| 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 swap and cap contracts), net of income taxes; and (iv) pension and other postretirement prior service cost and actuarial gains or losses, net of income taxes. See Note 12 “Benefit Plans” and Note 19 “Hedging Activities, Derivative Instruments and Credit Risk.” The before tax income (loss) and related income tax effect are as follows. | | | | | | | | | | | | | | | | | | | | | | | | | Foreign Currency Translation Adjustments, Net | | Cash Flow Hedges | | Pension and Other Postretirement Benefit Plans | | Total | | Balance as of December 31, 2019 | $ | (193.6) | | | $ | (10.9) | | | $ | (51.5) | | | $ | (256.0) | | | Before tax income (loss) | 253.1 | | | 14.2 | | | (11.5) | | | 255.8 | | | Income tax effect | 15.1 | | | (3.3) | | | 2.6 | | | 14.4 | | | Other comprehensive income (loss) | 268.2 | | | 10.9 | | | (8.9) | | | 270.2 | | | | | | | | | | | Balance as of December 31, 2020 | $ | 74.6 | | | $ | — | | | $ | (60.4) | | | $ | 14.2 | | | Before tax income (loss) | (119.9) | | | — | | | 61.6 | | | (58.3) | | | Income tax effect | 16.9 | | | — | | | (12.9) | | | 4.0 | | | Other comprehensive income (loss) | (103.0) | | | — | | | 48.7 | | | (54.3) | | | Divestiture of foreign subsidiaries | (1.5) | | | — | | | — | | | (1.5) | | | Balance as of December 31, 2021 | $ | (29.9) | | | $ | — | | | $ | (11.7) | | | $ | (41.6) | | | Before tax income (loss) | (237.1) | | | 21.3 | | | 41.0 | | | (174.8) | | | Income tax effect | (15.8) | | | (5.3) | | | (14.2) | | | (35.3) | | | Other comprehensive income (loss) | (252.9) | | | 16.0 | | | 26.8 | | | (210.1) | | | | | | | | | | | Balance as of December 31, 2022 | $ | (282.8) | | | $ | 16.0 | | | $ | 15.1 | | | $ | (251.7) | |
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 7.2 million, 2.3 million and $1.4 million for the years ended December 31, 2022, 2021 and 2020, respectively, 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). | | | | | | | | | | | | | | | | | | | | | | | | | Foreign Currency Translation Adjustments, Net | | Cash Flow Hedges | | Pension and Other Postretirement Benefit Plans | | Total | | Balance as of December 31, 2019 | $ | (193.6) | | | $ | (10.9) | | | $ | (51.5) | | | $ | (256.0) | | | Other comprehensive income (loss) before reclassifications | 268.2 | | | (3.0) | | | (11.2) | | | 254.0 | | | Amounts reclassified from accumulated other comprehensive income (loss) | — | | | 13.9 | | | 2.3 | | | 16.2 | | | Other comprehensive income (loss) | 268.2 | | | 10.9 | | | (8.9) | | | 270.2 | | | | | | | | | | | Balance as of December 31, 2020 | $ | 74.6 | | | $ | — | | | $ | (60.4) | | | $ | 14.2 | | | Other comprehensive income (loss) before reclassifications | (103.0) | | | — | | | 45.2 | | | (57.8) | | | Amounts reclassified from accumulated other comprehensive income (loss) | — | | | — | | | 3.5 | | | 3.5 | | | Other comprehensive income (loss) | (103.0) | | | — | | | 48.7 | | | (54.3) | | | Divestiture of foreign subsidiaries | (1.5) | | | — | | | — | | | (1.5) | | | Balance as of December 31, 2021 | $ | (29.9) | | | $ | — | | | $ | (11.7) | | | $ | (41.6) | | | Other comprehensive income (loss) before reclassifications | (244.3) | | | 13.9 | | | 26.9 | | | (203.5) | | | Amounts reclassified from accumulated other comprehensive income (loss) | (8.6) | | | 2.1 | | | (0.1) | | | (6.6) | | | Other comprehensive income (loss) | (252.9) | | | 16.0 | | | 26.8 | | | (210.1) | | | | | | | | | | | Balance as of December 31, 2022 | $ | (282.8) | | | $ | 16.0 | | | $ | 15.1 | | | $ | (251.7) | |
(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, 2022, 2021 and 2020 are presented in the following table. | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | | Details about Accumulated Other Comprehensive Income (Loss) Components | | 2022 | | 2021 | | 2020 | | Affected Line(s) in the Statement Where Net Income is Presented | | Cash flow hedges (interest rate swaps and caps) | | $ | 2.8 | | | $ | — | | | $ | 18.5 | | | Interest expense | | Benefit for income taxes | | (0.7) | | | — | | | (4.6) | | | Benefit for income taxes | | Cash flow hedges (interest rate swaps and caps), net of tax | | $ | 2.1 | | | $ | — | | | $ | 13.9 | | | | | | | | | | | | | | Net investment hedges | | $ | (11.5) | | | $ | — | | | $ | — | | | Interest expense | | Provision for income taxes | | 2.9 | | | — | | | — | | | Benefit for income taxes | | Net investment hedges, net of tax | | $ | (8.6) | | | $ | — | | | $ | — | | | | | | | | | | | | | Amortization of defined benefit pension and other postretirement benefit items(1) | | $ | (0.1) | | | $ | 4.7 | | | $ | 3.0 | | | Cost of sales and Selling and administrative expenses | | Benefit for income taxes | | — | | | (1.2) | | | (0.7) | | | Benefit for income taxes | | Amortization of defined benefit pension and other postretirement benefit items, net of tax | | $ | (0.1) | | | $ | 3.5 | | | $ | 2.3 | | | | | | | | | | | | | | Total reclassifications for the period | | $ | (6.6) | | | $ | 3.5 | | | $ | 16.2 | | | |
(1)These components are included in the computation of net periodic benefit cost. See Note 12 “Benefit Plans” for additional details.
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