sale as of December 31, 2020 and therefore remains presented as a component of continuing operations. In all subsequent periods, the HPS business will be presented as a discontinued operation and its net assets will be classified as held for sale and comparable prior periods will be recast to reflect this change. Upon classification as held for sale in the first quarter of 2021, the Company expects to recognize a loss of between $195 million and $235 million, inclusive of estimated transaction fees. This transaction is expected to close in the first half of 2021, subject to regulatory approvals and customary closing conditions.
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SCHEDULE I - FINANCIAL STATEMENTS |
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only | SCHEDULE 1 – INGERSOLL RAND INC. (PARENT COMPANY ONLY) STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (in millions)
SCHEDULE 1 – INGERSOLL RAND INC. (PARENT COMPANY ONLY) BALANCE SHEETS (in millions)
SCHEDULE 1 – INGERSOLL RAND INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS (in millions)
SCHEDULE I - INGERSOLL RAND INC. (PARENT COMPANY ONLY) NOTES TO CONDENSED FINANCIAL STATEMENTS 1. Overview and Basis of Presentation On February 29, 2020, Ingersoll Rand Inc. (formerly known as Gardner Denver Holdings, Inc.) completed the acquisition of and merger with Ingersoll Rand Industrial (“Ingersoll Rand Industrial”) and changed its name from Gardner Denver Holdings, Inc. to Ingersoll Rand Inc. Ingersoll Rand Inc. Parent Company Only financial information has been derived from its consolidated financial statements and should be read in conjunction with the consolidated financial statements included in this report. The accounting policies for the registrant are the same as those described in Note 1 “Summary of Significant Accounting Policies” to our audited consolidated financial statements included elsewhere in this Form 10-K. 2. Subsidiary Transactions Investment in Subsidiaries Ingersoll Rand Inc.’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries. Dividends and Capital Distributions There were no dividends received from subsidiaries during the years ended December 31, 2020, 2019 and 2018. 3. Debt A discussion of long-term debt, including the -year debt maturity schedule, can be found in Note 10 “Debt” to our audited consolidated financial statements included elsewhere in this Form 10-K. Ingersoll Rand Inc. had no long-term debt obligations as of December 31, 2020 and 2019. 4. Contingencies For a summary of contingencies, see Note 20 “Contingencies” to our audited consolidated financial statements included elsewhere in this Form 10-K.
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Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Overview and Basis of Presentation | Overview and Basis of Presentation On February 29, 2020, Ingersoll Rand Inc. (formerly known as Gardner Denver Holdings, Inc.) completed the acquisition of the Ingersoll Rand Industrial business (“Ingersoll Rand Industrial”) by way of merger and changed its name from Gardner Denver Holdings, Inc. to Ingersoll Rand Inc. The consolidated financial statements as of and for the year ended December 31, 2020 include the financial results of Ingersoll Rand Industrial from the date of acquisition. Ingersoll Rand Inc. is a global market leader with a broad range of innovative and mission-critical air, fluid, energy, specialty vehicle and medical technologies, providing services and solutions to increase industrial productivity and efficiency. The accompanying consolidated financial statements include the accounts of Ingersoll Rand Inc. and its consolidated subsidiaries (collectively referred to herein as “Ingersoll Rand” or the “Company”). The results of operations for the year ended December 31, 2020 are not necessarily indicative of future results. The COVID-19 pandemic continues to have a significant adverse impact on many areas of the global economy. The Company’s operating results will be subject to fluctuations based on general economic conditions, and the extent to which COVID-19 may ultimately impact its business will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the ultimate extent of the spread of the disease and the duration of the outbreak and business closures or business disruptions for the Company, suppliers and customers.
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Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany transactions and accounts have been eliminated in consolidation.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. The Company regularly evaluates the estimates and assumptions related to the allowance for credit losses, inventory valuation, warranty reserves, fair value of stock-based awards, goodwill, intangible asset, and long-lived asset valuations, employee benefit plan liabilities, over time revenue recognition, income tax liabilities and deferred tax assets and related valuation allowances, uncertain tax positions, restructuring reserves, and litigation and other loss contingencies. Actual results could differ materially and adversely from those estimates and assumptions, and such results could affect the Company’s consolidated net income, financial position, or cash flows.
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Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of the Company’s foreign subsidiaries, where the functional currency is not the U.S. Dollar (“USD”), are translated at the exchange rate in effect at the balance sheet date, while revenues and expenses are translated at average rates prevailing during the year. Adjustments resulting from the translation of the assets and liabilities of foreign operations into USD are excluded from the determination of net income (loss), and are reported in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, and included as a component of other comprehensive income (loss). Assets and liabilities of subsidiaries that are denominated in currencies other than the subsidiaries’ functional currency are remeasured into the functional currency using end of period exchange rates, or historical rates for certain balances, where applicable. Gains and losses related to these remeasurements are recorded within the Consolidated Statements of Operations as a component of “Other operating expense, net.”
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Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted the Financial Accounting Standards Board (“FASB”) ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”). The Company adopted the guidance using a modified retrospective approach. Results for the years ended December 31, 2020, 2019 and 2018 were recorded under ASC 606 in the Consolidated Statements of Operations. See Note 14 “Revenue from Contracts with Customers” for more discussion of the adoption of ASC 606 and the related significant accounting policies.
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Leases | Leases On January 1, 2019, the Company adopted FASB ASU 2016-02, Leases (Topic 842) (“ASC 842”) utilizing the optional transition method. The guidance required the Company to recognize right-of-use lease assets and lease liabilities on the balance sheet for those leases classified as operating leases. The Consolidated Balance Sheets as of December 31, 2020 and 2019 reflect the adoption of ASC 842. See Note 16 “Leases” for further discussion of the Company’s operating and financing leases.
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Cost of Sales | Cost of Sales Cost of sales includes the costs the Company incurs, including purchased materials, labor and overhead related to manufactured products and aftermarket parts sold during a period. Depreciation related to manufacturing equipment and facilities is included in cost of sales. Purchased materials represent the majority of costs of sales, with steel, aluminum, copper and partially finished castings representing the most significant materials inputs. Cost of sales for services includes the direct costs the Company incurs including direct labor, parts and other overhead costs including depreciation of equipment and facilities to deliver repair, maintenance, and other field services to the Company’s customers.
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Selling and Administrative Expenses | Selling and Administrative Expenses Selling and administrative expenses consist of (i) employee related salary, stock-based compensation expense, benefits and other expenses for selling, administrative functions and other activities not associated with the manufacture of products or delivery of services to customers; (ii) the costs of marketing and direct costs of selling products and services to customers including internal and external sales commissions; (iii) facilities costs including office rent, maintenance, depreciation, and insurance for selling and administrative activities; (iv) research and development expenditures; (v) professional and consultant fees; (vi) expenses related to the Company’s public stock offerings and to establish public company reporting compliance; and (vii) other miscellaneous expenses.
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Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are highly liquid investments primarily consisting of demand deposits and have original maturities of three months or less. Accordingly, the carrying amount of such instruments is considered a reasonable estimate of fair value. As of December 31, 2020 and 2019, cash of $3.1 million and $3.4 million, respectively, was pledged to financial institutions as collateral to support the issuance of standby letters of credit and similar instruments on behalf of the Company.
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Accounts Receivable | Accounts Receivable Trade accounts receivable consist of amounts owed for products shipped to or services performed for customers. Reviews of customers’ creditworthiness are performed prior to order acceptance or order shipment. Trade accounts receivable are recorded net of an allowance for expected credit losses. The allowance for credit losses is based on the Company's assessment of losses that will result from its customers' inability or unwillingness to pay amounts owed to the Company. The allowance is determined using a combination of factors, including historical credit loss experience and the length of time that the trade receivables are past due, supplemented by the Company’s knowledge of customer-specific information, current market conditions and reasonable and supportable forecasts of future events and economic conditions.
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Inventories | Inventories Inventories, which consist primarily of raw materials and finished goods, are carried at the lower of cost or net realizable value. Fixed manufacturing overhead is allocated to the cost of inventory based on the normal capacity of production facilities. Unallocated overhead during periods of abnormally low production levels is recognized as cost of sales in the period in which it is incurred.
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Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment includes the historical cost of land, buildings, equipment, and significant improvements to existing plant and equipment or in the case of acquisitions, a fair market value of assets at the time of acquisition. Repair and maintenance costs that do not extend the useful life of an asset are recorded as an expense as incurred. Depreciation is provided using the straight-line method over the estimated useful lives of the assets, which are generally as follows: buildings — 10 to 30 years, machinery and equipment — 7 to 10 years, and office furniture and equipment — 3 to 10 years.
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Goodwill and Indefinite-Lived Intangible Assets | Goodwill and Indefinite-Lived Intangible Assets Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired, liabilities assumed, and non-controlling interests, if any. Intangible assets, including goodwill, are assigned to the Company’s reporting units based upon their fair value at the time of acquisition. Goodwill and indefinite-lived intangibles such as tradenames are not subject to amortization but are assessed for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired or that there is a probable reduction in the fair value of a reporting unit below its aggregate carrying value. The Company tests goodwill for impairment annually in the fourth quarter of each year using data as of October 1 of that year and whenever events or changes in circumstances indicate the carrying value may not be recoverable. The impairment test consists of comparing the fair value of the reporting unit to the carrying value of the reporting unit. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; provided, the loss recognized cannot exceed the total amount of goodwill allocated to the reporting unit. If applicable, the Company considers income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The Company determined fair values for each of the reporting units using a combination of the income and market multiple approaches which are weighted 75% and 25%, respectively. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The Company uses its internal forecasts to estimate future cash flows and includes an estimate of long-term future growth rates based on its most recent views of the long-term outlook for each reporting unit. Actual results may differ from those assumed in the Company’s forecasts. The Company derives its discount rates using a capital asset pricing model and analyzing published rates for industries relevant to its reporting units to estimate the cost of equity financing. The Company uses discount rates that are commensurate with the risks and uncertainty inherent in the respective businesses and in its internally developed forecasts. Under the market approach, the Company applies performance multiples from comparable public companies, adjusted for relative risk, profitability, and growth considerations, to the reporting units to estimate fair value. The Company tests intangible assets with indefinite lives annually for impairment using a relief from royalty discounted cash flow fair value model. The quantitative impairment test for indefinite-lived intangible assets involves a comparison of the estimated fair value of the intangible asset with its carrying value. If the carrying value of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The relief from royalty method requires the Company to estimate forecasted revenues and determine appropriate discount rates, royalty rates, and terminal growth rates. See Note 8 “Goodwill and Other Intangible Assets” for additional information related to impairment testing for goodwill and other intangible assets.
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Long-Lived Assets Including Intangible Assets With Finite Useful Lives | Long-Lived Assets Including Intangible Assets With Finite Useful Lives Intangible assets with finite useful lives are amortized on a straight-line basis over their estimated useful lives, which vary depending on the type of intangible assets. In determining the estimated useful lives of definite-lived intangibles, we consider the nature, competitive position, life cycle position and historical and expected future operating cash flows of each acquired assets, as well as our commitment to support these assets through continued investment and legal infringement protection. The Company reviews long-lived assets, including identified intangible assets with finite useful lives and subject to amortization for impairment, whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires comparing the carrying amount to the sum of undiscounted cash flows expected to be generated by the asset. Such events and circumstances include the occurrence of an adverse change in the market involving the business employing the related long-lived assets or a situation in which it is more likely than not that the Company will dispose of such assets. If the comparison indicates that there is impairment, the impairment loss to be recognized as a non-cash charge to earnings is measured by the amount by which the carrying amount of the assets exceeds their fair value and the impaired assets are written down to their fair value or, if fair value is not readily determinable, to an estimated fair value based on discounted expected future cash flows. Assets to be disposed are reported at the lower of the carrying amount or fair value, less costs to dispose.
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Warranty Reserves | Warranty Reserves Most of the Company’s product sales are covered by warranty provisions that generally provide for the repair or replacement of qualifying defective items for a specified period after the time of sale, typically 12 months. The Company establishes reserves for estimated product warranty costs at the time revenue is recognized based upon historical warranty experience and additionally for any known product warranty issues. The Company’s warranty obligation has been and may in the future be affected by product failure rates, repair or field replacement costs, and additional costs incurred in correcting any product failure.
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Stock-Based Compensation | Stock-Based Compensation Stock-based compensation is measured for all stock-based equity awards made to employees and non-employee directors based on the estimated fair value as of the grant date. The determination of the fair values of stock-based awards at the grant date requires judgment, including estimating the expected term of the relevant stock-based payment awards and the expected volatility of the Company’s stock. The fair value of each stock option grant under the stock-based compensation plans is estimated on the date of grant or modification using the Black-Scholes-Merton option-pricing model. The expected stock volatility assumption was based on an average of the historical volatility over the expected term of the stock options. Forfeitures of stock options are accounted for as they occur. Restricted stock units are valued at the share price on the date of grant. See Note 17 “Stock-Based Compensation Plans” for additional information regarding the Company’s equity compensation plans.
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Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The Company sponsors a number of pension plans and other postretirement benefit plans worldwide. The calculation of the pension and other postretirement benefit obligations and net periodic benefit cost under these plans requires the use of actuarial valuation methods and assumptions. These assumptions include the discount rates used to value the projected benefit obligations, future rate of compensation increases, expected rates of return on plan assets and expected healthcare cost trend rates. The discount rates selected to measure the present value of the Company’s benefit obligations as of December 31, 2020 and 2019 were derived by examining the rates of high-quality, fixed income securities whose cash flows or duration match the timing and amount of expected benefit payments under the plans. In accordance with GAAP, actual results that differ from the Company’s assumptions are recorded in accumulated other comprehensive income (loss) and amortized through net periodic benefit cost over future periods. While management believes that the assumptions are appropriate, differences in actual experience or changes in assumptions may affect the Company’s pension and other postretirement benefit obligations and future net periodic benefit cost. See Note 11 “Benefit Plans” for disclosures related to the Company’s benefit plans, including quantitative disclosures reflecting the impact that changes in certain assumptions would have on service and interest costs and benefit obligations.
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Income Taxes | Income Taxes The Company has determined income tax expense and other deferred income tax information based on the asset and liability method. Deferred income taxes are provided on temporary differences between assets and liabilities for financial and tax reporting purposes as measured by enacted tax rates expected to apply when temporary differences are settled or realized. A valuation allowance is established for the portion of deferred tax assets for which it is not more likely than not that a tax benefit will be realized. Tax benefits are recognized only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. The Company believes that its income tax liabilities, including related interest, are adequate in relation to the potential for additional tax assessments. There is a risk, however, that the amounts ultimately paid upon resolution of audits could be materially different from the amounts previously included in income tax expense and, therefore, could have a material impact on the Company’s tax provision, net income, and cash flows. The Company reviews its liabilities quarterly, and may adjust such liabilities due to proposed assessments by tax authorities, changes in facts and circumstances, issuance of new regulations or new case law, negotiations between tax authorities of different countries concerning transfer prices, the resolution of audits, or the expiration of statutes of limitations. Adjustments are most likely to occur in the year during which major audits are closed. On December 22, 2017, the Tax Act was enacted into law and the new legislation contains several key tax provisions that affected the Company, including a one-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate to 21% effective January 1, 2018, among others. The Company was required to recognize the effect of the Tax Act in the period of enactment. This included the determination of the transition tax, remeasurement of the Company’s U.S. deferred tax assets and liabilities as well as the reassessment of the net realizability of the Company’s deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Job Act (“SAB 118”), which allowed the Company to record provisional amounts during a measurement period not to extend more than one year subsequent to the enactment date. As a result, the Company previously provided a provisional estimate of the effect of the Tax Act in its financial statements for 2017 and through the first nine months of 2018. In the fourth quarter of 2018, the Company completed its accounting for all of the enactment-date income tax effects of the Tax Act and increased the total benefit taken in 2017 of $95.3 million to $96.5 million. Due to the Tax Act, the total U.S. deferred changed from a tax benefit of $89.6 million in 2017 to $74.5 million in 2018, with a 2018 measurement-period adjustment of $15.1 million. The ASC 740-30 (formally APB 23) liability reduction, relating to the permanently reinvested earnings in foreign subsidiaries assertion, changed from a tax benefit of $69.0 million in 2017 to $72.5 million in 2018, with a 2018 measurement-period adjustment of $3.5 million due to the policy change that occurred in 2018. The provisional one-time transition tax of $63.3 million in 2017 decreased to $50.5 million in 2018, with a 2018 measurement-period adjustment of $12.8 million. The total $1.2 million benefit had a (0.3)% impact to the overall rate in 2018. The Tax Act creates a new requirement that certain income (i.e., Global intangible low taxed income (“GILTI”)) earned by controlled foreign corporations (“CFC”) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the shareholder’s “net CFC tested income” over the net deemed tangible income return, which is currently defined as the excess of (1) 10% of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). The Company has determined that it will follow the period cost method (option 1 above) going forward. The tax provision for the year ended December 31, 2020 reflects this decision. All of the additional calculations and rule changes found in the Tax Act have been considered in the tax provision for the year ended December 31, 2020. The Company recorded a tax expense of $5.3 million in 2020 for the GILTI provisions of the Tax Act that were effective for the first time during 2018.
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Research and Development | Research and Development For the years ended December 31, 2020, 2019 and 2018, the Company spent approximately $71 million, $25 million, and $24 million, respectively, on research activities relating to the development of new products and new product applications. All such expenditures were funded by the Company, expensed as incurred and recorded to “Selling and administrative expenses” in the Consolidated Statements of Operations.
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Derivative Financial Instruments | Derivative Financial Instruments All derivative financial instruments are reported on the balance sheet at fair value. For derivative instruments that are not designated as hedges, any gain or loss on the derivatives is recognized in earnings in the current period. A derivative instrument may be designated as a hedge of the exposure to: (1) changes in the fair value of an asset, liability, or firm commitment, or (2) variability in expected future cash flows, if the hedging relationship is expected to be highly effective in offsetting changes in fair value or cash flows attributable to the hedged risk during the period of designation or as a hedge of a net investment in a foreign operation. If a derivative is designated as a fair value hedge, the gain or loss on the derivative and the offsetting loss or gain on the hedged asset, liability, or firm commitment are recognized in earnings. For derivative instruments designated as a cash flow hedge or an eligible net investment in a foreign operation, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income and reclassified to earnings in the same period that the hedged transaction affects earnings. The ineffective portion of the gain or loss is immediately recognized in earnings. Gains or losses on derivative instruments recognized in earnings are reported in the same line item as the associated hedged transaction in the Consolidated Statements of Operations. Hedge accounting is discontinued prospectively when (1) it is determined that a derivative is no longer effective in offsetting changes in the fair value or cash flows of a hedged item; (2) the derivative is sold, terminated, or exercised; (3) the hedged item no longer meets the definition of a firm commitment; or (4) it is unlikely that a forecasted transaction will occur within two months of the originally specified time period. When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the derivative continues to be carried on the balance sheet at its fair value, and the changes in the fair value of the hedged asset or liability is recorded to the Consolidated Statements of Operations. When cash flow hedge accounting is discontinued because the derivative is sold, terminated, or exercised, the net gain or loss remains in accumulated other comprehensive income and is reclassified into earnings in the same period that the hedged transaction affects earnings or until it becomes unlikely that a hedged forecasted transaction will occur within two months of the originally scheduled time period. When hedge accounting is discontinued because a hedged item no longer meets the definition of a firm commitment, the derivative continues to be carried on the Consolidated Balance Sheet at its fair value, and any asset or liability that was recorded pursuant to recognition of the firm commitment is removed from the balance sheet and recognized as a gain or loss currently in earnings. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur within two months of the originally specified time period, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses reported in accumulated other comprehensive income are recognized immediately in the Consolidated Statements of Operations.
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Comprehensive Income | Comprehensive Income The Company’s comprehensive income consists of net income (loss) and other comprehensive income (loss), consisting of (i) unrealized foreign currency net gains and losses on the translation of the assets and liabilities of its foreign operations; (ii) realized and unrealized foreign currency gains and losses on intercompany notes of a long-term nature and hedges of net investments in foreign operations, net of income taxes; (iii) unrealized gains and losses on cash flow hedges (consisting of interest rate swaps), net of income taxes; and (iv) pension and other postretirement prior service cost and actuarial gains or losses, net of income taxes. See Note 13 “Accumulated Other Comprehensive Income (Loss).”
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Restructuring Charges | Restructuring Charges The Company incurs costs in connection with workforce reductions, facility consolidations and other actions. Such costs include employee termination benefits (one-time arrangements and benefits attributable to prior service), termination of contractual obligations, non-cash asset charges and other direct incremental costs. A liability is established through a charge to operations for (i) one-time employee termination benefits when management commits to a plan of termination; (ii) employee termination benefits that accumulate or vest based on prior service when it becomes probable that such termination benefits will be paid and the amount of the payment can be reasonably estimated; and (iii) contract termination costs when the contract is terminated or the Company becomes contractually obligated to make such payment. Other direct incremental costs are charged to operations as incurred. Charges recorded in connection with restructuring plans are included in “Other operating expense, net” in the Consolidated Statements of Operations.
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Business Combinations | Business Combinations The Company accounts for business combinations by applying the acquisition method. The Company’s consolidated financial statements include the operating results of acquired entities from the respective dates of acquisition. The Company recognizes and measures the identifiable assets acquired, liabilities assumed, and any non-controlling interest as of the acquisition date at fair value. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed, and any non-controlling interest is recognized as goodwill in the Consolidated Balance Sheets. Costs incurred by the Company to effect a business combination other than costs related to the issuance of debt or equity securities are included in the Consolidated Statements of Operations in the period the costs are incurred.
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Earnings per Share | Earnings per Share The calculation of earnings per share (“EPS”) is based on the weighted-average number of the Company’s shares outstanding for the applicable period. The calculation of diluted earnings per share reflects the effect of all dilutive potential shares that were outstanding during the respective periods, unless the effect of doing so is antidilutive. The Company uses the treasury stock method to calculate the effect of outstanding share-based compensation awards.
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Adopted Accounting Standards Updates ("ASU") & Recently Issued Accounting Pronouncements | Adopted Accounting Standard Updates (“ASU”) In August 2018, the FASB issued ASU 2018-14, Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. The amendments in this update eliminate, add and modify certain disclosure requirements for defined benefit pension plans. The guidance is effective for public companies beginning with its annual report for fiscal year 2020. This ASU did not have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for a limited time to ease the potential burden of accounting for reference rate reform on financial reporting. This guidance applies to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates. The guidance is effective beginning on March 12, 2020 through December 31, 2022. The Company has not utilized any of the optional expedients or exceptions available under this ASU. The Company will continue to assess whether this ASU is applicable throughout the effective period. In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40); Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this update require implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the noncancelable term of the cloud computing arrangement plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The Company adopted this guidance prospectively on January 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this update eliminate, add and modify certain disclosure requirements for fair value measurements as part of its disclosure framework project. The Company adopted this guidance on January 1, 2020. The adoption did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which added an impairment model that is based on expected losses rather than incurred losses and is called the Current Expected Credit Losses (“CECL”) model. This impairment model is applicable to loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables as well as any other financial asset with the contractual right to receive cash. Under the new model, an allowance equal to the estimate of lifetime expected credit losses is recognized which will result in more timely loss recognition. The guidance is intended to reduce complexity by decreasing the number of credit impairment models. The Company adopted this guidance on January 1, 2020, using a modified retrospective transition method. The Company recorded a cumulative-effect adjustment on the adoption date increasing “Accumulated deficit” in the Consolidated Balance Sheets by $1.0 million and decreasing “Accounts receivable, net of allowance for credit losses” in the Consolidated Balance Sheets by $1.0 million. On January 1, 2019, the Company adopted FASB ASU 2016-02, Leases (Topic 842) (“ASC 842”) utilizing the optional transition method. The amendments in this update replaced most of the existing GAAP lease accounting guidance in order to increase transparency and comparability among organizations by recognizing right-of-use lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under current GAAP. The amendments also expanded disclosure requirements for key information about leasing arrangements. The Company elected the package of practical expedients in transition for leases that commenced prior to January 1, 2019 whereby these contracts were not reassessed or reclassified from their previous assessment as of December 31, 2018. The Company updated its internal lease accounting policy to address the new standard, revised the Company’s business processes and controls and completed the implementation and data input for the Company’s lease accounting software solution. The most significant impact of the standard on the Company was the recognition of an approximate $61.3 million operating right of use (“ROU”) asset and an approximate $61.4 million operating lease liability on the Consolidated Balance Sheet. The standard did not have a material impact on the Company’s Consolidated Statements of Operations or the Company’s Consolidated Statements of Cash Flows. See Note 16 “Leases” for further discussion of the Company’s operating and financing leases. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and amending and clarifying existing guidance. The guidance is effective for public companies beginning with the first quarter of 2021. Early adoption is permitted. The Company will adopt this amendment in the first quarter of 2021. The adoption is not expected to have a material impact on our consolidated financial statements.
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Segment Reporting (Tables) |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Results | The following table provides summarized information about the Company’s operations by reportable segment and reconciles Segment Adjusted EBITDA to Income (Loss) Before Income Taxes for the years ended December 31, 2020, 2019 and 2018.
(1)Includes insurance recoveries of asbestos legal fees of $8.2 million in the year ended December 31, 2018. (2)Depreciation and amortization expense excludes $8.0 million of depreciation of rental equipment for the year ended December 31, 2020. (3)Represents non-cash charges for impairment of intangible assets other than goodwill. (4)Restructuring and related business transformation costs consist of the following.
(5)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. (6)Represents expenses related to the Company’s initial stock offering and subsequent secondary offerings. (7)Represents third party expenses to comply with the requirements of Sarbanes-Oxley and the accelerated adoption of the new accounting standards (ASC 606 – Revenue from Contracts with Customers and ASC 842 – Leases) in the first quarter of 2019 and 2020, respectively, one year ahead of the required adoption dates for a private company. (8)Represents stock-based compensation expense recognized for stock options outstanding for the year ended December 31, 2020 of $51.3 million decreased by $0.5 million due to costs associated with employer taxes. Represents stock-based compensation expense recognized for stock options outstanding for the year ended December 31, 2019 of $19.2 million and associated employer taxes of $1.5 million. Represents stock-based compensation expense recognized for the year ended December 31, 2018 for stock options outstanding of $2.8 million, reduced by of $5.6 million primarily due to a decrease in the estimated accrual for employer taxes related to DSUs as a result of a lower per share price. (9)Represents losses on the extinguishment of a portion of the U.S. Term Loan, and the refinancing of the Original Dollar Term Loan Facility and the Original Euro Term Loan Facility as well as losses reclassified from AOCI into income related to the amendment of the interest rate swaps in conjunction with the debt repayment. (10)Represents insurance recoveries of the Company’s shareholder litigation settlement in 2014. (11)Includes (i) non-cash impact of net LIFO reserve adjustment, (ii) effects of amortization of prior service costs and amortization of losses in pension and other postretirement benefits (“OPEB”) expense, (iii) certain legal and compliance costs and (iv) other miscellaneous adjustments. The following tables provide summarized information about the Company’s reportable segments. Identifiable Assets
Depreciation and Amortization Expense
Capital Expenditures
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Property, Plant and Equipment by Geographic Region | The following table presents property, plant and equipment by geographic region for the years ended December 31, 2020, 2019 and 2018.
(1)Europe, Middle East and Africa (“EMEA”)
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Business Combinations (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Aggregate Purchase Consideration | The following table summarizes the allocation of consideration to the identifiable assets acquired and liabilities assumed by the Company, with the excess of purchase price over the fair value of Ingersoll Rand Industrial’s net assets recorded as goodwill. The initial accounting for the acquisition is substantially complete and no material changes are anticipated.
(1)Represents the fair value of 211,023,522 shares of the Company’s common stock issued for Ingersoll Rand Industrial outstanding common stock multiplied by $32.79, the price per share of common stock as of the closing price on February 28, 2020. (2)Represents the fair value of the replacement equity awards to the extent those related to services provided by the employee of Ingersoll Rand Industrial prior to closing. See Note 17 “Stock-Based Compensation Plans” for additional information about the replacement equity awards. (3)Represents the fair value of the deferred compensation plan liabilities that must be settled in shares of the plan sponsor's common stock. See Note 11 “Benefit Plans” for additional information on assumed deferred compensation plan liabilities. (4)The measurement period adjustments were to refine fair value measurements of intangible assets and carrying amounts of certain assets and liabilities, as well as adjustments to related deferred tax liabilities.
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Schedule of Preliminary Fair Value of Property, Plant and Equipment | The fair value of property, plant and equipment was primarily calculated using replacement costs adjusted for the age and condition of the asset, with the exception of real property which was calculated using the market approach, and is summarized below.
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Schedule of Estimated Preliminary Fair Value and Weighted Average Useful Life of Identifiable Intangible Assets | The fair value and weighted average useful life of the Ingersoll Rand Industrial identifiable intangible assets are as follows.
(1)Tradenames were identified from brands of Ingersoll Rand Industrial. The fair value of tradenames were determined using a relief from royalty methodology which estimates the cost savings generated by a company related to the ownership of an asset for which it would otherwise have had to pay royalties or license fees on revenues earned through the use of the asset. The discount rate used was determined at the time of measurement based on an analysis of the implied internal rate of return of the transaction, weighted average cost of capital and weighted average return on assets. Tradenames are expected to have an indefinite useful life. (2)Developed technology was identified from the products of Ingersoll Rand Industrial. Fair values were determined using a relief from royalty methodology with similar methodology and assumptions as described in the tradename description above. The economic useful lives were determined based on the technology cycle related to each developed technology, as well as the cash flows over the forecast period. (3)Customer relationships represent the fair value of existing relationships with the Ingersoll Rand Industrial customers. Their fair values were determined using the Multi-Period Excess Earning Method which involves isolating the net earnings attributable to the asset being measured based on present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. This method includes a valuation of the assembled workforce, using the Cost Approach, for purposes of calculating contributory asset charges to be used in the Multi-Period Excess Earning Method valuations. The economic useful lives were determined based on historical customer attrition rates. (4)Backlog primarily relates to the dollar value of purchase arrangements with customers, effective, as of a given point in time, that are based on mutually agreed terms which, in some cases, may still be subject to completion of written documentation and may be changed or cancelled by the customer, often without penalty. Ingersoll Rand Industrial’s backlog consists of these arrangements with assigned shipment dates expected, in most cases, within three to twelve months. The fair value were determined using the Multi-Period Excess Earning Method. The economic useful lives were based on the time to fulfill the outstanding order backlog obligation. (5)Other intangible assets is primarily comprised of software.
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Schedule of Pro Forma Information | The following unaudited pro forma financial information summarizes the combined results of operations for the Company and Ingersoll Rand Industrial as if the acquisition had been completed on January 1, 2019. The pro forma results have been prepared for comparative purposes only and do not necessarily represent what the revenue or results of operations would have been had the acquisition been completed on January 1, 2019. In addition, these results are not intended to be a projection of future operating results and do not reflect synergies that might be achieved.
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Schedule of Material and Nonrecurring Adjustments to Unaudited Pro Forma Results | The table below reflects the impact of material and nonrecurring adjustments to the unaudited pro forma results for the years ended December 31, 2020 and 2019 that are directly attributable to the acquisition.
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Restructuring (Tables) |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Activity | The following table summarizes the activity associated with the Company’s restructuring programs for the years ended December 31, 2019 and 2020, respectively.
(1)Excludes $9.2 million and $3.3 million of non-cash charges that impacted restructuring expense but not the restructuring liabilities during the years ended December 31, 2020 and 2019, respectively.
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Allowance for Credit Losses (Tables) |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Allowance for Credit Losses | The allowance for credit losses for the years ended December 31, 2020, 2019 and 2018 consisted of the following.
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Inventories (Tables) |
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories as of December 31, 2020 and 2019 consisted of the following.
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Property, Plant, and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment, Net | Property, plant and equipment, net as of December 31, 2020 and 2019 consisted of the following.
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Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill attributable to each reportable segment for the years ended December 31, 2020 and 2019 are as follows.
(1) During the year ended December 31, 2019, the Company recorded immaterial measurement period adjustments.
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Goodwill by Segment | The goodwill attributable to the four businesses is as follows.
The Company acquired two businesses during the year ended December 31, 2019. The excess of the purchase price over the estimated fair values of intangible assets, identifiable assets and assumed liabilities was recorded as goodwill. The goodwill attributable to the two businesses is as follows.
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Schedule of Other Intangible Assets | Other intangible assets as of December 31, 2020 and 2019 consisted of the following.
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Accrued Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities | Accrued liabilities as of December 31, 2020 and 2019 consisted of the following:
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Schedule of Product Warranty Liability | A reconciliation of the changes in the accrued product warranty liability for the years ended December 31, 2020 and 2019 is as follows.
(1)Includes primarily the effects of foreign currency translation adjustments for the Company’s subsidiaries with functional currencies other than the USD and changes in the accrual related to acquisitions or divestitures of businesses.
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt as of December 31, 2020 and 2019 consisted of the following.
(1)The weighted-average interest rate was 4.47% for the period from January 1, 2020 through February 27, 2020. (2)The weighted-average interest rate was 3.00% for the period from January 1, 2020 through February 27, 2020. (3)As of December 31, 2020, this amount is presented net of unamortized discounts of $2.1 million. As of December 31, 2020, the applicable interest rate was 1.90% and the weighted-average rate was 2.16% for the year ended December 31, 2020. (4)As of December 31, 2020, this amount is presented net of unamortized discounts of $1.0 million. As of December 31, 2020, the applicable interest rate was 1.90% and the weighted-average rate was 2.16% for the year ended December 31, 2020. (5)As of December 31, 2020, this amount is presented net of unamortized discounts of $0.7 million. As of December 31, 2020, the applicable interest rate was 2.00% and the weighted-average rate was 2.00% for the year ended December 31, 2020. (6)As of December 31, 2020, this amount is presented net of unamortized discounts of $5.6 million. As of December 31, 2020, the applicable interest rate was 2.90% and the weighted-average rate was 2.91% for the year ended December 31, 2020.
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Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Benefit Obligations | The following table provides a reconciliation of the changes in the benefit obligations and in the fair value of the plan assets for the periods described below.
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Component of Accumulated Other Comprehensive (Loss) Income | Amounts recognized as a component of accumulated other comprehensive income (loss) as of December 31, 2020 and 2019 that have not been recognized as a component of net periodic benefit cost are presented in the following table.
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Pension and Other Postretirement Benefit Liabilities included in Balance Sheets | Pension and other postretirement benefit liabilities and assets are included in the following captions in the Consolidated Balance Sheets as of December 31, 2020 and 2019.
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Pension plans with an Accumulated Benefit Obligation in Excess of Plan Assets | The following table provides information for pension plans with an accumulated benefit obligation in excess of plan assets as of December 31, 2020 and 2019.
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Components of Net Periodic Benefit Cost (Income) and Other Amounts Recognized in Other Comprehensive (Loss) Income, Before Income Tax Effects | The following tables provide the components of net periodic benefit cost (income) and other amounts recognized in other comprehensive income (loss), before income tax effects, for the years ended December 31, 2020, 2019 and 2018.
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Summary of Assumptions Used | The following weighted-average actuarial assumptions were used to determine net periodic benefit cost (income) for the years ended December 31, 2020, 2019 and 2018.
The following weighted-average actuarial assumptions were used to determine benefit obligations for the years ended December 31, 2020 and 2019:
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Actuarial Assumptions Used to Determine Other Postretirement Benefit Plans Costs and Obligations | The following actuarial assumptions were used to determine other postretirement benefit plans costs and obligations for the years ended December 31, 2020, 2019 and 2018.
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Schedule of Expected Benefit Payments | The following table reflects the estimated benefit payments for the next five years and for the years 2025 through 2029. The estimated benefit payments for the non-U.S. pension plans were calculated using foreign exchange rates as of December 31, 2020.
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Schedule of Allocation of Plan Assets | The following table presents the long-term target allocations for these plans as of December 31, 2020.
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Schedule of Changes in Fair Value of Plan Assets | The following tables present the fair values of the Company’s pension plan assets as of December 31, 2020 and 2019 by asset category within the ASC 820 hierarchy (as defined in Note 19 “Fair Value Measurements”).
(1)Cash and cash equivalents consist of traditional domestic and foreign highly liquid short-term securities with the goal of providing liquidity and preservation of capital while maximizing return on assets. (2)The International category consists of investment funds focused on companies operating in developed and emerging markets outside of the U.S. These investments target broad diversification across large and mid/small-cap companies and economic sectors. (3)International real estate consists primarily of equity and debt investments made, directly or indirectly, in various interests in unimproved and improved real properties. (4)Other investments consist of insurance and reinsurance contracts securing the retirement benefits. The fair value of these contracts was calculated at the discount value of premiums paid by the Company, less expenses charged by the insurance providers. The insurance providers with which the Company has placed these contracts are well-known financial institutions with an established history of providing insurance services. (5)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Comprehensive (Loss) Income | The before tax income (loss) and related income tax effect are as follows.
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Schedule of Changes in Accumulated Other Comprehensive (Loss) Income | Changes in accumulated other comprehensive income (loss) by component for the periods described below are presented in the following table(1).
(1)All amounts are net of tax. Amounts in parentheses indicate debits.
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Schedule of Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2020, 2019 and 2018 are presented in the following table.
(1)These components are included in the computation of net periodic benefit cost. See Note 11 “Benefit Plans” for additional details.
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Revenue from Contracts with Customers (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table provides disaggregated revenue by reportable segment for the year ended December 31, 2020.
The following table provides disaggregated revenue by reportable segment for the year ended December 31, 2019.
(1)Revenues from sales of capital equipment within the Industrial Technologies and services and High Pressure Solutions segments and sales of components to original equipment manufacturers in the Precision and Science Technologies segment. (2)Revenues from sales of spare parts, accessories, other components and services in support of maintaining customer owned, installed base of the Company’s original equipment. Service revenue represents less than 10% of consolidated revenue. (3)Revenues from short and long duration product and service contracts recognized at a point in time when control is transferred to the customer generally when product delivery has occurred and services have been rendered. (4)Revenues primarily from long duration ETO product contracts, certain multi-year service contracts, and certain contracts for the delivery of a significant volume of substantially similar products recognized over time as contractual performance obligations are completed.
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Schedule of Contract Balances | The following table provides the contract balances as of December 31, 2020 and December 31, 2019 presented in the Consolidated Balance Sheets.
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income (Loss) Before Income Taxes | Income (loss) before income taxes for the years ended December 31, 2020, 2019 and 2018 consisted of the following.
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Schedule of Components of Provision (Benefit) for Income Taxes | The following table details the components of the Provision for income taxes for the years ended December 31, 2020, 2019 and 2018.
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Schedule of Effective Income Tax Rate Reconciliation | The U.S. federal corporate statutory rate is reconciled to the Company’s effective income tax rate for the years ended December 31, 2020, 2019 and 2018 as follows.
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Schedule of Deferred Tax Assets and Liabilities | The principal items that gave rise to deferred income tax assets and liabilities as of December 31, 2020 and 2019 are as follows.
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Tax Attributes and Related Valuation Allowance | The Company believes that it is more likely than not that it will realize its deferred tax assets through the reduction of future taxable income, other than for the deferred tax assets reflected below. Tax attributes and related valuation allowances as of December 31, 2020 were as follows.
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Summary of Valuation Allowance | A reconciliation of the changes in the valuation allowance for deferred tax assets for the years ended December 31, 2020, 2019 and 2018 are as follows.
(1)Revaluation for the tax year ended December 31, 2020 relates to the inclusion of Ingersoll Rand's opening balance sheet (“OBS”) beginning valuation allowance. (2)Deductions relate to the realization of net operating losses or the removal of deferred tax assets.
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Schedule of Unrecognized Tax Benefits Roll Forward | Total unrecognized tax benefits were $27.8 million, $12.5 million and $11.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The net increase in this balance primarily relates to increases related to current-year positions of $16.8 million assumed in the acquisition of Ingersoll Rand Industrial and currency fluctuations of $2.0 million. Included in total unrecognized benefits at December 31, 2020 is $27.8 million of unrecognized tax benefits that would affect the Company's effective tax rate if recognized, of which $0.1 million would be offset by a reduction of a corresponding deferred tax asset. The balance of total unrecognized tax benefits is expected to decrease $11 million to $15 million within the next twelve months. Below is a tabular reconciliation of the changes in total unrecognized tax benefits during the years ended December 31, 2020, 2019 and 2018.
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Expense | The components of lease expense for the years ended December 31, 2020 and 2019 was as follows.
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Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases for the years ended December 31, 2020 and 2019 was as follows.
(1)For the year ended December 31, 2020, this included leases related to the acquisition of Ingersoll Rand Industrial.
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Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows.
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Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities as of December 31, 2020 were as follows.
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Schedule of Maturities of Finance Lease Liabilities | Maturities of lease liabilities as of December 31, 2020 were as follows.
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Assumptions | The fair value of stock options that the Company assumed in connection with the acquisition of Ingersoll Rand Industrial was estimated using the Black-Scholes model with the following assumptions.
The following assumptions were used to estimate the fair value of options granted during the years ended December 31, 2020, 2019 and 2018.
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Schedule of Stock Option Activity | A summary of the Company’s stock option (including SARs) activity for the year ended December 31, 2020 is presented in the following table (underlying shares in thousands).
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Schedule of Restricted Stock Unit Activity | A summary of the Company’s restricted stock unit activity for the year ended December 31, 2020 is presented in the following table (underlying shares in thousands).
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Schedule of Performance Stock Unit Activity | A summary of the Company’s performance stock unit activity for the year ended December 31, 2020 is presented in the following table (underlying shares in thousands).
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Hedging Activities, Derivative Instruments and Credit Risk (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table summarizes the notional amounts, fair values and classification of the Company’s outstanding derivatives by risk category and instrument type within the Consolidated Balance Sheets as of December 31, 2020 and December 31, 2019.
(1)Notional amounts represent the gross contract amounts of the outstanding derivatives excluding the total notional amount of positions that have been effectively closed through offsetting positions. The net gains and net losses associated with positions that have been effectively closed through offsetting positions but not yet settled are included in the asset and liability derivatives fair value columns, respectively.
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Schedule of Cash Flow Hedges Included in Comprehensive (Loss) Income | Gains and losses on derivatives designated as cash flow hedges included in the Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2020, 2019 and 2018 are presented in the table below.
(1)Losses on derivatives reclassified from accumulated other comprehensive income (“AOCI”) into income were included in “Interest expense” in the Consolidated Statements of Operations. (2)In the third quarter of 2018, the Company used excess cash to pay down $150.0 million of its Dollar Term Loan Facility. Due to this unforecasted pay down of debt, the Company paid $2.7 million in the amendment of the interest rate swap contracts to reflect the updated forecasted cash flows. The updated forecasts caused certain hedged items to be deemed probable of not occurring in the future and thus, the Company accelerated the release of AOCI related to those hedged items. Losses reclassified from AOCI into income (missed forecast) were included in “Loss on extinguishment of debt” in the Consolidated Statements of Operations.
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Gains (Losses) on Derivative Instruments Not Designated as Accounting Hedges and Total Net Foreign Currency (Losses) Gains | The Company’s gains (losses) on derivative instruments not designated as accounting hedges and total net foreign currency transaction gains (losses) for the years ended December 31, 2020, 2019 and 2018 were as follows.
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Changes in Value of Debt and Designated Interest Rate Swaps | The Company’s gains, net of income tax, associated with changes in the value of debt for the years ended December 31, 2020 and 2019, and the net balance of such gains included in accumulated other comprehensive income (loss) as of December 31, 2020 and 2019 were as follows.
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis.
(1)Based on calculations that use readily observable market parameters as their basis, such as spot and forward rates. (2)Based on the quoted price of publicly traded mutual funds which are classified as trading securities and accounted for using the mark-to-market method. (3)Measured as the present value of all expected future cash flows based on the LIBOR-based swap yield curves as of December 31, 2020. The present value calculation uses discount rates that have been adjusted to reflect the credit quality of the Company and its counterparties.
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Other Operating Expense, Net (Tables) |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Operating Expense, Net | The components of “Other operating expense, net” for the years ended December 31, 2020, 2019 and 2018 were as follows.
Certain prior period amounts have been reclassified to conform to the current period presentation. (1)See Note 4 “Restructuring.” (2)Represents insurance recoveries of the Company’s shareholder litigation settlement in 2014. (3)Represents costs associated with successful and/or abandoned acquisitions, including third-party expenses, and post-closure integration costs (including certain incentive and non-incentive cash compensation costs)
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings Per Share | The computations of basic and diluted income per share are as follows.
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Segment Reporting - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020
country
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | Segment | 4 |
Number of countries in which entity operates (more than) | country | 80 |
Business Combinations - Inventories (Details) - Ingersoll Rand Industrial $ in Millions |
Feb. 29, 2020
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Preliminary fair value step-up of inventory | $ 116.2 |
Step-up of inventory measured on FIFO | 70.3 |
Step-up of inventory measured on LIFO | $ 45.9 |
Business Combinations - Identifiable Intangible Assets (Details) - Ingersoll Rand Industrial - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Feb. 29, 2020 |
|
Business Acquisition [Line Items] | ||
Fair Value | $ 3,766.6 | $ 4,501.3 |
Developed technology | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 236.0 | |
Weighted Average Useful Life (Years) | 7 years | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 2,101.0 | |
Weighted Average Useful Life (Years) | 13 years | |
Backlog | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 81.2 | |
Other | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 36.4 | |
Weighted Average Useful Life (Years) | 2 years | |
Tradenames | ||
Business Acquisition [Line Items] | ||
Fair Value | $ 1,312.0 |
Business Combinations - Long-Term Debt (Details) - USD ($) |
Dec. 31, 2020 |
Feb. 28, 2020 |
Dec. 31, 2019 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Debt Issuance Costs, Net | $ 41,400,000 | $ 8,100,000 | |
Ingersoll Rand Industrial | Line of Credit | Senior Secured Credit Facility | |||
Business Acquisition [Line Items] | |||
Debt Issuance Costs, Net | $ 26,900,000 | ||
Debt Instrument, Face Amount | 1,900,000,000.0 | ||
Unamortized discounts | $ 2,400,000 |
Business Combinations - Noncontrolling Interests (Details) - Feb. 28, 2020 - IR India Limited shares in Millions, $ in Millions |
USD ($)
shares
|
₨ / shares |
---|---|---|
Noncontrolling Interest [Line Items] | ||
Ownership interest acquired (as a percent) | 74.00% | |
Closing price per share (USD per share) | ₨ / shares | ₨ 639.2 | |
Number of noncontrolling shares (shares) | shares | 8.2 | |
Preliminary fair value of noncontrolling interest | $ | $ 73.3 |
Business Combinations - Results of Financial Statement Subsequent to the Acquisition (Details) - Ingersoll Rand Industrial $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Business Acquisition [Line Items] | |
Revenue from acquisition date | $ 2,930.3 |
Net loss from acquisition date | $ 10.8 |
Business Combinations - Transactions with Trane Technologies (Details) - Transition Services Agreement - Trane Technologies $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Business Acquisition [Line Items] | |
Term of transition services agreement | 24 months |
Related party costs | $ 25.1 |
Restructuring - Activity in Restructuring Programs (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 5.0 | $ 8.8 |
Charged to expense - termination benefits | 75.5 | 10.8 |
Charged to expense - other | 8.2 | 3.0 |
Acquired restructuring | 5.1 | 0.0 |
Payments | (77.3) | (17.8) |
Other, net | 1.0 | 0.2 |
Balance at end of period | $ 17.5 | $ 5.0 |
Allowance for Credit Losses - Summary (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of the period | $ 18.4 | $ 17.4 | $ 18.7 |
Acquisition - Ingersoll Rand Industrial | 28.8 | 0.0 | 0.0 |
Provision charged to expense | 24.1 | 3.6 | 1.8 |
Write-offs, net of recoveries | (6.2) | (2.4) | (2.2) |
Foreign currency translation and other | 2.5 | (0.2) | (0.9) |
Balance at end of the period | $ 67.6 | $ 18.4 | $ 17.4 |
Inventories - Summary (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Inventories [Abstract] | ||
Raw materials, including parts and subassemblies | $ 587.8 | $ 370.5 |
Work-in-process | 88.6 | 47.6 |
Finished goods | 258.4 | 71.4 |
Inventories, gross | 934.8 | 489.5 |
Excess of LIFO costs over FIFO costs | 8.8 | 13.0 |
Inventories | $ 943.6 | $ 502.5 |
Inventory - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Inventory [Line Items] | |||
FIFO Inventory amount | $ 646.8 | $ 371.3 | |
Percentage of FIFO inventory | 69.00% | 74.00% | |
LIFO Inventory amount | $ 296.8 | $ 131.2 | |
Percentage of LIFO inventory | 31.00% | 26.00% | |
Increase in inventories from acquisition | $ (170.8) | $ (18.7) | $ 13.0 |
Non-cash adjustments to carrying value of LIFO inventories | 50.1 | $ 0.2 | $ 0.2 |
Ingersoll Rand Industrial | |||
Inventory [Line Items] | |||
Increase in inventories from acquisition | 447.4 | ||
Non-cash adjustments to carrying value of LIFO inventories | $ 45.9 |
Property, Plant, and Equipment - Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Property, Plant and Equipment [Abstract] | |||
Land and land improvements | $ 66.8 | $ 33.7 | |
Buildings | 341.4 | 154.6 | |
Machinery and equipment | 666.6 | 363.6 | |
Office furniture and equipment | 57.3 | 40.9 | |
Construction in progress | 38.5 | 32.2 | |
Property, plant and equipment, gross | 1,170.6 | 625.0 | |
Accumulated depreciation | (373.3) | (298.4) | |
Property, plant and equipment, net | $ 797.3 | $ 326.6 | $ 356.6 |
Accrued Liabilities - Summary (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Accrued Liabilities [Abstract] | ||
Salaries, wages, and related fringe benefits | $ 230.5 | $ 60.7 |
Contract liabilities | 172.8 | 51.7 |
Product warranty | 54.1 | 22.7 |
Operating lease liabilities | 57.4 | 17.1 |
Restructuring | 17.5 | 5.0 |
Taxes | 118.7 | 22.5 |
Other | 136.1 | 64.4 |
Total accrued liabilities | $ 787.1 | $ 244.1 |
Accrued Liabilities - Accrued Product Warranty Liability (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at the beginning of period | $ 22.7 | $ 23.9 |
Product warranty accruals | 28.8 | 30.8 |
Acquired warranty | 31.3 | 0.0 |
Settlements | 1.8 | (0.1) |
Standard Product Warranty Accrual, Decrease for Payments | (30.5) | (31.9) |
Balance at the end of period | $ 54.1 | $ 22.7 |
Benefit Plans - Pension and Other Postretirement Benefit Liabilities in Consolidated Balance Sheets (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Total Pension and Other Postretirement Benefit Liabilities Included in Balance Sheets [Abstract] | ||
Other assets | $ 2.3 | $ 2.3 |
Accrued liabilities | (17.9) | (2.2) |
Pension and other postretirement benefits | $ (269.1) | $ (99.7) |
Benefit Plans - Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
U.S. Plans | ||
Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Projected benefit obligations | $ 425.2 | $ 1.0 |
Accumulated benefit obligation | 415.9 | 1.0 |
Fair value of plan assets | 331.0 | 0.0 |
Accumulated benefit obligation | 478.0 | 59.8 |
Non-U.S. Plans | ||
Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Projected benefit obligations | 441.4 | 330.1 |
Accumulated benefit obligation | 406.3 | 325.3 |
Fair value of plan assets | 260.5 | 235.3 |
Accumulated benefit obligation | $ 426.7 | $ 339.1 |
Benefit Plans - Assumed Health Care Cost Trend Rate (Details) - Other Postretirement Benefits |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Healthcare cost trend rate assumed for next year (as a percent) | 6.30% | 7.10% | 7.90% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (as a percent) | 4.70% | 7.10% | 7.90% |
Benefit Plans - Effects of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rates (Details) - Maximum $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |
Effect on the net periodic benefit cost - 1% increase | $ 0.1 |
Effect on the net periodic benefit cost - 1% decrease | 0.1 |
Effect on the postretirement benefit obligation - 1% increase | 0.1 |
Effect on the postretirement benefit obligation - 1% decrease | $ 0.1 |
Benefit Plans - Estimated Benefit Payments for the Next Five Years (Details) $ in Millions |
Dec. 31, 2020
USD ($)
|
---|---|
Pension Benefits | U.S. Plans | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2021 | $ 42.1 |
2022 | 31.4 |
2023 | 31.6 |
2024 | 29.8 |
2025 | 29.7 |
Aggregate 2025-2029 | 136.8 |
Expected future employer contributions in the next year | 11.2 |
Pension Benefits | Non-U.S. Plans | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2021 | 13.1 |
2022 | 14.1 |
2023 | 14.0 |
2024 | 14.9 |
2025 | 16.8 |
Aggregate 2025-2029 | 85.6 |
Expected future employer contributions in the next year | 8.2 |
Other Postretirement Benefits | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2021 | 3.3 |
2022 | 3.2 |
2023 | 2.9 |
2024 | 2.7 |
2025 | 2.3 |
Aggregate 2025-2029 | 9.0 |
Expected future employer contributions in the next year | $ 3.3 |
Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | $ 9,189.5 | $ 1,869.9 | $ 1,676.0 | $ 1,476.8 |
Other comprehensive loss, net of tax: | $ (1.4) | 0.0 | 0.0 | |
Cumulative Effect, Period of Adoption, Adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | $ (1.0) | 0.0 | 0.0 | |
Cumulative Effect, Period of Adoption, Adjustment | Unrealized Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | (6.7) | $ 0.3 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2018-02 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stockholders' equity | $ (8.2) |
Revenue from Contracts with Customers - Performance Obligations (Details) $ in Millions |
Dec. 31, 2020
USD ($)
|
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Performance Obligation [Abstract] | |
Remaining performance obligation | $ 405.1 |
Remaining performance obligation, expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Performance Obligation [Abstract] | |
Remaining performance obligation | $ 322.5 |
Remaining performance obligation, expected timing of satisfaction |
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Contract with Customer, Asset and Liability [Abstract] | ||
Accounts receivable, net | $ 966.6 | $ 459.1 |
Contract assets | 60.5 | 29.0 |
Contract liabilities | $ 176.5 | $ 51.7 |
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Revenue, Performance Obligation [Abstract] | ||
Contract liabilities | $ 176.5 | $ 51.7 |
Ingersoll Rand Industrial | ||
Revenue, Performance Obligation [Abstract] | ||
Increase (decrease) in accounts receivable | 599.9 | |
Increase (decrease) in allowance for doubtful accounts | 12.5 | |
Increase (decrease) in contract assets | 18.2 | |
Increase (decrease) in contract liability | $ 113.9 |
Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | |||
Income (loss) before income taxes, U.S. | $ (129.1) | $ 0.0 | $ 169.0 |
Income (loss) before income taxes, Non-U.S. | 109.7 | 190.9 | 180.5 |
Income (Loss) Before Income Taxes | $ (19.4) | $ 190.9 | $ 349.5 |
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Current: | |||
U.S. federal | $ 27.7 | $ 6.3 | $ 25.6 |
U.S. state and local | 10.2 | 0.9 | 1.5 |
Non-U.S. | 79.5 | 45.2 | 47.8 |
Deferred: | |||
U.S. federal | (53.4) | (13.2) | 14.4 |
U.S. state and local | (5.5) | 0.5 | (0.7) |
Non-U.S. | (45.5) | (7.9) | (8.5) |
Provision for income taxes | $ 13.0 | $ 31.8 | $ 80.1 |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Deferred Tax Assets: | ||
Reserves and accruals | $ 76.9 | $ 30.8 |
Bad debts | 12.0 | 3.3 |
Inventory reserve | 12.3 | 4.2 |
Postretirement benefits - pensions | 62.6 | 19.3 |
Tax loss carryforwards | 102.7 | 28.4 |
Deferred taxes recorded in other comprehensive income | 18.0 | 0.0 |
Foreign tax credit carryforwards | 74.6 | 52.2 |
Other | 13.5 | 1.0 |
Total deferred tax assets | 372.6 | 139.2 |
Valuation allowance | (141.3) | (67.9) |
Deferred Tax Liabilities: | ||
LIFO inventory | (25.1) | (9.3) |
Property, plant and equipment | (60.7) | (15.5) |
Intangibles | (972.6) | (280.9) |
Unremitted foreign earnings | (32.5) | (7.8) |
Deferred taxes recorded in other comprehensive income | 0.0 | (4.1) |
Other | 0.0 | (1.8) |
Total deferred tax liabilities | (1,090.9) | (319.4) |
Net deferred income tax liability | $ (859.6) | $ (248.1) |
Income Taxes - Valuation Allowance for Deferred Tax Assets (Details) - Valuation allowance for deferred tax assets - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowance for deferred tax assets at beginning of the period | $ 67.9 | $ 72.5 | $ 47.9 |
Revaluation or additions due to acquisitions or mergers | 63.3 | 0.0 | 0.0 |
Change due to U.S. Tax Reform | 0.0 | 0.0 | 23.4 |
Charged to tax expense | 8.9 | (5.4) | (4.2) |
Charged to other accounts | 1.1 | 0.1 | (1.3) |
Deductions | 0.1 | 0.7 | 6.7 |
Valuation allowance for deferred tax assets at end of the period | $ 141.3 | $ 67.9 | $ 72.5 |
Income Taxes - Narrative (Details) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020
USD ($)
Jurisdiction
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Income Tax Contingency [Line Items] | ||||
Unrecognized tax benefits | $ 27.8 | $ 12.5 | $ 11.5 | $ 12.6 |
Gross increases for tax positions of current year | 16.8 | 0.0 | $ 0.0 | |
Changes due to currency fluctuations | 2.0 | 0.4 | ||
Unrecognized tax benefits, that would effect effective tax rate if recognized | 27.8 | |||
Unrecognized tax benefits offset by reduction of corresponding deferred tax asset | 0.1 | |||
Interest and penalties accrued | $ 2.3 | $ 1.3 | ||
Number of jurisdictions outside U.S. | Jurisdiction | 46 | |||
Income tax reconciliation withholding tax | $ 32.5 | |||
Minimum | ||||
Income Tax Contingency [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | 11.0 | |||
Maximum | ||||
Income Tax Contingency [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | $ 15.0 |
Income Taxes - Unrecognized Tax Benefits and Other Disclosures (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 12.5 | $ 11.5 | $ 12.6 |
Gross increases for tax positions of prior years | 0.0 | 0.6 | 0.0 |
Gross decreases for tax positions of prior years | 0.0 | 0.0 | 0.0 |
Gross increases for tax positions of current year | 16.8 | 0.0 | 0.0 |
Settlements | 0.0 | 0.0 | 0.0 |
Lapse of statute of limitations | (3.5) | 0.0 | (0.5) |
Changes due to currency fluctuations | 2.0 | 0.4 | |
Changes due to currency fluctuations | (0.6) | ||
Ending balance | $ 27.8 | $ 12.5 | $ 11.5 |
Leases - Components of Lease Expenses (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Lease, Cost [Abstract] | ||
Operating lease cost | $ 49.7 | $ 20.4 |
Finance lease cost | ||
Amortization of right-of-use assets | 1.2 | 1.4 |
Interest on lease liabilities | 1.1 | 1.6 |
Total finance lease cost | 2.3 | 3.0 |
Short-term lease cost | $ 2.2 | $ 1.7 |
Leases - Supplemental Cash Flows Information (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Cash Paid for Amounts Included in the Measurement of Lease Liabilities | ||
Operating cash flows from operating leases | $ 60.2 | $ 20.3 |
Operating cash flows from finance leases | 1.1 | 1.6 |
Financing cash flows from finance leases | 0.7 | 0.9 |
Leased Assets Obtained in Exchange for New Operating Lease Liabilities(1) | $ 171.6 | $ 8.0 |
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating Leases | ||
2021 | $ 60.1 | |
2022 | 39.2 | |
2023 | 29.4 | |
2024 | 16.1 | |
2025 | 8.3 | |
Thereafter | 13.7 | |
Total lease payments | 166.8 | |
Less imputed interest | (7.6) | |
Total operating lease liabilities | 159.2 | $ 58.1 |
Finance Leases | ||
2021 | 1.8 | |
2022 | 1.9 | |
2023 | 1.9 | |
2024 | 2.0 | |
2025 | 2.0 | |
Thereafter | 16.7 | |
Total lease payments | 26.3 | |
Less imputed interest | (9.1) | |
Total finance lease liabilities | $ 17.2 | $ 17.9 |
Stock-Based Compensation - Restricted Stock Unit Awards (Details) - Restricted Stock Units shares in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2020
$ / shares
shares
| |
Shares [Roll Forward] | |
Balance at beginning of period (shares) | shares | 719 |
Converted Ingersoll Rand Industrial restricted stock units (shares) | shares | 305 |
Granted (shares) | shares | 5,043 |
Vested (shares) | shares | (312) |
Forfeited (shares) | shares | (209) |
Balance at end of period (shares) | shares | 5,546 |
Weighted-Average Grant-Date Fair Value [Abstract] | |
Balance at beginning of period (USD per share) | $ / shares | $ 29.31 |
Converted Ingersoll Rand Industrial restricted stock units (USD per share) | $ / shares | 33.06 |
Granted (USD per share) | $ / shares | 33.40 |
Vested (USD per share) | $ / shares | 30.14 |
Forfeited (USD per share) | $ / shares | 31.79 |
Balance at end of period (USD per share) | $ / shares | $ 33.09 |
Stock-Based Compensation - Performance Share Unit Awards (Details) - Performance Share Units shares in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2020
$ / shares
shares
| |
Shares [Roll Forward] | |
Balance at beginning of period (shares) | shares | 0 |
Granted (shares) | shares | 302 |
Vested (shares) | shares | 0 |
Forfeited (shares) | shares | (47) |
Balance at end of period (shares) | shares | 255 |
Weighted-Average Grant-Date Fair Value [Abstract] | |
Balance at beginning of period (USD per share) | $ / shares | $ 0 |
Granted (USD per share) | $ / shares | 29.72 |
Vested (USD per share) | $ / shares | 0 |
Forfeited (USD per share) | $ / shares | 29.72 |
Balance at end of period (USD per share) | $ / shares | $ 29.72 |
Hedging Activities, Derivative Instruments and Credit Risk - Narrative (Details) € in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020
USD ($)
Contract
|
Dec. 31, 2020
EUR (€)
Contract
|
Dec. 31, 2019
USD ($)
|
|
Derivatives, Fair Value [Line Items] | |||
Off-balance sheet derivative instruments | $ 0 | $ 0 | |
LIBOR | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding borrowing | $ 3,204,400,000 | € 596.7 | |
Interest rate swap contracts | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments held | Contract | 0 | 0 | |
Foreign currency forwards | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments held | Contract | 10 | 10 | |
Foreign currency forwards | Minimum | |||
Derivatives, Fair Value [Line Items] | |||
Notional amount of derivative | $ 10,300,000 | ||
Foreign currency forwards | Maximum | |||
Derivatives, Fair Value [Line Items] | |||
Term of derivative contract | 1 year | ||
Notional amount of derivative | $ 79,500,000 |
Hedging Activities, Derivative Instruments and Credit Risk - Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Gains and Losses on Derivatives Designated as Cash Flow Hedges [Abstract] | ||||
Excess cash paid to pay down debt | $ 1,619.1 | $ 32.8 | $ 337.6 | |
Interest rate swap contracts | ||||
Gains and Losses on Derivatives Designated as Cash Flow Hedges [Abstract] | ||||
Gain (loss) recognized in AOCI on derivatives | (4.4) | (7.4) | 10.1 | |
Loss reclassified from AOCI into income (effective portion) | (18.5) | (15.6) | (14.5) | |
Loss reclassified from AOCI into income (missed forecast) | $ 0.0 | $ 0.0 | $ (0.6) | |
Interest rate swap contracts | Original Dollar Term Loan Facility | ||||
Gains and Losses on Derivatives Designated as Cash Flow Hedges [Abstract] | ||||
Excess cash paid to pay down debt | $ 150.0 | |||
Payments in amendment of interest rate swap contracts | $ 2.7 |
Hedging Activities, Derivative Instruments and Credit Risk - Derivative Instruments not Designated as Accounting Hedges (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | |||
Total foreign currency transaction gains (losses), net | $ (20.9) | $ (8.1) | $ 1.9 |
Foreign currency forward contracts gains (losses) | |||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | |||
Total foreign currency transaction gains (losses), net | $ 15.0 | $ (4.9) | $ 5.2 |
Hedging Activities, Derivative Instruments and Credit Risk - Investment in Consolidated Subsidiaries with Functional Currencies Other than USD (Details) € in Millions, $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2020
EUR (€)
|
Dec. 31, 2020
USD ($)
|
Aug. 17, 2017
EUR (€)
|
|
Euro Term Loan due in 2020 | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of hedged item | € | € 596.7 | € 615.0 | |||
Interest rate swap contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Gain (loss), net of income tax, recorded through other comprehensive income | $ (45.1) | $ 12.0 | |||
Balance included in accumulated other comprehensive income (loss) as of December 31, 2020 and 2019, respectively | $ 75.8 | $ 30.7 |
Contingencies (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020
USD ($)
Defendant
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Loss Contingencies [Line Items] | |||
Insurance recoveries of legal defense costs | $ 8.2 | ||
Undiscounted accrual liabilities for environmental loss contingencies | $ 13.7 | $ 6.6 | |
Asbestos and Silica Related Litigation | |||
Loss Contingencies [Line Items] | |||
Estimated litigation liability | 131.4 | 118.1 | |
Insurance recovery receivable | 132.1 | 122.4 | |
Asbestos related insurance recoveries | $ 0.0 | $ 0.0 | 14.4 |
Recovery of indemnity payments | 6.2 | ||
Insurance recoveries of legal defense costs | $ 8.2 | ||
Asbestos and Silica Related Litigation | Minimum | |||
Loss Contingencies [Line Items] | |||
Number of defendants | Defendant | 25 |
Other Operating Expense, Net - Summary (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Other Operating Expense, Net [Abstract] | |||
Foreign currency transaction losses (gains), net | $ 20.9 | $ 8.1 | $ (1.9) |
Restructuring charges | 92.9 | 17.1 | 12.7 |
Shareholder litigation settlement recoveries | 0.0 | (6.0) | (9.5) |
Acquisition related expenses and non-cash charges | 97.3 | 53.8 | 9.8 |
(Gains) losses on asset and business disposals | 0.0 | 0.8 | (1.1) |
Other, net | 6.1 | 1.9 | (0.9) |
Total other operating expense, net | $ 217.2 | $ 75.7 | $ 9.1 |
Earnings Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to Ingersoll Rand Inc. | $ (33.3) | $ 159.1 | $ 269.4 |
Average shares outstanding: | |||
Basic (in shares) | 382.8 | 203.5 | 201.6 |
Diluted (in shares) | 382.8 | 208.9 | 209.1 |
Earnings (loss) per share: | |||
Basic (USD per share) | $ (0.09) | $ 0.78 | $ 1.34 |
Diluted (USD per share) | $ (0.09) | $ 0.76 | $ 1.29 |
Earnings Per Share - Narrative (Details) - shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings (loss) per share (shares) | 4.4 | 1.8 | 0.8 |
SCHEDULE I - FINANCIAL STATEMENTS, Disclosure (Details) - Parent Company - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Subsidiary Transactions [Abstract] | |||
Dividends receivable | $ 0 | $ 0 | $ 0 |
Debt [Abstract] | |||
Debt instrument, term | 5 years | ||
Long-term debt obligations | $ 0 | $ 0 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201712Member |
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