INGERSOLL-RAND PLC, 10-K filed on 2/14/2014
Annual Report
Document and Entity Information Document (USD $)
In Billions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Feb. 3, 2014
Jun. 28, 2013
Entity Information [Line Items]
 
 
 
Entity Registrant Name
INGERSOLL-RAND PLC 
 
 
Entity Central Index Key
0001466258 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2013 
 
 
Document Fiscal Year Focus
2013 
 
 
Document Fiscal Period Focus
FY 
 
 
Amendment Flag
false 
 
 
Entity Common Stock, Shares Outstanding
 
278,035,707 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Public Float
 
 
$ 15.4 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net revenues
$ 12,350.5 
$ 11,988.3 
$ 12,760.8 
Cost of goods sold
(8,675.5)
(8,538.0)
(9,280.0)
Selling and administrative expenses
(2,570.0)
(2,382.9)
(2,395.2)
Gain (loss) on sale/asset impairment
0 
4.5 
(646.9)
Operating income (loss)
1,105.0 
1,071.9 
438.7 
Interest expense
(278.8)
(252.0)
(278.5)
Other, net
3.4 
28.1 
28.4 
Earnings (loss) before income taxes
829.6 
848.0 
188.6 
Benefit (provision) for income taxes
(189.0)
(56.0)
(45.4)
Earnings (loss) from continuing operations
640.6 
792.0 
143.2 
Discontinued operations, net of tax
13.3 
252.0 
226.1 
Net earnings
653.9 
1,044.0 
369.3 
Less: Net earnings attributable to noncontrolling interests
(35.1)
(25.4)
(26.1)
Net earnings (loss) attributable to Ingersoll-Rand plc
618.8 
1,018.6 
343.2 
Amounts attributable to Ingersoll-Rand plc ordinary shareholders:
 
 
 
Continuing operations
620.1 
772.4 
123.4 
Discontinued operations
(1.3)
246.2 
219.8 
Net earnings (loss) attributable to Ingersoll-Rand plc
618.8 
1,018.6 
343.2 
Basic:
 
 
 
Continuing operations
$ 2.11 
$ 2.54 
$ 0.38 
Discontinued operations
$ 0.00 
$ 0.81 
$ 0.68 
Net earnings
$ 2.11 
$ 3.35 
$ 1.06 
Diluted:
 
 
 
Continuing operations
$ 2.08 
$ 2.49 
$ 0.36 
Discontinued operations
$ (0.01)
$ 0.79 
$ 0.65 
Net earnings
$ 2.07 
$ 3.28 
$ 1.01 
Statements of Comprehensive Income
 
 
 
Net earnings
653.9 
1,044.0 
369.3 
Currency translation
15.0 
85.5 
(158.1)
Cash flow hedges and marketable securities unrealized net gains (losses) arising during period
7.8 
(0.7)
(1.4)
Cash flow hedges and marketable securities net gains (losses) reclassified into earnings
12.1 
2.8 
2.8 
Cash flow hedges and marketable securities tax (expense) benefit
(0.2)
1.0 
(0.5)
Total cash flow hedges and marketable securities net of tax
19.7 
3.1 
0.9 
Pension and OPEB adjustments prior service gains (costs) for the period
(1.2)
58.8 
1.3 
Pension and OPEB adjustments net actuarial gains (losses) for the period
358.9 
(185.0)
(283.0)
Pension and OPEB adjustments amortization reclassified to earnings
63.9 
62.7 
54.8 
Pension and OPEB adjustments settlements and curtailments reclassified to earnings
0.7 
4.9 
95.9 
Pension and OPEB adjustments currency translation and other
(5.4)
(9.6)
(0.7)
Pension and OPEB adjustments tax (expense) benefit
(153.6)
(0.2)
59.7 
Total pension and OPEB adjustments, net of tax
263.3 
(68.4)
(72.0)
Other comprehensive income (loss), net of tax
298.0 
20.2 
(229.2)
Total comprehensive income (loss), net of tax
951.9 
1,064.2 
140.1 
Total comprehensive (income) loss attributable to noncontrolling interests
(38.4)
(13.0)
(25.5)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
$ 913.5 
$ 1,051.2 
$ 114.6 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
ASSETS
 
 
Cash and cash equivalents
$ 1,937.2 1
$ 708.4 1
Accounts and notes receivable, net
2,071.5 
1,870.1 
Inventories
1,166.1 
1,144.0 
Deferred taxes and current tax receivable
359.5 
269.5 
Other current assets
182.4 
184.5 
Assets Held-for-sale, at Carrying Value
0 
1,817.4 
Total current assets
5,716.7 
5,993.9 
Property, plant and equipment, net
1,468.4 
1,426.1 
Goodwill
5,540.6 
5,492.6 
Intangible assets, net
3,922.0 
4,050.4 
Other noncurrent assets
1,010.4 
1,519.1 
Total assets
17,658.1 
18,482.1 
LIABILITIES AND EQUITY
 
 
Accounts payable
1,163.0 
1,019.4 
Accrued compensation and benefits
505.2 
448.2 
Accrued expenses and other current liabilities
1,311.3 
1,321.8 
Short-term borrowings and current maturities of long-term debt
367.7 
962.9 
Accrued Income Taxes, Current
61.4 
41.8 
Liabilities of Assets Held-for-sale
0 
531.8 
Total current liabilities
3,408.6 
4,325.9 
Long-term debt
3,153.5 
2,266.5 
Postemployment and other benefit liabilities
1,287.8 
1,685.2 
Deferred and noncurrent income taxes
1,335.8 
1,576.7 
Other noncurrent liabilities
1,341.1 
1,398.5 
Total liabilities
10,526.8 
11,252.8 
Equity:
 
 
Ingersoll-Rand plc shareholders' equity Ordinary shares, $1 par value (282,700,041 and 295,605,736 shares issued at December 31, 2013 and 2012, respectively, and net of 21,137 and 22,562 shares owned by subsidiary at December 31, 2013 and 2012, respectively)
282.7 
295.6 
Capital in excess of par value
158.4 
1,014.5 
Retained earnings
6,794.5 
6,358.7 
Accumulated other comprehensive income (loss)
(166.7)
(521.0)
Total Ingersoll-Rand plc shareholders' equity
7,068.9 
7,147.8 
Noncontrolling interest
62.4 
81.5 
Total equity
7,131.3 
7,229.3 
Total liabilities and equity
$ 17,658.1 
$ 18,482.1 
Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2013
Dec. 31, 2012
Ordinary shares, par value, in dollars or euros per share, as stated
$ 1.00 
$ 1.00 
Ordinary shares issued
282,700,041 
295,605,736 
Ordinary shares owned by subsidiary
21,137 
22,562 
Consolidated Statements of Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
Ordinary shares [Member]
Capital in excess of par value [Member]
Retained earnings [Member]
Accumulated other comprehensive income (loss) [Member]
Noncontrolling interest [Member]
Beginning balance, value at Dec. 31, 2010
$ 8,059.1 
$ 328.2 
$ 2,571.7 
$ 5,389.4 
$ (325.0)
$ 94.8 
Beginning balance, shares at Dec. 31, 2010
 
328,200,000 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
369.3 
0 
0 
343.2 
0 
26.1 
Other comprehensive income (loss), net of tax
(229.2)
0 
0 
0 
(228.6)
(0.6)
Shares issued under incentive stock plans, value
133.6 
5.2 
128.4 
0 
0 
0 
Shares issued under incentive stock plans, shares
 
5,200,000 
 
 
 
 
Repurchase of ordinary shares
(1,157.5)
(36.3)
(1,121.2)
0 
0 
0 
Repurchase of ordinary shares
 
(36,300,000)
 
 
 
 
Accretion of exchangeable senior notes from temporary equity
13.3 
0 
13.3 
0 
0 
0 
Share-based compensation
42.6 
0 
42.6 
0 
0 
0 
Acquisition/divestiture of noncontrolling interests
(2.4)
0 
(1.3)
0 
0 
(1.1)
Dividends to noncontrolling interests
(30.1)
0 
0 
0 
0 
(30.1)
Cash dividends, declared
(184.7)
0 
0 
(184.7)
0 
0 
Other
(1.6)
0 
(0.5)
(0.1)
0 
(1.0)
Ending balance, value at Dec. 31, 2011
7,012.4 
297.1 
1,633.0 
5,547.8 
(553.6)
88.1 
Ending balance, shares at Dec. 31, 2011
 
297,100,000 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
1,044.0 
0 
0 
1,018.6 
0 
25.4 
Other comprehensive income (loss), net of tax
20.2 
0 
0 
0 
32.6 
(12.4)
Shares issued under incentive stock plans, value
172.5 
6.1 
166.4 
0 
0 
0 
Shares issued under incentive stock plans, shares
 
6,100,000 
 
 
 
 
Settlement of exchangeable senior notes, value
(4.7)
10.8 
(15.5)
0 
0 
0 
Shares issued for settlement of Exchangeable Senior Notes
 
10,800,000 
 
 
 
 
Repurchase of ordinary shares
(839.8)
(18.4)
(821.4)
0 
0 
0 
Repurchase of ordinary shares
 
(18,400,000)
 
 
 
 
Accretion of exchangeable senior notes from temporary equity
3.3 
0 
3.3 
0 
0 
0 
Share-based compensation
49.8 
0 
49.8 
0 
0 
0 
Acquisition/divestiture of noncontrolling interests
(1.5)
0 
(1.1)
0 
0 
(0.4)
Dividends to noncontrolling interests
(19.2)
0 
0 
0 
0 
(19.2)
Cash dividends, declared
(207.7)
0 
0 
(207.7)
0 
0 
Ending balance, value at Dec. 31, 2012
7,229.3 
295.6 
1,014.5 
6,358.7 
(521.0)
81.5 
Ending balance, shares at Dec. 31, 2012
 
295,600,000 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net earnings
653.9 
0 
0 
618.8 
0 
35.1 
Other comprehensive income (loss), net of tax
298.0 
0 
0 
0 
294.7 
3.3 
Shares issued under incentive stock plans, value
272.5 
7.9 
264.6 
0 
0 
0 
Shares issued under incentive stock plans, shares
 
7,900,000 
 
 
 
 
Repurchase of ordinary shares
(1,213.2)
(20.8)
(1,192.4)
0 
0 
0 
Repurchase of ordinary shares
 
(20,800,000)
 
 
 
 
Accretion of exchangeable senior notes from temporary equity
0 
0 
0 
0 
0 
0 
Share-based compensation
71.8 
0 
71.8 
0 
0 
0 
Dividends to noncontrolling interests
(17.6)
0 
0 
0 
0 
(17.6)
Cash dividends, declared
(183.4)
0 
0 
(183.4)
0 
0 
Distribution of Allegion
18.5 
0 
0 
0.5 
59.1 
(41.1)
Other
1.5 
0 
(0.1)
(0.1)
0.5 
1.2 
Ending balance, value at Dec. 31, 2013
$ 7,131.3 
$ 282.7 
$ 158.4 
$ 6,794.5 
$ (166.7)
$ 62.4 
Ending balance, shares at Dec. 31, 2013
 
282,700,000 
 
 
 
 
Consolidated Statements of Equity (Parenthetical)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash dividends, declared, in dollars per share
$ 0.63 
$ 0.69 
$ 0.59 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities:
 
 
 
Net earnings
$ 653.9 
$ 1,044.0 
$ 369.3 
(Income) loss from discontinued operations, net of tax
(13.3)
(252.0)
(226.1)
Adjustments to arrive at net cash provided by (used in) operating activities:
 
 
 
Gain (loss) on sale/asset impairment
0 
(4.5)
646.9 
Depreciation and amortization
333.7 
333.8 
358.5 
Stock settled share-based compensation
71.8 
49.8 
42.6 
(Gain)/loss on sale of property, plant and equipment
5.3 
(1.2)
(24.6)
Equity earnings, net of dividends
4.2 
7.6 
5.4 
Deferred income taxes
29.4 
(47.9)
(171.2)
Other items
194.3 
122.7 
15.6 
Changes in other assets and liabilities
 
 
 
Accounts and notes receivable
(214.3)
(34.2)
16.0 
Inventories
(39.4)
(25.3)
(6.4)
Other current and noncurrent assets
68.3 
(68.7)
22.5 
Accounts payable
141.0 
(12.5)
(55.1)
Other current and noncurrent liabilities
(357.2)
(243.5)
(207.1)
Net cash (used in) provided by continuing operating activities
877.7 
868.1 
786.3 
Net cash (used in) provided by discontinued operating activities
292.7 
312.9 
400.5 
Net cash provided by (used in) operating activities
1,170.4 
1,181.0 
1,186.8 
Cash flows from investing activities:
 
 
 
Capital expenditures
(242.2)
(243.1)
(217.1)
Acquisition of businesses, net of cash acquired
0 
0 
(1.9)
Proceeds from sale of property, plant and equipment
24.3 
17.9 
48.5 
Proceeds from business dispositions, net of cash sold
4.7 
52.7 
400.3 
Dividends received from equity investments
0 
44.3 
0 
Net cash (used in) provided by continuing investing activities
(213.2)
(128.2)
229.8 
Net cash (used in) provided by discontinued investing activities
(2.2)
(18.3)
(22.3)
Net cash provided by (used in) investing activities
(215.4)
(146.5)
207.5 
Cash flows from financing activities:
 
 
 
Other short-term borrowings (net)
8.9 
5.5 
35.5 
Proceeds from long-term debt
1,547.8 
0 
3.6 
Payments of long-term debt
(1,265.0)
(418.9)
(91.9)
Net proceeds (repayments) in debt
291.7 
(413.4)
(52.8)
Debt issuance costs
(13.2)
(2.5)
(2.3)
Excess tax benefit from share based compensation
19.5 
19.6 
24.6 
Dividends paid to ordinary shareholders
(245.5)
(192.4)
(137.3)
Dividends paid to noncontrolling interests
(12.4)
(13.9)
(20.8)
Acquisition/divestiture of noncontrolling Interest
0 
(1.5)
(1.3)
Proceeds shares issued under incentive plans
253.0 
152.9 
109.0 
Repurchase of ordinary shares
(1,213.2)
(839.8)
(1,157.5)
Transfer from Discontinued Operations
1,274.2 
 
 
Other, net
0 
(4.7)
(1.4)
Net cash (used in) provided by continuing financing activities
354.1 
(1,295.7)
(1,239.8)
Cash Provided by (Used in) Financing Activities, Discontinued Operations
(7.5)
(8.2)
(6.6)
Net Cash Provided by (Used in) Financing Activities
346.6 
(1,303.9)
(1,246.4)
Effect of exchange rate changes on cash and cash equivalents
(72.8)
(9.2)
(1.5)
Net increase (decrease) in cash and cash equivalents
1,228.8 
(278.6)
146.4 
Cash and cash equivalents - beginning of period
708.4 1
987.0 1
840.6 1
Cash and cash equivalents - end of period
1,937.2 1
708.4 1
987.0 1
Cash paid during the year for:
 
 
 
Interest, net of amounts capitalized
238.3 
223.7 
231.2 
Income taxes, net of refunds
162.3 
251.3 
189.7 
Allegion related cash balance reclassified from cash and cash equivalents to Assets held for spin-off in periods prior to spin-off
$ 173.7 
 
 
Description of Company
Description of Company
DESCRIPTION OF COMPANY
Ingersoll-Rand plc (IR-Ireland), a public limited company incorporated in Ireland in 2009, and its consolidated subsidiaries (collectively, we, our, the Company) is a diversified, global company that provides products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, and increase industrial productivity and efficiency. Our business segments consist of Climate and Industrial, each with strong brands and leading positions within their respective markets. We generate revenue and cash primarily through the design, manufacture, sale and service of a diverse portfolio of industrial and commercial products that include well-recognized, premium brand names such as Ingersoll-Rand®, Trane®, American Standard®, Thermo King® and Club Car®.
Spin Off Transaction
Spin Off Transaction
SPIN-OFF TRANSACTION
On December 1, 2013 (the Distribution Date), the Company completed the previously announced separation (the spin-off) of its commercial and residential security businesses by distributing the related ordinary shares of Allegion plc (Allegion), on a pro rata basis, to the Company's shareholders of record as of November 22, 2013 (the Record Date). On the Distribution Date, each of the Company's shareholders received one ordinary share of Allegion for every three ordinary shares of the Company held by such shareholder on the Record Date. After the Distribution Date, the Company does not beneficially own any Allegion ordinary shares (other than approximately 7,045 shares received in a deferred compensation trust upon the spin-off as a result of the trust holding ordinary shares of Ingersoll-Rand plc as of the Record Date) and Allegion is an independent publicly traded company.
The results of our commercial and residential security business are presented as a discontinued operation in the Consolidated Statement of Comprehensive Income and Consolidated Statement of Cash Flows for all periods presented. The balance sheet of the commercial and residential security business has been reclassified to held for spin-off at December 31, 2012. The statement of equity of the commercial and residential security business is included within our Consolidated Statement of Equity through December 1, 2013. Except where otherwise noted, all disclosures in the related footnotes represent the results of continuing operations.
In connection with the spin-off of Allegion, the Company and Allegion entered into several agreements covering administrative and tax matters to provide or obtain services on a transitional basis, as needed, for varying periods after the spin-off. The administrative agreements cover various services such as information technology, human resources and finance. The Company expects all services to be substantially complete within one year after the spin-off. For further discussion of the tax matters agreement see Note 15.
During the years ended December 31, 2013 and 2012, the Company incurred $128.0 million and $5.7 million of professional service fees related to the spin-off, respectively. These costs are reported within discontinued operations as they represent a cost to execute the spin-off transaction. See Note 16 for further discussion of the spin-off transaction.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A summary of significant accounting policies used in the preparation of the accompanying Consolidated Financial Statements follows:
Basis of Presentation:  The accompanying Consolidated Financial Statements reflect the consolidated operations of the Company and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) as defined by the Financial Accounting Standards Board (FASB) within the FASB Accounting Standards Codification (ASC).
The Consolidated Financial Statements include all majority-owned subsidiaries of the Company. A noncontrolling interest in a subsidiary is considered an ownership interest in a majority-owned subsidiary that is not attributable to the parent. The Company includes Noncontrolling interest as a component of Total equity in the Consolidated Balance Sheet and the Net earnings attributable to noncontrolling interests are presented as an adjustment from Net earnings used to arrive at Net earnings attributable to Ingersoll-Rand plc in the Consolidated Statement of Comprehensive Income.
Partially-owned equity affiliates represent 20-50% ownership interests in investments where we demonstrate significant influence, but do not have a controlling financial interest. Partially-owned equity affiliates are accounted for under the equity method. The Company is also required to consolidate variable interest entities in which it bears a majority of the risk to the entities’ potential losses or stands to gain from a majority of the entities’ expected returns. Intercompany accounts and transactions have been eliminated. The assets, liabilities, results of operations and cash flows of all discontinued operations have been separately reported as discontinued operations and held for spin-off for all periods presented.
During 2012, the company received a $44.3 million dividend from the equity investment in Hussmann Parent. The receipt of this dividend is classified in investing activities within the Consolidated Statement of Cash Flows due to the cumulative negative equity earnings to date from Hussmann Parent.
Certain changes in classification of amounts reported in prior years have been made to conform to the 2013 classification.
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 and the disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic conditions and trends, and the assessment of the probable future outcome. Some of the more significant estimates include accounting for doubtful accounts, useful lives of property, plant and equipment and intangible assets, purchase price allocations of acquired businesses, valuation of assets including goodwill and other intangible assets, product warranties, sales allowances, pension plans, postretirement benefits other than pensions, taxes, environmental costs, product liability, asbestos matters and other contingencies. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the statement of operations in the period that they are determined.
Currency Translation:  Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates, and income and expense accounts have been translated using average exchange rates throughout the year. Adjustments resulting from the process of translating an entity’s financial statements into the U.S. dollar have been recorded in the Equity section of the Consolidated Balance Sheet within Accumulated other comprehensive income (loss). Transactions that are denominated in a currency other than an entity’s functional currency are subject to changes in exchange rates with the resulting gains and losses recorded within Net earnings.
Cash and Cash Equivalents:  Cash and cash equivalents include cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less.
Inventories:  Depending on the business, U.S. inventories are stated at the lower of cost or market using the last-in, first-out (LIFO) method or the lower of cost or market using the first-in, first-out (FIFO) method. Non-U.S. inventories are primarily stated at the lower of cost or market using the FIFO method. At December 31, 2013 and 2012, approximately 45% and 55%, respectively, of all inventory utilized the LIFO method.
Allowance for Doubtful Accounts:  The Company maintains an allowance for doubtful accounts receivable which represents the best estimate of probable loss inherent in the Company's accounts receivable portfolio. This estimate is based upon a two step policy that results in the total recorded allowance for doubtful accounts. The first step is to create a specific reserve for significant accounts as to which the customer's ability to satisfy their financial obligation to the Company is in doubt due to circumstances such as bankruptcy, deteriorating operating results or financial position. In these circumstances, management uses its judgment to record an allowance based on the best estimate of probable loss, factoring in such considerations as the market value of collateral, if applicable. The second step is to record a portfolio reserve based on the aging of the outstanding accounts receivable portfolio and the Company's historical experience with our end markets, customer base and products. Actual results could differ from those estimates. These estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statement of Comprehensive Income in the period that they are determined. The Company reserved $35.4 million and $24.8 million for doubtful accounts as of December 31, 2013 and 2012, respectively.
Property, Plant and Equipment:  Property, plant and equipment are stated at cost, less accumulated depreciation. Assets placed in service are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset except for leasehold improvements, which are depreciated over the shorter of their economic useful life or their lease term. The range of useful lives used to depreciate property, plant and equipment is as follows:
Buildings
10
to
50
years
Machinery and equipment
2
to
12
years
Software
2
to
7
years

Repair and maintenance costs that do not extend the useful life of the asset are charged against earnings as incurred. Major replacements and significant improvements that increase asset values and extend useful lives are capitalized.
The Company assesses the recoverability of the carrying value of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds the fair value of the assets.
Goodwill and Intangible Assets:  The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded.
In accordance with GAAP, goodwill and other indefinite-lived intangible assets are tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the asset is more likely than not less than the carrying amount of the asset.
Recoverability of goodwill is measured at the reporting unit level and begins with a qualitative assessment to determine if it is more likely than not that the fair value of each reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test included in U.S. GAAP. For those reporting units where it is required, the first step compares the carrying amount of the reporting unit to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, a second step is performed, wherein the reporting unit's carrying value of goodwill is compared to the implied fair value of goodwill. To the extent that the carrying value exceeds the implied fair value, impairment exists and must be recognized.
The calculation of estimated fair value is based on two valuation techniques, a discounted cash flow model (income approach) and a market adjusted multiple of earnings and revenues (market approach), with each method being equally weighted in the calculation. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. The estimated fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit, as determined in the first step of the goodwill impairment test, was the price paid to acquire that reporting unit.
Recoverability of other intangible assets with indefinite useful lives (i.e. Tradenames) is first assessed using a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. This assessment is used as a basis for determining whether it is necessary to calculate the fair value of an indefinite-lived intangible asset. For those indefinite-lived assets where it is required, a fair value is determined on a relief from royalty methodology (income approach) which is based on the implied royalty paid, at an appropriate discount rate, to license the use of an asset rather than owning the asset. The present value of the after-tax cost savings (i.e. royalty relief) indicates the estimated fair value of the asset. Any excess of the carrying value over the estimated fair value is recognized as an impairment loss equal to that excess.
Intangible assets such as patents, customer-related intangible assets and other intangible assets with finite useful lives are amortized on a straight-line basis over their estimated economic lives. The weighted-average useful lives approximate the following:
Customer relationships
20
years
Completed technology/patents
10
years
Other
15
years

Recoverability of intangible assets with finite useful lives is assessed in the same manner as property, plant and equipment as described above.
Income Taxes:  Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. The Company recognizes future tax benefits, such as net operating losses and non-U.S. tax credits, to the extent that realizing these benefits is considered in its judgment to be more likely than not. The Company regularly reviews the recoverability of its deferred tax assets considering its historic profitability, projected future taxable income, timing of the reversals of existing temporary differences and the feasibility of its tax planning strategies. Where appropriate, the Company records a valuation allowance with respect to a future tax benefit.
Product Warranties:  Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available.
The Company's extended warranty liability represents the deferred revenue associated with its extended warranty contracts and is amortized into Revenue on a straight-line basis over the life of the contract, unless another method is more representative of the costs incurred. The Company assesses the adequacy of its liability by evaluating the expected costs under its existing contracts to ensure these expected costs do not exceed the extended warranty liability.
Treasury Stock:  The Company, through one of its consolidated subsidiaries, has repurchased its common shares from time to time as authorized by the Board of Directors. These repurchases are at the discretion of management subject to market conditions, regulatory requirements and other considerations. Amounts are recorded at cost and included within the Equity section of the Consolidated Balance Sheet.
Revenue Recognition:  Revenue is recognized and earned when all of the following criteria are satisfied: (a) persuasive evidence of a sales arrangement exists; (b) the price is fixed or determinable; (c) collectability is reasonably assured; and (d) delivery has occurred or service has been rendered. Delivery generally occurs when the title and the risks and rewards of ownership have substantially transferred to the customer. Both the persuasive evidence of a sales arrangement and fixed or determinable price criteria are deemed to be satisfied upon receipt of an executed and legally binding sales agreement or contract that clearly defines the terms and conditions of the transaction including the respective obligations of the parties. If the defined terms and conditions allow variability in all or a component of the price, revenue is not recognized until such time that the price becomes fixed or determinable. At the point of sale, the Company validates that existence of an enforceable claim that requires payment within a reasonable amount of time and assesses the collectability of that claim. If collectability is not deemed to be reasonably assured, then revenue recognition is deferred until such time that collectability becomes probable or cash is received. Delivery is not considered to have occurred until the customer has taken title and assumed the risks and rewards of ownership. Service and installation revenue are recognized when earned. In some instances, customer acceptance provisions are included in sales arrangements to give the buyer the ability to ensure the delivered product or service meets the criteria established in the order. In these instances, revenue recognition is deferred until the acceptance terms specified in the arrangement are fulfilled through customer acceptance or a demonstration that established criteria have been satisfied. If uncertainty exists about customer acceptance, revenue is not recognized until acceptance has occurred.
The Company offers various sales incentive programs to customers, dealers, and distributors. Sales incentive programs do not preclude revenue recognition, but do require an accrual for the Company's best estimate of expected activity. Examples of the sales incentives that are accrued for as a contra receivable and sales deduction at the point of sale include, but are not limited to, discounts (i.e. net 30 type), coupons, and rebates where the customer does not have to provide any additional requirements to receive the discount. Sales returns and customer disputes involving a question of quantity or price are also accounted for as a reduction in revenue and a contra receivable. At December 31, 2013 and 2012, the Company had a customer claim accrual (contra receivable) of $1.7 million and $2.1 million, respectively. All other incentives or incentive programs where the customer is required to reach a certain sales level, remain a customer for a certain period of time, provide a rebate form or is subject to additional requirements are accounted for as a reduction of revenue and establishment of a liability. At December 31, 2013 and 2012, the Company had a sales incentive accrual of $80.1 million and $62.2 million, respectively. Each of these accruals represents the best estimate the Company expects to pay related to previously sold units. These estimates are reviewed regularly for accuracy. If updated information or actual amounts are different from previous estimates, the revisions are included in the results for the period in which they become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material impact on the Consolidated Financial Statements.
The Company enters into maintenance and extended warranty contracts with customers. Revenue related to these services is recognized on a straight-line basis over the life of the contract, unless sufficient historical evidence indicates that the cost of providing these services is incurred on an other than straight-line basis. In these circumstances, revenue is recognized over the contract period in proportion to the costs expected to be incurred in performing the service.
The Company, primarily through its Climate segment, provides equipment (e.g. HVAC, controls), integrated solutions, and installation designed to customer specifications through construction-type contracts. The term of these types of contracts is typically less than one year, but can be as long as three years. Revenues related to these contracts are recognized using the percentage-of-completion method in accordance with GAAP. This measure of progress toward completion, utilized to recognize sales and profits, is based on the proportion of actual cost incurred to date as compared to the total estimate of contract costs at completion. The timing of revenue recognition often differs from the invoicing schedule to the customer, with revenue recognition in advance of customer invoicing recorded to unbilled accounts receivable and invoicing in advance of revenue recognition recorded to deferred revenue. At December 31, 2012, all recorded receivables (billed and unbilled) are due within one year. The Company re-evaluates its contract estimates periodically and reflects changes in estimates in the current period using the cumulative catch-up method. These periodic reviews have not historically resulted in significant adjustments. If estimated contract costs are in excess of contract revenues, then the excess costs are accrued.
The Company enters into sales arrangements that contain multiple elements, such as equipment, installation and service revenue. For multiple element arrangements, each element is evaluated to determine the separate units of accounting. The total arrangement consideration is then allocated to the separate units of accounting based on their relative selling price at the inception of the arrangement. The relative selling price is determined using vendor specific objective evidence (VSOE) of selling price, if it exists; otherwise, third-party evidence (TPE) of selling price is used. If neither VSOE nor TPE of selling price exists for a deliverable, a best estimate of the selling price is developed for that deliverable. The Company primarily utilizes VSOE to determine its relative selling price. The Company recognizes revenue for delivered elements when the delivered item has stand-alone value to the customer, the basic revenue recognition criteria have been met, and only customary refund or return rights related to the delivered elements exist.
Environmental Costs:  The Company is subject to laws and regulations relating to protecting the environment. Environmental expenditures relating to current operations are expensed or capitalized as appropriate. Expenditures relating to existing conditions caused by past operations, which do not contribute to current or future revenues, are expensed. Liabilities for remediation costs are recorded when they are probable and can be reasonably estimated, generally no later than the completion of feasibility studies or the Company’s commitment to a plan of action. The assessment of this liability, which is calculated based on existing technology, does not reflect any offset for possible recoveries from insurance companies, and is not discounted. Refer to Note 18 for further details of environmental matters.
Asbestos Matters:  Certain wholly-owned subsidiaries of the Company are named as defendants in asbestos-related lawsuits in state and federal courts. The Company records a liability for its actual and anticipated future claims as well as an asset for anticipated insurance settlements. Asbestos related defense costs are excluded from the asbestos claims liability and are recorded separately as services are incurred. Although the Company was neither a manufacturer nor producer of asbestos, some of its formerly manufactured components from third party suppliers utilized asbestos-related components. As a result, amounts related to asbestos are recorded within Discontinued operations, net of tax, except for amounts related to Trane U.S. Inc. asbestos liabilities, which are recorded in Earnings from continuing operations. Refer to Note 18 for further details of asbestos-related matters.
Research and Development Costs:  The Company conducts research and development activities for the purpose of developing and improving new products and services. These expenditures are expensed when incurred. For the years ended December 31, 2013, 2012 and 2011, these expenditures amounted to approximately $218.2 million, $235.4 million and $218.4 million, respectively.
Software Costs:  The Company capitalizes certain qualified internal-use software costs during the application development stage and subsequently amortizes those costs over the software's useful life, which ranges from 2 to 7 years. Refer to Note 5 for further details on software.
Employee Benefit Plans: The Company provides a range of benefits, including pensions, postretirement and postemployment benefits to eligible current and former employees. Determining the cost associated with such benefits is dependent on various actuarial assumptions, including discount rates, expected return on plan assets, compensation increases, employee mortality, turnover rates, and healthcare cost trend rates. Actuaries perform the required calculations to determine expense in accordance with GAAP. Actual results may differ from the actuarial assumptions and are generally accumulated into Accumulated other comprehensive income (loss) and amortized into Net earnings over future periods. The Company reviews its actuarial assumptions at each measurement date and makes modifications to the assumptions based on current rates and trends, if appropriate. Refer to Note 10 for further details on employee benefit plans.
Loss Contingencies:  Liabilities are recorded for various contingencies arising in the normal course of business, including litigation and administrative proceedings, environmental matters, product liability, product warranty, worker’s compensation and other claims. The Company has recorded reserves in the financial statements related to these matters, which are developed using input derived from actuarial estimates and historical and anticipated experience data depending on the nature of the reserve, and in certain instances with consultation of legal counsel, internal and external consultants and engineers. Subject to the uncertainties inherent in estimating future costs for these types of liabilities, the Company believes its estimated reserves are reasonable and does not believe the final determination of the liabilities with respect to these matters would have a material effect on the financial condition, results of operations, liquidity or cash flows of the Company for any year. Refer to Note 18 for further details on loss contingencies.
Derivative Instruments:  The Company periodically enters into cash flow and other derivative transactions to specifically hedge exposure to various risks related to interest rates and currency rates. The Company recognizes all derivatives on the Consolidated Balance Sheet at their fair value as either assets or liabilities. For cash flow designated hedges, the effective portion of the changes in fair value of the derivative contract are recorded in Accumulated other comprehensive income (loss), net of taxes, and are recognized in Net earnings at the time earnings are affected by the hedged transaction. For other derivative transactions, the changes in the fair value of the derivative contract are immediately recognized in Net earnings. Refer to Note 9 for further details on derivative instruments.
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements:
In December 2011, the FASB issued Accounting Standards Update (ASU) 2011-11, “Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 requires enhanced disclosures including both gross and net information about financial and derivative instruments eligible for offset or subject to an enforceable master netting arrangement or similar agreement. This new guidance is effective for annual reporting periods beginning on or after January 1, 2013 and subsequent interim periods. The requirements of ASU 2011-11 did not have an impact on the Consolidated Financial Statements.
In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU 2013-01 clarifies the scope of ASU 2011-11 to apply to derivative instruments that are offset or subject to an enforceable master netting arrangement or similar agreement. This clarified guidance is effective for annual reporting periods beginning on or after January 1, 2013 and subsequent interim periods. The revised requirements of ASU 2013-01 did not have an impact on the Consolidated Financial Statements.
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (AOCI). ASU 2013-02 requires a rollforward of changes in AOCI by component and information about significant reclassifications from AOCI to Net earnings to be presented in one location, either on the face of the financial statements or in the notes. This new guidance is effective for fiscal years beginning after December 15, 2012 and subsequent interim periods. The requirements of ASU 2013-02 did not have a material impact on the Company's Consolidated Financial Statements. The revised disclosure requirements are reflected in Note 11.
In July 2013, the FASB issued ASU 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” ASU 2013-10 allows the Fed Funds Effective Swap Rate (OIS) to be designated as a U.S. benchmark interest rate for hedge accounting purposes, in addition to interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate. The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company will apply the new guidance, as applicable, to future interest rate hedge relationships.
Recently Issued Accounting Pronouncements
In February 2013, the FASB issued ASU 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date.” ASU 2013-04 provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements where the total obligation is fixed at the reporting date, and for which no specific guidance currently exists. This new guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods. The Company is currently assessing the impact, if any, on the Consolidated Financial Statements.
In March 2013, the FASB issued ASU 2013-05, “Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU 2013-05 clarifies the application of GAAP to the release of cumulative translation adjustments related to changes of ownership in or within foreign entities, including step acquisitions. This new guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods.
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This new guidance is effective for annual reporting periods beginning on or after December 15, 2013 and subsequent interim periods. The Company is currently assessing the impact, if any, on the Consolidated Financial Statements.
Inventories
Inventories
INVENTORIES
At December 31, the major classes of inventory were as follows:
In millions
 
2013
 
2012
Raw materials
 
$
378.0

 
$
423.2

Work-in-process
 
100.7

 
87.2

Finished goods
 
760.2

 
704.8

 
 
1,238.9

 
1,215.2

LIFO reserve
 
(72.8
)
 
(71.2
)
Total
 
$
1,166.1

 
$
1,144.0

Property, Plant and Equipment
Property, Plant and Equipment
PROPERTY, PLANT AND EQUIPMENT
At December 31, the major classes of property, plant and equipment were as follows:
In millions
 
2013
 
2012
Land
 
$
64.2

 
$
67.1

Buildings
 
654.8

 
582.5

Machinery and equipment
 
1,612.0

 
1,544.9

Software
 
511.3

 
539.6

 
 
2,842.3

 
2,734.1

Accumulated depreciation
 
(1,373.9
)
 
(1,308.0
)
Total
 
$
1,468.4

 
$
1,426.1


Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $199.5 million, $194.5 million and $202.9 million, which include amounts for software amortization of $44.3 million, $48.5 million and $48.7 million, respectively.
Goodwill
Goodwill
GOODWILL
The changes in the carrying amount of Goodwill are as follows: 
In millions
 
Climate
 
Industrial
 
Total
December 31, 2011 (gross)
 
$
7,593.2

 
$
366.8

 
$
7,960.0

Acquisitions and adjustments *
 
(3.8
)
 
—

 
(3.8
)
Currency translation
 
30.5

 
1.9

 
32.4

December 31, 2012 (gross)
 
7,619.9

 
368.7

 
7,988.6

Acquisitions and adjustments
 
(1.1
)
 
1.1

 
—

Currency translation
 
44.8

 
3.2

 
48.0

December 31, 2013 (gross)
 
7,663.6

 
373.0

 
8,036.6

Accumulated impairment **
 
(2,496.0
)
 
—

 
(2,496.0
)
Goodwill (net)
 
$
5,167.6

 
$
373.0

 
$
5,540.6

* During 2012, the Company recorded certain purchase accounting adjustments within the Climate sector of $4.8 million.
** Accumulated impairment relates to a charge of $2,496.0 million recorded in the fourth quarter of 2008 as a result of the Company's annual impairment testing.
The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded.
In accordance with the Company’s goodwill impairment testing policy outlined in Note 3, the Company performed its annual impairment test on goodwill in the fourth quarter of each 2013, 2012, and 2011. In each year, the Company determined that the fair values of all identified reporting units exceeded their respective carrying values. Therefore, no impairment charges were recorded during 2013, 2012, and 2011.
The Company performed an interim impairment test on goodwill of its former Security Technologies Europe, Middle East, India, and Africa (EMEIA) reporting unit during the third quarter of 2013. The results of the third quarter 2013 interim impairment test indicated that the estimated fair value of the Security Technologies EMEIA reporting unit was less than its carrying value; consequently, the Company completed the second step of the interim impairment test which resulted in a $111.4 million non-cash pre-tax goodwill impairment charge. Such charge is recorded within discontinued operations for the year ended December 31, 2013. See Note 16 for further discussion.
Intangible Assets
Intangible Assets
INTANGIBLE ASSETS
The following table sets forth the gross amount and related accumulated amortization of the Company’s intangible assets at December 31:
 
 
2013
 
2012
In millions
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
Completed technologies/patents
 
$
174.1

 
$
(128.7
)
 
$
45.4

 
$
179.1

 
$
(112.7
)
 
$
66.4

Customer relationships
 
1,865.9

 
(599.5
)
 
1,266.4

 
1,863.1

 
(490.7
)
 
1,372.4

Other
 
60.4

 
(52.2
)
 
8.2

 
56.2

 
(46.6
)
 
9.6

Total finite-lived intangible assets
 
2,100.4

 
$
(780.4
)
 
1,320.0

 
2,098.4

 
$
(650.0
)
 
1,448.4

Trademarks (indefinite-lived)
 
2,602.0

 
 
 
2,602.0

 
2,602.0

 
 
 
2,602.0

Total
 
$
4,702.4

 
 
 
$
3,922.0

 
$
4,700.4

 
 
 
$
4,050.4


The Company amortizes intangible assets with finite useful lives on a straight-line basis over their estimated economic lives in accordance with GAAP. Indefinite-lived intangible assets are not subject to amortization, but instead, are tested for impairment at least annually (more frequently if certain indicators are present).
Intangible asset amortization expense for 2013, 2012 and 2011 was $128.9 million, $129.2 million and $132.2 million, respectively. Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $118 million for 2014, $116 million for 2015, $101 million for 2016, $101 million for 2017, and $100 million for 2018.
In accordance with the Company’s indefinite-lived intangible asset impairment testing policy outlined in Note 3, the Company performed its annual impairment test in the fourth quarter of each 2013, 2012 and 2011. In each year, the Company determined the fair value of all indefinite-lived intangible assets to exceed their respective carrying values. Therefore, no impairment charges were recorded during 2013, 2012 and 2011.
Debt and Credit Facilities
Debt and Credit Facilities
DEBT AND CREDIT FACILITIES
At December 31, short-term borrowings and current maturities of long-term debt consisted of the following:
In millions
 
2013
 
2012
Debentures with put feature
 
$
343.0

 
$
343.0

6.000% Senior notes due 2013
 
—

 
600.0

Other current maturities of long-term debt
 
8.0

 
10.0

Other short-term borrowings
 
16.7

 
9.9

Total
 
$
367.7

 
$
962.9


The weighted-average interest rate for total short-term borrowings and current maturities of long-term debt at December 31, 2013 and 2012 was 6.5% and 6.2%, respectively.
At December 31, long-term debt excluding current maturities consisted of:
In millions
 
2013
 
2012
9.500% Senior notes due 2014
 
—

 
655.0

5.50% Senior notes due 2015
 
198.1

 
196.4

4.75% Senior notes due 2015
 
299.8

 
299.7

6.875% Senior notes due 2018
 
749.5

 
749.4

2.875% Senior notes due 2019
 
349.5

 
—

9.00% Debentures due 2021
 
125.0

 
125.0

4.250% Senior notes due 2023
 
698.8

 
—

7.20% Debentures due 2014-2025
 
82.5

 
90.0

6.48% Debentures due 2025
 
149.7

 
149.7

5.750% Senior notes due 2043
 
498.0

 
—

Other loans and notes, at end-of-year average interest rates of 3.01% in 2013 and
1.00% in 2012, maturing in various amounts to 2019
 
2.6

 
1.3

Total
 
$
3,153.5

 
$
2,266.5


At December 31, 2013, long-term debt retirements are as follows:
In millions
  
2014
$
351.0

2015
507.2

2016
7.8

2017
7.7

2018
757.2

Thereafter
1,873.6

Total
$
3,504.5


Commercial Paper Program
The maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, under the commercial paper program is $2 billion as of December 31, 2013. Under the commercial paper program, Ingersoll-Rand Global Holding Company Limited (IR-Global), may issue notes from time to time, and the proceeds of the financing will be used for general corporate purposes. Each of IR-Ireland, Ingersoll-Rand Company Limited (IR-Limited), and Ingersoll-Rand International Holding Limited (IR-International) has provided an irrevocable and unconditional guarantee for the notes issued under the commercial paper program. The Company had no commercial paper outstanding at December 31, 2013 and December 31, 2012.
Debentures with Put Feature
At December 31, 2013 and December 31, 2012, the Company had outstanding $343.0 million of fixed rate debentures which only require early repayment at the option of the holder. These debentures contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, the Company is obligated to repay in whole or in part, at the holder’s option, the outstanding principal amount (plus accrued and unpaid interest) of the debentures held by the holder. If these options are not exercised, the final maturity dates would range between 2027 and 2028.
Holders of these debentures had the option to exercise the put feature on $37.2 million of the outstanding debentures in February 2013, subject to the notice requirement. No exercises were made. Holders of the remaining $305.8 million in outstanding debentures had the option to exercise the put feature, subject to the notice requirement, in November 2013. No material exercises were made.
Senior Notes due 2019, 2023, and 2043
In June 2013, we issued $1.55 billion principal amount of Senior Notes in three tranches through our wholly-owned subsidiary, IR-Global pursuant to Rule 144A of the Securities Act. The tranches consist of $350 million of 2.875% Senior Notes due in 2019, $700 million of 4.250% Senior Notes due in 2023, and $500 million of 5.750% Senior Notes due in 2043. The notes are fully and unconditionally guaranteed by each of IR-Ireland, Ingersoll-Rand Company Limited (IR-Limited), and Ingersoll-Rand International Holding Limited (IR-International). Interest on the notes will be paid twice a year in arrears. The Company has the option to redeem the notes in whole or in part at any time, and from time to time, prior to their stated maturity date at redemption prices set forth in the indenture agreement. The notes are subject to certain customary covenants, however, none of these covenants are considered restrictive to the Company’s operations. In connection with the issuance of each series of notes, IR-Global, the Guarantors and the initial purchasers of the notes entered into a Registration Rights Agreement. Each Registration Rights Agreement requires IR-Global and the Guarantors to use their commercially reasonable efforts to execute an effective exchange offer registration statement with the SEC no later than 365 days after the closing date of the notes offering and to complete an exchange offer within 30 business days of such effective date. If a registration default occurs additional interest shall accrue on the notes. The proceeds from these notes were used to fund the July 2013 redemption of $600 million of 6.000% Senior Notes due 2013 and $655 million of 9.500% Senior Notes due 2014 and to fund expenses related to the spin-off of the commercial and residential security businesses, with any remaining proceeds used for general corporate purposes. The July 2013 redemption resulted in $45.6 million of premium expense, which was recorded in 2013 in Interest expense.
Other Debt
As of December 31, 2013, the Company has a 4-year, $1.0 billion revolving credit facility maturing on May 20, 2015 and a 5-year, $1.0 billion revolving credit facility maturing on March 15, 2017, through its wholly-owned subsidiary, IR-Global.
IR-Ireland, IR-Limited, and IR-International have each provided an irrevocable and unconditional guarantee for these credit facilities. During 2013, the credit facilities were modified to include IR-New Jersey as a guarantor. The total committed revolving credit facilities of $2.0 billion are unused and provide support for the Company's commercial paper program, as well as other general corporate purposes.
In addition, other available non-U.S. lines of credit were $907.3 million, of which $660.0 million was unused at December 31, 2013. These lines provide support for bank guarantees, letters of credit and other general corporate purposes.
Fair Value of Debt
The carrying value of the Company's short-term borrowings is a reasonable estimate of fair value due to the short-term nature of the instruments. The Company measures the fair value of its long-term debt instruments based upon observable market prices quoted on public exchanges for similar assets. These fair value inputs are considered Level 2 within the fair value hierarchy discussed in Note 10. The methodologies used by the Company to determine the fair value of its long-term debt instruments at December 31, 2013 are the same as those used at December 31, 2012. There have been no transfers between levels of the fair value hierarchy. The fair value of the Company's debt instruments at December 31, 2013 and December 31, 2012 was $3,803.8 million and $3,663.1 million, respectively.
Guarantees
Subsequent to the Company's reorganization as an Irish plc, IR-Ireland and IR-Limited guaranteed fully and unconditionally the outstanding public debt of IR-International, IR-Global and IR-New Jersey. During 2013, IR-Global and IR-International public outstanding indentures were modified to include IR-New Jersey as a co-obligor.
Financial Instruments
Financial Instruments
FINANCIAL INSTRUMENTS
In the normal course of business, the Company may use various financial instruments, including derivative instruments, to manage the risks associated with interest rate and currency rate exposures. These financial instruments are not used for trading or speculative purposes.
On the date a derivative contract is entered into, the Company designates the derivative instrument as a cash flow hedge of a forecasted transaction or as an undesignated derivative. The Company formally documents its hedge relationships, including identification of the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivative instruments that are designated as hedges to specific assets, liabilities or forecasted transactions.
The fair market value of derivative instruments is determined through market-based valuations and may not be representative of the actual gains or losses that will be recorded when these instruments mature due to future fluctuations in the markets in which they are traded.
The Company assesses at inception and at least quarterly thereafter, whether the derivatives used in cash flow hedging transactions are highly effective in offsetting the changes in the cash flows of the hedged item. To the extent the derivative is deemed to be a highly effective hedge, the fair market value changes of the instrument are recorded to Accumulated other comprehensive income (AOCI).
Any ineffective portion of a derivative instrument’s change in fair value is recorded in Net earnings in the period of change. If the hedging relationship ceases to be highly effective, or it becomes probable that a forecasted transaction is no longer expected to occur, the hedging relationship will be undesignated and any future gains and losses on the derivative instrument will be recorded in Net earnings.
Currency Hedging Instruments
The notional amount of the Company’s currency derivatives was $1,510.0 million and $1,613.6 million at December 31, 2013 and 2012, respectively. At December 31, 2013 and 2012, a loss of $3.1 million and $3.8 million, net of tax, respectively, was included in AOCI related to the fair value of the Company’s currency derivatives designated as accounting hedges. The amount expected to be reclassified into Net earnings over the next twelve months is a loss of $3.1 million. The actual amounts that will be reclassified to Net earnings may vary from this amount as a result of changes in market conditions. Gains and losses associated with the Company’s currency derivatives not designated as hedges are recorded in Net earnings as changes in fair value occur. At December 31, 2013, the maximum term of the Company’s currency derivatives was approximately 12 months.
Other Derivative Instruments
In February 2013, the Company entered into forward starting interest rate swaps for $750.0 million of the forecasted issuance of $1.2 billion of Senior Notes due in 2023 and 2043. These interest rate swaps met the criteria to be accounted for as cash flow hedges of a forecasted transaction. Consequently, the changes in fair value of the interest rate swaps were recognized in AOCI. No further gain or loss will be recognized in AOCI related to these interest rate swaps as the contracts were terminated upon the June 2013 issuance of the underlying debt. The amount of AOCI associated with these interest rate swaps at the time of termination will be recognized in Interest expense over the term of the notes. At December 31, 2013, $10.1 million of gains remained in AOCI related to these interest rate swaps. The amount expected to be reclassified into Interest expense over the next twelve months is $0.7 million.
The Company previously entered into interest rate locks for the forecasted issuance of approximately $1.7 billion of Senior Notes due in 2013, 2015 and 2018. These interest rate locks met the criteria to be accounted for as cash flow hedges of a forecasted transaction. Consequently, the changes in fair value of the interest rate locks were recognized in AOCI. No further gain or loss will be recognized in AOCI related to these interest rate locks as the contracts were effectively terminated upon issuance of the underlying debt. However, the amount of AOCI associated with these interest rate locks at the time of termination are recognized into Interest expense over the term of the notes. During 2013, the Company repaid $600 million due under the Senior Notes due in 2013, at which time any amounts remaining in AOCI related to such notes were reclassified into Interest expense. At December 31, 2013 and 2012, $7.4 million and $10.3 million, respectively, of losses remained in AOCI related to these interest rate locks. The amount expected to be reclassified into Interest expense over the next twelve months is $2.5 million.
The Company measures the fair value of its derivative instruments on a recurring basis based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily accessible and observable. These fair value inputs are considered Level 2 within the fair value hierarchy discussed in Note 10. The methodologies used by the Company to determine the fair value of its derivative instruments at December 31, 2013 are the same as those used at December 31, 2012. There have been no transfers between levels of the fair value hierarchy.
The fair values of derivative instruments included within the Consolidated Balance Sheet as of December 31 were as follows:
 
 
Asset derivatives
 
Liability derivatives
In millions
 
2013
 
2012
 
2013
 
2012
Derivatives designated as hedges:
 
 
 
 
 
 
 
 
Currency derivatives
 
$
0.1

 
$
—

 
$
3.4

 
$
4.3

Derivatives not designated as hedges:
 
 
 
 
 
 
 
 
Currency derivatives
 
3.1

 
4.6

 
13.6

 
7.1

Total derivatives
 
$
3.2

 
$
4.6

 
$
17.0

 
$
11.4


Asset and liability derivatives included in the table above are recorded within Other current assets and Accrued expenses and other current liabilities, respectively.
The amounts associated with derivatives designated as hedges affecting Net earnings and AOCI for the years ended December 31 were as follows:
 
 
Amount of gain (loss)
recognized in AOCI
 
Location of gain (loss) reclassified from AOCI and recognized into Net earnings
 
Amount of gain (loss) reclassified from AOCI and recognized into Net earnings
In millions
 
2013
 
2012
 
2011
 
 
2013
 
2012
 
2011
Currency derivatives - continuing
 
$
(9.8
)
 
$
(6.1
)
 
$
2.1

 
Cost of goods sold
 
$
(10.8
)
 
$
0.4

 
$
1.4

Currency derivatives - discontinued
 
2.0

 
(1.1
)
 
0.3

 
Discontinued operations
 
1.1

 
(0.2
)
 
(1.3
)
Interest rate swaps
 
10.5

 
—

 
—

 
Interest expense
 
0.4

 
—

 
—

Interest rate locks
 
—

 
—

 
—

 
Interest expense
 
(2.8
)
 
(3.0
)
 
(2.9
)
Total
 
$
2.7

 
$
(7.2
)
 
$
2.4

 
 
 
$
(12.1
)
 
$
(2.8
)
 
$
(2.8
)

The amounts associated with derivatives not designated as hedges affecting Net earnings for the years ended December 31 were as follows:
In millions
 
Location of gain (loss) recognized in Net earnings
 
Amount of gain (loss) recognized in Net earnings
2013
 
2012
 
2011
Currency derivatives
 
Other, net
 
$
(42.2
)
 
$
28.5

 
$
(7.4
)
Total
 
 
 
$
(42.2
)
 
$
28.5


$
(7.4
)

The gains and losses associated with the Company’s undesignated currency derivatives are materially offset in Net earnings by changes in the fair value of the underlying transactions.
Concentration of Credit Risk
The counterparties to the Company’s forward contracts consist of a number of investment grade major international financial institutions. The Company could be exposed to losses in the event of nonperformance by the counterparties. However, the credit ratings and the concentration of risk in these financial institutions are monitored on a continuous basis and present no significant credit risk to the Company.
Fair Value of Other Financial Instruments
The carrying value of cash and cash equivalents, accounts receivable and accounts payable are a reasonable estimate of their fair value due to the short-term nature of these instruments. See Note 8 for a discussion of the fair value measurement of the Company's debt instruments and Note 10 for a discussion of the fair value measurement of the Company's pension assets and liabilities.
Pensions and Postretirement Benefits Other Than Pensions
Pensions and Postretirement Benefits Other Than Pensions
PENSIONS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The Company sponsors several U.S. defined benefit and defined contribution plans covering substantially all of our U.S. employees. Additionally, the Company has many non-U.S. defined benefit and defined contribution plans covering eligible non-U.S. employees. Postretirement benefits, other than pensions, provide healthcare benefits, and in some instances, life insurance benefits for certain eligible employees.
Pension Plans
The noncontributory defined benefit pension plans covering non-collectively bargained U.S. employees provide benefits on a final average pay formula while plans for most collectively bargained U.S. employees provide benefits on a flat dollar benefit formula or a percentage of pay formula. The non-U.S. pension plans generally provide benefits based on earnings and years of service. The Company also maintains additional other supplemental plans for officers and other key or highly compensated employees.
In connection with the 2013 spin-off, the Company transferred its obligations for pension benefits for all current and former employees of the commercial and residential security businesses to Allegion. The transfer of these obligations reduced our pension liabilities by $631.1 million, pension assets by $543.5 million, and accumulated other comprehensive losses by $164.8 million.
On June 8, 2012, the Board of Directors approved amendments to the Company's retirement plans for certain U.S. and Puerto Rico non-bargained employees. Eligible non-bargained employees hired prior to July 1, 2012 were given a choice of remaining in their respective defined benefit plan until the plan freezes on December 31, 2022 or freezing their accrued benefits in their respective defined benefit plan as of December 31, 2012 and receiving an additional 2% non-matching Company contribution into the Company's applicable defined contribution plan. Eligible employees hired or rehired on or after July 1, 2012 will automatically receive the 2% non-matching Company contribution into the applicable defined contribution plan in lieu of participating in the defined benefit plan. Beginning January 1, 2023, all eligible employees will receive the 2% non-matching contribution into the applicable defined contribution plan . As a result of these changes, the Company's projected benefit obligations for the amended plans were remeasured as of June 8, 2012, which included updating the discount rate assumption to 4.00% from the 4.25% assumed at December 31, 2011. The amendments resulted in a 2012 curtailment loss of $4.0 million. The amendment and remeasurement resulted in an increase of $1.0 million to the projected benefit obligation, an increase of $29.4 million to the plan assets, an actuarial gain of $28.4 million and a credit of $4.0 million to prior service cost during 2012.
The following table details information regarding the Company’s pension plans at December 31:
In millions
 
2013
 
2012
Change in benefit obligations:
 
 
 
 
Benefit obligation at beginning of year
 
$
4,228.6

 
$
3,841.1

Service cost
 
88.5

 
96.8

Interest cost
 
156.9

 
163.6

Employee contributions
 
1.5

 
1.5

Amendments
 
1.2

 
3.4

Actuarial (gains) losses
 
(314.4
)
 
374.3

Benefits paid
 
(211.6
)
 
(217.2
)
Currency translation
 
19.5

 
37.4

Curtailments and settlements
 
(3.7
)
 
(63.4
)
Impact of spin-off
 
(631.1
)
 
—

Other, including expenses paid
 
(2.2
)
 
(8.9
)
Benefit obligation at end of year
 
$
3,333.2

 
$
4,228.6

Change in plan assets:
 
 
 
 
Fair value at beginning of year
 
$
3,310.2

 
$
3,100.4

Actual return on assets
 
98.9

 
320.5

Company contributions
 
109.7

 
89.1

Employee contributions
 
1.5

 
1.5

Benefits paid
 
(211.6
)
 
(217.2
)
Currency translation
 
17.7

 
31.0

Settlements
 
(1.6
)
 
(5.6
)
Impact of spin-off
 
(543.5
)
 
—

Other, including expenses paid
 
(2.1
)
 
(9.5
)
Fair value of assets end of year
 
$
2,779.2

 
$
3,310.2

Funded status:
 
 
 
 
Plan assets less than the benefit obligations
 
$
(554.0
)
 
$
(918.4
)
Amounts included in the balance sheet:
 
 
 
 
Other noncurrent assets
 
$
4.3

 
$
5.1

Accrued compensation and benefits
 
(30.8
)
 
(9.0
)
Postemployment and other benefit liabilities
 
(527.5
)
 
(799.6
)
Liabilities held for spin-off
 
—

 
(114.9
)
Net amount recognized
 
$
(554.0
)
 
$
(918.4
)

It is the Company’s objective to contribute to the pension plans to ensure adequate funds, and no less than required by law, are available in the plans to make benefit payments to plan participants and beneficiaries when required. However, certain plans are not or cannot be funded due to either legal, accounting, or tax requirements in certain jurisdictions. As of December 31, 2013, approximately six percent of our projected benefit obligation relates to plans that cannot be funded.
The pretax amounts recognized in Accumulated other comprehensive income (loss) were as follows:
In millions
 
Prior service cost
 
Net actuarial losses
 
Total
December 31, 2012
 
$
(23.5
)
 
$
(1,318.9
)
 
$
(1,342.4
)
Current year changes recorded to Accumulated other comprehensive income (loss)
 
(1.2
)
 
249.0

 
247.8

Amortization reclassified to earnings
 
4.7

 
63.0

 
67.7

Settlements/curtailments reclassified to earnings
 
—

 
0.7

 
0.7

Impact of spin-off
 
2.3

 
162.5

 
164.8

Currency translation and other
 
—

 
(5.4
)
 
(5.4
)
December 31, 2013
 
$
(17.7
)
 
$
(849.1
)
 
$
(866.8
)

Weighted-average assumptions used:
Benefit obligations at December 31,
 
2013
 
2012
Discount rate:
 
 
 
 
U.S. plans
 
4.75
%
 
3.75
%
Non-U.S. plans
 
4.25
%
 
4.25
%
Rate of compensation increase:
 
 
 
 
U.S. plans
 
4.00
%
 
4.00
%
Non-U.S. plans
 
4.25
%
 
4.00
%

The accumulated benefit obligation for all defined benefit pension plans was $3,194.8 million and $4,032.2 million at December 31, 2013 and 2012, respectively. The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with accumulated benefit obligations more than plan assets were $3,291.3 million, $3,159.3 million and $2,735.5 million, respectively, as of December 31, 2013, and $4,182.8 million, $3,994.0 million and $3,263.9 million, respectively, as of December 31, 2012.
Pension benefit payments are expected to be paid as follows:
In millions
  
2014
$
219.3

2014
201.0

2016
199.0

2017
205.2

2018
214.6

2019 — 2023
1,142.9



The components of the Company’s net periodic pension benefit costs for the years ended December 31 include the following:
In millions
 
2013
 
2012
 
2011
Service cost
 
$
88.5

 
$
96.8

 
$
93.5

Interest cost
 
156.9

 
163.6

 
185.5

Expected return on plan assets
 
(166.3
)
 
(173.6
)
 
(219.6
)
Net amortization of:
 
 
 
 
 
 
Prior service costs
 
4.7

 
5.1

 
5.6

Transition amount
 
—

 
—

 
—

Plan net actuarial losses
 
63.0

 
60.6

 
51.1

Net periodic pension benefit cost
 
146.8

 
152.5

 
116.1

Net curtailment and settlement (gains) losses
 
0.7

 
4.9

 
62.5

Net periodic pension benefit cost after net curtailment and settlement (gains) losses
 
$
147.5

 
$
157.4

 
$
178.6

Amounts recorded in continuing operations
 
$
119.2

 
$
125.5

 
$
160.8

Amounts recorded in discontinued operations
 
28.3

 
31.9

 
17.8

Total
 
$
147.5

 
$
157.4

 
$
178.6


The curtailment and settlement losses in 2012 are associated with the recent amendments to the pension plans and lump sum distributions under the supplemental benefit plans for officers and other key employees. The curtailment and settlement losses in 2011 are associated with the divestiture of Hussmann and lump sum distributions under supplemental benefit plans for officers and other key employees.
Pension expense for 2014 is projected to be approximately $105.2 million, utilizing the assumptions for calculating the pension benefit obligations at the end of 2013. The amounts expected to be recognized in net periodic pension cost during the year ended 2014 for prior service cost and plan net actuarial losses are $4.1 million and $35.9 million, respectively.
Weighted-average assumptions used:
Net periodic pension cost for the year ended December 31,
 
2013
 
2012
 
2011
Discount rate:
 
 
 
 
 
 
U.S. plans
 
 
 
 
 
 
For the period January 1 to June 7
 
3.75
%
 
4.25
%
 
5.00
%
For the period June 8 to November 30
 
3.75
%
 
4.00
%
 
5.00
%
For the period December 1 to December 31
 
4.50
%
 
4.00
%
 
5.00
%
Non-U.S. plans
 
4.25
%
 
5.00
%
 
5.50
%
Rate of compensation increase:
 
 
 
 
 
 
U.S. plans
 
4.00
%
 
4.00
%
 
4.00
%
Non-U.S. plans
 
4.00
%
 
4.00
%
 
4.50
%
Expected return on plan assets:
 
 
 
 
 
 
U.S. plans
 
5.25
%
 
5.75
%
 
7.25
%
Non-U.S. plans
 
5.00
%
 
5.75
%
 
6.25
%

The expected long-term rate of return on plan assets reflects the average rate of returns expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation. The expected long-term rate of return on plan assets is based on what is achievable given the plan’s investment policy, the types of assets held and target asset allocations. The expected long-term rate of return is determined as of the measurement date. The Company reviews each plan and its historical returns and target asset allocations to determine the appropriate expected long-term rate of return on plan assets to be used.
The Company's objective in managing its defined benefit plan assets is to ensure that all present and future benefit obligations are met as they come due. It seeks to achieve this goal while trying to mitigate volatility in plan funded status, contribution, and expense by better matching the characteristics of the plan assets to that of the plan liabilities. The Company utilizes a dynamic approach to asset allocation whereby a plan's allocation to fixed income assets increases as the plan's funded status improves. The Company monitors plan funded status and asset allocation regularly in addition to investment manager performance.
Fair Value Measurements
Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on a framework that utilizes the inputs market participants use to determine the fair value of an asset or liability and establishes a fair value hierarchy to prioritize those inputs. The fair value hierarchy is comprised of three levels that are described below:
•
Level 1 - Inputs based on quoted prices in active markets for identical assets or liabilities.
•
Level 2 - Inputs other than Level 1 quoted prices, 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 asset or liability.
•
Level 3 - Unobservable inputs based on little or no market activity and that are significant to the fair value of the assets and liabilities.
The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability based on the best information available under the circumstances. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The fair values of the Company’s pension plan assets at December 31, 2013 by asset category are as follows:
 
 
Fair value measurements
 
Total
fair value
In millions
 
Level 1
 
Level 2
 
Level 3
 
Cash and cash equivalents
 
$
4.1

 
$
37.9

 
$
—

 
$
42.0

Equity investments:
 
 
 
 
 
 
 
 
Registered mutual funds – equity specialty(a)
 
6.0

 
—

 
—

 
6.0

Commingled funds – equity specialty(a)
 
—

 
826.8

 
—

 
826.8

 
 
6.0

 
826.8

 
—

 
832.8

Fixed income investments:
 
 
 
 
 
 
 
 
U.S. government and agency obligations
 
—

 
702.9

 
—

 
702.9

Corporate and non-U.S. bonds(b)
 
—

 
748.4

 
—

 
748.4

Asset-backed and mortgage-backed securities
 
—

 
59.4

 
—

 
59.4

Registered mutual funds – fixed income specialty(c)
 
32.3

 
—

 
—

 
32.3

Commingled funds – fixed income specialty(c)
 
—

 
268.5

 
—

 
268.5

Other fixed income(d)
 
—

 
—

 
22.6

 
22.6

 
 
32.3

 
1,779.2

 
22.6

 
1,834.1

Derivatives
 
—

 
—

 
—

 
—

Real estate(e)
 
—

 
—

 
19.3

 
19.3

Other(f)
 
—

 
—

 
58.1

 
58.1

Total assets at fair value
 
$
42.4

 
$
2,643.9

 
$
100.0

 
$
2,786.3

Receivables and payables, net(g)
 
 
 
 
 
 
 
(7.1
)
Net assets available for benefits
 
 
 
 
 
 
 
$
2,779.2

(a)
This class comprises commingled and registered mutual funds that focus on equity investments. It includes both indexed and actively managed funds.
(b)
This class includes state and municipal bonds.
(c)
This class comprises commingled and registered mutual funds that focus on fixed income securities.
(d)
This class includes group annuity and guaranteed interest contracts.
(e)
This class includes private equity funds that invest in real estate, including funds of funds.
(f)
This investment comprises the Company’s non-significant, non-U.S. pension plan assets. It mostly includes insurance contracts.
(g)
Includes an estimated $20.0 million payable to Allegion in accordance with the terms of the Employee Matters Agreement.
The fair values of the Company’s pension plan assets at December 31, 2012 by asset category are as follows:
 
 
Fair value measurements
 
Total
fair value
In millions
 
Level 1
 
Level 2
 
Level 3
 
Cash and cash equivalents
 
$
5.8

 
$
25.5

 
$
—

 
$
31.3

Equity investments:
 
 
 
 
 
 
 
 
Registered mutual funds – equity specialty(a)
 
5.9

 
—

 
—

 
5.9

Commingled funds – equity specialty(a)
 
—

 
935.2

 
—

 
935.2

 
 
5.9

 
935.2

 
—

 
941.1

Fixed income investments:
 
 
 
 
 
 
 
 
U.S. government and agency obligations
 
—

 
817.0

 
—

 
817.0

Corporate and non-U.S. bonds(b)
 
—

 
890.2

 
—

 
890.2

Asset-backed and mortgage-backed securities
 
—

 
53.0

 
—

 
53.0

Registered mutual funds – fixed income specialty(c)
 
33.8

 
—

 
—

 
33.8

Commingled funds – fixed income specialty(c)
 
—

 
439.1

 
—

 
439.1

Other fixed income(d)
 
—

 
—

 
21.9

 
21.9

 
 
33.8

 
2,199.3

 
21.9

 
2,255.0

Derivatives
 
—

 
(0.1
)
 
—

 
(0.1
)
Real estate(e)
 
—

 
—

 
29.2

 
29.2

Other(f)
 
—

 
—

 
54.4

 
54.4

Total assets at fair value
 
$
45.5

 
$
3,159.9

 
$
105.5

 
$
3,310.9

Receivables and payables, net
 
 
 
 
 
 
 
(0.7
)
Net assets available for benefits
 
 
 
 
 
 
 
$
3,310.2

(a)
This class comprises commingled and registered mutual funds that focus on equity investments. It includes both indexed and actively managed funds.
(b)
This class includes state and municipal bonds.
(c)
This class comprises commingled and registered mutual funds that focus on fixed income securities.
(d)
This class includes group annuity and guaranteed interest contracts.
(e)
This class includes private equity funds that invest in real estate. It includes both direct investment funds and funds-of-funds.
(f)
This investment comprises the Company’s non-significant, non-U.S. pension plan assets. It mostly includes insurance contracts.
Cash equivalents are valued using a market approach with inputs including quoted market prices for either identical or similar instruments. Fixed income securities are valued through a market approach with inputs including, but not limited to, benchmark yields, reported trades, broker quotes and issuer spreads. Commingled funds are valued at their daily net asset value (NAV) per share or the equivalent. NAV per share or the equivalent is used for fair value purposes as a practical expedient. NAVs are calculated by the investment manager or sponsor of the fund. Private real estate fund values are reported by the fund manager and are based on valuation or appraisal of the underlying investments.
The methodologies used by the Company to determine the fair value of its financial assets and liabilities at December 31, 2013 are the same as those used at December 31, 2012. There have been no significant transfers between levels of the fair value hierarchy.
The Company made required and discretionary contributions to its pension plans of $109.7 million in 2013, $89.1 million in 2012, and $57.3 million in 2011. The Company currently projects that it will contribute approximately $154.1 million to its plans worldwide in 2014. The Company’s policy allows it to fund an amount, which could be in excess of or less than the pension cost expensed, subject to the limitations imposed by current tax regulations. The Company anticipates funding the plans in 2014 in accordance with contributions required by funding regulations or the laws of each jurisdiction.
Most of the Company’s U.S. employees are covered by defined contribution plans. Employer contributions are determined based on criteria specific to the individual plans and amounted to approximately $89.0 million, $76.8 million, and $79.2 million in 2013, 2012 and 2011, respectively. The Company’s contributions relating to non-U.S. defined contribution plans and other non-U.S. benefit plans were $33.8 million, $27.1 million and $28.8 million in 2013, 2012 and 2011, respectively.
Multiemployer Pension Plans
The Company also participates in a number of multiemployer defined benefit pension plans related to collectively bargained U.S. employees of Trane. The Company's contributions, and the administration of the fixed retirement payments, are determined by the terms of the related collective-bargaining agreements. These multiemployer plans pose different risks to the Company than single-employer plans, including:
1.
The Company's contributions to multiemployer plans may be used to provide benefits to all participating employees of the program, including employees of other employers.
2.
In the event that another participating employer ceases contributions to a plan, the Company may be responsible for any unfunded obligations along with the remaining participating employers.
3.
If the Company chooses to withdraw from any of the multiemployer plans, the Company may be required to pay a withdrawal liability, based on the underfunded status of the plan.
As of December 31, 2013, the Company does not contribute to any plans which are individually significant, nor is the Company an individually significant contributor to any of these plans. Total contributions to multiemployer plans, excluding Hussmann, for the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Total contributions
 
$
5.4

 
$
5.4

 
$
5.2


Contributions to these plans may increase in the event that any of these plans are underfunded.
During 2011, the Company divested the Hussmann Business and Branches which participated in various multiemployer pension plans. For the year ended December 31, 2011, the Company contributed approximately $6.4 million to such plans. These contributions will not occur in future periods.
Postretirement Benefits Other Than Pensions
The Company sponsors several postretirement plans that provide for healthcare benefits, and in some instances, life insurance benefits that cover certain eligible employees. These plans are unfunded and have no plan assets, but are instead funded by the Company on a pay-as-you-go basis in the form of direct benefit payments. Generally, postretirement health benefits are contributory with contributions adjusted annually. Life insurance plans for retirees are primarily noncontributory.
In connection with the 2013 spin-off, the Company transferred its obligations for post retirement benefits other than pension for all current and former employees of the commercial and residential security businesses to Allegion. The transfer of these obligations reduced our post retirement plan liabilities by $14.1 million, and increased our accumulated other comprehensive income by $5.6 million.
The Board of Directors approved amendments on February 1, 2012 to its postretirement medical plan with respect to post-65 retiree medical coverage. Effective January 1, 2013, the Company discontinued offering company-sponsored retiree medical coverage for certain individuals age 65 and older. The Company transitioned affected individuals to coverage through the individual Medicare market and will provide a tax-advantaged subsidy to those retirees eligible for subsidized company coverage that can be used toward reimbursing premiums and other qualified medical expenses for individual Medicare supplemental coverage that is purchased through our third-party Medicare coordinator.
As a result of these changes, the Company's projected benefit obligations were remeasured as of February 1, 2012, which included updating the discount rate assumption to 3.75% from the 4.00% assumed at December 31, 2011. The remeasurement resulted in a decrease of $40.5 million to the projected benefit obligation, an actuarial loss of $21.3 million and a credit of $61.8 million to prior service cost.
The following table details information regarding the Company’s postretirement plans at December 31:
In millions
 
2013
 
2012
Change in benefit obligations:
 
 
 
 
Benefit obligation at beginning of year
 
$
851.4

 
$
919.9

Service cost
 
6.6

 
7.3

Interest cost
 
26.0

 
30.8

Plan participants’ contributions
 
11.2

 
19.1

Actuarial (gains) losses
 
(109.8
)
 
15.4

Benefits paid, net of Medicare Part D subsidy *
 
(56.4
)
 
(78.8
)
Settlements/curtailments
 
—

 
—

Amendments
 
—

 
(62.3
)
Impact of spin-off
 
(14.1
)
 
—

Other
 
(1.6
)
 
—

Benefit obligations at end of year
 
$
713.3

 
$
851.4

* Amounts are net of Medicare Part D subsidy of $12.8 million and $0.7 million in 2013 and 2012, respectively
Funded status:
 
 
 
 
Plan assets less than benefit obligations
 
$
(713.3
)
 
$
(851.4
)
Amounts included in the balance sheet:
 
 
 
 
Accrued compensation and benefits
 
$
(65.2
)
 
$
(67.2
)
Postemployment and other benefit liabilities
 
(648.1
)
 
(766.2
)
Liabilities held for spin-off
 
—

 
(18.0
)
Total
 
$
(713.3
)
 
$
(851.4
)

The pretax amounts recognized in Accumulated other comprehensive income (loss) were as follows:
In millions
 
Prior service gains
 
Net actuarial losses
 
Total
Balance at December 31, 2012
 
$
56.9

 
$
(180.3
)
 
$
(123.4
)
Current year changes recorded to Accumulated other comprehensive income (loss)
 
—

 
109.9

 
109.9

Amortization reclassified to earnings
 
(10.3
)
 
6.5

 
(3.8
)
Impact of spin-off
 
(7.2
)
 
1.6

 
(5.6
)
Balance at December 31, 2013
 
$
39.4

 
$
(62.3
)
 
$
(22.9
)

The components of net periodic postretirement benefit (income) cost for the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Service cost
 
$
6.6

 
$
7.3

 
$
8.4

Interest cost
 
26.0

 
30.8

 
42.0

Net amortization of:
 
 
 
 
 
 
Prior service gains
 
(10.3
)
 
(10.3
)
 
(3.5
)
Net actuarial losses
 
6.5

 
7.3

 
1.6

Net periodic postretirement benefit cost
 
28.8

 
35.1

 
48.5

Net curtailment and settlement (gains) losses
 
—

 
—

 
(10.1
)
Net periodic postretirement benefit (income) cost after net curtailment and settlement (gains) losses
 
$
28.8

 
$
35.1

 
$
38.4

Amounts recorded in continuing operations
 
$
19.8

 
$
22.2

 
$
18.7

Amounts recorded in discontinued operations
 
9.0

 
12.9

 
19.7

Total
 
$
28.8

 
$
35.1

 
$
38.4


The curtailment and settlement gains in 2011 are associated with the divestiture of Hussmann. Postretirement cost for 2014 is projected to be $25.8 million. The amount expected to be recognized in net periodic postretirement benefits cost in 2014 for prior service gains is $8.9 million.
Assumptions:
 
2013
 
2012
 
2011
Weighted-average discount rate assumption to determine:
 
 
 
 
 
 
Benefit obligations at December 31
 
4.25
%
 
3.25
%
 
4.00
%
Net periodic benefit cost
 
 
 
 
 
 
For the period January 1 to January 31
 
3.25
%
 
4.00
%
 
5.00
%
For the period February 1 to November 30
 
3.25
%
 
3.75
%
 
5.00
%
For the period November 30 to December 31
 
4.00
%
 
3.75
%
 
5.00
%
Assumed health-care cost trend rates at December 31:
 
 
 
 
 
 
Current year medical inflation
 
7.65
%
 
8.05
%
 
8.45
%
Ultimate inflation rate
 
5.00
%
 
5.00
%
 
5.00
%
Year that the rate reaches the ultimate trend rate
 
2021

 
2021

 
2021


A 1% change in the medical trend rate assumed for postretirement benefits would have the following effects at December 31, 2013:
In millions
 
1%
Increase
 
1%
Decrease
Effect on total of service and interest cost components
 
$
1.2

 
$
(1.0
)
Effect on postretirement benefit obligation
 
27.9

 
(24.5
)

Benefit payments for postretirement benefits, which are net of expected plan participant contributions and Medicare Part D subsidy, are expected to be paid as follows:
In millions
  
2014
$
66.6

2015
66.7

2016
64.7

2017
62.4

2018
59.8

2019 — 2023
264.3

Equity
Shareholders' Equity
EQUITY
Ordinary Shares
At December 31, 2013, a reconciliation of ordinary shares is as follows:
In millions
Total
December 31, 2012
295.6

Shares issued under incentive plans
7.9

Repurchase of ordinary shares
(20.8
)
December 31, 2013
282.7


In December 2012, the Board of Directors authorized the repurchase of up to $2.0 billion of the Company's ordinary shares under a share repurchase program. During 2013, the Company repurchased 20.8 million shares for approximately $1.2 billion, excluding commissions. These repurchases were accounted for as a reduction of Ordinary shares and Capital in excess of par value as they were canceled upon repurchase.
In December 2012, the Company declared a dividend of $0.21 per ordinary share payable on March 28, 2013 to shareholders of record on March 12, 2013. This represents a non-cash financing activity and has been excluded from the 2012 Consolidated Statement of Cash Flows. The cash impact of the dividend will be reflected in the 2013 Consolidated Statement of Cash Flows in 2013 as the dividend was paid in 2013.
The authorized share capital of IR-Ireland is 1,185,040,000 shares, consisting of (1) 1,175,000,000 ordinary shares, par value $1.00 per share, (2) 40,000 ordinary shares, par value EUR 1.00 and (3) 10,000,000 preference shares, par value $0.001 per share. No preference shares were outstanding at December 31, 2013 or 2012.
Other Comprehensive Income (Loss)
The changes in Accumulated other comprehensive income (loss) are as follows:
In millions
 
Cash flow hedges and marketable securities
 
Pension and OPEB Items
 
Foreign Currency Items
 
Total
December 31, 2011
 
$
(4.5
)
 
$
(897.1
)
 
$
348.0

 
$
(553.6
)
Other comprehensive income (loss), net of tax
 
3.1

 
(67.1
)
 
96.6

 
32.6

December 31, 2012
 
$
(1.4
)
 
$
(964.2
)
 
$
444.6

 
$
(521.0
)
Other comprehensive income (loss), net of tax
 
19.7

 
263.3

 
11.7

 
294.7

Impact of spin-off and other activities
 
$
(17.9
)
 
$
138.1

 
$
(60.6
)
 
$
59.6

December 31, 2013
 
$
0.4

 
$
(562.8
)
 
$
395.7

 
$
(166.7
)

The amounts of Other comprehensive income (loss) attributable to noncontrolling interests are as follows:
In millions
 
2013
 
2012
 
2011
Pension and OPEB items
 
$
—

 
$
(1.3
)
 
$
(0.6
)
Foreign currency items
 
3.3

 
(11.1
)
 
—

Total other comprehensive income (loss) attributable to noncontrolling interests
 
$
3.3

 
$
(12.4
)
 
$
(0.6
)

During 2012, the Company reclassified a $11.5 million currency translation loss to Noncontrolling interests from IR-Ireland shareholders' equity related to activity from prior to 2012. This reclassification corrects the allocation of currency translation gains (losses) between the Equity components. The Company does not believe this reclassification adjustment is material to 2012 or to any of its previously issued annual or interim financial statements.
Share-Based Compensation
Share-Based Compensation
SHARE-BASED COMPENSATION
The Company records share-based compensation awards using a fair value method and recognizes compensation expense for an amount equal to the fair value of the share-based payment issued in its financial statements. The Company’s share-based compensation plans include programs for stock options, stock appreciation rights (SARs), restricted stock units (RSUs), performance share units (PSUs), and deferred compensation.
In connection with the spin-off of the commercial and residential security businesses, the provisions of our existing compensation plans required adjustments to the number and terms of outstanding employee stock options, SARs, RSUs and PSUs to preserve the intrinsic value of the awards immediately before and after the spin-off. The outstanding awards will continue to vest over the original vesting period, which is generally three years from the grant date.
The stock awards held as of December 1, 2013 were adjusted as follows:
•
Stock options and SARs: Holders of Ingersoll Rand vested stock option and SARs awards received one stock option of Allegion for every three Ingersoll Rand vested and exercisable stock options held. The exercise price for each award was also adjusted to preserve the overall intrinsic value of the awards. Unvested stock options held at the time of the spin-off were converted into stock options of the holder’s employer following the spin-off, with the number of underlying shares and the exercise price adjusted accordingly to preserve the overall intrinsic value of the awards.
•
Restricted stock units: Ingersoll Rand restricted stock units were converted into restricted stock units of the holder’s employer following the spin-off with adjustments to the number of underlying shares as appropriate to preserve the intrinsic value of such awards immediately prior to the spin-off.
•
Performance share units: Participants with active and outstanding performance share units had the number of units held adjusted for the change in Ingersoll Rand stock price before and after the spin-off. A corresponding adjustment was made to the calculation of earnings per share and total shareholder return to appropriately reflect the spin-off.
Under the Company's incentive stock plan, the total number of ordinary shares authorized by the shareholders is 20.0 million, of which 19.5 million remains available as of December 31, 2013 for future incentive awards.
Compensation Expense
Share-based compensation expense related to continuing operations is included in Selling and administrative expenses. The following table summarizes the expenses recognized:
In millions
 
2013
 
2012
 
2011
Stock options
 
$
23.0

 
$
5.7

 
$
22.3

RSUs
 
29.9

 
22.0

 
21.1

PSUs
 
20.2

 
22.5

 
(0.5
)
Deferred compensation
 
1.9

 
0.1

 
1.1

Other
 
2.9

 
2.3

 
(0.9
)
Pre-tax expense
 
77.9

 
52.6

 
43.1

Tax benefit
 
29.8

 
20.1

 
16.5

After-tax expense
 
$
48.1

 
$
32.5

 
$
26.6

Amounts recorded in continuing operations
 
$
43.4

 
$
28.6

 
$
24.0

Amounts recorded in discontinued operations
 
4.7

 
3.9

 
2.6

Total
 
$
48.1

 
$
32.5

 
$
26.6


During 2012, the Company recorded a correcting adjustment resulting in the reversal of $13.5 million ($8.3 million after tax) of previously charged compensation expense related to the accounting for stock option forfeitures. The Company does not believe the correcting adjustment is material to 2012 or to any of its previously issued annual or interim financial statements.
Stock Options / RSUs
Eligible participants may receive (i) stock options, (ii) RSUs or (iii) a combination of both stock options and RSUs. The fair value of each of the Company’s stock option and RSU awards is expensed on a straight-line basis over the required service period, which is generally the 3-year vesting period. However, for stock options and RSUs granted to retirement eligible employees, the Company recognizes expense for the fair value at the grant date.
The average fair value of the stock options granted for the year ended December 31, 2013 and 2012 was estimated to be $16.55 per share and $13.67 per share, respectively, using the Black-Scholes option-pricing model. The following assumptions were used:
 
 
2013
 
2012
Dividend yield
 
1.60
%
 
1.33
%
Volatility
 
42.15
%
 
43.60
%
Risk-free rate of return
 
0.85
%
 
0.92
%
Expected life
 
5.1

 
5.1


Expected volatility is based on the historical volatility from traded options on the Company's stock. The risk-free rate of return is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. Historical data is used to estimate forfeitures within the Company's valuation model. The expected life of the Company's stock option awards is derived from historical experience and represents the period of time that awards are expected to be outstanding.
For stock options granted prior to the spin-off, the weighted-average exercise prices in the table below reflect the historical exercise prices. Changes in options outstanding under the plans for the years 2013, 2012 and 2011 are as follows:
 
 
Shares
subject
to option
 
Weighted-
average
exercise price
 
Aggregate
intrinsic
value (millions)
 
Weighted-
average
remaining life
December 31, 2010
 
21,706,228

 
$
32.30

 
 
 
 
Granted
 
1,834,564

 
44.99

 
 
 
 
Exercised
 
(4,275,088
)
 
30.00

 
 
 
 
Cancelled
 
(650,428
)
 
35.36

 
 
 
 
December 31, 2011
 
18,615,276

 
33.97

 
 
 
 
Granted
 
1,463,352

 
40.67

 
 
 
 
Exercised
 
(5,578,783
)
 
28.87

 
 
 
 
Cancelled
 
(408,883
)
 
41.30

 
 
 
 
December 31, 2012
 
14,090,962

 
36.47

 
 
 
 
Granted
 
1,341,602

 
52.71

 
 
 
 
Exercised
 
(6,994,024
)
 
35.33

 
 
 
 
Cancelled
 
(110,496
)
 
44.57

 
 
 
 
Impact of spin-off
 
371,984

 
****

 
 
 
 
Outstanding December 31, 2013
 
8,700,028

 
$
31.87

 
$
258.7

 
5.6
Exercisable December 31, 2013
 
5,695,290

 
$
29.71

 
$
184.5

 
4.2

The following table summarizes information concerning currently outstanding and exercisable options as adjusted for the spin-off as discussed above:
  
 
 
 
 
 
Options outstanding
 
Options exercisable
Range of
exercise price
 
Number
outstanding at
December 31,
2013
 
Weighted-
average
remaining
life
 
Weighted-
average
exercise
price
 
Number
outstanding at
December 31,
2013
 
Weighted-
average
remaining
life
 
Weighted-
average
exercise
price
10.01

 
—
 
20.00

 
850,559

 
3.5
 
14.81

 
850,559

 
3.5
 
14.81

20.01

 
—
 
30.00

 
1,635,997

 
5.1
 
25.53

 
1,378,461

 
4.6
 
25.69

30.01

 
—
 
40.00

 
4,648,123

 
5.2
 
33.81

 
3,263,037

 
4.3
 
33.66

40.01

 
—
 
50.00

 
1,561,333

 
8.3
 
41.97

 
203,233

 
3.8
 
41.85

50.01

 
—
 
60.00

 
4,016

 
9.8
 
51.92

 
—

 
0.0
 
—

$
14.80

 
—
 
$
51.92

 
8,700,028

 
5.6
 
$
31.87

 
5,695,290

 
4.2
 
$
29.21


At December 31, 2013, there was $13.6 million of total unrecognized compensation cost from stock option arrangements granted under the plan, which is primarily related to unvested shares of non-retirement eligible employees. The aggregate intrinsic value of options exercised during the year ended December 31, 2013 and 2012 was $155.5 million and $89.7 million, respectively. Generally, stock options expire ten years from their date of grant.
For restricted stock awarded prior to the spin-off, grant price information in the table below reflects historical market prices. The following table summarizes RSU activity for the years 2013, 2012 and 2011:
 
 
RSUs
 
Weighted-
average grant
date fair value
Outstanding and unvested at December 31, 2010
 
1,300,174

 
$
26.14

Granted
 
672,185

 
43.87

Vested
 
(512,614
)
 
24.20

Cancelled
 
(152,572
)
 
34.87

Outstanding and unvested at December 31, 2011
 
1,307,173

 
$
35.00

Granted
 
643,822

 
40.74

Vested
 
(575,214
)
 
30.05

Cancelled
 
(91,089
)
 
38.92

Outstanding and unvested at December 31, 2012
 
1,284,692

 
$
39.81

Granted
 
685,441

 
53.78

Vested
 
(669,079
)
 
38.44

Cancelled
 
(63,954
)
 
43.98

Impact of spin-off
 
103,882

 
****

Outstanding and unvested at December 31, 2013
 
1,340,982

 
$
38.49


At December 31, 2013, there was $21.5 million of total unrecognized compensation cost from RSU arrangements granted under the plan, which is related to unvested shares of non-retirement eligible employees.
Performance Shares
The Company has a Performance Share Program (PSP) for key employees. The program provides awards in the form of PSUs based on performance against pre-established objectives. The annual target award level is expressed as a number of the Company's ordinary shares. All PSUs are settled in the form of ordinary shares.
Awards granted in 2011 and 2010 are based upon the Company's relative earnings-per-share (EPS) growth as compared to the industrial group of companies in the S&P 500 Index over the 3-year performance period.
In 2011 the Compensation Committee approved certain changes to the Company's PSP to be implemented beginning with the 2012 grant year. Under these changes, PSU awards are based 50% upon a performance condition, measured at each reporting period by relative EPS growth to the industrial group of companies in the S&P 500 Index and the fair market value of the Company's stock on the date of grant, and 50% upon a market condition, measured by the Company's relative total shareholder return (TSR) as compared to the TSR of the industrial group of companies in the S&P 500 Index over the 3-year performance period. The fair value of the market condition is estimated using a Monte Carlo Simulation approach in a risk-neutral framework based upon historical volatility, risk-free rates and correlation matrix.
In 2012 the Compensation Committee approved a change to fix the measurement of EPS for all outstanding 2010 and 2011 PSU awards, effective January 31, 2012. This change results in fixed accounting being applied as of the date of change. The fair value of the Company's stock price used to fix the remaining amount of expense to be recorded over the life of the awards was $34.94.
The grant price information for performance share units awarded prior to the spin-off reflects historical market prices which were not adjusted to reflect the spin-off. The following table summarizes PSU activity for the maximum number of shares that may be issued for the years 2013, 2012 and 2011:
 
 
PSUs
 
Weighted-average grant date fair value
Outstanding and unvested at December 31, 2010
 
3,768,706

 
$
20.36

Granted
 
614,006

 
46.66

Vested
 
(633,504
)
 
16.95

Forfeited
 
(1,116,212
)
 
19.31

Outstanding and unvested at December 31, 2011
 
2,632,996

 
$
27.76

Granted
 
649,668

 
50.75

Vested
 
—

 
—

Forfeited
 
(1,423,028
)
 
18.68

Outstanding and unvested at December 31, 2012
 
1,859,636

 
$
40.30

Granted
 
580,910

 
61.24

Vested
 
(718,040
)
 
34.94

Forfeited
 
(150,636
)
 
51.43

Impact of spin-off
 
380,780

 
****

Outstanding and unvested at December 31, 2013
 
1,952,650

 
$
39.20


At December 31, 2013, there was $12.9 million of total unrecognized compensation cost from the PSP based on current performance, which is related to unvested shares. This compensation will be recognized over the required service period, which is generally the three-year vesting period.
Deferred Compensation
The Company allows key employees to defer a portion of their eligible compensation into a number of investment choices, including its ordinary share equivalents. Any amounts invested in ordinary share equivalents will be settled in ordinary shares of the Company at the time of distribution.
Other Plans
The Company has not granted stock appreciation rights (SARs) since 2006 and does not anticipate additional grants in the future. As of December 31, 2013, there were 96,415 SARs outstanding, all of which are vested and expire 10 years from the date of grant. All SARs exercised are settled with the Company’s ordinary shares.
The Company has issued stock grants as an incentive plan for certain key employees, with varying vesting periods. All stock grants are settled with the Company’s ordinary shares. At December 31, 2013, there were 52,565 stock grants outstanding, all of which were vested.
Restructuring Activities
Restructuring Activities
RESTRUCTURING ACTIVITIES
Restructuring charges recorded during the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Climate
 
$
47.5

 
$
12.9

 
$
17.1

Industrial
 
14.5

 
7.6

 
6.7

Corporate and Other
 
20.3

 
2.8

 
0.3

Total
 
$
82.3

 
$
23.3

 
$
24.1

Cost of goods sold
 
$
15.2

 
$
10.3

 
$
6.8

Selling and administrative expenses
 
67.1

 
13.0

 
17.3

Total
 
$
82.3

 
$
23.3

 
$
24.1



The changes in the restructuring reserve were as follows:
In millions
 
Climate
 
Industrial
 
Corporate
and Other
 
Total
December 31, 2011
 
$
5.1

 
$
4.2

 
$
1.7

 
$
11.0

Additions, net of reversals
 
12.9

 
7.6

*
2.8

 
23.3

Cash and non-cash uses
 
(13.4
)
 
(9.7
)
 
(2.6
)
 
(25.7
)
Currency translation
 
0.1

 
—

 
—

 
0.1

December 31, 2012
 
4.7

 
2.1

 
1.9

 
8.7

Additions, net of reversals
 
47.5

 
14.5

 
20.3

 
82.3

Cash and non-cash uses
 
(34.2
)
 
(7.1
)
 
(17.2
)
 
(58.5
)
Currency translation
 
—

 
—

 
—

 
—

December 31, 2013
 
$
18.0

 
$
9.5

 
$
5.0

 
$
32.5


* Amount includes the reversal of $6.7 million of previously accrued restructuring charges.
During 2013, 2012, and 2011, the Company incurred costs of $82.3 million, $23.3 million, and $24.1 million respectively, associated with ongoing restructuring actions. These actions included workforce reductions as well as the closure and consolidation of manufacturing facilities in an effort to improve the Company's cost structure. Due to changes in various economic factors, the Company made a decision in the first quarter of 2011 to continue operating a facility for which the Company had previously accrued approximately $6.7 million of restructuring charges. As of December 31, 2013, the Company had $32.5 million accrued for costs associated with its ongoing restructuring actions, of which a majority is expected to be paid within one year.
In addition to the 2013 restructuring charges described above, the Company incurred $0.7 million of non-qualified restructuring charges during the year ended December 31, 2013, which represent costs that are directly attributable to restructuring activities, but do not fall into the severance, exit or disposal category. These non-qualified restructuring charges were incurred to improve the Company's cost structure.
Other, Net
Other, Net
OTHER, NET
At December 31, the components of Other, net were as follows:
In millions
 
2013
 
2012
 
2011
Interest income
 
$
12.8

 
$
16.3

 
$
25.5

Exchange gain (loss)
 
(14.0
)
 
0.2

 
(1.3
)
Earnings (loss) from equity investments
 
(2.6
)
 
(5.9
)
 
(3.5
)
Other
 
7.2

 
17.5

 
7.7

Other, net
 
$
3.4

 
$
28.1

 
$
28.4


Exchange gain (loss) for the year ended December 31, 2013 includes a loss of approximately $3.8 million related to the devaluation of the Venezuela Bolivar. Included within Earnings (loss) from equity investments for the years ended December 31, 2013, 2012 and 2011 is $2.6 million, $5.9 million and $3.5 million of equity loss, respectively, on the Hussmann equity investment incurred subsequent to the Hussmann divestiture transaction dates. The activity included within Other for the year ended December 31, 2012 is primarily related to adjustments to actual and expected insurance recoveries as a result of a settlement.
Income Taxes
Income Taxes
INCOME TAXES
Earnings before income taxes for the years ended December 31 were taxed within the following jurisdictions:
In millions
 
2013
 
2012
 
2011
United States
 
$
(147.4
)
 
$
(49.3
)
 
$
(1,066.3
)
Non-U.S.
 
977.0

 
897.3

 
1,254.9

Total
 
$
829.6

 
$
848.0

 
$
188.6


The components of the Provision for income taxes for the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Current tax expense (benefit):
 
 
 
 
 
 
United States
 
$
2.1

 
$
(70.1
)
 
$
46.7

Non-U.S.
 
157.5

 
174.0

 
170.0

Total:
 
159.6

 
103.9

 
216.7

Deferred tax expense (benefit):
 
 
 
 
 
 
United States
 
19.2

 
116.9

 
(215.4
)
Non-U.S.
 
10.2

 
(164.8
)
 
44.2

Total:
 
29.4

 
(47.9
)
 
(171.2
)
Total tax expense (benefit):
 
 
 
 
 
 
United States
 
21.3

 
46.8

 
(168.7
)
Non-U.S.
 
167.7

 
9.2

 
214.1

Total
 
$
189.0

 
$
56.0

 
$
45.4


The Provision for income taxes differs from the amount of income taxes determined by applying the applicable U.S. statutory income tax rate to pretax income, as a result of the following differences:
 
 
Percent of pretax income
 
 
2013
 
2012
 
2011
Statutory U.S. rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
Increase (decrease) in rates resulting from:
 
 
 
 
 
 
Non-U.S. tax rate differential
 
(26.8
)
 
(22.5
)
 
(120.4
)
Tax on U.S. subsidiaries on non-U.S. earnings
 
2.0

 
4.1

 
24.0

State and local income taxes (1)
 
6.3

 
0.3

 
(6.1
)
Valuation allowances
 
2.5

 
(16.6
)
 
(0.8
)
Change in permanent reinvestment assertion (2)
 
6.2

 
—

 
—

Non-deductible goodwill write-off - Hussmann
 
—

 
—

 
75.4

Reserves for uncertain tax positions
 
(2.9
)
 
2.4

 
15.3

Impact of change in taxation of retiree drugs subsidy
 
—

 
1.9

 
—

Provision to return and other true-up adjustments
 
(0.7
)
 
(0.1
)
 
(0.8
)
Other adjustments
 
1.2

 
2.1

 
2.5

Effective tax rate
 
22.8
 %
 
6.6
 %
 
24.1
 %
(1)
Net of changes in valuation allowances
(2)
Net of foreign tax credits
Tax incentives, in the form of tax holidays, have been granted to the Company in certain jurisdictions to encourage industrial development. The expiration of these tax holidays varies by country. The tax holidays are conditional on the Company meeting certain employment and investment thresholds. The most significant tax holidays relate to the Company’s qualifying locations in China, Puerto Rico, and Belgium. The benefit for the tax holidays for the years ended December 31, 2013 and 2012 was $25.3 million and $13.7 million, respectively.
At December 31, a summary of the deferred tax accounts were as follows:
In millions
 
2013
 
2012
Deferred tax assets:
 
 
 
 
Inventory and accounts receivable
 
$
19.7

 
$
21.1

Fixed assets and intangibles
 
3.3

 
3.6

Postemployment and other benefit liabilities
 
643.1

 
755.0

Product liability
 
221.7

 
237.6

Other reserves and accruals
 
198.5

 
174.6

Net operating losses and credit carryforwards
 
707.1

 
868.8

Other
 
59.2

 
63.2

Gross deferred tax assets
 
1,852.6

 
2,123.9

Less: deferred tax valuation allowances
 
(218.5
)
 
(156.2
)
Deferred tax assets net of valuation allowances
 
$
1,634.1

 
$
1,967.7

Deferred tax liabilities:
 
 
 
 
Inventory and accounts receivable
 
$
(46.8
)
 
$
(48.8
)
Fixed assets and intangibles
 
(2,046.8
)
 
(2,090.6
)
Postemployment and other benefit liabilities
 
(3.3
)
 
(0.3
)
Other reserves and accruals
 
(6.0
)
 
(3.4
)
Other
 
(49.1
)
 
(6.0
)
Gross deferred tax liabilities
 
(2,152.0
)
 
(2,149.1
)
Net deferred tax assets (liabilities)
 
$
(517.9
)
 
$
(181.4
)

At December 31, 2013, no deferred taxes have been provided for any portion of the approximately $7.4 billion of undistributed earnings of the Company’s subsidiaries, since these earnings have been, and under current plans will continue to be, permanently reinvested in these subsidiaries. Due to the number of legal entities and jurisdictions involved and the complexity of the legal entity structure of the Company, the complexity of the tax laws in the relevant jurisdictions, including, but not limited to the rules pertaining to the utilization of foreign tax credits in the United States and the impact of projections of income for future years to any calculations, the Company believes it is not practicable to estimate, within any reasonable range, the amount of additional taxes which may be payable upon distribution of these earnings.
As a result of the Allegion spin-off and certain internal restructurings, the Company believes it is advantageous to fully repay an intercompany debt obligation between two of its subsidiaries. In order to facilitate the repayment of this intercompany debt, in the fourth quarter of 2013, the Company decided to change its permanent reinvestment assertion as it relates to approximately $740 million of earnings primarily related to subsidiaries in Hong Kong, Australia and Canada. The Company has recorded the tax effects of this change in the fourth quarter of 2013, which resulted in a charge of approximately $51 million. Except where otherwise noted, the Company continues with its permanent reinvestment assertion on its remaining unremitted earnings.
At December 31, 2013, the Company had the following operating loss and tax credit carryforwards available to offset taxable income in prior and future years:
In millions
 
Amount
 
Expiration
Period
U.S. Federal net operating loss carryforwards
 
$
895.0

 
2014-2033
U.S. Federal credit carryforwards
 
42.7

 
2014-Unlimited
U.S. State net operating loss carryforwards
 
3,044.2

 
2014-2033
U.S. State credit carryforwards
 
29.8

 
2014-Unlimited
Non-U.S. net operating loss carryforwards
 
1,128.0

 
2014-Unlimited
Non-U.S. credit carryforwards
 
1.0

 
Unlimited

The amount of net operating loss carryforwards for which a benefit would be recorded in additional paid in capital when realized is $158.7 million.
The U.S. state net operating loss carryforwards were incurred in various jurisdictions. The non-U.S. net operating loss carryforwards were incurred in various jurisdictions, predominantly in Barbados, Belgium, Brazil, India, Spain, and the United Kingdom.
Activity associated with the Company’s valuation allowance is as follows:
In millions
 
2013
 
2012
 
2011
Beginning balance
 
$
156.2

 
$
308.4

 
$
351.2

Increase to valuation allowance
 
89.3

 
44.5

 
14.9

Decrease to valuation allowance
 
(26.3
)
 
(192.4
)
 
(22.3
)
Other deductions
 
—

 
—

 
(0.3
)
Accumulated other comprehensive income (loss)
 
(0.7
)
 
(4.3
)
 
(35.1
)
Ending balance
 
$
218.5

 
$
156.2

 
$
308.4


The Company has total unrecognized tax benefits of $363.3 million and $497.5 million as of December 31, 2013, and December 31, 2012, respectively. The amount of unrecognized tax benefits that, if recognized, would affect the continuing operations effective tax rate are $278.3 million as of December 31, 2013. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
In millions
 
2013
 
2012
 
2011
Beginning balance
 
$
497.5

 
$
503.4

 
$
505.6

Additions based on tax positions related to the current year
 
19.9

 
8.5

 
16.1

Additions based on tax positions related to acquisitions
 
—

 
—

 
—

Additions based on tax positions related to prior years
 
152.9

 
88.2

 
56.7

Reductions based on tax positions related to prior years
 
(215.3
)
 
(24.1
)
 
(62.2
)
Reductions related to settlements with tax authorities
 
(84.7
)
 
(50.6
)
 
(3.7
)
Reductions related to lapses of statute of limitations
 
(8.4
)
 
(29.5
)
 
(9.2
)
Translation (gain) loss
 
1.4

 
1.6

 
0.1

Ending balance
 
$
363.3

 
$
497.5

 
$
503.4


In connection with the Company’s spin-off of Allegion, the Company and Allegion entered into a tax sharing agreement for the allocation of taxes. Of the total unrecognized tax benefit of $363.3 million at December 31, 2013, Allegion has agreed to indemnify Ingersoll Rand for $4.1 million, which is reflected in an other long-term receivable account. Additionally, included in this other long-term receivable account is an indemnity receivable from Allegion in the amount of $55.8 million related to a filing for competent authority relief in connection with an unrecognized tax benefit included in the table above. The $55.8 million is exclusive of interest and penalties in the amount of $10.4 million. The Company also has an indemnity payable to Allegion in the amount of $9.5 million of tax and interest primarily related to competent authority relief filings.
In connection with Trane’s spin-off of WABCO Holdings Inc. (WABCO), Trane and WABCO entered into a tax sharing agreement for the allocation of pre spin-off taxes. Of the total unrecognized tax benefit of $363.3 million at December 31, 2013, WABCO has agreed to indemnify Trane for $3.7 million, which is reflected in an other long-term receivable account.
The Company records interest and penalties associated with the uncertain tax positions within its Provision for income taxes. The Company had reserves associated with interest and penalties, net of tax, of $71.9 million and $85.3 million at December 31, 2013 and December 31, 2012, respectively. For the year ended December 31, 2013 and December 31, 2012, the Company recognized $(5.9) million and $11.8 million, respectively, in interest and penalties net of tax in continuing operations related to these uncertain tax positions.
The total amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing audits and/or the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits, excluding interest and penalties, could potentially be reduced by up to approximately $4.5 million during the next 12 months.
The provision for income taxes involves a significant amount of management judgment regarding interpretation of relevant facts and laws in the jurisdictions in which the Company operates. Future changes in applicable laws, projected levels of taxable income and tax planning could change the effective tax rate and tax balances recorded by the Company. In addition, tax authorities periodically review income tax returns filed by the Company and can raise issues regarding its filing positions, timing and amount of income or deductions, and the allocation of income among the jurisdictions in which the Company operates. A significant period of time may elapse between the filing of an income tax return and the ultimate resolution of an issue raised by a revenue authority with respect to that return. In the normal course of business the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Brazil, Canada, China, France, Germany, Ireland, Italy, Mexico, Switzerland, the Netherlands and the United States. In general, the examination of the Company’s material tax returns is complete for the years prior to 2001, with certain matters being resolved through appeals and litigation.
In 2007, the Company received a notice from the IRS containing proposed adjustments to the Company's tax filings in connection with an audit of the 2001 and 2002 tax years. The IRS did not contest the validity of the Company's reincorporation in Bermuda. The IRS proposed to ignore the entities that hold the intercompany debt incurred in connection with the Company's reincorporation in Bermuda (the “2001 Debt”) and to which the interest was paid and impose 30% withholding tax on a portion of the interest payments as if they were made directly to a company that was not eligible for reduced U.S. withholding tax under a U.S. income tax treaty. The IRS asserted that the Company owed additional taxes with respect to 2002 of approximately $84 million plus interest. The Company strongly disagreed with the view of the IRS and filed a protest. In 2010, the Company received an amended notice from the IRS assessing penalties of 30% on the asserted underpayment of tax described above.
The Company has so far been unsuccessful in resolving this dispute and recently received a Notice of Deficiency from the IRS for 2002. The Company filed a petition in the United States Tax Court in November 2013 contesting this deficiency. In its January 2014 answer to the Company’s petition, the IRS asserted that the Company also owes 30% withholding tax on the portion of 2002 interest payments made on the 2001 Debt upon which it did not previously assert withholding tax. A 30% withholding tax on this $85.0 million interest payment would increase the total tax liability proposed for 2002 to $109.0 million ($84 million referred to in the paragraph above plus this additional $25.0 million) plus 30% penalties and interest.
Recently the Company received notices from the IRS containing proposed adjustments to the Company's tax filings in connection with an audit of the 2003-2006 tax years. In these notices, the IRS asserts that the Company owes a total of approximately $665.0 million of additional taxes, as described more fully below, in connection with the Company's interest payments on the 2001 Debt for the 2003-2006 period, plus penalties and interest on these unpaid taxes.
The IRS continues to take the position on the 2001 Debt, which was retired at the end of 2011, that it previously took for the Company's 2002 tax year and which is described above. As a result of this recharacterization, the IRS asserts that the Company owes approximately $455.0 million of withholding tax for 2003-2006 plus 30% penalties.
The IRS also proposes to extend its position further and to treat all of the interest income from the 2001 Debt as creating earnings and profits at IR-Limited and, as a result, recharacterize the distributions made by IR-Limited during the 2002-2006 tax years as taxable dividends instead of as a return of capital. Consequently the IRS asserts that the Company owes approximately $210.0 million of income tax on these dividends plus penalties of 20%.
Although the Company expects it to do so, the IRS has not yet proposed any similar adjustments for years subsequent to 2006, as the federal income tax audits for those years are still in process or have not yet begun. In addition, the Company does not know how the IRS will apply its position to the different facts presented in those years or whether the IRS will take a similar position in future audits with respect to intercompany debt instruments not outstanding in prior years.
The Company has vigorously contested all of these proposed adjustments and intends to continue to do so. Although the outcome of these matters cannot be predicted with certainty, based upon an analysis of the merits of the Company's position the Company believes that it is adequately reserved under the applicable accounting standards for these matters and does not expect that the ultimate resolution will have a material adverse impact on its future results of operations, financial condition, or cash flows. As the Company moves forward to resolve these matters with the IRS, the reserves established may be adjusted. Although the Company continues to contest the IRS's position, there can be no assurance that it will be successful. If the IRS's position with respect to the 2002-2006 tax years is ultimately sustained the Company would be required to record additional charges and the resulting liability will have a material adverse impact on its future results of operations, financial condition and cash flows.
The Company believes that it has adequately provided for any reasonably foreseeable resolution of any tax disputes, but will adjust its reserves if events so dictate in accordance with GAAP. To the extent that the ultimate results differ from the original or adjusted estimates of the Company, the effect will be recorded in the Provision for income taxes.
As a result of the Patient Protection and Affordable Care Act and the Healthcare and Education Reform Reconciliation Bill of 2010 (collectively, the Healthcare Reform Legislation), effective 2013, the tax benefits available to the Company are reduced to the extent its prescription drug expenses are reimbursed under the Medicare Part D retiree drug subsidy program. Although the provisions of the Healthcare Reform Legislation relating to the retiree drug subsidy program did not take effect until 2013, the Company is required to recognize the full accounting impact in its financial statements in the reporting period in which the Healthcare Reform Legislation is enacted. As retiree healthcare liabilities and related tax impacts were already reflected in the Company’s financial statements, the Healthcare Reform Legislation resulted in a non-cash charge to income tax expense in the first quarter of 2010 of $36.6 million. In 2012, the Company recorded a $15.8 million non-cash charge to income tax expense related to the required tax accounting between the enactment date of March 30, 2010 and the effective date of January 1, 2013 of the Healthcare Reform Legislation.
During 2012, the Company identified certain accounting errors associated with its previously reported income tax balances and tax positions. The Company corrected these errors in 2012 resulting in a tax charge of $24.0 million primarily related to the accrual of previously unrecorded unrecognized tax benefits. The Company does not believe that the accounting errors are material to 2012 or to any of its previously issued financial statements. As a result, the Company did not adjust any prior period amount.
During 2013, the Company recorded to continuing operations a tax charge of approximately $74.3 million as result of increases to its deferred tax asset valuation allowance for non-U.S. and U.S. state and local net operating losses and other net deferred tax assets. During 2013, the Company also recorded to continuing operations a net tax benefit of $36.0 million related to its liability for unrecognized tax benefits primarily driven by a tax benefit of $75.0 million as a result of the settlement of an audit in a major tax jurisdiction, partially offset by an increase in our liability for unrecognized tax benefits in non-U.S. tax jurisdictions.
During 2012 the Company recorded to continuing operations a tax benefit of approximately $140.0 million as a result of reducing its deferred tax asset valuation allowance for state net operating losses.
During 2011, the Company identified certain accounting errors associated with its previously reported income tax balances and tax positions. The Company corrected these errors in 2011 resulting in a tax charge of approximately $38.2 million, of which $3.9 million related to discontinued operations, primarily related to the accrual of a previously unrecorded future withholding tax liability. The Company does not believe that the accounting errors are material to 2011 or to any of its previously issued financial statements. As a result, the Company did not adjust any prior period amounts.
Divestitures and Discontinued Operations
Divestitures and Discontinued Operations
DISCONTINUED OPERATIONS AND DIVESTITURES
Discontinued Operations
The components of discontinued operations for the years ended December 31 are as follows:
In millions
 
2013
 
2012
 
2011
Net revenues
 
$
1,889.9

 
$
2,046.6

 
$
2,093.4

Pre-tax earnings (loss) from operations
 
$
84.7

 
$
379.5

 
$
355.7

Pre-tax gain (loss) on sale
 
—

 
2.3

 
(57.7
)
Tax benefit (expense)
 
(71.4
)
 
(129.8
)
 
(71.9
)
Discontinued operations, net of tax
 
$
13.3

 
$
252.0

 
$
226.1


Discontinued operations by business for the years ended December 31 are as follows: 
In millions
 
2013
 
2012
 
2011
Allegion, net of tax
 
$
12.4

 
$
254.2

 
$
275.7

Other discontinued operations, net of tax
 
0.9

 
(2.2
)
 
(49.6
)
Discontinued operations, net of tax
 
$
13.3

 
$
252.0

 
$
226.1


Allegion Spin Off
On December 1, 2013, the Company completed the previously announced separation of its commercial and residential security businesses by distributing the related ordinary shares of Allegion, on a pro rata basis, to the Company's shareholders of record as of November 22, 2013. On the Distribution Date, each of the Company's shareholders received one ordinary share of Allegion for every three ordinary shares of the Company held by such shareholder on the Record Date. After the Distribution Date, the Company does not beneficially own any Allegion ordinary shares (other than approximately 7,045 shares received in a deferred compensation trust upon the spin-off as a result of the trust holding ordinary shares of Ingersoll-Rand plc as of the Record Date) and Allegion is an independent publicly traded company.
The results of our commercial and residential security businesses are presented as a discontinued operation on the Consolidated Statement of Comprehensive Income and Consolidated Statement of Cash Flows for all periods presented. The balance sheet of the commercial and residential security business has been reclassified to held for spin-off at December 31, 2012. The statement of equity of the commercial and residential security business is included within our Consolidated Statement of Equity through December 1, 2013.
Net revenues and after-tax earnings of Allegion for the year ended December 31 were as follows:
In millions
2013
 
2012
 
2011
Net revenues
$
1,889.9

 
$
2,046.6

 
$
2,021.2

After-tax earnings (loss) from operations *
$
12.4

 
$
254.2

 
$
275.7

* Included in After-tax earnings (loss) from operations for the year ended December 31, 2013 and 2012 are spin costs of $128 million and $5.7 million, respectively, and tax charges of $148.2 million. Also, the 2013 results include a $111.4 million non-cash goodwill impairment charge. See below for further discussion of the impairment.
During the third quarter of 2013, the Company determined that it was required to complete the first step of the two-step impairment test related to the former Security Technologies -Europe, Middle East, India and Africa (EMEIA) reporting unit. The results of the impairment test indicated that the estimated fair value of the Security Technologies-EMEIA reporting unit was less than its carrying value; consequently, the Company performed the second step of the impairment test to quantify the amount of the non-cash, goodwill impairment charge. For the three months ended September 30, 2013, the Company recorded a non-cash, pre-tax goodwill impairment charge of $111.4 million ($106.2 million after-tax). This charge is recorded within Allegion's After-tax earnings (loss) from operations for the year ended December 31, 2013.
The components of Allegion assets and liabilities recorded as held for spin-off on the Consolidated Balance Sheet at December 31, 2012 are as follows:
In millions
 
December 31,
2012
Assets
 

Current assets
 
$
726.1

Property, plant and equipment, net
 
226.5

Goodwill
 
646.3

Intangible assets, net
 
150.5

Other assets and deferred income taxes
 
68.0

Assets held for spin-off
 
$
1,817.4

Liabilities
 

Current liabilities
 
$
362.9

Noncurrent liabilities
 
168.9

Liabilities held for spin-off
 
$
531.8


In November 2013, prior to the spin-off, the commercial and residential security businesses borrowed $1,274.2 million. The proceeds of the borrowing remained with the Company. On December 1, 2013 we made a distribution of $(0.5) million to the Company's shareholders in connection with the spin-off of Allegion. The distribution included $1,953.7 million of assets, $1,974.2 million of liabilities, $61.1 million of accumulated other comprehensive loss and $41.1 million of noncontrolling interest.
Other Discontinued Operations
The components of other discontinued operations for the years ended December 31 were as follows:
In millions
2013
 
2012
 
2011
Retained costs, net of tax
$
0.9

 
$
(16.2
)
 
$
(34.8
)
Net gain (loss) on disposals, net of tax
—

 
14.0

 
(14.8
)
Discontinued operations, net of tax
$
0.9

 
$
(2.2
)
 
$
(49.6
)

On November 30, 2007, the Company completed the sale of its Bobcat, Utility Equipment and Attachments businesses (collectively, Compact Equipment) to Doosan Infracore for gross proceeds of approximately $4.9 billion, subject to post-closing purchase price adjustments. Compact Equipment manufactured and sold compact equipment, including skid-steer loaders, compact track loaders, mini-excavators and telescopic tool handlers; portable air compressors, generators and light towers; general-purpose light construction equipment; and attachments. The Company was in dispute regarding post-closing matters with Doosan Infracore. During the second quarter of 2011, the Company collected approximately $48.3 million of its outstanding receivable from Doosan Infracore related to certain purchase price adjustments. During the second quarter of 2012, Doosan Infracore paid the Company a total of $46.5 million to settle the outstanding receivable and remaining disputed post-closing matters.
Other discontinued operations, net of tax from previously sold businesses is mainly related to postretirement benefits, product liability, worker's compensation, and legal costs (mostly asbestos-related) and tax effects of post-closing purchase price adjustments.
Divested Operations
Hussmann Divestiture
On September 30, 2011, the Company completed a transaction to sell its Hussmann refrigerated display case business to a newly-formed affiliate (Hussmann Parent) of private equity firm Clayton Dubilier & Rice, LLC (CD&R). This transaction included the equipment business and certain of the service branches in the U.S. and Canada, and the equipment, service and installation businesses in Mexico, Chile, Australia, New Zealand, and Japan (Hussmann Business). The final transaction allowed Hussmann Parent the option to acquire the remaining North American Hussmann service and installation branches (Hussmann Branches). Hussmann Parent completed the acquisition of the Hussmann Branches on November 30, 2011. The Hussmann Business and Branches, which are reported as part of the Climate segment, manufacture, market, distribute, install, and service refrigerated display merchandising equipment, refrigeration systems, over the counter parts, and other commercial and industrial refrigeration applications.
The Hussmann Business divestiture was originally announced on April 21, 2011 and met the criteria for classification as held for sale treatment in accordance with GAAP during the first quarter of 2011. During the third quarter of 2011, the Company negotiated the final transaction to sell the Hussmann Business and Branches to CD&R in exchange for $370 million in cash, subject to purchase price adjustments, and common stock of Hussmann Parent, such that following the sale, CD&R would own cumulative convertible participating preferred stock of Hussmann Parent, initially representing 60% of the outstanding capital stock (on an as-converted basis) of Hussmann Parent, and the Company would own all of the common stock, initially representing the remaining 40% of the outstanding capital stock (on an as-converted basis) of Hussmann Parent. The Company's ownership of common stock of Hussmann Parent represents significant continuing involvement. Therefore, the results of the Hussmann Business and Branches are included in continuing operations for all periods presented. Based on these terms, the Company recorded a total pre-tax loss on sale/asset impairment charge of $646.9 million during the full year of 2011.
Results for the Hussmann Business and Branches for the years ended December 31, 2011 are as follows:
In millions
2011*
 
Net revenues
$
818.5

 
Gain (loss) on sale/asset impairment
(646.9
)
**
Net earnings (loss) attributable to Ingersoll-Rand plc
(513.1
)
 
Diluted earnings (loss) per share attributable to Ingersoll-Rand plc ordinary shareholders:
(1.51
)
 
* Results represent the operating results of Hussmann Business and Branches through their respective divestiture transaction dates.
** Included in Gain (loss) on sale/asset impairment for the year ended December 31, 2011 are transaction costs of $12.2 million.
Hussmann Parent is required to pay a quarterly preferred dividend payment to CD&R in the form of cash or additional preferred shares. The Company's ownership percentage as of December 31, 2013 was 37.2%. The Company's ownership interest in Hussmann Parent is reported using the equity method of accounting subsequent to September 30, 2011. The Company's equity investment in the Hussmann Parent is reported within Other noncurrent assets and the related equity earnings reported in Other, net within Net earnings.
Earnings Per Share (EPS)
Earnings Per Share (EPS)
EARNINGS PER SHARE (EPS)
Basic EPS is calculated by dividing Net earnings attributable to Ingersoll-Rand plc by the weighted-average number of ordinary shares outstanding for the applicable period. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potentially dilutive ordinary shares, which in the Company’s case, includes shares issuable under share-based compensation plans and the effects of the Exchangeable Senior Notes issued in April 2009. The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations:
In millions
 
2013
 
2012
 
2011
Weighted-average number of basic shares
 
294.1

 
303.9

 
324.8

Shares issuable under incentive stock plans
 
4.2

 
3.7

 
3.8

Exchangeable Senior Notes
 
—

 
3.0

 
10.7

Weighted-average number of diluted shares
 
298.3

 
310.6

 
339.3

Anti-dilutive shares
 
19.1

 
5.2

 
5.0


The Company settled all remaining outstanding Exchangeable Senior Notes during 2012. As a result, the Company issued 10.8 million ordinary shares related to the equity portion of the Notes. See Note 8 for a further discussion.
Commitments and Contingencies
Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES
The Company is involved in various litigations, claims and administrative proceedings, including those related to environmental, asbestos, and product liability matters. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for contingent liabilities, except as expressly set forth in this note, management believes that any liability which may result from these legal matters would not have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.
Environmental Matters
The Company continues to be dedicated to an environmental program to reduce the utilization and generation of hazardous materials during the manufacturing process and to remediate identified environmental concerns. As to the latter, the Company is currently engaged in site investigations and remediation activities to address environmental cleanup from past operations at current and former manufacturing facilities.
The Company is sometimes a party to environmental lawsuits and claims and has received notices of potential violations of environmental laws and regulations from the Environmental Protection Agency and similar state authorities. It has also been identified as a potentially responsible party (PRP) for cleanup costs associated with off-site waste disposal at federal Superfund and state remediation sites. For all such sites, there are other PRPs and, in most instances, the Company’s involvement is minimal.
In estimating its liability, the Company has assumed it will not bear the entire cost of remediation of any site to the exclusion of other PRPs who may be jointly and severally liable. The ability of other PRPs to participate has been taken into account, based on our understanding of the parties’ financial condition and probable contributions on a per site basis. Additional lawsuits and claims involving environmental matters are likely to arise from time to time in the future.
The Company incurred $(0.5) million, $3.1 million, and $1.2 million of expenses during the years ended December 31, 2013, 2012 and 2011, respectively, for environmental remediation at sites presently or formerly owned or leased by us. As of December 31, 2013 and 2012, the Company has recorded reserves for environmental matters of $47.9 million and $55.6 million, respectively. Of these amounts $42.1 million and $41.2 million, respectively, relate to remediation of sites previously disposed by the Company. Environmental reserves are classified as Accrued expenses and other current liabilities, or Other noncurrent liabilities based on their expected term. The Company's total current environmental reserve at December 31, 2013 and 2012 was $13.5 million and $18.0 million, respectively. Given the evolving nature of environmental laws, regulations and technology, the ultimate cost of future compliance is uncertain.
Asbestos-Related Matters
Certain wholly-owned subsidiaries of the Company are named as defendants in asbestos-related lawsuits in state and federal courts. In virtually all of the suits, a large number of other companies have also been named as defendants. The vast majority of those claims have been filed against either Ingersoll-Rand Company (IR-New Jersey) or Trane U.S. Inc. (Trane) and generally allege injury caused by exposure to asbestos contained in certain historical products sold by IR-New Jersey or Trane, primarily pumps, boilers and railroad brake shoes. Neither IR-New Jersey nor Trane was a producer or manufacturer of asbestos, however, some formerly manufactured products utilized asbestos-containing components such as gaskets and packings purchased from third-party suppliers.
The Company engages an outside expert to assist in calculating an estimate of the Company’s total liability for pending and unasserted future asbestos-related claims and annually performs a detailed analysis with the assistance of an outside expert to update its estimated asbestos-related assets and liabilities. The methodology used to project the Company’s total liability for pending and unasserted potential future asbestos-related claims relied upon and included the following factors, among others:
•
the outside expert’s interpretation of a widely accepted forecast of the population likely to have been occupationally exposed to asbestos;
•
epidemiological studies estimating the number of people likely to develop asbestos-related diseases such as mesothelioma and lung cancer;
•
the Company’s historical experience with the filing of non-malignancy claims and claims alleging other types of malignant diseases filed against the Company relative to the number of lung cancer claims filed against the Company;
•
the outside expert’s analysis of the number of people likely to file an asbestos-related personal injury claim against the Company based on such epidemiological and historical data and the Company’s most recent three-year claims history;
•
an analysis of the Company’s pending cases, by type of disease claimed and by year filed;
•
an analysis of the Company’s most recent three-year history to determine the average settlement and resolution value of claims, by type of disease claimed;
•
an adjustment for inflation in the future average settlement value of claims, at a 2.5% annual inflation rate, adjusted downward to 1.5% to take account of the declining value of claims resulting from the aging of the claimant population; and
•
an analysis of the period over which the Company has and is likely to resolve asbestos-related claims against it in the future.
At December 31, 2013, over 80 percent of the open claims against the Company are non-malignancy claims, many of which have been placed on inactive or deferral dockets and the vast majority of which have little or no settlement value against the Company, particularly in light of recent changes in the legal and judicial treatment of such claims.
The Company’s liability for asbestos-related matters and the asset for probable asbestos-related insurance recoveries are included in the following balance sheet accounts:
In millions
December 31,
2013
 
December 31,
2012
Accrued expenses and other current liabilities
$
69.1

 
$
69.1

Other noncurrent liabilities
777.1

 
810.4

Total asbestos-related liabilities
$
846.2

 
$
879.5

Other current assets
$
22.3

 
$
22.5

Other noncurrent assets
299.5

 
297.8

Total asset for probable asbestos-related insurance recoveries
$
321.8

 
$
320.3


The Company's asbestos insurance receivable related to IR-New Jersey and Trane was $137.6 million and $172.0 million at December 31, 2013, and $125.5 million and $194.8 million at December 31, 2012, respectively.
The (costs) income associated with the settlement and defense of asbestos-related claims after insurance recoveries, for the years ended December 31, were as follows:
In millions
 
2013
 
2012
 
2011
Continuing operations
 
$
(0.4
)
 
$
10.1

 
$
(1.9
)
Discontinued operations
 
(55.8
)
 
(17.9
)
 
(14.5
)
Total
 
$
(56.2
)
 
$
(7.8
)
 
$
(16.4
)

IR-New Jersey records income and expenses associated with its asbestos liabilities and corresponding insurance recoveries within discontinued operations, as they relate to previously divested businesses, primarily Ingersoll-Dresser Pump, which was sold in 2000. Income and expenses associated with Trane’s asbestos liabilities and corresponding insurance recoveries are recorded within continuing operations.
Trane has now settled claims regarding asbestos coverage with most of its insurers. The settlements collectively account for approximately 95% of its recorded asbestos-related insurance receivable as of December 31, 2013. Most of Trane’s settlement agreements constitute “coverage-in-place” arrangements, in which the insurer signatories agree to reimburse Trane for specified portions of its costs for asbestos bodily injury claims and Trane agrees to certain claims-handling protocols and grants to the insurer signatories certain releases and indemnifications. Trane remains in litigation in an action that Trane filed in November 2010 in the Circuit Court for La Crosse County, Wisconsin, relating to claims for insurance coverage for a subset of Trane's historical asbestos-related liabilities.
On January 12, 2012, IR-New Jersey filed an action in the Superior Court of New Jersey, Middlesex County, seeking a declaratory judgment and other relief regarding the Company's rights to defense and indemnity for asbestos claims. The defendants are several dozen solvent insurance companies, including companies that have been paying a portion of IR-New Jersey's asbestos claim defense and indemnity costs. The action involves certain of IR-New Jersey's unexhausted insurance policies applicable to the asbestos claims that are not subject to any settlement agreement. The responding defendants generally challenged the Company's right to recovery, and raised various coverage defenses. In December 2013, IR-New Jersey filed a similar action in the same court against an insurer that was not a party to the 2012 action.
The Company continually monitors the status of pending litigation that could impact the allocation of asbestos claims against the Company's various insurance policies. The Company has concluded that its IR-New Jersey insurance receivable is probable of recovery because of the following factors:
•
a review of other companies in circumstances comparable to IR-New Jersey, including Trane, and the success of other companies in recovering under their insurance policies, including Trane's favorable settlement discussed above;
•
the Company's confidence in its right to recovery under the terms of its policies and pursuant to applicable law; and
•
the Company's history of receiving payments under the IR-New Jersey insurance program, including under policies that had been the subject of prior litigation.
The amounts recorded by the Company for asbestos-related liabilities and insurance-related assets are based on currently available information. The Company’s actual liabilities or insurance recoveries could be significantly higher or lower than those recorded if assumptions used in the calculations vary significantly from actual results. Key variables in these assumptions include the number and type of new claims to be filed each year, the average cost of resolution of each such new claim, the resolution of coverage issues with insurance carriers, and the solvency risk with respect to the Company’s insurance carriers. Furthermore, predictions with respect to these variables are subject to greater uncertainty as the projection period lengthens. Other factors that may affect the Company’s liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, reforms that may be made by state and federal courts, and the passage of state or federal tort reform legislation.
The aggregate amount of the stated limits in insurance policies available to the Company for asbestos-related claims acquired over many years and from many different carriers, is substantial. However, limitations in that coverage, primarily due to the considerations described above, are expected to result in the projected total liability to claimants substantially exceeding the probable insurance recovery.
Warranty Liability
Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available.
The changes in the standard product warranty liability for the year ended December 31, were as follows:
In millions
2013
 
2012
Balance at beginning of period
$
253.4

 
$
255.3

Reductions for payments
(156.7
)
 
(146.3
)
Accruals for warranties issued during the current period
153.9

 
144.6

Changes to accruals related to preexisting warranties
(5.5
)
 
(0.8
)
Translation
0.6

 
0.6

Balance at end of period
$
245.7

 
$
253.4


Standard product warranty liabilities are classified as Accrued expenses and other current liabilities, or Other noncurrent liabilities based on their expected term. The Company's total current standard product warranty reserve at December 31, 2013 and December 31, 2012 was $127.9 million and $137.8 million, respectively.
The Company's extended warranty liability represents the deferred revenue associated with its extended warranty contracts and is amortized into Revenue on a straight-line basis over the life of the contract, unless another method is more representative of the costs incurred. The Company assesses the adequacy of its liability by evaluating the expected costs under its existing contracts to ensure these expected costs do not exceed the extended warranty liability.
The changes in the extended warranty liability for the year ended December 31, were as follows:
In millions
2013
 
2012
Balance at beginning of period
$
375.1

 
$
372.0

Amortization of deferred revenue for the period
(105.6
)
 
(102.6
)
Additions for extended warranties issued during the period
87.1

 
105.2

Changes to accruals related to preexisting warranties
3.0

 
0.2

Translation
(0.5
)
 
0.3

Balance at end of period
$
359.1

 
$
375.1


The extended warranty liability is classified as Accrued expenses and other current liabilities or Other noncurrent liabilities based on the timing of when the deferred revenue is expected to be amortized into Revenue. The Company's total current extended warranty liability at December 31, 2013 and December 31, 2012 was $98.5 million. For the years ended December 31, 2013 and 2012, the Company incurred costs of $61.6 million and $60.3 million, respectively, related to extended warranties.
Other Commitments and Contingencies
Certain office and warehouse facilities, transportation vehicles and data processing equipment are leased by the Company. Total rental expense was $165.0 million in 2013, $167.0 million in 2012 and $192.3 million in 2011. Minimum lease payments required under non-cancelable operating leases with terms in excess of one year for the next five years are as follows: $111.6 million in 2014, $85.2 million in 2015, $64.0 million in 2016, $42.7 million in 2017, and $28.9 million in 2018.
Trane has commitments and performance guarantees, including energy savings guarantees, totaling $422.4 million extending from 2013-2032. These guarantees are provided under long-term service and maintenance contracts related to its air conditioning equipment and system controls. Through 2013, the Company has experienced no significant losses under such arrangements and considers the probability of any significant future losses to be remote.
Business Segment Information
Business Segment Information
BUSINESS SEGMENT INFORMATION
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except that the operating segments’ results are prepared on a management basis that is consistent with the manner in which the Company prepares financial information for internal review and decision making. The Company largely evaluates performance based on Segment operating income and Segment operating margins. Intercompany sales between segments are considered immaterial.
In the fourth quarter of 2013, the Company realigned its organizational structure to provide a greater focus on growth, continue implementation of business operating systems, build on our successful operational excellence philosophy and reduce complexity and costs. The Company’s new reporting structure includes the Climate and Industrial segments. The Company’s historical segment results have been recast for the new reporting structure.
Our Climate segment delivers energy-efficient solutions globally and includes Trane® and American Standard® Heating & Air Conditioning which provide heating, ventilation and air conditioning (HVAC) systems, and commercial and residential building services, parts, support and controls; and Thermo King® transport temperature control solutions.
Our Industrial segment delivers products and services that enhance energy efficiency, productivity and operations. It includes Ingersoll Rand® compressed air systems and services, power tools, material handling systems, ARO® fluid management equipment, as well as Club Car® golf, utility and rough terrain vehicles.
Segment operating income is the measure of profit and loss that the Company's chief operating decision maker uses to evaluate the financial performance of the business and as the basis for performance reviews, compensation and resource allocation. For these reasons, the Company believes that Segment operating income represents the most relevant measure of segment profit and loss. The Company may exclude certain charges or gains from Operating income to arrive at a Segment operating income that is a more meaningful measure of profit and loss upon which to base its operating decisions.
On September 30, 2011 and November 30, 2011, the Company completed transactions to sell the Hussmann Business and Branches, respectively, to a newly-formed affiliate (Hussmann Parent) of private equity firm Clayton Dubilier & Rice, LLC (CD&R). During 2011, the Company recorded a pre-tax loss on sale and impairment charges related to the Hussmann divestiture of $646.9 million. These charges, as well as related adjustments recorded in 2012, have been excluded from Segment operating income within the Climate segment as management excludes these charges from Operating income when making operating decisions about the business. See Note 16 for a further discussion of the Hussmann divestiture.
2011 Net revenues and Segment operating income for the Climate segment includes the operating results of the Hussmann Business and Branches prior to the sale. The operating results for the Hussmann Business and Branches are included in Net revenues and Segment operating income for the Climate segment for the years ended December 31 as follows:
In millions
2011
Net revenues
$
818.5

Segment operating income
$
58.6



A summary of operations by reportable segments for the years ended December 31 were as follows:
Dollar amounts in millions
 
2013
 
2012
 
2011
Climate
 
 
 
 
 
 
Net revenues
 
$
9,414.0

 
$
9,042.5

 
$
9,907.9

Segment operating income *
 
930.2

 
817.6

 
837.1

Segment operating income as a percentage of revenues
 
9.9
%
 
9.0
%
 
8.4
%
Depreciation and amortization
 
252.8

 
257.0

 
273.6

Capital expenditures
 
129.4

 
105.1

 
105.3

Industrial
 
 
 
 
 
 
Net revenues
 
2,936.5

 
2,945.8

 
2,852.9

Segment operating income
 
456.0

 
455.8

 
415.5

Segment operating income as a percentage of revenues
 
15.5
%
 
15.5
%
 
14.6
%
Depreciation and amortization
 
43.9

 
42.9

 
40.3

Capital expenditures
 
44.0

 
62.6

 
57.2

Total net revenues
 
$
12,350.5

 
$
11,988.3

 
$
12,760.8

Reconciliation to Operating Income
 
 
 
 
 
 
Segment operating income from reportable segments
 
1,386.2

 
1,273.4

 
1,252.6

Gain (loss) on sale/asset impairment *
 
—

 
4.5

 
(646.9
)
Unallocated corporate expense
 
(281.2
)
 
(206.0
)
 
(167.0
)
Total operating income
 
$
1,105.0

 
$
1,071.9

 
$
438.7

Total operating income as a percentage of revenues
 
8.9
%
 
8.9
%
 
3.4
%
Depreciation and amortization from reportable segments
 
296.7

 
299.9

 
313.9

Unallocated depreciation and amortization
 
37.0

 
33.9

 
44.6

Total depreciation and amortization
 
$
333.7


$
333.8


$
358.5

Capital expenditures from reportable segments
 
173.4

 
167.7

 
162.5

Corporate capital expenditures
 
68.8

 
51.8

 
54.6

Total capital expenditures
 
$
242.2

 
$
219.5

 
$
217.1


* During year ended December 31, 2011, the Company recorded a pre-tax loss on sale/asset impairment charge related to the Hussmann divestiture totaling $646.9 million. During the year ended December 31, 2012, the Company recorded $4.5 million of purchase price adjustments related to the Hussmann sale. These amounts have been excluded from Segment operating income within the Climate segment as management excludes these charges from Operating income when making operating decisions about the business.
Included in Segment operating income for Climate for the year ended December 31, 2011 is a $23 million gain associated with the sale of assets from a restructured business in China.
Revenues by destination and long-lived assets by geographic area for the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Revenues
 
 
 
 
 
 
United States
 
$
7,298.0

 
$
7,039.0

 
$
7,442.4

Non-U.S.
 
5,052.5

 
4,949.3

 
5,318.4

Total
 
$
12,350.5

 
$
11,988.3

 
$
12,760.8


In millions
 
2013
 
2012
Long-lived assets
 
 
 
 
United States
 
$
2,216.8

 
$
2,090.9

Non-U.S.
 
571.6

 
783.6

Total
 
$
2,788.4

 
$
2,874.5

Guarantor Financial Information
Condensed Financial Information of Parent Company Only Disclosure [Text Block]
GUARANTOR FINANCIAL INFORMATION
Ingersoll-Rand plc, a public limited company incorporated in Ireland in 2009 (IR-Ireland), is the successor to Ingersoll-Rand Company Limited, a Bermuda company (IR-Limited), following a corporate reorganization that became effective on July 1, 2009 (the Ireland Reorganization). IR-Limited is the successor to Ingersoll-Rand Company, a New Jersey corporation (IR-New Jersey), following a corporate reorganization that occurred on December 31, 2001 (the Bermuda Reorganization). Both the Ireland Reorganization and the Bermuda Reorganization were accounted for as a reorganization of entities under common control and accordingly, did not result in any changes to the consolidated amounts of assets, liabilities and equity.
As a part of the Bermuda Reorganization, IR-Limited issued non-voting, Class B common shares to IR-New Jersey and certain IR-New Jersey subsidiaries in exchange for a $3.6 billion note and shares of certain IR-New Jersey subsidiaries. The note had a fixed rate of interest of 11% per annum payable semi-annually and imposed certain restrictive covenants upon IR-New Jersey. In 2002, IR-Limited contributed the note to a wholly-owned subsidiary, which subsequently transferred portions of the note to several other subsidiaries, all of which are included in the “Other Subsidiaries” column below. In the fourth quarter of 2011, the Company repaid the remaining $1.0 billion outstanding of the original $3.6 billion note. In the fourth quarter of 2013, the Class B common shares were redeemed.
In addition, as part of the Bermuda Reorganization, IR-Limited fully and unconditionally guaranteed all of the issued public debt securities of IR-New Jersey. IR-New Jersey unconditionally guaranteed payment of the principal, premium, if any, and interest on IR-Limited’s 4.75% Senior Notes due in 2015 in the aggregate principal amount of $300 million. See Note 8 for a discussion of the 2013 financing activities which included the payment in full of of the 2015 Senior Notes. The guarantee was unsecured and provided on an unsubordinated basis. The guarantee ranked equally in right of payment with all of the existing and future unsecured and unsubordinated debt of IR-New Jersey.
As part of the Ireland Reorganization, the guarantor financial statements were revised to present IR-Ireland as the ultimate parent company and Ingersoll-Rand International Holding Limited (IR-International) as a stand-alone subsidiary. In addition, the guarantee structure was updated to reflect the newly created legal structure under which (i) IR-International assumed the obligations of IR-Limited as issuer or guarantor, as the case may be, and (ii) IR-Ireland and IR-Limited fully and unconditionally guaranteed the obligations under the various indentures covering the currently outstanding public debt of IR-International, Ingersoll-Rand Global Holding Company Limited (IR-Global), and IR-New Jersey. Also as part of the Ireland Reorganization, IR-Limited transferred all the shares of IR-Global to IR-International in exchange for a note payable that initially approximated $15 billion, which was then immediately reduced by the settlement of net intercompany payables of $4.1 billion. In the fourth quarter of 2013, this note payable was fully repaid by IR-International.
During 2013, IR-Global and IR-International public outstanding indentures were modified to include IR-New Jersey as a co-obligor.
The Condensed Consolidating Financial Statements present the investments of IR-Ireland, IR-Limited, IR-Global, IR-International and IR-New Jersey and their subsidiaries using the equity method of accounting. Intercompany investments in the non-voting Class B common shares are accounted for on the cost method and are reduced by intercompany dividends. In accordance with generally accepted accounting principles, the amounts related to the issuance of the Class B shares have been recorded as a reduction of Total equity. The Notes payable affiliate continues to be reflected on the Condensed Consolidating Balance Sheet of IR-International and is enforceable in accordance with their terms.
See Note 8 for a further discussion of public debt issuances and related guarantees.
The following condensed consolidating financial information for IR-Ireland, IR-Limited, IR-Global, IR-International and IR-New Jersey, and all their other subsidiaries is included so that separate financial statements of IR-Ireland, IR-Limited, IR-Global, IR-International, and IR-New Jersey are not required to be filed with the U.S. Securities and Exchange Commission. IR-Ireland's subsidiary debt issuers and guarantors are directly or indirectly 100% owned by IR-Ireland and the guarantees are full and unconditional and joint and several.
Condensed Consolidating Statement of Comprehensive Income
For the year ended December 31, 2013
In millions
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
IR Ireland
Consolidated
Net revenues
$
—

 
$
—

 
$
—

 
$
—

 
$
1,674.0

 
$
10,676.5

 
$
—

 
$
12,350.5

Cost of goods sold
0.7

 
—

 
—

 
—

 
(1,100.4
)
 
(7,575.8
)
 
—

 
(8,675.5
)
Selling and administrative expenses
(60.0
)
 
(0.1
)
 
—

 
(1.1
)
 
(509.0
)
 
(1,999.8
)
 
—

 
(2,570.0
)
Operating income (loss)
(59.3
)
 
(0.1
)
 
—

 
(1.1
)
 
64.6

 
1,100.9

 
—

 
1,105.0

Equity earnings (loss) in affiliates, net of tax
696.2

 
696.7

 
791.0

 
1,008.0

 
161.8

 
792.1

 
(4,145.8
)
 
—

Interest expense
—

 
—

 
(15.8
)
 
(196.4
)
 
(75.1
)
 
8.5

 
—

 
(278.8
)
Intercompany interest and fees
(14.1
)
 
(0.4
)
 
(33.8
)
 
(34.0
)
 
(13.7
)
 
96.0

 
—

 
—

Other, net
(3.9
)
 
—

 
1.6

 
0.8

 
38.5

 
(30.6
)
 
(3.0
)
 
3.4

Earnings (loss) before income taxes
618.9

 
696.2

 
743.0

 
777.3

 
176.1

 
1,966.9

 
(4,148.8
)
 
829.6

Benefit (provision) for income taxes
(0.3
)
 
—

 
—

 
—

 
39.5

 
(228.2
)
 
—

 
(189.0
)
Earnings (loss) from continuing operations
618.6

 
696.2

 
743.0

 
777.3

 
215.6

 
1,738.7

 
(4,148.8
)
 
640.6

Discontinued operations, net of tax
0.2

 
—

 
—

 
—

 
(165.2
)
 
178.3

 
—

 
13.3

Net earnings (loss)
618.8

 
696.2

 
743.0

 
777.3

 
50.4

 
1,917.0

 
(4,148.8
)
 
653.9

Less: Net (earnings) loss attributable to noncontrolling interests
—

 
—

 
—

 
—

 
(1.2
)
 
(36.9
)
 
3.0

 
(35.1
)
Net earnings (loss) attributable to Ingersoll-Rand plc
$
618.8

 
$
696.2

 
$
743.0

 
$
777.3

 
$
49.2

 
$
1,880.1

 
$
(4,145.8
)
 
$
618.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income (loss)
913.5

 
1,050.3

 
744.2

 
789.0

 
138.8

 
2,173.5

 
(4,857.4
)
 
951.9

Less: Total comprehensive (income) loss attributable to noncontrolling interests
—

 
0.4

 
—

 
—

 
2.1

 
(43.9
)
 
3.0

 
(38.4
)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
$
913.5

 
$
1,050.7

 
$
744.2

 
$
789.0

 
$
140.9

 
$
2,129.6

 
$
(4,854.4
)
 
$
913.5

Condensed Consolidating Statement of Comprehensive Income
For the year ended December 31, 2012
In millions
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
IR Ireland
Consolidated
Net revenues
$
—

 
$
—

 
$
—

 
$
—

 
$
932.7

 
$
11,055.6

 
$
—

 
$
11,988.3

Cost of goods sold
—

 
—

 
—

 
—

 
(613.7
)
 
(7,924.3
)
 
—

 
(8,538.0
)
Selling and administrative expenses
(14.9
)
 
(0.3
)
 
—

 
(0.6
)
 
(327.6
)
 
(2,039.5
)
 
—

 
(2,382.9
)
Gain (loss) on sale/asset impairment
—

 
—

 
—

 
—

 
—

 
4.5

 
—

 
4.5

Operating income (loss)
(14.9
)
 
(0.3
)
 
—

 
(0.6
)
 
(8.6
)
 
1,096.3

 
—

 
1,071.9

Equity earnings (loss) in affiliates, net of tax
1,048.8

 
848.3

 
919.1

 
1,339.9

 
198.3

 
979.3

 
(5,333.7
)
 
—

Interest expense
—

 
(0.1
)
 
(15.8
)
 
(168.3
)
 
(50.0
)
 
(17.8
)
 
—

 
(252.0
)
Intercompany interest and fees
(10.5
)
 
—

 
(44.3
)
 
(48.8
)
 
0.6

 
103.0

 
—

 
—

Other, net
(4.8
)
 
—

 
0.7

 
(200.6
)
 
53.9

 
1.2

 
177.7

 
28.1

Earnings (loss) before income taxes
1,018.6

 
847.9

 
859.7

 
921.6

 
194.2

 
2,162.0

 
(5,156.0
)
 
848.0

Benefit (provision) for income taxes
(0.3
)
 
—

 
—

 
—

 
(56.2
)
 
0.5

 
—

 
(56.0
)
Earnings (loss) from continuing operations
1,018.3

 
847.9

 
859.7

 
921.6

 
138.0

 
2,162.5

 
(5,156.0
)
 
792.0

Discontinued operations, net of tax
0.3

 
—

 
—

 
—

 
(18.3
)
 
270.0

 
—

 
252.0

Net earnings (loss)
1,018.6

 
847.9

 
859.7

 
921.6

 
119.7

 
2,432.5

 
(5,156.0
)
 
1,044.0

Less: Net (earnings) loss attributable to noncontrolling interests
—

 
—

 
—

 
—

 
—

 
(48.7
)
 
23.3

 
(25.4
)
Net earnings (loss) attributable to Ingersoll-Rand plc
$
1,018.6

 
$
847.9

 
$
859.7

 
$
921.6

 
$
119.7

 
$
2,383.8

 
$
(5,132.7
)
 
$
1,018.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income (loss)
1,051.2

 
880.6

 
860.9

 
922.0

 
185.4

 
2,386.0

 
(5,221.9
)
 
1,064.2

Less: Total comprehensive (income) loss attributable to noncontrolling interests
—

 
—

 
—

 
—

 
—

 
(36.3
)
 
23.3

 
(13.0
)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
$
1,051.2

 
$
880.6

 
$
860.9

 
$
922.0

 
$
185.4

 
$
2,349.7

 
$
(5,198.6
)
 
$
1,051.2






Condensed Consolidating Statement of Comprehensive Income
For the year ended December 31, 2011

In millions
 
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
Holding
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
IR Ireland
Consolidated
Net revenues
 
$
—

 
$
—

 
$
—

 
$
—

 
$
867.8

 
$
11,893.0

 
$
—

 
$
12,760.8

Cost of goods sold
 
—

 
—

 
—

 
—

 
(584.8
)
 
(8,695.2
)
 
—

 
(9,280.0
)
Selling and administrative expenses
 
(9.2
)
 
(0.1
)
 
—

 
(0.4
)
 
(276.7
)
 
(2,108.8
)
 
—

 
(2,395.2
)
Gain (loss) on sale/asset impairment
 
—

 
—

 
—

 
—

 
—

 
(646.9
)
 
—

 
(646.9
)
Operating income (loss)
 
(9.2
)
 
(0.1
)
 
—

 
(0.4
)
 
6.3

 
442.1

 
—

 
438.7

Equity earnings (loss) in affiliates, net of tax
 
358.8

 
614.8

 
757.5

 
653.0

 
116.0

 
595.2

 
(3,095.3
)
 
—

Interest expense
 
—

 
—

 
(15.7
)
 
(193.2
)
 
(50.7
)
 
(18.9
)
 
—

 
(278.5
)
Intercompany interest and fees
 
(2.5
)
 
—

 
(129.4
)
 
52.5

 
(117.9
)
 
197.3

 
—

 
—

Other, net
 
(3.9
)
 
(5.2
)
 
1.7

 
251.5

 
77.9

 
(33.5
)
 
(260.1
)
 
28.4

Earnings (loss) before income taxes
 
343.2

 
609.5

 
614.1

 
763.4

 
31.6

 
1,182.2

 
(3,355.4
)
 
188.6

Benefit (provision) for income taxes
 
—

 
—

 
—

 
—

 
18.9

 
(64.3
)
 
—

 
(45.4
)
Earnings (loss) from continuing operations
 
343.2

 
609.5

 
614.1

 
763.4

 
50.5

 
1,117.9

 
(3,355.4
)
 
143.2

Discontinued operations, net of tax
 
—

 
—

 
—

 
—

 
(69.3
)
 
295.4

 
—

 
226.1

Net earnings (loss)
 
343.2

 
609.5

 
614.1

 
763.4

 
(18.8
)
 
1,413.3

 
(3,355.4
)
 
369.3

Less: Net (earnings) loss attributable to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

 
(35.5
)
 
9.4

 
(26.1
)
Net earnings (loss) attributable to Ingersoll-Rand plc
 
$
343.2

 
$
609.5

 
$
614.1

 
$
763.4

 
$
(18.8
)
 
$
1,377.8

 
$
(3,346.0
)
 
$
343.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income (loss)
 
114.3

 
380.6

 
615.3

 
757.1

 
(115.7
)
 
1,291.3

 
(2,902.8
)
 
140.1

Less: Total comprehensive (income) loss attributable to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

 
(34.9
)
 
9.4

 
(25.5
)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
 
$
114.3

 
$
380.6

 
$
615.3

 
$
757.1

 
$
(115.7
)
 
$
1,256.4

 
$
(2,893.4
)
 
$
114.6





Condensed Consolidating Balance Sheet
December 31, 2013
 
In millions
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
IR Ireland
Consolidated
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
—

 
$
—

 
$
975.3

 
$
1,038.5

 
$
—

 
$
(76.6
)
 
$
1,937.2

Accounts and notes receivable, net
—

 
—

 
—

 
—

 
1,518.8

 
552.7

 
—

 
2,071.5

Inventories
—

 
—

 
—

 
—

 
846.2

 
319.9

 
—

 
1,166.1

Other current assets
0.1

 
—

 
—

 
0.2

 
607.3

 
(65.7
)
 
—

 
541.9

Accounts and notes receivable affiliates
1,086.9

 
309.6

 
2.3

 
1,496.6

 
2,368.3

 
15,729.2

 
(20,992.9
)
 
—

Total current assets
1,087.0

 
309.6

 
2.3

 
2,472.1

 
6,379.1

 
16,536.1

 
(21,069.5
)
 
5,716.7

Investment in affiliates
8,697.8

 
13,696.0

 
11,339.0

 
7,144.5

 
34,774.1

 
23,921.0

 
(99,572.4
)
 
—

Property, plant and equipment, net
—

 
—

 
—

 
—

 
1,088.8

 
379.6

 
—

 
1,468.4

Intangible assets, net
—

 
—

 
—

 
—

 
8,582.4

 
880.2

 
—

 
9,462.6

Other noncurrent assets
—

 
(4.3
)
 
0.3

 
18.8

 
689.5

 
306.1

 
—

 
1,010.4

Total assets
$
9,784.8

 
$
14,001.3

 
$
11,341.6

 
$
9,635.4

 
$
51,513.9

 
$
42,023.0

 
$
(120,641.9
)
 
$
17,658.1

Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accruals
$
30.6

 
$
—

 
$
12.1

 
$
27.5

 
$
2,189.1

 
$
858.2

 
$
(76.6
)
 
$
3,040.9

Short-term borrowings and current maturities of long-term debt
—

 
—

 
—

 
—

 
354.2

 
13.5

 
—

 
367.7

Accounts and note payable affiliates
2,685.3

 
3,780.6

 
4,803.3

 
5,982.2

 
6,905.6

 
(3,082.0
)
 
(21,075.0
)
 
—

Total current liabilities
2,715.9

 
3,780.6

 
4,815.4

 
6,009.7

 
9,448.9

 
(2,210.3
)
 
(21,151.6
)
 
3,408.6

Long-term debt
—

 
—

 
299.8

 
2,295.7

 
557.5

 
0.5

 
—

 
3,153.5

Other noncurrent liabilities
—

 
—

 
3.8

 
—

 
3,749.3

 
211.6

 
—

 
3,964.7

Total liabilities
2,715.9

 
3,780.6

 
5,119.0

 
8,305.4

 
13,755.7

 
(1,998.2
)
 
(21,151.6
)
 
10,526.8

Equity:

 

 

 

 

 

 

 

Total equity
7,068.9

 
10,220.7

 
6,222.6

 
1,330.0

 
37,758.2

 
44,021.2

 
(99,490.3
)
 
7,131.3

Total liabilities and equity
$
9,784.8

 
$
14,001.3

 
$
11,341.6

 
$
9,635.4

 
$
51,513.9

 
$
42,023.0

 
$
(120,641.9
)
 
$
17,658.1


Condensed Consolidating Balance Sheet
December 31, 2012
 
In millions
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
IR Ireland
Consolidated
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
—

 
$
—

 
$
61.9

 
$
59.1

 
$
587.4

 
$
—

 
$
708.4

Accounts and notes receivable, net
—

 
—

 
—

 
—

 
128.8

 
1,741.3

 
—

 
1,870.1

Inventories
—

 
—

 
—

 
—

 
73.1

 
1,070.9

 
—

 
1,144.0

Other current assets
0.1

 
—

 
0.1

 
0.2

 
149.3

 
304.3

 
—

 
454.0

Accounts and notes receivable affiliates
148.9

 
3,039.2

 
2.0

 
2,189.0

 
8,669.5

 
23,772.0

 
(37,820.6
)
 
—

Assets held for spin-off
—

 
—

 
—

 
—

 
—

 
1,817.4

 
—

 
1,817.4

Total current assets
149.0

 
3,039.2

 
2.1

 
2,251.1

 
9,079.8

 
29,293.3

 
(37,820.6
)
 
5,993.9

Investment in affiliates
8,885.1

 
7,095.3

 
21,185.6

 
18,589.8

 
8,179.9

 
99,205.0

 
(163,140.7
)
 
—

Property, plant and equipment, net
—

 
—

 
—

 
0.2

 
254.0

 
1,171.9

 
—

 
1,426.1

Intangible assets, net
—

 
—

 
—

 
—

 
83.8

 
9,459.2

 
—

 
9,543.0

Other noncurrent assets
—

 
—

 
0.5

 
10.0

 
867.3

 
641.3

 
—

 
1,519.1

Total assets
$
9,034.1

 
$
10,134.5

 
$
21,188.2

 
$
20,851.1

 
$
18,464.8

 
$
139,770.7

 
$
(200,961.3
)
 
$
18,482.1

Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accruals
$
70.5

 
$
—

 
$
4.0

 
$
46.0

 
$
420.2

 
$
2,290.5

 
$
—

 
$
2,831.2

Short-term borrowings and current maturities of long-term debt
—

 
—

 
—

 
600.0

 
350.5

 
12.4

 
—

 
962.9

Accounts and note payable affiliates
1,734.3

 
34.3

 
4,888.9

 
7,602.2

 
13,337.7

 
9,867.6

 
(37,465.0
)
 
—

Liabilities held for spin-off
—

 
—

 
—

 
—

 
—

 
531.8

 
—

 
531.8

Total current liabilities
1,804.8

 
34.3

 
4,892.9

 
8,248.2

 
14,108.4

 
12,702.3

 
(37,465.0
)
 
4,325.9

Long-term debt
—

 
—

 
299.7

 
1,404.4

 
364.7

 
197.7

 
—

 
2,266.5

Note payable affiliate
—

 
—

 
10,755.7

 
—

 
—

 
—

 
(10,755.7
)
 
—

Other noncurrent liabilities
—

 
4.3

 
3.8

 
—

 
1,620.0

 
3,032.3

 
—

 
4,660.4

Total liabilities
1,804.8

 
38.6

 
15,952.1

 
9,652.6

 
16,093.1

 
15,932.3

 
(48,220.7
)
 
11,252.8

Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
7,229.3

 
10,095.9

 
5,236.1

 
11,198.5

 
2,371.7

 
123,838.4

 
(152,740.6
)
 
7,229.3

Total liabilities and equity
$
9,034.1

 
$
10,134.5

 
$
21,188.2

 
$
20,851.1

 
$
18,464.8

 
$
139,770.7

 
$
(200,961.3
)
 
$
18,482.1




Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2013

In millions
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating Adjustments
 
IR Ireland
Consolidated
Net cash provided by (used in) continuing operating activities
$
(63.2
)
 
$
(0.1
)
 
$
(14.2
)
 
$
(196.7
)
 
$
540.8

 
$
3,927.7

 
$
(3,316.6
)
 
$
877.7

Net cash provided by (used in) discontinued operating activities
—

 
—

 
—

 
—

 
(78.5
)
 
371.2

 
—

 
292.7

Net cash provided by (used in) operating activities
(63.2
)
 
(0.1
)
 
(14.2
)
 
(196.7
)
 
462.3

 
4,298.9

 
(3,316.6
)
 
1,170.4

Cash flows from investing activities:

 

 

 

 

 

 

 
—

Capital expenditures
—

 
—

 
—

 
—

 
(151.9
)
 
(90.3
)
 
—

 
(242.2
)
Proceeds from sale of property, plant and equipment
—

 
—

 
—

 
—

 
11.2

 
13.1

 
—

 
24.3

Proceeds from business disposition, net of cash sold
—

 
—

 
—

 
—

 
—

 
4.7

 
—

 
4.7

Net cash provided by (used in) continuing investing activities
—

 
—

 
—

 
—

 
(140.7
)
 
(72.5
)
 
—

 
(213.2
)
Net cash provided by (used in) discontinued investing activities
—

 
—

 
—

 
—

 
—

 
(2.2
)
 
—

 
(2.2
)
Net cash provided by (used in) investing activities
—

 
—

 
—

 
—

 
(140.7
)
 
(74.7
)
 
—

 
(215.4
)
Cash flows from financing activities:

 

 

 

 

 

 

 
—

Net proceeds (repayments) in debt
—

 
—

 
—

 
291.2

 
(6.7
)
 
7.2

 
—

 
291.7

Debt issuance costs
—

 
—

 
—

 
(13.2
)
 
—

 
—

 
—

 
(13.2
)
Excess tax benefit from share based compensation
19.5

 
—

 
—

 
—

 
—

 
—

 
—

 
19.5

Net inter-company proceeds (payments)
(24.8
)
 
1,274.3

 
699.7

 
2,106.3

 
664.5

 
(4,720.0
)
 
—

 
—

Dividends paid to ordinary shareholderrs
(245.5
)
 
(1,274.2
)
 
(685.5
)
 
(1,274.2
)
 
—

 
(1.2
)
 
3,235.1

 
(245.5
)
Dividends paid to noncontrolling interests
—

 
—

 
—

 
—

 
—

 
(12.4
)
 
—

 
(12.4
)
Proceeds from shares issued under incentive plans
253.0

 
—

 
—

 
—

 
—

 
—

 
—

 
253.0

Repurchase of ordinary shares
(1,213.2
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(1,213.2
)
Transfer from Allegion
1,274.2

 
—

 
—

 
—

 
—

 
—

 
—

 
1,274.2

Net cash provided by (used in) continuing financing activities
63.2

 
0.1

 
14.2

 
1,110.1

 
657.8

 
(4,726.4
)
 
3,235.1

 
354.1

Net cash provided by (used in) discontinued financing activities
—

 
—

 
—

 
—

 
—

 
(12.4
)
 
4.9

 
(7.5
)
Net cash provided by (used in) financing activities
63.2

 
0.1

 
14.2

 
1,110.1

 
657.8

 
(4,738.8
)
 
3,240.0

 
346.6

Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
—

 
—

 
(72.8
)
 
—

 
(72.8
)
Net increase (decrease) in cash and cash equivalents
—

 
—

 
—

 
913.4

 
979.4

 
(587.4
)
 
(76.6
)
 
1,228.8

Cash and cash equivalents - beginning of period
—

 
—

 
—

 
61.9

 
59.1

 
587.4

 
—

 
708.4

Cash and cash equivalents - end of period
$
—

 
$
—

 
$
—

 
$
975.3

 
$
1,038.5

 
$
—

 
$
(76.6
)
 
$
1,937.2

Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2012
 
In millions
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating Adjustments
 
IR Ireland
Consolidated
Net cash provided by (used in) continuing operating activities
$
(19.7
)
 
$
(0.4
)
 
$
(15.1
)
 
$
(570.5
)
 
$
(103.5
)
 
$
1,896.8

 
$
(319.5
)
 
$
868.1

Net cash provided by (used in) discontinued operating activities
—

 
—

 
—

 
—

 
(18.3
)
 
331.2

 
—

 
312.9

Net cash provided by (used in) operating activities
(19.7
)
 
(0.4
)
 
(15.1
)
 
(570.5
)
 
(121.8
)
 
2,228.0

 
(319.5
)
 
1,181.0

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
—

 
—

 
(74.9
)
 
(168.2
)
 
—

 
(243.1
)
Proceeds from sale of property, plant and equipment
—

 
—

 
—

 
—

 
3.1

 
14.8

 
—

 
17.9

Proceeds from business disposition, net of cash sold
—

 
—

 
—

 
—

 
—

 
52.7

 
—

 
52.7

Dividends received from equity investments
—

 
—

 
—

 
—

 
—

 
44.3

 
—

 
44.3

Net cash provided by (used in) continuing investing activities
—

 
—

 
—

 
—

 
(71.8
)
 
(56.4
)
 
—

 
(128.2
)
Net cash provided by (used in) discontinued investing activities
—

 
—

 
—

 
—

 
—

 
(18.3
)
 
—

 
(18.3
)
Net cash provided by (used in) investing activities
—

 
—

 
—

 
—

 
(71.8
)
 
(74.7
)
 
—

 
(146.5
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds (repayments) in debt
—

 
—

 
—

 
(344.5
)
 
(9.2
)
 
(59.7
)
 
—

 
(413.4
)
Debt issuance costs
—

 
—

 
—

 
(2.5
)
 
—

 
—

 
—

 
(2.5
)
Excess tax benefit from share based compensation
19.6

 
—

 
—

 
—

 
—

 
—

 
—

 
19.6

Net inter-company proceeds (payments)
884.5

 
0.4

 
15.1

 
737.6

 
184.1

 
(1,821.7
)
 
—

 
—

Dividends paid to ordinary shareholders
(192.4
)
 
—

 
—

 
—

 
—

 
(314.0
)
 
314.0

 
(192.4
)
Dividends paid to noncontrolling interests
—

 
—

 
—

 
—

 
—

 
(13.9
)
 
—

 
(13.9
)
Acquisition/divestiture of noncontrolling interests
(0.4
)
 
—

 
—

 
—

 
—

 
(1.1
)
 
—

 
(1.5
)
Proceeds from shares issued under incentive plans
152.9

 
—

 
—

 
—

 
—

 
—

 
—

 
152.9

Repurchase of ordinary shares
(839.8
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(839.8
)
Transfer from discontinued operations
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other, net
(4.7
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(4.7
)
Net cash provided by (used in) continuing financing activities
19.7

 
0.4

 
15.1

 
390.6

 
174.9

 
(2,210.4
)
 
314.0

 
(1,295.7
)
Net cash provided by (used in) discontinued financing activities
—

 
—

 
—

 
—

 
—

 
(13.7
)
 
5.5

 
(8.2
)
Net cash provided by (used in) financing activities
19.7

 
0.4

 
15.1

 
390.6

 
174.9

 
(2,224.1
)
 
319.5

 
(1,303.9
)
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
—

 
—

 
(9.2
)
 
—

 
(9.2
)
Net increase (decrease) in cash and cash equivalents
—

 
—

 
—

 
(179.9
)
 
(18.7
)
 
(80.0
)
 
—

 
(278.6
)
Cash and cash equivalents - beginning of period
—

 
—

 
—

 
241.8

 
77.8

 
667.4

 
—

 
987.0

Cash and cash equivalents - end of period
$
—

 
$
—

 
$
—

 
$
61.9

 
$
59.1

 
$
587.4

 
$
—

 
$
708.4


Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2011
 
In millions
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating Adjustments
 
IR Ireland
Consolidated
Net cash provided by (used in) continuing operating activities
$
(13.1
)
 
$
(5.3
)
 
$
(14.0
)
 
$
(185.3
)
 
$
133.2

 
$
892.3

 
$
(21.5
)
 
$
786.3

Net cash provided by (used in) discontinued operating activities
—

 
—

 
—

 
—

 
(69.3
)
 
469.8

 
—

 
400.5

Net cash provided by (used in) operating activities
(13.1
)
 
(5.3
)
 
(14.0
)
 
(185.3
)
 
63.9

 
1,362.1

 
(21.5
)
 
1,186.8

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
—

 
—

 
—

 
—

 
(47.6
)
 
(169.5
)
 
—

 
(217.1
)
Acquisition of businesses, net of cash acquired
—

 
—

 
—

 
—

 
—

 
(1.9
)
 
—

 
(1.9
)
Proceeds from sale of property, plant and equipment
—

 
—

 
—

 
—

 
3.1

 
45.4

 
—

 
48.5

Proceeds from business disposition, net of cash sold
—

 
—

 
—

 
—

 
—

 
400.3

 
—

 
400.3

Net cash provided by (used in) continuing investing activities
—

 
—

 
—

 
—

 
(44.5
)
 
274.3

 
—

 
229.8

Net cash provided by (used in) discontinued investing activities
—

 
—

 
—

 
—

 
—

 
(22.3
)
 
—

 
(22.3
)
Net cash provided by (used in) investing activities
—

 
—

 
—

 
—

 
(44.5
)
 
252.0

 
—

 
207.5

Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds (repayments) in debt
—

 
—

 
—

 
(0.2
)
 
(7.7
)
 
(44.9
)
 
—

 
(52.8
)
Debt issuance costs
—

 
—

 
—

 
(2.3
)
 
—

 
—

 
—

 
(2.3
)
Excess tax benefit from share based compensation
—

 
—

 
—

 
—

 
11.8

 
12.8

 
—

 
24.6

Net inter-company proceeds (payments)
1,199.0

 
5.3

 
2.0

 
329.7

 
(81.2
)
 
(1,454.8
)
 
—

 
—

Dividends paid to ordinary shareholders
(137.3
)
 
—

 
—

 
—

 
—

 
(12.5
)
 
12.5

 
(137.3
)
Dividends paid to noncontrolling interests
—

 
—

 
—

 
—

 
—

 
(20.8
)
 
—

 
(20.8
)
Acquisition/divestiture of noncontrolling interests
—

 
—

 
—

 
—

 
—

 
(1.3
)
 
—

 
(1.3
)
Proceeds from shares issued under incentive plans
109.0

 
—

 
—

 
—

 
—

 
—

 
—

 
109.0

Repurchase of ordinary shares
(1,157.5
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(1,157.5
)
Other, net
(0.5
)
 
—

 
—

 
—

 
—

 
(0.9
)
 
—

 
(1.4
)
Net cash provided by (used in) continuing financing activities
12.7

 
5.3

 
2.0

 
327.2

 
(77.1
)
 
(1,522.4
)
 
12.5

 
(1,239.8
)
Net cash provided by (used in) discontinued financing activities
—

 
—

 
—

 
—

 
—

 
(15.6
)
 
9.0

 
(6.6
)
Net cash provided by (used in) financing activities
12.7

 
5.3

 
2.0

 
327.2

 
(77.1
)
 
(1,538.0
)
 
21.5

 
(1,246.4
)
Effect of exchange rate changes on cash and cash equivalents
—

 
—

 
—

 
—

 
—

 
(1.5
)
 
—

 
(1.5
)
Net increase (decrease) in cash and cash equivalents
(0.4
)
 
—

 
(12.0
)
 
141.9

 
(57.7
)
 
74.6

 
—

 
146.4

Cash and cash equivalents - beginning of period
0.4

 
—

 
12.0

 
99.9

 
135.5

 
592.8

 
—

 
840.6

Cash and cash equivalents - end of period
$
—

 
$
—

 
$
—

 
$
241.8

 
$
77.8

 
$
667.4

 
$
—

 
$
987.0

Valuation and Qualifying Accounts [Schedule] Valuation and Qualifying Accounts (Notes)
Schedule of Valuation and Qualifying Accounts Disclosure
INGERSOLL-RAND PLC
VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED December 31, 2013, 2012 AND 2011
(Amounts in millions)
 
Allowances for Doubtful Accounts:
 
 
 
Balance December 31, 2010
$
36.4

Additions charged to costs and expenses
11.7

Deductions*
(23.9
)
Business acquisitions and divestitures, net
(0.2
)
Currency translation
(0.3
)
 
 
Balance December 31, 2011
23.7

Additions charged to costs and expenses
13.7

Deductions*
(12.8
)
Currency translation
(0.6
)
Other
0.8

 
 
Balance December 31, 2012
24.8

Additions charged to costs and expenses
20.8

Deductions*
(9.7
)
Business acquisitions and divestitures, net
(7.2
)
Currency translation
(0.5
)
Other
7.2

 
 
Balance December 31, 2013
$
35.4

 
(*)
“Deductions” include accounts and advances written off, less recoveries.
Summary of Significant Accounting Policies (Policy)
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] 
Basis of Presentation:  The accompanying Consolidated Financial Statements reflect the consolidated operations of the Company and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) as defined by the Financial Accounting Standards Board (FASB) within the FASB Accounting Standards Codification (ASC).
The Consolidated Financial Statements include all majority-owned subsidiaries of the Company. A noncontrolling interest in a subsidiary is considered an ownership interest in a majority-owned subsidiary that is not attributable to the parent. The Company includes Noncontrolling interest as a component of Total equity in the Consolidated Balance Sheet and the Net earnings attributable to noncontrolling interests are presented as an adjustment from Net earnings used to arrive at Net earnings attributable to Ingersoll-Rand plc in the Consolidated Statement of Comprehensive Income.
Partially-owned equity affiliates represent 20-50% ownership interests in investments where we demonstrate significant influence, but do not have a controlling financial interest. Partially-owned equity affiliates are accounted for under the equity method. The Company is also required to consolidate variable interest entities in which it bears a majority of the risk to the entities’ potential losses or stands to gain from a majority of the entities’ expected returns. Intercompany accounts and transactions have been eliminated. The assets, liabilities, results of operations and cash flows of all discontinued operations have been separately reported as discontinued operations and held for spin-off for all periods presented.
During 2012, the company received a $44.3 million dividend from the equity investment in Hussmann Parent. The receipt of this dividend is classified in investing activities within the Consolidated Statement of Cash Flows due to the cumulative negative equity earnings to date from Hussmann Parent.
Certain changes in classification of amounts reported in prior years have been made to conform to the 2013 classification.
Use of Estimates, Policy 
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 and the disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic conditions and trends, and the assessment of the probable future outcome. Some of the more significant estimates include accounting for doubtful accounts, useful lives of property, plant and equipment and intangible assets, purchase price allocations of acquired businesses, valuation of assets including goodwill and other intangible assets, product warranties, sales allowances, pension plans, postretirement benefits other than pensions, taxes, environmental costs, product liability, asbestos matters and other contingencies. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the statement of operations in the period that they are determined.
Currency Translation 
Currency Translation:  Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates, and income and expense accounts have been translated using average exchange rates throughout the year. Adjustments resulting from the process of translating an entity’s financial statements into the U.S. dollar have been recorded in the Equity section of the Consolidated Balance Sheet within Accumulated other comprehensive income (loss). Transactions that are denominated in a currency other than an entity’s functional currency are subject to changes in exchange rates with the resulting gains and losses recorded within Net earnings.
Cash and Cash Equivalents 
Cash and Cash Equivalents:  Cash and cash equivalents include cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less.
Inventories 
Inventories:  Depending on the business, U.S. inventories are stated at the lower of cost or market using the last-in, first-out (LIFO) method or the lower of cost or market using the first-in, first-out (FIFO) method. Non-U.S. inventories are primarily stated at the lower of cost or market using the FIFO method. At December 31, 2013 and 2012, approximately 45% and 55%, respectively, of all inventory utilized the LIFO method.
Allowance for Doubtful Accounts 
Allowance for Doubtful Accounts:  The Company maintains an allowance for doubtful accounts receivable which represents the best estimate of probable loss inherent in the Company's accounts receivable portfolio. This estimate is based upon a two step policy that results in the total recorded allowance for doubtful accounts. The first step is to create a specific reserve for significant accounts as to which the customer's ability to satisfy their financial obligation to the Company is in doubt due to circumstances such as bankruptcy, deteriorating operating results or financial position. In these circumstances, management uses its judgment to record an allowance based on the best estimate of probable loss, factoring in such considerations as the market value of collateral, if applicable. The second step is to record a portfolio reserve based on the aging of the outstanding accounts receivable portfolio and the Company's historical experience with our end markets, customer base and products. Actual results could differ from those estimates. These estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statement of Comprehensive Income in the period that they are determined. The Company reserved $35.4 million and $24.8 million for doubtful accounts as of December 31, 2013 and 2012, respectively.
Property, Plant and Equipment 
Property, Plant and Equipment:  Property, plant and equipment are stated at cost, less accumulated depreciation. Assets placed in service are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset except for leasehold improvements, which are depreciated over the shorter of their economic useful life or their lease term. The range of useful lives used to depreciate property, plant and equipment is as follows:
Buildings
10
to
50
years
Machinery and equipment
2
to
12
years
Software
2
to
7
years

Repair and maintenance costs that do not extend the useful life of the asset are charged against earnings as incurred. Major replacements and significant improvements that increase asset values and extend useful lives are capitalized.
The Company assesses the recoverability of the carrying value of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds the fair value of the assets.
Goodwill and Intangible Assets 
Goodwill and Intangible Assets:  The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded.
In accordance with GAAP, goodwill and other indefinite-lived intangible assets are tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the asset is more likely than not less than the carrying amount of the asset.
Recoverability of goodwill is measured at the reporting unit level and begins with a qualitative assessment to determine if it is more likely than not that the fair value of each reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test included in U.S. GAAP. For those reporting units where it is required, the first step compares the carrying amount of the reporting unit to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, a second step is performed, wherein the reporting unit's carrying value of goodwill is compared to the implied fair value of goodwill. To the extent that the carrying value exceeds the implied fair value, impairment exists and must be recognized.
The calculation of estimated fair value is based on two valuation techniques, a discounted cash flow model (income approach) and a market adjusted multiple of earnings and revenues (market approach), with each method being equally weighted in the calculation. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. The estimated fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit, as determined in the first step of the goodwill impairment test, was the price paid to acquire that reporting unit.
Recoverability of other intangible assets with indefinite useful lives (i.e. Tradenames) is first assessed using a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. This assessment is used as a basis for determining whether it is necessary to calculate the fair value of an indefinite-lived intangible asset. For those indefinite-lived assets where it is required, a fair value is determined on a relief from royalty methodology (income approach) which is based on the implied royalty paid, at an appropriate discount rate, to license the use of an asset rather than owning the asset. The present value of the after-tax cost savings (i.e. royalty relief) indicates the estimated fair value of the asset. Any excess of the carrying value over the estimated fair value is recognized as an impairment loss equal to that excess.
Intangible assets such as patents, customer-related intangible assets and other intangible assets with finite useful lives are amortized on a straight-line basis over their estimated economic lives. The weighted-average useful lives approximate the following:
Customer relationships
20
years
Completed technology/patents
10
years
Other
15
years

Recoverability of intangible assets with finite useful lives is assessed in the same manner as property, plant and equipment as described above.
Income Taxes 
Income Taxes:  Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. The Company recognizes future tax benefits, such as net operating losses and non-U.S. tax credits, to the extent that realizing these benefits is considered in its judgment to be more likely than not. The Company regularly reviews the recoverability of its deferred tax assets considering its historic profitability, projected future taxable income, timing of the reversals of existing temporary differences and the feasibility of its tax planning strategies. Where appropriate, the Company records a valuation allowance with respect to a future tax benefit.
Standard Product Warranty, Policy 
Product Warranties:  Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available.
Extended Product Warranty, Policy 
The Company's extended warranty liability represents the deferred revenue associated with its extended warranty contracts and is amortized into Revenue on a straight-line basis over the life of the contract, unless another method is more representative of the costs incurred. The Company assesses the adequacy of its liability by evaluating the expected costs under its existing contracts to ensure these expected costs do not exceed the extended warranty liability.
Treasury Stock 
Treasury Stock:  The Company, through one of its consolidated subsidiaries, has repurchased its common shares from time to time as authorized by the Board of Directors. These repurchases are at the discretion of management subject to market conditions, regulatory requirements and other considerations. Amounts are recorded at cost and included within the Equity section of the Consolidated Balance Sheet.
Revenue Recognition 
Revenue Recognition:  Revenue is recognized and earned when all of the following criteria are satisfied: (a) persuasive evidence of a sales arrangement exists; (b) the price is fixed or determinable; (c) collectability is reasonably assured; and (d) delivery has occurred or service has been rendered. Delivery generally occurs when the title and the risks and rewards of ownership have substantially transferred to the customer. Both the persuasive evidence of a sales arrangement and fixed or determinable price criteria are deemed to be satisfied upon receipt of an executed and legally binding sales agreement or contract that clearly defines the terms and conditions of the transaction including the respective obligations of the parties. If the defined terms and conditions allow variability in all or a component of the price, revenue is not recognized until such time that the price becomes fixed or determinable. At the point of sale, the Company validates that existence of an enforceable claim that requires payment within a reasonable amount of time and assesses the collectability of that claim. If collectability is not deemed to be reasonably assured, then revenue recognition is deferred until such time that collectability becomes probable or cash is received. Delivery is not considered to have occurred until the customer has taken title and assumed the risks and rewards of ownership. Service and installation revenue are recognized when earned. In some instances, customer acceptance provisions are included in sales arrangements to give the buyer the ability to ensure the delivered product or service meets the criteria established in the order. In these instances, revenue recognition is deferred until the acceptance terms specified in the arrangement are fulfilled through customer acceptance or a demonstration that established criteria have been satisfied. If uncertainty exists about customer acceptance, revenue is not recognized until acceptance has occurred.
The Company offers various sales incentive programs to customers, dealers, and distributors. Sales incentive programs do not preclude revenue recognition, but do require an accrual for the Company's best estimate of expected activity. Examples of the sales incentives that are accrued for as a contra receivable and sales deduction at the point of sale include, but are not limited to, discounts (i.e. net 30 type), coupons, and rebates where the customer does not have to provide any additional requirements to receive the discount. Sales returns and customer disputes involving a question of quantity or price are also accounted for as a reduction in revenue and a contra receivable. At December 31, 2013 and 2012, the Company had a customer claim accrual (contra receivable) of $1.7 million and $2.1 million, respectively. All other incentives or incentive programs where the customer is required to reach a certain sales level, remain a customer for a certain period of time, provide a rebate form or is subject to additional requirements are accounted for as a reduction of revenue and establishment of a liability. At December 31, 2013 and 2012, the Company had a sales incentive accrual of $80.1 million and $62.2 million, respectively. Each of these accruals represents the best estimate the Company expects to pay related to previously sold units. These estimates are reviewed regularly for accuracy. If updated information or actual amounts are different from previous estimates, the revisions are included in the results for the period in which they become known. Historically, the aggregate differences, if any, between our estimates and actual amounts in any year have not had a material impact on the Consolidated Financial Statements.
The Company enters into maintenance and extended warranty contracts with customers. Revenue related to these services is recognized on a straight-line basis over the life of the contract, unless sufficient historical evidence indicates that the cost of providing these services is incurred on an other than straight-line basis. In these circumstances, revenue is recognized over the contract period in proportion to the costs expected to be incurred in performing the service.
The Company, primarily through its Climate segment, provides equipment (e.g. HVAC, controls), integrated solutions, and installation designed to customer specifications through construction-type contracts. The term of these types of contracts is typically less than one year, but can be as long as three years. Revenues related to these contracts are recognized using the percentage-of-completion method in accordance with GAAP. This measure of progress toward completion, utilized to recognize sales and profits, is based on the proportion of actual cost incurred to date as compared to the total estimate of contract costs at completion. The timing of revenue recognition often differs from the invoicing schedule to the customer, with revenue recognition in advance of customer invoicing recorded to unbilled accounts receivable and invoicing in advance of revenue recognition recorded to deferred revenue. At December 31, 2012, all recorded receivables (billed and unbilled) are due within one year. The Company re-evaluates its contract estimates periodically and reflects changes in estimates in the current period using the cumulative catch-up method. These periodic reviews have not historically resulted in significant adjustments. If estimated contract costs are in excess of contract revenues, then the excess costs are accrued.
The Company enters into sales arrangements that contain multiple elements, such as equipment, installation and service revenue. For multiple element arrangements, each element is evaluated to determine the separate units of accounting. The total arrangement consideration is then allocated to the separate units of accounting based on their relative selling price at the inception of the arrangement. The relative selling price is determined using vendor specific objective evidence (VSOE) of selling price, if it exists; otherwise, third-party evidence (TPE) of selling price is used. If neither VSOE nor TPE of selling price exists for a deliverable, a best estimate of the selling price is developed for that deliverable. The Company primarily utilizes VSOE to determine its relative selling price. The Company recognizes revenue for delivered elements when the delivered item has stand-alone value to the customer, the basic revenue recognition criteria have been met, and only customary refund or return rights related to the delivered elements exist.
Regulatory Environmental Costs, Policy 
Environmental Costs:  The Company is subject to laws and regulations relating to protecting the environment. Environmental expenditures relating to current operations are expensed or capitalized as appropriate. Expenditures relating to existing conditions caused by past operations, which do not contribute to current or future revenues, are expensed. Liabilities for remediation costs are recorded when they are probable and can be reasonably estimated, generally no later than the completion of feasibility studies or the Company’s commitment to a plan of action. The assessment of this liability, which is calculated based on existing technology, does not reflect any offset for possible recoveries from insurance companies, and is not discounted. Refer to Note 18 for further details of environmental matters.
Asbestos Matters 
Asbestos Matters:  Certain wholly-owned subsidiaries of the Company are named as defendants in asbestos-related lawsuits in state and federal courts. The Company records a liability for its actual and anticipated future claims as well as an asset for anticipated insurance settlements. Asbestos related defense costs are excluded from the asbestos claims liability and are recorded separately as services are incurred. Although the Company was neither a manufacturer nor producer of asbestos, some of its formerly manufactured components from third party suppliers utilized asbestos-related components. As a result, amounts related to asbestos are recorded within Discontinued operations, net of tax, except for amounts related to Trane U.S. Inc. asbestos liabilities, which are recorded in Earnings from continuing operations. Refer to Note 18 for further details of asbestos-related matters.
Research and Development Expense, Policy 
Research and Development Costs:  The Company conducts research and development activities for the purpose of developing and improving new products and services. These expenditures are expensed when incurred. For the years ended December 31, 2013, 2012 and 2011, these expenditures amounted to approximately $218.2 million, $235.4 million and $218.4 million, respectively.
Internal Use Software, Policy 
Software Costs:  The Company capitalizes certain qualified internal-use software costs during the application development stage and subsequently amortizes those costs over the software's useful life, which ranges from 2 to 7 years. Refer to Note 5 for further details on software.
Compensation Related Costs, Policy 
Employee Benefit Plans: The Company provides a range of benefits, including pensions, postretirement and postemployment benefits to eligible current and former employees. Determining the cost associated with such benefits is dependent on various actuarial assumptions, including discount rates, expected return on plan assets, compensation increases, employee mortality, turnover rates, and healthcare cost trend rates. Actuaries perform the required calculations to determine expense in accordance with GAAP. Actual results may differ from the actuarial assumptions and are generally accumulated into Accumulated other comprehensive income (loss) and amortized into Net earnings over future periods. The Company reviews its actuarial assumptions at each measurement date and makes modifications to the assumptions based on current rates and trends, if appropriate. Refer to Note 10 for further details on employee benefit plans.
Loss Contingencies 
Loss Contingencies:  Liabilities are recorded for various contingencies arising in the normal course of business, including litigation and administrative proceedings, environmental matters, product liability, product warranty, worker’s compensation and other claims. The Company has recorded reserves in the financial statements related to these matters, which are developed using input derived from actuarial estimates and historical and anticipated experience data depending on the nature of the reserve, and in certain instances with consultation of legal counsel, internal and external consultants and engineers. Subject to the uncertainties inherent in estimating future costs for these types of liabilities, the Company believes its estimated reserves are reasonable and does not believe the final determination of the liabilities with respect to these matters would have a material effect on the financial condition, results of operations, liquidity or cash flows of the Company for any year. Refer to Note 18 for further details on loss contingencies.
Derivative Instruments 
Derivative Instruments:  The Company periodically enters into cash flow and other derivative transactions to specifically hedge exposure to various risks related to interest rates and currency rates. The Company recognizes all derivatives on the Consolidated Balance Sheet at their fair value as either assets or liabilities. For cash flow designated hedges, the effective portion of the changes in fair value of the derivative contract are recorded in Accumulated other comprehensive income (loss), net of taxes, and are recognized in Net earnings at the time earnings are affected by the hedged transaction. For other derivative transactions, the changes in the fair value of the derivative contract are immediately recognized in Net earnings. Refer to Note 9 for further details on derivative instruments.
Recent adopted accounting pronouncements 
Recently Adopted Accounting Pronouncements:
In December 2011, the FASB issued Accounting Standards Update (ASU) 2011-11, “Disclosures about Offsetting Assets and Liabilities.” ASU 2011-11 requires enhanced disclosures including both gross and net information about financial and derivative instruments eligible for offset or subject to an enforceable master netting arrangement or similar agreement. This new guidance is effective for annual reporting periods beginning on or after January 1, 2013 and subsequent interim periods. The requirements of ASU 2011-11 did not have an impact on the Consolidated Financial Statements.
In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU 2013-01 clarifies the scope of ASU 2011-11 to apply to derivative instruments that are offset or subject to an enforceable master netting arrangement or similar agreement. This clarified guidance is effective for annual reporting periods beginning on or after January 1, 2013 and subsequent interim periods. The revised requirements of ASU 2013-01 did not have an impact on the Consolidated Financial Statements.
In February 2013, the FASB issued ASU 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (AOCI). ASU 2013-02 requires a rollforward of changes in AOCI by component and information about significant reclassifications from AOCI to Net earnings to be presented in one location, either on the face of the financial statements or in the notes. This new guidance is effective for fiscal years beginning after December 15, 2012 and subsequent interim periods. The requirements of ASU 2013-02 did not have a material impact on the Company's Consolidated Financial Statements. The revised disclosure requirements are reflected in Note 11.
In July 2013, the FASB issued ASU 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” ASU 2013-10 allows the Fed Funds Effective Swap Rate (OIS) to be designated as a U.S. benchmark interest rate for hedge accounting purposes, in addition to interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate. The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The Company will apply the new guidance, as applicable, to future interest rate hedge relationships.
Summary of Significant Accounting Policies (Tables)
Schedule of Depreciation Range of Useful Lives 
The range of useful lives used to depreciate property, plant and equipment is as follows:
Buildings
10
to
50
years
Machinery and equipment
2
to
12
years
Software
2
to
7
years
Schedule of Intangible Assets Weighted Average Useful Lives 
The weighted-average useful lives approximate the following:
Customer relationships
20
years
Completed technology/patents
10
years
Other
15
years
Inventories (Tables)
MajorClassesOfInventory [Table Text Block]
At December 31, the major classes of inventory were as follows:
In millions
 
2013
 
2012
Raw materials
 
$
378.0

 
$
423.2

Work-in-process
 
100.7

 
87.2

Finished goods
 
760.2

 
704.8

 
 
1,238.9

 
1,215.2

LIFO reserve
 
(72.8
)
 
(71.2
)
Total
 
$
1,166.1

 
$
1,144.0

Property, Plant and Equipment (Tables)
Schedule of Major Classes of Property, Plant and Equipment
At December 31, the major classes of property, plant and equipment were as follows:
In millions
 
2013
 
2012
Land
 
$
64.2

 
$
67.1

Buildings
 
654.8

 
582.5

Machinery and equipment
 
1,612.0

 
1,544.9

Software
 
511.3

 
539.6

 
 
2,842.3

 
2,734.1

Accumulated depreciation
 
(1,373.9
)
 
(1,308.0
)
Total
 
$
1,468.4

 
$
1,426.1

Goodwill (Tables)
Changes in Goodwill Carrying Amounts
The changes in the carrying amount of Goodwill are as follows: 
In millions
 
Climate
 
Industrial
 
Total
December 31, 2011 (gross)
 
$
7,593.2

 
$
366.8

 
$
7,960.0

Acquisitions and adjustments *
 
(3.8
)
 
—

 
(3.8
)
Currency translation
 
30.5

 
1.9

 
32.4

December 31, 2012 (gross)
 
7,619.9

 
368.7

 
7,988.6

Acquisitions and adjustments
 
(1.1
)
 
1.1

 
—

Currency translation
 
44.8

 
3.2

 
48.0

December 31, 2013 (gross)
 
7,663.6

 
373.0

 
8,036.6

Accumulated impairment **
 
(2,496.0
)
 
—

 
(2,496.0
)
Goodwill (net)
 
$
5,167.6

 
$
373.0

 
$
5,540.6

* During 2012, the Company recorded certain purchase accounting adjustments within the Climate sector of $4.8 million.
** Accumulated impairment relates to a charge of $2,496.0 million recorded in the fourth quarter of 2008 as a result of the Company's annual impairment testing.
Intangible Assets (Tables)
Schedule Of Intangible Asset Excluding Goodwill
The following table sets forth the gross amount and related accumulated amortization of the Company’s intangible assets at December 31:
 
 
2013
 
2012
In millions
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
Completed technologies/patents
 
$
174.1

 
$
(128.7
)
 
$
45.4

 
$
179.1

 
$
(112.7
)
 
$
66.4

Customer relationships
 
1,865.9

 
(599.5
)
 
1,266.4

 
1,863.1

 
(490.7
)
 
1,372.4

Other
 
60.4

 
(52.2
)
 
8.2

 
56.2

 
(46.6
)
 
9.6

Total finite-lived intangible assets
 
2,100.4

 
$
(780.4
)
 
1,320.0

 
2,098.4

 
$
(650.0
)
 
1,448.4

Trademarks (indefinite-lived)
 
2,602.0

 
 
 
2,602.0

 
2,602.0

 
 
 
2,602.0

Total
 
$
4,702.4

 
 
 
$
3,922.0

 
$
4,700.4

 
 
 
$
4,050.4

Debt and Credit Facilities (Tables)
Short-Term Borrowings and Current Maturities of Long-Term Debt 
At December 31, short-term borrowings and current maturities of long-term debt consisted of the following:
In millions
 
2013
 
2012
Debentures with put feature
 
$
343.0

 
$
343.0

6.000% Senior notes due 2013
 
—

 
600.0

Other current maturities of long-term debt
 
8.0

 
10.0

Other short-term borrowings
 
16.7

 
9.9

Total
 
$
367.7

 
$
962.9

Long-Term Debt Excluding Current Maturities 
At December 31, long-term debt excluding current maturities consisted of:
In millions
 
2013
 
2012
9.500% Senior notes due 2014
 
—

 
655.0

5.50% Senior notes due 2015
 
198.1

 
196.4

4.75% Senior notes due 2015
 
299.8

 
299.7

6.875% Senior notes due 2018
 
749.5

 
749.4

2.875% Senior notes due 2019
 
349.5

 
—

9.00% Debentures due 2021
 
125.0

 
125.0

4.250% Senior notes due 2023
 
698.8

 
—

7.20% Debentures due 2014-2025
 
82.5

 
90.0

6.48% Debentures due 2025
 
149.7

 
149.7

5.750% Senior notes due 2043
 
498.0

 
—

Other loans and notes, at end-of-year average interest rates of 3.01% in 2013 and
1.00% in 2012, maturing in various amounts to 2019
 
2.6

 
1.3

Total
 
$
3,153.5

 
$
2,266.5

Schedule of Long-Term Debt Maturities and Repayments of Principle 
At December 31, 2013, long-term debt retirements are as follows:
In millions
  
2014
$
351.0

2015
507.2

2016
7.8

2017
7.7

2018
757.2

Thereafter
1,873.6

Total
$
3,504.5

Financial Instruments (Tables)
Schedule of the Fair Values of Derivative Instruments 
The fair values of derivative instruments included within the Consolidated Balance Sheet as of December 31 were as follows:
 
 
Asset derivatives
 
Liability derivatives
In millions
 
2013
 
2012
 
2013
 
2012
Derivatives designated as hedges:
 
 
 
 
 
 
 
 
Currency derivatives
 
$
0.1

 
$
—

 
$
3.4

 
$
4.3

Derivatives not designated as hedges:
 
 
 
 
 
 
 
 
Currency derivatives
 
3.1

 
4.6

 
13.6

 
7.1

Total derivatives
 
$
3.2

 
$
4.6

 
$
17.0

 
$
11.4

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] 
The amounts associated with derivatives designated as hedges affecting Net earnings and AOCI for the years ended December 31 were as follows:
 
 
Amount of gain (loss)
recognized in AOCI
 
Location of gain (loss) reclassified from AOCI and recognized into Net earnings
 
Amount of gain (loss) reclassified from AOCI and recognized into Net earnings
In millions
 
2013
 
2012
 
2011
 
 
2013
 
2012
 
2011
Currency derivatives - continuing
 
$
(9.8
)
 
$
(6.1
)
 
$
2.1

 
Cost of goods sold
 
$
(10.8
)
 
$
0.4

 
$
1.4

Currency derivatives - discontinued
 
2.0

 
(1.1
)
 
0.3

 
Discontinued operations
 
1.1

 
(0.2
)
 
(1.3
)
Interest rate swaps
 
10.5

 
—

 
—

 
Interest expense
 
0.4

 
—

 
—

Interest rate locks
 
—

 
—

 
—

 
Interest expense
 
(2.8
)
 
(3.0
)
 
(2.9
)
Total
 
$
2.7

 
$
(7.2
)
 
$
2.4

 
 
 
$
(12.1
)
 
$
(2.8
)
 
$
(2.8
)
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] 
The amounts associated with derivatives not designated as hedges affecting Net earnings for the years ended December 31 were as follows:
In millions
 
Location of gain (loss) recognized in Net earnings
 
Amount of gain (loss) recognized in Net earnings
2013
 
2012
 
2011
Currency derivatives
 
Other, net
 
$
(42.2
)
 
$
28.5

 
$
(7.4
)
Total
 
 
 
$
(42.2
)
 
$
28.5


$
(7.4
)
Pensions and Postretirement Benefits Other than Pensions (Tables)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Multiemployer Plans Disclosure
Text Block 
 
Pension Plans [Member]
 
 
Schedule of Changes in Projected Benefit Obligations [Table Text Block]
Text Block 
 
Schedule of Comprehensive Income (Loss) [Table Text Block]
Text Block 
 
Schedule of Assumptions Used [Table Text Block]
Text Block 
 
Schedule of Expected Benefit Payments [Table Text Block]
Text Block 
 
Schedule of Net Benefit Costs [Table Text Block]
Text Block 
 
Schedule of Defined Benefit Plans Disclosures [Table Text Block]
Text Block 
Text Block 
Pension Costs [Member]
 
 
Schedule of Assumptions Used [Table Text Block]
Text Block 
 
Postretirement [Member]
 
 
Schedule of Changes in Projected Benefit Obligations [Table Text Block]
Text Block 
 
Schedule of Comprehensive Income (Loss) [Table Text Block]
Text Block 
 
Schedule of Assumptions Used [Table Text Block]
Text Block 
 
Schedule of Expected Benefit Payments [Table Text Block]
Text Block 
 
Schedule of Net Funded Status [Table Text Block]
Text Block 
 
Schedule of Costs of Retirement Plans [Table Text Block]
Text Block 
 
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block]
Text Block 
 
Multiemployer Plans Disclosure 
Total contributions to multiemployer plans, excluding Hussmann, for the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Total contributions
 
$
5.4

 
$
5.4

 
$
5.2

Schedule of Changes in Projected Benefit Obligations [Table Text Block] 
The following table details information regarding the Company’s pension plans at December 31:
In millions
 
2013
 
2012
Change in benefit obligations:
 
 
 
 
Benefit obligation at beginning of year
 
$
4,228.6

 
$
3,841.1

Service cost
 
88.5

 
96.8

Interest cost
 
156.9

 
163.6

Employee contributions
 
1.5

 
1.5

Amendments
 
1.2

 
3.4

Actuarial (gains) losses
 
(314.4
)
 
374.3

Benefits paid
 
(211.6
)
 
(217.2
)
Currency translation
 
19.5

 
37.4

Curtailments and settlements
 
(3.7
)
 
(63.4
)
Impact of spin-off
 
(631.1
)
 
—

Other, including expenses paid
 
(2.2
)
 
(8.9
)
Benefit obligation at end of year
 
$
3,333.2

 
$
4,228.6

Change in plan assets:
 
 
 
 
Fair value at beginning of year
 
$
3,310.2

 
$
3,100.4

Actual return on assets
 
98.9

 
320.5

Company contributions
 
109.7

 
89.1

Employee contributions
 
1.5

 
1.5

Benefits paid
 
(211.6
)
 
(217.2
)
Currency translation
 
17.7

 
31.0

Settlements
 
(1.6
)
 
(5.6
)
Impact of spin-off
 
(543.5
)
 
—

Other, including expenses paid
 
(2.1
)
 
(9.5
)
Fair value of assets end of year
 
$
2,779.2

 
$
3,310.2

Funded status:
 
 
 
 
Plan assets less than the benefit obligations
 
$
(554.0
)
 
$
(918.4
)
Amounts included in the balance sheet:
 
 
 
 
Other noncurrent assets
 
$
4.3

 
$
5.1

Accrued compensation and benefits
 
(30.8
)
 
(9.0
)
Postemployment and other benefit liabilities
 
(527.5
)
 
(799.6
)
Liabilities held for spin-off
 
—

 
(114.9
)
Net amount recognized
 
$
(554.0
)
 
$
(918.4
)
Schedule of Comprehensive Income (Loss) [Table Text Block] 
The pretax amounts recognized in Accumulated other comprehensive income (loss) were as follows:
In millions
 
Prior service cost
 
Net actuarial losses
 
Total
December 31, 2012
 
$
(23.5
)
 
$
(1,318.9
)
 
$
(1,342.4
)
Current year changes recorded to Accumulated other comprehensive income (loss)
 
(1.2
)
 
249.0

 
247.8

Amortization reclassified to earnings
 
4.7

 
63.0

 
67.7

Settlements/curtailments reclassified to earnings
 
—

 
0.7

 
0.7

Impact of spin-off
 
2.3

 
162.5

 
164.8

Currency translation and other
 
—

 
(5.4
)
 
(5.4
)
December 31, 2013
 
$
(17.7
)
 
$
(849.1
)
 
$
(866.8
)
Schedule of Assumptions Used [Table Text Block] 
Benefit obligations at December 31,
 
2013
 
2012
Discount rate:
 
 
 
 
U.S. plans
 
4.75
%
 
3.75
%
Non-U.S. plans
 
4.25
%
 
4.25
%
Rate of compensation increase:
 
 
 
 
U.S. plans
 
4.00
%
 
4.00
%
Non-U.S. plans
 
4.25
%
 
4.00
%
Schedule of Expected Benefit Payments [Table Text Block] 
Pension benefit payments are expected to be paid as follows:
In millions
  
2014
$
219.3

2014
201.0

2016
199.0

2017
205.2

2018
214.6

2019 — 2023
1,142.9

Schedule of Net Benefit Costs [Table Text Block] 
The components of the Company’s net periodic pension benefit costs for the years ended December 31 include the following:
In millions
 
2013
 
2012
 
2011
Service cost
 
$
88.5

 
$
96.8

 
$
93.5

Interest cost
 
156.9

 
163.6

 
185.5

Expected return on plan assets
 
(166.3
)
 
(173.6
)
 
(219.6
)
Net amortization of:
 
 
 
 
 
 
Prior service costs
 
4.7

 
5.1

 
5.6

Transition amount
 
—

 
—

 
—

Plan net actuarial losses
 
63.0

 
60.6

 
51.1

Net periodic pension benefit cost
 
146.8

 
152.5

 
116.1

Net curtailment and settlement (gains) losses
 
0.7

 
4.9

 
62.5

Net periodic pension benefit cost after net curtailment and settlement (gains) losses
 
$
147.5

 
$
157.4

 
$
178.6

Amounts recorded in continuing operations
 
$
119.2

 
$
125.5

 
$
160.8

Amounts recorded in discontinued operations
 
28.3

 
31.9

 
17.8

Total
 
$
147.5

 
$
157.4

 
$
178.6

Schedule of Defined Benefit Plans Disclosures [Table Text Block] 
The fair values of the Company’s pension plan assets at December 31, 2013 by asset category are as follows:
 
 
Fair value measurements
 
Total
fair value
In millions
 
Level 1
 
Level 2
 
Level 3
 
Cash and cash equivalents
 
$
4.1

 
$
37.9

 
$
—

 
$
42.0

Equity investments:
 
 
 
 
 
 
 
 
Registered mutual funds – equity specialty(a)
 
6.0

 
—

 
—

 
6.0

Commingled funds – equity specialty(a)
 
—

 
826.8

 
—

 
826.8

 
 
6.0

 
826.8

 
—

 
832.8

Fixed income investments:
 
 
 
 
 
 
 
 
U.S. government and agency obligations
 
—

 
702.9

 
—

 
702.9

Corporate and non-U.S. bonds(b)
 
—

 
748.4

 
—

 
748.4

Asset-backed and mortgage-backed securities
 
—

 
59.4

 
—

 
59.4

Registered mutual funds – fixed income specialty(c)
 
32.3

 
—

 
—

 
32.3

Commingled funds – fixed income specialty(c)
 
—

 
268.5

 
—

 
268.5

Other fixed income(d)
 
—

 
—

 
22.6

 
22.6

 
 
32.3

 
1,779.2

 
22.6

 
1,834.1

Derivatives
 
—

 
—

 
—

 
—

Real estate(e)
 
—

 
—

 
19.3

 
19.3

Other(f)
 
—

 
—

 
58.1

 
58.1

Total assets at fair value
 
$
42.4

 
$
2,643.9

 
$
100.0

 
$
2,786.3

Receivables and payables, net(g)
 
 
 
 
 
 
 
(7.1
)
Net assets available for benefits
 
 
 
 
 
 
 
$
2,779.2

(a)
This class comprises commingled and registered mutual funds that focus on equity investments. It includes both indexed and actively managed funds.
(b)
This class includes state and municipal bonds.
(c)
This class comprises commingled and registered mutual funds that focus on fixed income securities.
(d)
This class includes group annuity and guaranteed interest contracts.
(e)
This class includes private equity funds that invest in real estate, including funds of funds.
(f)
This investment comprises the Company’s non-significant, non-U.S. pension plan assets. It mostly includes insurance contracts.
(g)
Includes an estimated $20.0 million payable to Allegion in accordance with the terms of the Employee Matters Agreement.
Schedule of Defined Benefit Plans Disclosures [Table Text Block] 
The fair values of the Company’s pension plan assets at December 31, 2012 by asset category are as follows:
 
 
Fair value measurements
 
Total
fair value
In millions
 
Level 1
 
Level 2
 
Level 3
 
Cash and cash equivalents
 
$
5.8

 
$
25.5

 
$
—

 
$
31.3

Equity investments:
 
 
 
 
 
 
 
 
Registered mutual funds – equity specialty(a)
 
5.9

 
—

 
—

 
5.9

Commingled funds – equity specialty(a)
 
—

 
935.2

 
—

 
935.2

 
 
5.9

 
935.2

 
—

 
941.1

Fixed income investments:
 
 
 
 
 
 
 
 
U.S. government and agency obligations
 
—

 
817.0

 
—

 
817.0

Corporate and non-U.S. bonds(b)
 
—

 
890.2

 
—

 
890.2

Asset-backed and mortgage-backed securities
 
—

 
53.0

 
—

 
53.0

Registered mutual funds – fixed income specialty(c)
 
33.8

 
—

 
—

 
33.8

Commingled funds – fixed income specialty(c)
 
—

 
439.1

 
—

 
439.1

Other fixed income(d)
 
—

 
—

 
21.9

 
21.9

 
 
33.8

 
2,199.3

 
21.9

 
2,255.0

Derivatives
 
—

 
(0.1
)
 
—

 
(0.1
)
Real estate(e)
 
—

 
—

 
29.2

 
29.2

Other(f)
 
—

 
—

 
54.4

 
54.4

Total assets at fair value
 
$
45.5

 
$
3,159.9

 
$
105.5

 
$
3,310.9

Receivables and payables, net
 
 
 
 
 
 
 
(0.7
)
Net assets available for benefits
 
 
 
 
 
 
 
$
3,310.2

(a)
This class comprises commingled and registered mutual funds that focus on equity investments. It includes both indexed and actively managed funds.
(b)
This class includes state and municipal bonds.
(c)
This class comprises commingled and registered mutual funds that focus on fixed income securities.
(d)
This class includes group annuity and guaranteed interest contracts.
(e)
This class includes private equity funds that invest in real estate. It includes both direct investment funds and funds-of-funds.
(f)
This investment comprises the Company’s non-significant, non-U.S. pension plan assets. It mostly includes insurance contracts.
Schedule of Assumptions Used [Table Text Block] 
Weighted-average assumptions used:
Net periodic pension cost for the year ended December 31,
 
2013
 
2012
 
2011
Discount rate:
 
 
 
 
 
 
U.S. plans
 
 
 
 
 
 
For the period January 1 to June 7
 
3.75
%
 
4.25
%
 
5.00
%
For the period June 8 to November 30
 
3.75
%
 
4.00
%
 
5.00
%
For the period December 1 to December 31
 
4.50
%
 
4.00
%
 
5.00
%
Non-U.S. plans
 
4.25
%
 
5.00
%
 
5.50
%
Rate of compensation increase:
 
 
 
 
 
 
U.S. plans
 
4.00
%
 
4.00
%
 
4.00
%
Non-U.S. plans
 
4.00
%
 
4.00
%
 
4.50
%
Expected return on plan assets:
 
 
 
 
 
 
U.S. plans
 
5.25
%
 
5.75
%
 
7.25
%
Non-U.S. plans
 
5.00
%
 
5.75
%
 
6.25
%
Schedule of Changes in Projected Benefit Obligations [Table Text Block] 
The following table details information regarding the Company’s postretirement plans at December 31:
In millions
 
2013
 
2012
Change in benefit obligations:
 
 
 
 
Benefit obligation at beginning of year
 
$
851.4

 
$
919.9

Service cost
 
6.6

 
7.3

Interest cost
 
26.0

 
30.8

Plan participants’ contributions
 
11.2

 
19.1

Actuarial (gains) losses
 
(109.8
)
 
15.4

Benefits paid, net of Medicare Part D subsidy *
 
(56.4
)
 
(78.8
)
Settlements/curtailments
 
—

 
—

Amendments
 
—

 
(62.3
)
Impact of spin-off
 
(14.1
)
 
—

Other
 
(1.6
)
 
—

Benefit obligations at end of year
 
$
713.3

 
$
851.4

* Amounts are net of Medicare Part D subsidy of $12.8 million and $0.7 million in 2013 and 2012, respectively
Schedule of Comprehensive Income (Loss) [Table Text Block] 
The pretax amounts recognized in Accumulated other comprehensive income (loss) were as follows:
In millions
 
Prior service gains
 
Net actuarial losses
 
Total
Balance at December 31, 2012
 
$
56.9

 
$
(180.3
)
 
$
(123.4
)
Current year changes recorded to Accumulated other comprehensive income (loss)
 
—

 
109.9

 
109.9

Amortization reclassified to earnings
 
(10.3
)
 
6.5

 
(3.8
)
Impact of spin-off
 
(7.2
)
 
1.6

 
(5.6
)
Balance at December 31, 2013
 
$
39.4

 
$
(62.3
)
 
$
(22.9
)
Schedule of Assumptions Used [Table Text Block] 
Assumptions:
 
2013
 
2012
 
2011
Weighted-average discount rate assumption to determine:
 
 
 
 
 
 
Benefit obligations at December 31
 
4.25
%
 
3.25
%
 
4.00
%
Net periodic benefit cost
 
 
 
 
 
 
For the period January 1 to January 31
 
3.25
%
 
4.00
%
 
5.00
%
For the period February 1 to November 30
 
3.25
%
 
3.75
%
 
5.00
%
For the period November 30 to December 31
 
4.00
%
 
3.75
%
 
5.00
%
Assumed health-care cost trend rates at December 31:
 
 
 
 
 
 
Current year medical inflation
 
7.65
%
 
8.05
%
 
8.45
%
Ultimate inflation rate
 
5.00
%
 
5.00
%
 
5.00
%
Year that the rate reaches the ultimate trend rate
 
2021

 
2021

 
2021

Schedule of Expected Benefit Payments [Table Text Block] 
Benefit payments for postretirement benefits, which are net of expected plan participant contributions and Medicare Part D subsidy, are expected to be paid as follows:
In millions
  
2014
$
66.6

2015
66.7

2016
64.7

2017
62.4

2018
59.8

2019 — 2023
264.3

Schedule of Net Funded Status [Table Text Block] 
Funded status:
 
 
 
 
Plan assets less than benefit obligations
 
$
(713.3
)
 
$
(851.4
)
Amounts included in the balance sheet:
 
 
 
 
Accrued compensation and benefits
 
$
(65.2
)
 
$
(67.2
)
Postemployment and other benefit liabilities
 
(648.1
)
 
(766.2
)
Liabilities held for spin-off
 
—

 
(18.0
)
Total
 
$
(713.3
)
 
$
(851.4
)
Schedule of Costs of Retirement Plans [Table Text Block] 
The components of net periodic postretirement benefit (income) cost for the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Service cost
 
$
6.6

 
$
7.3

 
$
8.4

Interest cost
 
26.0

 
30.8

 
42.0

Net amortization of:
 
 
 
 
 
 
Prior service gains
 
(10.3
)
 
(10.3
)
 
(3.5
)
Net actuarial losses
 
6.5

 
7.3

 
1.6

Net periodic postretirement benefit cost
 
28.8

 
35.1

 
48.5

Net curtailment and settlement (gains) losses
 
—

 
—

 
(10.1
)
Net periodic postretirement benefit (income) cost after net curtailment and settlement (gains) losses
 
$
28.8

 
$
35.1

 
$
38.4

Amounts recorded in continuing operations
 
$
19.8

 
$
22.2

 
$
18.7

Amounts recorded in discontinued operations
 
9.0

 
12.9

 
19.7

Total
 
$
28.8

 
$
35.1

 
$
38.4

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] 
A 1% change in the medical trend rate assumed for postretirement benefits would have the following effects at December 31, 2013:
In millions
 
1%
Increase
 
1%
Decrease
Effect on total of service and interest cost components
 
$
1.2

 
$
(1.0
)
Effect on postretirement benefit obligation
 
27.9

 
(24.5
)
Equity (Tables)
Reconciliation of Ordinary Shares 
At December 31, 2013, a reconciliation of ordinary shares is as follows:
In millions
Total
December 31, 2012
295.6

Shares issued under incentive plans
7.9

Repurchase of ordinary shares
(20.8
)
December 31, 2013
282.7

Components of Accumulated Other Comprehensive Income (Loss) 
The changes in Accumulated other comprehensive income (loss) are as follows:
In millions
 
Cash flow hedges and marketable securities
 
Pension and OPEB Items
 
Foreign Currency Items
 
Total
December 31, 2011
 
$
(4.5
)
 
$
(897.1
)
 
$
348.0

 
$
(553.6
)
Other comprehensive income (loss), net of tax
 
3.1

 
(67.1
)
 
96.6

 
32.6

December 31, 2012
 
$
(1.4
)
 
$
(964.2
)
 
$
444.6

 
$
(521.0
)
Other comprehensive income (loss), net of tax
 
19.7

 
263.3

 
11.7

 
294.7

Impact of spin-off and other activities
 
$
(17.9
)
 
$
138.1

 
$
(60.6
)
 
$
59.6

December 31, 2013
 
$
0.4

 
$
(562.8
)
 
$
395.7

 
$
(166.7
)
Other Comprehensive Income, Noncontrolling Interest [Text Block] 
The amounts of Other comprehensive income (loss) attributable to noncontrolling interests are as follows:
In millions
 
2013
 
2012
 
2011
Pension and OPEB items
 
$
—

 
$
(1.3
)
 
$
(0.6
)
Foreign currency items
 
3.3

 
(11.1
)
 
—

Total other comprehensive income (loss) attributable to noncontrolling interests
 
$
3.3

 
$
(12.4
)
 
$
(0.6
)
Share-Based Compensation (Tables)
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] 
The following table summarizes the expenses recognized:
In millions
 
2013
 
2012
 
2011
Stock options
 
$
23.0

 
$
5.7

 
$
22.3

RSUs
 
29.9

 
22.0

 
21.1

PSUs
 
20.2

 
22.5

 
(0.5
)
Deferred compensation
 
1.9

 
0.1

 
1.1

Other
 
2.9

 
2.3

 
(0.9
)
Pre-tax expense
 
77.9

 
52.6

 
43.1

Tax benefit
 
29.8

 
20.1

 
16.5

After-tax expense
 
$
48.1

 
$
32.5

 
$
26.6

Amounts recorded in continuing operations
 
$
43.4

 
$
28.6

 
$
24.0

Amounts recorded in discontinued operations
 
4.7

 
3.9

 
2.6

Total
 
$
48.1

 
$
32.5

 
$
26.6

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] 
The following assumptions were used:
 
 
2013
 
2012
Dividend yield
 
1.60
%
 
1.33
%
Volatility
 
42.15
%
 
43.60
%
Risk-free rate of return
 
0.85
%
 
0.92
%
Expected life
 
5.1

 
5.1

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] 
Changes in options outstanding under the plans for the years 2013, 2012 and 2011 are as follows:
 
 
Shares
subject
to option
 
Weighted-
average
exercise price
 
Aggregate
intrinsic
value (millions)
 
Weighted-
average
remaining life
December 31, 2010
 
21,706,228

 
$
32.30

 
 
 
 
Granted
 
1,834,564

 
44.99

 
 
 
 
Exercised
 
(4,275,088
)
 
30.00

 
 
 
 
Cancelled
 
(650,428
)
 
35.36

 
 
 
 
December 31, 2011
 
18,615,276

 
33.97

 
 
 
 
Granted
 
1,463,352

 
40.67

 
 
 
 
Exercised
 
(5,578,783
)
 
28.87

 
 
 
 
Cancelled
 
(408,883
)
 
41.30

 
 
 
 
December 31, 2012
 
14,090,962

 
36.47

 
 
 
 
Granted
 
1,341,602

 
52.71

 
 
 
 
Exercised
 
(6,994,024
)
 
35.33

 
 
 
 
Cancelled
 
(110,496
)
 
44.57

 
 
 
 
Impact of spin-off
 
371,984

 
****

 
 
 
 
Outstanding December 31, 2013
 
8,700,028

 
$
31.87

 
$
258.7

 
5.6
Exercisable December 31, 2013
 
5,695,290

 
$
29.71

 
$
184.5

 
4.2
Schedule of Share-based Compensation, Activity [Table Text Block] 
The following table summarizes information concerning currently outstanding and exercisable options as adjusted for the spin-off as discussed above:
  
 
 
 
 
 
Options outstanding
 
Options exercisable
Range of
exercise price
 
Number
outstanding at
December 31,
2013
 
Weighted-
average
remaining
life
 
Weighted-
average
exercise
price
 
Number
outstanding at
December 31,
2013
 
Weighted-
average
remaining
life
 
Weighted-
average
exercise
price
10.01

 
—
 
20.00

 
850,559

 
3.5
 
14.81

 
850,559

 
3.5
 
14.81

20.01

 
—
 
30.00

 
1,635,997

 
5.1
 
25.53

 
1,378,461

 
4.6
 
25.69

30.01

 
—
 
40.00

 
4,648,123

 
5.2
 
33.81

 
3,263,037

 
4.3
 
33.66

40.01

 
—
 
50.00

 
1,561,333

 
8.3
 
41.97

 
203,233

 
3.8
 
41.85

50.01

 
—
 
60.00

 
4,016

 
9.8
 
51.92

 
—

 
0.0
 
—

$
14.80

 
—
 
$
51.92

 
8,700,028

 
5.6
 
$
31.87

 
5,695,290

 
4.2
 
$
29.21

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] 
For restricted stock awarded prior to the spin-off, grant price information in the table below reflects historical market prices. The following table summarizes RSU activity for the years 2013, 2012 and 2011:
 
 
RSUs
 
Weighted-
average grant
date fair value
Outstanding and unvested at December 31, 2010
 
1,300,174

 
$
26.14

Granted
 
672,185

 
43.87

Vested
 
(512,614
)
 
24.20

Cancelled
 
(152,572
)
 
34.87

Outstanding and unvested at December 31, 2011
 
1,307,173

 
$
35.00

Granted
 
643,822

 
40.74

Vested
 
(575,214
)
 
30.05

Cancelled
 
(91,089
)
 
38.92

Outstanding and unvested at December 31, 2012
 
1,284,692

 
$
39.81

Granted
 
685,441

 
53.78

Vested
 
(669,079
)
 
38.44

Cancelled
 
(63,954
)
 
43.98

Impact of spin-off
 
103,882

 
****

Outstanding and unvested at December 31, 2013
 
1,340,982

 
$
38.49

Schedule of Share-based Compensation, Performance Shares [Table Text Block] 
The following table summarizes PSU activity for the maximum number of shares that may be issued for the years 2013, 2012 and 2011:
 
 
PSUs
 
Weighted-average grant date fair value
Outstanding and unvested at December 31, 2010
 
3,768,706

 
$
20.36

Granted
 
614,006

 
46.66

Vested
 
(633,504
)
 
16.95

Forfeited
 
(1,116,212
)
 
19.31

Outstanding and unvested at December 31, 2011
 
2,632,996

 
$
27.76

Granted
 
649,668

 
50.75

Vested
 
—

 
—

Forfeited
 
(1,423,028
)
 
18.68

Outstanding and unvested at December 31, 2012
 
1,859,636

 
$
40.30

Granted
 
580,910

 
61.24

Vested
 
(718,040
)
 
34.94

Forfeited
 
(150,636
)
 
51.43

Impact of spin-off
 
380,780

 
****

Outstanding and unvested at December 31, 2013
 
1,952,650

 
$
39.20

Restructuring Activities (Tables)
Schedule of Restructuring Charges Recorded 
Restructuring charges recorded during the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Climate
 
$
47.5

 
$
12.9

 
$
17.1

Industrial
 
14.5

 
7.6

 
6.7

Corporate and Other
 
20.3

 
2.8

 
0.3

Total
 
$
82.3

 
$
23.3

 
$
24.1

Cost of goods sold
 
$
15.2

 
$
10.3

 
$
6.8

Selling and administrative expenses
 
67.1

 
13.0

 
17.3

Total
 
$
82.3

 
$
23.3

 
$
24.1

Schedule of Changes in Restructuring Reserve 
The changes in the restructuring reserve were as follows:
In millions
 
Climate
 
Industrial
 
Corporate
and Other
 
Total
December 31, 2011
 
$
5.1

 
$
4.2

 
$
1.7

 
$
11.0

Additions, net of reversals
 
12.9

 
7.6

*
2.8

 
23.3

Cash and non-cash uses
 
(13.4
)
 
(9.7
)
 
(2.6
)
 
(25.7
)
Currency translation
 
0.1

 
—

 
—

 
0.1

December 31, 2012
 
4.7

 
2.1

 
1.9

 
8.7

Additions, net of reversals
 
47.5

 
14.5

 
20.3

 
82.3

Cash and non-cash uses
 
(34.2
)
 
(7.1
)
 
(17.2
)
 
(58.5
)
Currency translation
 
—

 
—

 
—

 
—

December 31, 2013
 
$
18.0

 
$
9.5

 
$
5.0

 
$
32.5


* Amount includes the reversal of $6.7 million of previously accrued restructuring charges.
Other, Net (Tables)
Other, Net
At December 31, the components of Other, net were as follows:
In millions
 
2013
 
2012
 
2011
Interest income
 
$
12.8

 
$
16.3

 
$
25.5

Exchange gain (loss)
 
(14.0
)
 
0.2

 
(1.3
)
Earnings (loss) from equity investments
 
(2.6
)
 
(5.9
)
 
(3.5
)
Other
 
7.2

 
17.5

 
7.7

Other, net
 
$
3.4

 
$
28.1

 
$
28.4

Income Taxes (Tables)
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] 
Earnings before income taxes for the years ended December 31 were taxed within the following jurisdictions:
In millions
 
2013
 
2012
 
2011
United States
 
$
(147.4
)
 
$
(49.3
)
 
$
(1,066.3
)
Non-U.S.
 
977.0

 
897.3

 
1,254.9

Total
 
$
829.6

 
$
848.0

 
$
188.6

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] 
The components of the Provision for income taxes for the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Current tax expense (benefit):
 
 
 
 
 
 
United States
 
$
2.1

 
$
(70.1
)
 
$
46.7

Non-U.S.
 
157.5

 
174.0

 
170.0

Total:
 
159.6

 
103.9

 
216.7

Deferred tax expense (benefit):
 
 
 
 
 
 
United States
 
19.2

 
116.9

 
(215.4
)
Non-U.S.
 
10.2

 
(164.8
)
 
44.2

Total:
 
29.4

 
(47.9
)
 
(171.2
)
Total tax expense (benefit):
 
 
 
 
 
 
United States
 
21.3

 
46.8

 
(168.7
)
Non-U.S.
 
167.7

 
9.2

 
214.1

Total
 
$
189.0

 
$
56.0

 
$
45.4

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] 
The Provision for income taxes differs from the amount of income taxes determined by applying the applicable U.S. statutory income tax rate to pretax income, as a result of the following differences:
 
 
Percent of pretax income
 
 
2013
 
2012
 
2011
Statutory U.S. rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
Increase (decrease) in rates resulting from:
 
 
 
 
 
 
Non-U.S. tax rate differential
 
(26.8
)
 
(22.5
)
 
(120.4
)
Tax on U.S. subsidiaries on non-U.S. earnings
 
2.0

 
4.1

 
24.0

State and local income taxes (1)
 
6.3

 
0.3

 
(6.1
)
Valuation allowances
 
2.5

 
(16.6
)
 
(0.8
)
Change in permanent reinvestment assertion (2)
 
6.2

 
—

 
—

Non-deductible goodwill write-off - Hussmann
 
—

 
—

 
75.4

Reserves for uncertain tax positions
 
(2.9
)
 
2.4

 
15.3

Impact of change in taxation of retiree drugs subsidy
 
—

 
1.9

 
—

Provision to return and other true-up adjustments
 
(0.7
)
 
(0.1
)
 
(0.8
)
Other adjustments
 
1.2

 
2.1

 
2.5

Effective tax rate
 
22.8
 %
 
6.6
 %
 
24.1
 %
(1)
Net of changes in valuation allowances
(2)
Net of foreign tax credits
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] 
At December 31, a summary of the deferred tax accounts were as follows:
In millions
 
2013
 
2012
Deferred tax assets:
 
 
 
 
Inventory and accounts receivable
 
$
19.7

 
$
21.1

Fixed assets and intangibles
 
3.3

 
3.6

Postemployment and other benefit liabilities
 
643.1

 
755.0

Product liability
 
221.7

 
237.6

Other reserves and accruals
 
198.5

 
174.6

Net operating losses and credit carryforwards
 
707.1

 
868.8

Other
 
59.2

 
63.2

Gross deferred tax assets
 
1,852.6

 
2,123.9

Less: deferred tax valuation allowances
 
(218.5
)
 
(156.2
)
Deferred tax assets net of valuation allowances
 
$
1,634.1

 
$
1,967.7

Deferred tax liabilities:
 
 
 
 
Inventory and accounts receivable
 
$
(46.8
)
 
$
(48.8
)
Fixed assets and intangibles
 
(2,046.8
)
 
(2,090.6
)
Postemployment and other benefit liabilities
 
(3.3
)
 
(0.3
)
Other reserves and accruals
 
(6.0
)
 
(3.4
)
Other
 
(49.1
)
 
(6.0
)
Gross deferred tax liabilities
 
(2,152.0
)
 
(2,149.1
)
Net deferred tax assets (liabilities)
 
$
(517.9
)
 
$
(181.4
)
Summary of Tax Credit Carryforwards [Table Text Block] 
At December 31, 2013, the Company had the following operating loss and tax credit carryforwards available to offset taxable income in prior and future years:
In millions
 
Amount
 
Expiration
Period
U.S. Federal net operating loss carryforwards
 
$
895.0

 
2014-2033
U.S. Federal credit carryforwards
 
42.7

 
2014-Unlimited
U.S. State net operating loss carryforwards
 
3,044.2

 
2014-2033
U.S. State credit carryforwards
 
29.8

 
2014-Unlimited
Non-U.S. net operating loss carryforwards
 
1,128.0

 
2014-Unlimited
Non-U.S. credit carryforwards
 
1.0

 
Unlimited
Summary of Valuation Allowance 
Activity associated with the Company’s valuation allowance is as follows:
In millions
 
2013
 
2012
 
2011
Beginning balance
 
$
156.2

 
$
308.4

 
$
351.2

Increase to valuation allowance
 
89.3

 
44.5

 
14.9

Decrease to valuation allowance
 
(26.3
)
 
(192.4
)
 
(22.3
)
Other deductions
 
—

 
—

 
(0.3
)
Accumulated other comprehensive income (loss)
 
(0.7
)
 
(4.3
)
 
(35.1
)
Ending balance
 
$
218.5

 
$
156.2

 
$
308.4

Summary of Unrecognized Tax Benefits 
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
In millions
 
2013
 
2012
 
2011
Beginning balance
 
$
497.5

 
$
503.4

 
$
505.6

Additions based on tax positions related to the current year
 
19.9

 
8.5

 
16.1

Additions based on tax positions related to acquisitions
 
—

 
—

 
—

Additions based on tax positions related to prior years
 
152.9

 
88.2

 
56.7

Reductions based on tax positions related to prior years
 
(215.3
)
 
(24.1
)
 
(62.2
)
Reductions related to settlements with tax authorities
 
(84.7
)
 
(50.6
)
 
(3.7
)
Reductions related to lapses of statute of limitations
 
(8.4
)
 
(29.5
)
 
(9.2
)
Translation (gain) loss
 
1.4

 
1.6

 
0.1

Ending balance
 
$
363.3

 
$
497.5

 
$
503.4

Divestitures and Discontinued Operations (Tables)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2013
Allegion [Member]
Dec. 31, 2012
Allegion [Member]
Dec. 31, 2013
Other Discontinued Operations [Member]
Dec. 31, 2011
Hussmann Divestiture [Member]
Summarized Financial Information For Discontinued Operations Text Block [Table Text Block]
Text Block 
 
 
 
 
discontinued operations by business net of tax [Table Text Block]
 
Text Block 
 
 
 
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]
Text Block 
 
Text Block 1
Text Block 
Text Block 1
Schedule Of Disposal Groups Including Discontinued Operations Balance Sheet [Table Text Block]
 
 
Text Block 
 
 
Summarized Financial Information For Discontinued Operations Text Block [Table Text Block] 
The components of discontinued operations for the years ended December 31 are as follows:
In millions
 
2013
 
2012
 
2011
Net revenues
 
$
1,889.9

 
$
2,046.6

 
$
2,093.4

Pre-tax earnings (loss) from operations
 
$
84.7

 
$
379.5

 
$
355.7

Pre-tax gain (loss) on sale
 
—

 
2.3

 
(57.7
)
Tax benefit (expense)
 
(71.4
)
 
(129.8
)
 
(71.9
)
Discontinued operations, net of tax
 
$
13.3

 
$
252.0

 
$
226.1

discontinued operations by business net of tax [Table Text Block] 
Discontinued operations by business for the years ended December 31 are as follows: 
In millions
 
2013
 
2012
 
2011
Allegion, net of tax
 
$
12.4

 
$
254.2

 
$
275.7

Other discontinued operations, net of tax
 
0.9

 
(2.2
)
 
(49.6
)
Discontinued operations, net of tax
 
$
13.3

 
$
252.0

 
$
226.1

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] 
The operating results for the Hussmann Business and Branches are included in Net revenues and Segment operating income for the Climate segment for the years ended December 31 as follows:
In millions
2011
Net revenues
$
818.5

Segment operating income
$
58.6

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] 
Net revenues and after-tax earnings of Allegion for the year ended December 31 were as follows:
In millions
2013
 
2012
 
2011
Net revenues
$
1,889.9

 
$
2,046.6

 
$
2,021.2

After-tax earnings (loss) from operations *
$
12.4

 
$
254.2

 
$
275.7

* Included in After-tax earnings (loss) from operations for the year ended December 31, 2013 and 2012 are spin costs of $128 million and $5.7 million, respectively, and tax charges of $148.2 million. Also, the 2013 results include a $111.4 million non-cash goodwill impairment charge. See below for further discussion of the impairment.
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] 
The components of other discontinued operations for the years ended December 31 were as follows:
In millions
2013
 
2012
 
2011
Retained costs, net of tax
$
0.9

 
$
(16.2
)
 
$
(34.8
)
Net gain (loss) on disposals, net of tax
—

 
14.0

 
(14.8
)
Discontinued operations, net of tax
$
0.9

 
$
(2.2
)
 
$
(49.6
)
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] 
Results for the Hussmann Business and Branches for the years ended December 31, 2011 are as follows:
In millions
2011*
 
Net revenues
$
818.5

 
Gain (loss) on sale/asset impairment
(646.9
)
**
Net earnings (loss) attributable to Ingersoll-Rand plc
(513.1
)
 
Diluted earnings (loss) per share attributable to Ingersoll-Rand plc ordinary shareholders:
(1.51
)
 
* Results represent the operating results of Hussmann Business and Branches through their respective divestiture transaction dates.
** Included in Gain (loss) on sale/asset impairment for the year ended December 31, 2011 are transaction costs of $12.2 million.
Schedule Of Disposal Groups Including Discontinued Operations Balance Sheet [Table Text Block] 
The components of Allegion assets and liabilities recorded as held for spin-off on the Consolidated Balance Sheet at December 31, 2012 are as follows:
In millions
 
December 31,
2012
Assets
 

Current assets
 
$
726.1

Property, plant and equipment, net
 
226.5

Goodwill
 
646.3

Intangible assets, net
 
150.5

Other assets and deferred income taxes
 
68.0

Assets held for spin-off
 
$
1,817.4

Liabilities
 

Current liabilities
 
$
362.9

Noncurrent liabilities
 
168.9

Liabilities held for spin-off
 
$
531.8

Earnings Per Share (EPS) (Tables)
Weighted-Average Number of Ordinary Shares Outstanding for Basic and Diluted Earnings Per Share Calculations
The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations:
In millions
 
2013
 
2012
 
2011
Weighted-average number of basic shares
 
294.1

 
303.9

 
324.8

Shares issuable under incentive stock plans
 
4.2

 
3.7

 
3.8

Exchangeable Senior Notes
 
—

 
3.0

 
10.7

Weighted-average number of diluted shares
 
298.3

 
310.6

 
339.3

Anti-dilutive shares
 
19.1

 
5.2

 
5.0

Commitments and Contingencies (Tables)
Schedule Of Asbestos Related Balances [Table Text Block] 
The Company’s liability for asbestos-related matters and the asset for probable asbestos-related insurance recoveries are included in the following balance sheet accounts:
In millions
December 31,
2013
 
December 31,
2012
Accrued expenses and other current liabilities
$
69.1

 
$
69.1

Other noncurrent liabilities
777.1

 
810.4

Total asbestos-related liabilities
$
846.2

 
$
879.5

Other current assets
$
22.3

 
$
22.5

Other noncurrent assets
299.5

 
297.8

Total asset for probable asbestos-related insurance recoveries
$
321.8

 
$
320.3

Cost Income Asbestos Related Claims After Recoveries [Text Block] [Table Text Block] 
The (costs) income associated with the settlement and defense of asbestos-related claims after insurance recoveries, for the years ended December 31, were as follows:
In millions
 
2013
 
2012
 
2011
Continuing operations
 
$
(0.4
)
 
$
10.1

 
$
(1.9
)
Discontinued operations
 
(55.8
)
 
(17.9
)
 
(14.5
)
Total
 
$
(56.2
)
 
$
(7.8
)
 
$
(16.4
)
Schedule of Product Warranty Liability [Table Text Block] 
The changes in the standard product warranty liability for the year ended December 31, were as follows:
In millions
2013
 
2012
Balance at beginning of period
$
253.4

 
$
255.3

Reductions for payments
(156.7
)
 
(146.3
)
Accruals for warranties issued during the current period
153.9

 
144.6

Changes to accruals related to preexisting warranties
(5.5
)
 
(0.8
)
Translation
0.6

 
0.6

Balance at end of period
$
245.7

 
$
253.4

Schedule of Product Warranty Liability [Table Text Block] 
The changes in the extended warranty liability for the year ended December 31, were as follows:
In millions
2013
 
2012
Balance at beginning of period
$
375.1

 
$
372.0

Amortization of deferred revenue for the period
(105.6
)
 
(102.6
)
Additions for extended warranties issued during the period
87.1

 
105.2

Changes to accruals related to preexisting warranties
3.0

 
0.2

Translation
(0.5
)
 
0.3

Balance at end of period
$
359.1

 
$
375.1

Business Segment Information (Tables)
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] 
The operating results for the Hussmann Business and Branches are included in Net revenues and Segment operating income for the Climate segment for the years ended December 31 as follows:
In millions
2011
Net revenues
$
818.5

Segment operating income
$
58.6

Schedule of Segment Reporting Information by Segment 
A summary of operations by reportable segments for the years ended December 31 were as follows:
Dollar amounts in millions
 
2013
 
2012
 
2011
Climate
 
 
 
 
 
 
Net revenues
 
$
9,414.0

 
$
9,042.5

 
$
9,907.9

Segment operating income *
 
930.2

 
817.6

 
837.1

Segment operating income as a percentage of revenues
 
9.9
%
 
9.0
%
 
8.4
%
Depreciation and amortization
 
252.8

 
257.0

 
273.6

Capital expenditures
 
129.4

 
105.1

 
105.3

Industrial
 
 
 
 
 
 
Net revenues
 
2,936.5

 
2,945.8

 
2,852.9

Segment operating income
 
456.0

 
455.8

 
415.5

Segment operating income as a percentage of revenues
 
15.5
%
 
15.5
%
 
14.6
%
Depreciation and amortization
 
43.9

 
42.9

 
40.3

Capital expenditures
 
44.0

 
62.6

 
57.2

Total net revenues
 
$
12,350.5

 
$
11,988.3

 
$
12,760.8

Reconciliation to Operating Income
 
 
 
 
 
 
Segment operating income from reportable segments
 
1,386.2

 
1,273.4

 
1,252.6

Gain (loss) on sale/asset impairment *
 
—

 
4.5

 
(646.9
)
Unallocated corporate expense
 
(281.2
)
 
(206.0
)
 
(167.0
)
Total operating income
 
$
1,105.0

 
$
1,071.9

 
$
438.7

Total operating income as a percentage of revenues
 
8.9
%
 
8.9
%
 
3.4
%
Depreciation and amortization from reportable segments
 
296.7

 
299.9

 
313.9

Unallocated depreciation and amortization
 
37.0

 
33.9

 
44.6

Total depreciation and amortization
 
$
333.7


$
333.8


$
358.5

Capital expenditures from reportable segments
 
173.4

 
167.7

 
162.5

Corporate capital expenditures
 
68.8

 
51.8

 
54.6

Total capital expenditures
 
$
242.2

 
$
219.5

 
$
217.1


* During year ended December 31, 2011, the Company recorded a pre-tax loss on sale/asset impairment charge related to the Hussmann divestiture totaling $646.9 million. During the year ended December 31, 2012, the Company recorded $4.5 million of purchase price adjustments related to the Hussmann sale. These amounts have been excluded from Segment operating income within the Climate segment as management excludes these charges from Operating income when making operating decisions about the business.
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] 
Revenues by destination and long-lived assets by geographic area for the years ended December 31 were as follows:
In millions
 
2013
 
2012
 
2011
Revenues
 
 
 
 
 
 
United States
 
$
7,298.0

 
$
7,039.0

 
$
7,442.4

Non-U.S.
 
5,052.5

 
4,949.3

 
5,318.4

Total
 
$
12,350.5

 
$
11,988.3

 
$
12,760.8

Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] 
In millions
 
2013
 
2012
Long-lived assets
 
 
 
 
United States
 
$
2,216.8

 
$
2,090.9

Non-U.S.
 
571.6

 
783.6

Total
 
$
2,788.4

 
$
2,874.5

Spin Off Transaction Spin Off Transaction (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 1, 2013
Allegion [Member]
Dec. 31, 2013
Spinoff [Member]
Selling, General and Administrative Expenses [Member]
Dec. 31, 2012
Spinoff [Member]
Selling, General and Administrative Expenses [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Number of Spun Off Entity's Shares Held in Deferred Compensation Trust
7,045 
 
 
Restructuring Charges
 
$ 128.0 
$ 5.7 
Summary of Significant Accounting Policies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Ownership Percentage Policy Minimum [Member]
Dec. 31, 2013
Ownership Percentage Policy Maximum [Member]
Dec. 31, 2012
Hussmann Divestiture [Member]
Dec. 31, 2013
Hussmann Divestiture [Member]
Sep. 30, 2012
Hussmann Divestiture [Member]
Partially-owned equity affiliate ownership interest
 
 
 
20.00% 
50.00% 
 
37.20% 
40.00% 
Dividends received from equity investments
 
 
 
 
 
$ 44.3 
 
 
Percentage of LIFO inventory
45.00% 
55.00% 
 
 
 
 
 
 
Allowance for doubtful accounts receivable, current
35.4 
24.8 
 
 
 
 
 
 
Customer Refund Liability, Current
1.7 
2.1 
 
 
 
 
 
 
Deferred Sales Inducements, Net
80.1 
62.2 
 
 
 
 
 
 
Research and development expense
$ 218.2 
$ 235.4 
$ 218.4 
 
 
 
 
 
Summary of Significant Accounting Policies (Depreciation) (Details)
12 Months Ended
Dec. 31, 2013
Minimum [Member] |
Buildings [Member]
 
Property, plant and equipment, useful life
10 years 
Minimum [Member] |
Machinery and Equipment [Member]
 
Property, plant and equipment, useful life
2 years 
Minimum [Member] |
Software [Member]
 
Property, plant and equipment, useful life
2 years 
Maximum [Member] |
Buildings [Member]
 
Property, plant and equipment, useful life
50 years 
Maximum [Member] |
Machinery and Equipment [Member]
 
Property, plant and equipment, useful life
12 years 
Maximum [Member] |
Software [Member]
 
Property, plant and equipment, useful life
7 years 
Summary of Significant Accounting Policies (Weighted-Average) (Details)
12 Months Ended
Dec. 31, 2013
Customer Relationships [Member]
 
Weighted-average useful life
20 years 
Completed Technology/Patents [Member]
 
Weighted-average useful life
10 years 
Other Intangible Assets [Member]
 
Weighted-average useful life
15 years 
Inventories (Schedule of Major Classes of Inventory) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Raw materials
$ 378.0 
$ 423.2 
Work-in-process
100.7 
87.2 
Finished goods
760.2 
704.8 
Sub-total
1,238.9 
1,215.2 
LIFO reserve
(72.8)
(71.2)
Total
$ 1,166.1 
$ 1,144.0 
Property, Plant and Equipment (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Property, Plant and Equipment [Abstract]
 
 
 
Depreciation expense
$ 199.5 
$ 194.5 
$ 202.9 
Software amortization
$ 44.3 
$ 48.5 
$ 48.7 
Property, Plant and Equipment (Schedule of Major Classes of Property, Plant and Equipment) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 2,842.3 
$ 2,734.1 
Accumulated depreciation
(1,373.9)
(1,308.0)
Total
1,468.4 
1,426.1 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
64.2 
67.1 
Buildings [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
654.8 
582.5 
Machinery and Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
1,612.0 
1,544.9 
Software [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property, plant and equipment, gross
$ 511.3 
$ 539.6 
Goodwill (Details) (USD $)
12 Months Ended 9 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2008
Dec. 31, 2013
Climate [Member]
Dec. 31, 2012
Climate [Member]
Dec. 31, 2013
Industrial [Member]
Dec. 31, 2012
Industrial [Member]
Sep. 30, 2013
Allegion [Member]
Sep. 30, 2013
Allegion [Member]
Security Technologies [Member]
Goodwill, gross, beginning balance
$ 7,988,600,000 
$ 7,960,000,000 
 
 
$ 7,619,900,000 
$ 7,593,200,000 
$ 368,700,000 
$ 366,800,000 
 
 
Acquisitions and adjustments
0 
(3,800,000)
 
 
(1,100,000)
(3,800,000)1
1,100,000 
0 
 
 
Currency translation
48,000,000 
32,400,000 
 
 
44,800,000 
30,500,000 
3,200,000 
1,900,000 
 
 
Goodwill, gross, ending balance
8,036,600,000 
7,988,600,000 
7,960,000,000 
 
7,663,600,000 
7,619,900,000 
373,000,000 
368,700,000 
 
 
Goodwill, Accumulated Impairment Loss
(2,496,000,000)2
 
 
 
(2,496,000,000)2
 
0 2
 
 
 
Goodwill, net
5,540,600,000 
5,492,600,000 
 
 
5,167,600,000 
 
373,000,000 
 
 
 
Goodwill, Purchase Accounting Adjustments
 
 
 
 
 
(4,800,000)
 
 
 
 
Goodwill, Impairment Loss
$ 0 
$ 0 
$ 0 
$ 2,496,000,000 
 
 
 
 
$ 111,400,000 
$ 111,400,000 
Intangible Assets Intangible Assets Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Intangible Assets Abstract
 
 
 
Amortization of intangible assets
$ 128.9 
$ 129.2 
$ 132.2 
Future estimated amortization expense, 2014
118 
 
 
Future estimated amortization expense, 2015
116 
 
 
Future estimated amortization expense, 2016
101 
 
 
Future estimated amortization expense, 2017
101 
 
 
Future estimated amortization expense, 2018
$ 100 
 
 
Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Finite-lived intangible assets, gross
$ 2,100.4 
$ 2,098.4 
Accumulated amortization
(780.4)
(650.0)
Total net finite-lived intangible assets
1,320.0 
1,448.4 
Total intangible assets, excluding goodwill, gross
4,702.4 
4,700.4 
Intangible assets, net
3,922.0 
4,050.4 
Trademarks [Member]
 
 
Trademarks, indefinite lived
2,602.0 
2,602.0 
Completed Technology/Patents [Member]
 
 
Finite-lived intangible assets, gross
174.1 
179.1 
Accumulated amortization
(128.7)
(112.7)
Total net finite-lived intangible assets
45.4 
66.4 
Customer Relationships [Member]
 
 
Finite-lived intangible assets, gross
1,865.9 
1,863.1 
Accumulated amortization
(599.5)
(490.7)
Total net finite-lived intangible assets
1,266.4 
1,372.4 
Other Intangible Assets [Member]
 
 
Finite-lived intangible assets, gross
60.4 
56.2 
Accumulated amortization
(52.2)
(46.6)
Total net finite-lived intangible assets
$ 8.2 
$ 9.6 
Debt and Credit Facilities (Narrative) (Details) (USD $)
12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 9 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Sep. 30, 2013
Jul. 31, 2013
Nine Point Five Zero Percent Senior Notes Due Two Thousand Fourteen [Member]
Dec. 31, 2013
5.50% Senior Notes Due 2015 [Member]
Dec. 31, 2013
4.75% Senior Notes Due 2015 [Member]
Dec. 31, 2013
6.875% Senior Notes Due 2018 [Member]
Jun. 30, 2013
2.875% Senior Notes Due 2019 [Member]
Dec. 31, 2013
9.00% Debentures Due 2021 [Member]
Jun. 30, 2013
4.250% Senior Notes Due 2013 [Member]
Dec. 31, 2013
7.20% Debentures Due 2014-2025 [Member]
Dec. 31, 2013
6.48% Debentures Due 2025 [Member]
Jun. 30, 2013
5.750% Senior Notes Due 2043 [Member]
Dec. 31, 2013
Other Loans And Notes [Member]
Dec. 31, 2012
Other Loans And Notes [Member]
Jun. 30, 2013
Senior Notes Issued in 2013 [Member]
Dec. 31, 2013
Debentures With Put Feature [Member]
Oct. 15, 2013
Debentures With Put Feature [Member]
Feb. 15, 2013
Debentures With Put Feature [Member]
Dec. 31, 2012
Debentures With Put Feature [Member]
Jul. 31, 2013
Six Point Zero Zero Zero Percent Senior Notes Due Two Thousand Thirteen [Member]
Dec. 31, 2013
Six Point Zero Zero Zero Percent Senior Notes Due Two Thousand Thirteen [Member]
Dec. 31, 2012
Six Point Zero Zero Zero Percent Senior Notes Due Two Thousand Thirteen [Member]
Sep. 30, 2013
Four Year Revolving Credit Facility Member [Member]
Sep. 30, 2013
Five Year Revolving Credit Facility [Member]
Dec. 31, 2013
Non-U.S. [Member]
Weighted average interest rate on short term borrowings and current maturities of long term debt
6.50% 
6.20% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other loans and notes, maturing in various amounts to 2019, end of year average interest rates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.01% 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper program maximum aggregate amount available to be issued
$ 2,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial Paper Program, amounts outstanding
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings and current maturities of long-term debt
367,700,000 
962,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
343,000,000 
 
 
343,000,000 
 
0 
600,000,000 
 
 
 
Debt instrument, maturity date range, start
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jan. 01, 2027 
 
 
 
 
 
 
 
 
 
Debt instrument, maturity date range, end
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dec. 31, 2028 
 
 
 
 
 
 
 
 
 
Debentures with put option available to be excercised
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
305,800,000 
37,200,000 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
350,000,000 
 
700,000,000 
 
 
500,000,000 
 
 
1,550,000,000 
 
 
 
 
 
 
 
 
 
 
Debt instrument, interest rate
 
 
 
 
9.50% 
5.50% 
4.75% 
6.875% 
2.875% 
9.00% 
4.25% 
7.20% 
6.48% 
5.75% 
 
 
 
 
 
 
 
6.00% 
6.00% 
 
 
 
 
Repayments of Long-term Debt
1,265,000,000 
418,900,000 
91,900,000 
 
655,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
600,000,000 
 
 
 
 
 
Redemption Premium
 
 
 
 
45,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum borrowing capacity
 
 
 
2,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000,000 
1,000,000,000 
 
Line of credit facility, expiration date
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 20, 2015 
Mar. 15, 2017 
 
Other available Non-US lines of credit, borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
907,300,000 
Other available Non-US lines of credit, remaining borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
660,000,000 
Debt Instrument, Fair Value Disclosure
$ 3,803,800,000 
$ 3,663,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and Credit Facilities (Short-Term Borrowings and Current Maturities of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Jul. 31, 2013
Dec. 31, 2012
Short-term Debt [Line Items]
 
 
 
Short-term borrowings and current maturities of long-term debt
$ 367.7 
 
$ 962.9 
Debentures With Put Feature [Member]
 
 
 
Short-term Debt [Line Items]
 
 
 
Short-term borrowings and current maturities of long-term debt
343.0 
 
343.0 
Six Point Zero Zero Zero Percent Senior Notes Due Two Thousand Thirteen [Member]
 
 
 
Short-term Debt [Line Items]
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
6.00% 
6.00% 
 
Short-term borrowings and current maturities of long-term debt
0 
 
600.0 
Other Current Maturities of Long Term Debt [Member]
 
 
 
Short-term Debt [Line Items]
 
 
 
Short-term borrowings and current maturities of long-term debt
8.0 
 
10.0 
Other Short Term Borrowings [Member]
 
 
 
Short-term Debt [Line Items]
 
 
 
Short-term borrowings and current maturities of long-term debt
$ 16.7 
 
$ 9.9 
Debt and Credit Facilities (Long-Term Debt Excluding Current Maturities) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Long-term debt excluding current maturities
$ 3,153.5 
$ 2,266.5 
9.500% Senior Notes Due 2014 [Member]
 
 
Long-term debt excluding current maturities
0 
655.0 
5.50% Senior Notes Due 2015 [Member]
 
 
Long-term debt excluding current maturities
198.1 
196.4 
4.75% Senior Notes Due 2015 [Member]
 
 
Long-term debt excluding current maturities
299.8 
299.7 
6.875% Senior Notes Due 2018 [Member]
 
 
Long-term debt excluding current maturities
749.5 
749.4 
2.875% Senior Notes Due 2019 [Member]
 
 
Long-term debt excluding current maturities
349.5 
0 
9.00% Debentures Due 2021 [Member]
 
 
Long-term debt excluding current maturities
125.0 
125.0 
4.250% Senior Notes Due 2013 [Member]
 
 
Long-term debt excluding current maturities
698.8 
0 
7.20% Debentures Due 2014-2025 [Member]
 
 
Long-term debt excluding current maturities
82.5 
90.0 
6.48% Debentures Due 2025 [Member]
 
 
Long-term debt excluding current maturities
149.7 
149.7 
5.750% Senior Notes Due 2043 [Member]
 
 
Long-term debt excluding current maturities
498.0 
0 
Other Loans And Notes [Member]
 
 
Long-term debt excluding current maturities
$ 2.6 
$ 1.3 
Debt and Credit Facilities (Long-Term Debt Maturities and Repayment of Principle) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
2014
$ 351.0 
2015
507.2 
2016
7.8 
2017
7.7 
2018
757.2 
Thereafter
1,873.6 
Total
$ 3,504.5 
Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Sep. 30, 2008
Senior Notes Due In Two Thousand Thirteen Fifteen And Eighteen [Member] [Domain]
Dec. 31, 2013
Six Point Zero Zero Zero Percent Senior Notes Due Two Thousand Thirteen [Member]
Dec. 31, 2013
Senior Notes Due In Two Thousand Thirteen And Eighteen [Member]
Third Quarter 2008 Interest Rate Locks [Member]
Dec. 31, 2012
Senior Notes Due In Two Thousand Thirteen And Eighteen [Member]
Third Quarter 2008 Interest Rate Locks [Member]
Mar. 31, 2005
Senior Notes Due In 2015 [Member]
Dec. 31, 2013
Designated as Hedging Instrument [Member]
Dec. 31, 2012
Designated as Hedging Instrument [Member]
Jun. 30, 2013
Senior Notes Issued in 2013 [Member]
Dec. 31, 2013
Senior Notes Issued in 2013 [Member]
Interest Rate Swap [Member]
Mar. 31, 2013
Senior Notes Issued in 2013 [Member]
Interest Rate Swap [Member]
Mar. 31, 2013
Senior Notes Due 2023 and 2043 [Member]
Derivative, Notional Amount
$ 1,510.0 
$ 1,613.6 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive income (loss), derivatives qualifying as hedges, net of tax
(166.7)
(521.0)
(553.6)
 
 
 
 
 
(3.1)
(3.8)
 
 
 
 
Currency derivatives expected to be reclassified into earnings over the next twelve months
(3.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Approximate maximum term of currency derivatives, in months
12 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
1,700.0 
 
 
 
300.0 
 
 
1,550.0 
 
750.0 
1,200.0 
Repayments of Long-term Debt
1,265.0 
418.9 
91.9 
 
600.0 
 
 
 
 
 
 
 
 
 
Deferred losses remaining in AOCI related to the interest rate locks
 
 
 
 
 
7.4 
10.3 
 
 
 
 
10.1 
 
 
Amount expected to be reclassified into interest expense over the next twelve months
 
 
 
 
 
$ 2.5 
 
 
 
 
 
$ 0.7 
 
 
Financial Instruments Schedule of Fair Values of Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Designated Hedges [Member]
 
 
Derivatives designated as hedges, asset
$ 0.1 
$ 0 
Derivatives designated as hedges, liability
3.4 
4.3 
Undesignated Hedges [Member]
 
 
Derivatives not designated as hedges, asset
3.1 
4.6 
Derivatives not designated as hedges, liability
13.6 
7.1 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Derivative instruments, gross asset
3.2 
4.6 
Derivative instruments, gross liability
$ 17.0 
$ 11.4 
Financial Instruments Schedule of Derivatives Designated as Hedges Affecting Income Statement and Accumulated Other Comprehensive Income (Details) (Designated Hedges [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Derivative instruments, gain (loss) recognized in Other comprehensive income (loss), effective portion, net
$ 2.7 
$ (7.2)
$ 2.4 
Derivative instruments, gain (loss) reclassified from Accumulated OCI into Income, effective portion, net
(12.1)
(2.8)
(2.8)
Currency Derivatives [Member]
 
 
 
Derivative instruments, gain (loss) recognized in Other comprehensive income (loss), effective portion, net
(9.8)
(6.1)
2.1 
Interest Rate Swap [Member]
 
 
 
Derivative instruments, gain (loss) recognized in Other comprehensive income (loss), effective portion, net
10.5 
0 
0 
Interest Rate Locks [Member]
 
 
 
Derivative instruments, gain (loss) recognized in Other comprehensive income (loss), effective portion, net
0 
0 
0 
Cost of goods sold [Member] |
Currency Derivatives [Member]
 
 
 
Derivative instruments, gain (loss) reclassified from Accumulated OCI into Income, effective portion, net
(10.8)
0.4 
1.4 
Interest Expense [Member] |
Interest Rate Swap [Member]
 
 
 
Derivative instruments, gain (loss) reclassified from Accumulated OCI into Income, effective portion, net
0.4 
0 
0 
Interest Expense [Member] |
Interest Rate Locks [Member]
 
 
 
Derivative instruments, gain (loss) reclassified from Accumulated OCI into Income, effective portion, net
(2.8)
(3.0)
(2.9)
Allegion [Member] |
Currency Derivatives [Member]
 
 
 
Derivative instruments, gain (loss) recognized in Other comprehensive income (loss), effective portion, net
2.0 
(1.1)
0.3 
Allegion [Member] |
Discontinued Operations [Member] |
Currency Derivatives [Member]
 
 
 
Derivative instruments, gain (loss) reclassified from Accumulated OCI into Income, effective portion, net
$ 1.1 
$ (0.2)
$ (1.3)
Financial Instruments Schedule of Gains and Losses of Derivative Financial Instruments Not Designated as Hedges (Details) (Undesignated Hedges [Member], Foreign Exchange [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Derivative instruments, gain (loss) recognized in Income, net
$ (42.2)
$ 28.5 
$ (7.4)
Other, net [Member]
 
 
 
Derivative instruments, gain (loss) recognized in Income, net
$ (42.2)
$ 28.5 
$ (7.4)
Pensions and Postretirement Benefits Other Than Pensions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
Pension Plans [Member]
Dec. 31, 2011
Pension Plans [Member]
Dec. 31, 2013
U.S. Plans [Member]
Dec. 31, 2013
Foreign Pension Plan Defined Contribution [Member]
Dec. 31, 2012
Foreign Pension Plan Defined Contribution [Member]
Dec. 31, 2011
Foreign Pension Plan Defined Contribution [Member]
Dec. 31, 2013
United States Pension Plan Defined Contribution [Member]
Dec. 31, 2012
United States Pension Plan Defined Contribution [Member]
Dec. 31, 2011
United States Pension Plan Defined Contribution [Member]
Dec. 31, 2013
Postretirement [Member]
Dec. 31, 2012
Postretirement [Member]
Dec. 31, 2011
Postretirement [Member]
Dec. 31, 2013
Postretirement Benefit Costs [Member]
Dec. 31, 2012
Postretirement Benefit Costs [Member]
Dec. 31, 2011
Postretirement Benefit Costs [Member]
Dec. 31, 2013
Pension Cost [Member]
Dec. 31, 2012
Pension Cost [Member]
Dec. 31, 2011
Pension Cost [Member]
Dec. 31, 2013
Allegion [Member]
Dec. 31, 2012
Allegion [Member]
Dec. 31, 2013
Allegion [Member]
Postretirement [Member]
Dec. 31, 2012
Allegion [Member]
Postretirement [Member]
Dec. 31, 2012
Hussmann Divestiture [Member]
Dec. 31, 2013
Update for plan amendment in 2012 [Member]
Pension Plans [Member]
Dec. 31, 2012
Update for plan amendment in 2012 [Member]
Postretirement [Member]
Feb. 2, 2012
Update for plan amendment in 2012 [Member]
Postretirement [Member]
Dec. 31, 2012
Prior to 2012 plan amendment [Member]
U.S. Plans [Member]
Dec. 31, 2012
Prior to 2012 plan amendment [Member]
Postretirement [Member]
Dec. 31, 2013
Change In Plan Assets [Member]
Pension Plans [Member]
Dec. 31, 2012
Change In Plan Assets [Member]
Pension Plans [Member]
Dec. 31, 2011
Change In Plan Assets [Member]
Pension Plans [Member]
Dec. 31, 2013
Pension Plans [Member]
Allegion [Member]
Dec. 31, 2013
Postretirement [Member]
Allegion [Member]
Dec. 31, 2013
Fixed Income Investments [Member]
Dec. 31, 2012
Fixed Income Investments [Member]
Dec. 31, 2013
Fixed Income Investments [Member]
Registered mutual funds, fixed income specialty [Member]
Dec. 31, 2012
Fixed Income Investments [Member]
Registered mutual funds, fixed income specialty [Member]
Dec. 31, 2013
Fixed Income Investments [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2012
Fixed Income Investments [Member]
Fair Value, Inputs, Level 1 [Member]
Dec. 31, 2013
Fixed Income Investments [Member]
Fair Value, Inputs, Level 1 [Member]
Registered mutual funds, fixed income specialty [Member]
Dec. 31, 2012
Fixed Income Investments [Member]
Fair Value, Inputs, Level 1 [Member]
Registered mutual funds, fixed income specialty [Member]
Defined Benefit Plan, Divestitures, Payable in Spinoff Transaction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (20.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Pension Plan Obligations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(631.1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Benefit Plan, Divestitures, Plan Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(543.5)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
164.8 
(5.6)
 
 
 
 
 
 
 
 
Defined benefit plan, fair value of pension plan assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,779.2 
3,310.2 
3,100.4 
 
 
1,834.1 
2,255.0 
32.3 1
33.8 1
32.3 
33.8 
32.3 1
33.8 1
Defined contribution plan employer nonmatching contribution percent
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
 
 
 
4.75% 
 
 
 
 
 
 
4.25% 
 
4.00% 
 
 
 
 
 
 
 
 
 
 
 
4.00% 
 
3.75% 
3.75% 
3.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Curtailment loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(4.0)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation increase (decrease)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.0 
(40.5)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan assets increase (decrease)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.7 
5.1 
5.6 
 
 
 
 
 
(4.0)
(61.8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of our projected benefit obligation relates to plans that cannot be funded
6.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated benefit obligation for all defined benefit pension plans
3,194.8 
4,032.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation
3,291.3 
4,182.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated benefit obligation
3,159.3 
3,994.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets
2,735.5 
3,263.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected pension expenses for 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
105.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected prior service cost for 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(10.3)
(10.3)
(3.5)
4.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected net actuarial losses for 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company contributions
 
 
 
 
57.3 
 
33.8 
27.1 
28.8 
89.0 
76.8 
79.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
109.7 
89.1 
 
 
 
 
 
 
 
 
 
 
 
Projected company contributions in 2013
 
 
 
154.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Multiemployer plan, period contributions
5.4 
5.4 
5.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Postretirement Obligations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(14.1)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net of Medicare Part D subsidy
12.8 
0.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Postretirement benefit cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Projected prior service gains in 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Plan net actuarial gains (losses)
 
 
 
 
 
 
 
 
 
 
 
 
$ 109.8 
$ (15.4)
 
$ 6.5 
$ 7.3 
$ 1.6 
$ 63.0 
$ 60.6 
$ 51.1 
 
 
 
 
 
$ (28.4)
$ 21.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Company's Pension Plans) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Pension Plans [Member]
Dec. 31, 2013
Pension Plans [Member]
Dec. 31, 2012
Pension Plans [Member]
Dec. 31, 2013
Change In Benefit Obligations [Member]
Pension Plans [Member]
Dec. 31, 2012
Change In Benefit Obligations [Member]
Pension Plans [Member]
Dec. 31, 2013
Change In Plan Assets [Member]
Pension Plans [Member]
Dec. 31, 2012
Change In Plan Assets [Member]
Pension Plans [Member]
Dec. 31, 2013
Allegion [Member]
Dec. 31, 2012
Allegion [Member]
Change in benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
 
 
 
 
 
$ 4,228.6 
$ 3,841.1 
 
 
 
 
Service cost
 
 
 
 
 
88.5 
96.8 
 
 
 
 
Interest cost
 
 
 
 
 
156.9 
163.6 
 
 
 
 
Employee contributions
 
 
 
 
 
1.5 
1.5 
1.5 
1.5 
 
 
Amendments
 
 
 
 
 
1.2 
3.4 
 
 
 
 
Actuarial (gains) losses
 
 
 
 
 
(314.4)
374.3 
 
 
 
 
Benefits paid
 
 
 
 
 
(211.6)
(217.2)
(211.6)
(217.2)
 
 
Currency translation
 
 
 
 
 
19.5 
37.4 
 
 
 
 
Curtailments and settlements
 
 
 
 
 
(3.7)
(63.4)
 
 
 
 
Increase (Decrease) in Pension Plan Obligations
 
 
 
 
 
 
 
 
 
(631.1)
 
Other, including expenses paid
 
 
 
 
 
(2.2)
(8.9)
(2.1)
(9.5)
 
 
Benefit obligation at end of year
 
 
 
 
 
3,333.2 
4,228.6 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
 
 
 
 
Fair value at beginning of year
 
 
 
 
 
 
 
3,310.2 
3,100.4 
 
 
Actual return on assets
 
 
 
 
 
 
 
98.9 
320.5 
 
 
Company contributions
 
 
57.3 
 
 
 
 
109.7 
89.1 
 
 
Employee contributions
 
 
 
 
 
1.5 
1.5 
1.5 
1.5 
 
 
Benefits paid
 
 
 
 
 
(211.6)
(217.2)
(211.6)
(217.2)
 
 
Currency translation
 
 
 
 
 
 
 
17.7 
31.0 
 
 
Settlements
 
 
 
 
 
 
 
(1.6)
(5.6)
 
 
Impact of spin-off
 
 
 
 
 
 
 
 
 
(543.5)
0 
Other, including expenses paid
 
 
 
 
 
(2.2)
(8.9)
(2.1)
(9.5)
 
 
Fair value at end of year
 
 
 
 
 
 
 
2,779.2 
3,310.2 
 
 
Funded status:
 
 
 
 
 
 
 
 
 
 
 
Plan assets less than the benefit obligations
 
 
 
(554.0)
(918.4)
 
 
 
 
 
 
Amounts included in the balance sheet:
 
 
 
 
 
 
 
 
 
 
 
Other noncurrent assets
1,010.4 
1,519.1 
 
4.3 
5.1 
 
 
 
 
 
 
Accrued compensation and benefits
 
 
 
(30.8)
(9.0)
 
 
 
 
 
 
Postemployment and other benefit liabilities
 
 
 
(527.5)
(799.6)
 
 
 
 
 
 
Liabilities held-for-sale
0 
(531.8)
 
0 
(114.9)
 
 
 
 
 
 
Net amount recognized
 
 
 
$ (554.0)
$ (918.4)
 
 
 
 
 
 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Pretax Amounts Recognized in Accumulated Other Comprehensive Income or (Loss)) (Details) (Pension Plans [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Balance at December 31, 2011
$ (1,342.4)
Current year changes recorded to Accumulated other comprehensive income (loss)
247.8 
Amortization reclassified to earnings
67.7 
Settlements/curtailments reclassified to earnings
0.7 
Currency translation and other
(5.4)
Balance at December 31, 2012
(866.8)
Prior Service Cost [Member]
 
Balance at December 31, 2011
(23.5)
Current year changes recorded to Accumulated other comprehensive income (loss)
(1.2)
Amortization reclassified to earnings
4.7 
Settlements/curtailments reclassified to earnings
0 
Currency translation and other
0 
Balance at December 31, 2012
(17.7)
Net Actuarial Losses [Member]
 
Balance at December 31, 2011
(1,318.9)
Current year changes recorded to Accumulated other comprehensive income (loss)
249.0 
Amortization reclassified to earnings
63.0 
Settlements/curtailments reclassified to earnings
0.7 
Currency translation and other
(5.4)
Balance at December 31, 2012
(849.1)
Allegion [Member]
 
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
164.8 
Allegion [Member] |
Prior Service Cost [Member]
 
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
2.3 
Allegion [Member] |
Net Actuarial Losses [Member]
 
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax
$ 162.5 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Defined Benefit Plan Weighted Average Assumptions) (Details)
Dec. 31, 2013
Dec. 31, 2012
U.S. Plans [Member]
 
 
Discount rate
4.75% 
 
Rate of compensation increase
4.00% 
4.00% 
Non-U.S. Plans [Member]
 
 
Discount rate
4.25% 
4.25% 
Rate of compensation increase
4.25% 
4.00% 
Prior to 2012 plan amendment [Member] |
U.S. Plans [Member]
 
 
Discount rate
 
3.75% 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Defined Benefit Plan Pension Benefit Payments) (Details) (Pension Plans [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Pension Plans [Member]
 
2014
$ 219.3 
2015
201.0 
2016
199.0 
2017
205.2 
2018
214.6 
2019-2023
$ 1,142.9 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Net Periodic Benefit Cost) (Details) (Pension Costs [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Service cost
$ 88.5 
$ 96.8 
$ 93.5 
Interest cost
156.9 
163.6 
185.5 
Expected return on plan assets
(166.3)
(173.6)
(219.6)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)
4.7 
5.1 
5.6 
Transition amount, net amortization of
0 
0 
0 
Plan net actuarial losses, net amortization of
63.0 
60.6 
51.1 
Net periodic benefit cost
146.8 
152.5 
116.1 
Net curtailment and settlement (gains) losses
0.7 
4.9 
62.5 
Net periodic benefit cost after net curtailment and settlement (gains) losses
147.5 
157.4 
178.6 
Segment, Continuing Operations [Member]
 
 
 
Net periodic benefit cost after net curtailment and settlement (gains) losses
119.2 
125.5 
160.8 
Segment, Discontinued Operations [Member]
 
 
 
Net periodic benefit cost after net curtailment and settlement (gains) losses
$ 28.3 
$ 31.9 
$ 17.8 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Weighted Average Assumptions Net Periodic Pension Cost) (Details)
1 Months Ended 5 Months Ended 6 Months Ended 7 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Jun. 7, 2013
Jun. 7, 2012
Nov. 30, 2012
Dec. 31, 2013
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
U.S. Plans [Member]
 
 
 
 
 
 
 
 
 
 
Discount rate
4.50% 
4.00% 
5.00% 
3.75% 
4.25% 
4.00% 
3.75% 
 
 
5.00% 
Rate of compensation increase
 
 
 
 
 
 
 
4.00% 
4.00% 
4.00% 
Percentage of expected return on plan assets
 
 
 
 
 
 
 
5.25% 
5.75% 
7.25% 
Non-U.S. Plans [Member]
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
 
 
 
 
 
4.25% 
5.00% 
5.50% 
Rate of compensation increase
 
 
 
 
 
 
 
4.00% 
4.00% 
4.50% 
Percentage of expected return on plan assets
 
 
 
 
 
 
 
5.00% 
5.75% 
6.25% 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Fair Values of Company's Pension Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Receivables and payables, net
$ (7.1)
$ (0.7)
Derivative [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
(0.1)
Derivative [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
0 
Derivative [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
(0.1)
Derivative [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
0 
Real Estate Funds [Member]
 
 
Defined benefit plan, fair value of pension plan assets
19.3 1
29.2 1
Real Estate Funds [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 1
0 1
Real Estate Funds [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 1
0 1
Real Estate Funds [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
19.3 1
29.2 1
Other Defined Benefit [Member]
 
 
Defined benefit plan, fair value of pension plan assets
58.1 2
54.4 2
Other Defined Benefit [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 2
0 2
Other Defined Benefit [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 2
0 2
Other Defined Benefit [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
58.1 2
54.4 2
Cash and Cash Equivalents [Member]
 
 
Defined benefit plan, fair value of pension plan assets
42.0 
31.3 
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
4.1 
5.8 
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
37.9 
25.5 
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
0 
Registered mutual funds, equity specialty [Member]
 
 
Defined benefit plan, fair value of pension plan assets
6.0 3
5.9 3
Registered mutual funds, equity specialty [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
6.0 3
5.9 3
Registered mutual funds, equity specialty [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 3
0 3
Registered mutual funds, equity specialty [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 3
0 3
Equity Securities [Member]
 
 
Defined benefit plan, fair value of pension plan assets
832.8 
941.1 
Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
6.0 
5.9 
Equity Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
826.8 
935.2 
Equity Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
0 
Commingled funds, equity specialty [Member]
 
 
Defined benefit plan, fair value of pension plan assets
826.8 3
935.2 3
Commingled funds, equity specialty [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 3
0 3
Commingled funds, equity specialty [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
826.8 3
935.2 3
Commingled funds, equity specialty [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 3
0 3
Fixed Income Investments [Member]
 
 
Defined benefit plan, fair value of pension plan assets
1,834.1 
2,255.0 
Fixed Income Investments [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
32.3 
33.8 
Fixed Income Investments [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
1,779.2 
2,199.3 
Fixed Income Investments [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
22.6 
21.9 
Fixed Income Investments [Member] |
Registered mutual funds, fixed income specialty [Member]
 
 
Defined benefit plan, fair value of pension plan assets
32.3 4
33.8 4
Fixed Income Investments [Member] |
Registered mutual funds, fixed income specialty [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
32.3 4
33.8 4
Fixed Income Investments [Member] |
Registered mutual funds, fixed income specialty [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 4
0 4
Fixed Income Investments [Member] |
Registered mutual funds, fixed income specialty [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 4
0 4
Fixed Income Investments [Member] |
U.S. Government and Agency Obligations [Member]
 
 
Defined benefit plan, fair value of pension plan assets
702.9 
817.0 
Fixed Income Investments [Member] |
U.S. Government and Agency Obligations [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
0 
Fixed Income Investments [Member] |
U.S. Government and Agency Obligations [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
702.9 
817.0 
Fixed Income Investments [Member] |
U.S. Government and Agency Obligations [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
0 
Fixed Income Investments [Member] |
Corporate and Non-U.S. Bonds [Member]
 
 
Defined benefit plan, fair value of pension plan assets
748.4 5
890.2 5
Fixed Income Investments [Member] |
Corporate and Non-U.S. Bonds [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 5
0 5
Fixed Income Investments [Member] |
Corporate and Non-U.S. Bonds [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
748.4 5
890.2 5
Fixed Income Investments [Member] |
Corporate and Non-U.S. Bonds [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 5
0 5
Fixed Income Investments [Member] |
Asset-Backed And Mortgage-Backed Securities [Member]
 
 
Defined benefit plan, fair value of pension plan assets
59.4 
53.0 
Fixed Income Investments [Member] |
Asset-Backed And Mortgage-Backed Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
0 
Fixed Income Investments [Member] |
Asset-Backed And Mortgage-Backed Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
59.4 
53.0 
Fixed Income Investments [Member] |
Asset-Backed And Mortgage-Backed Securities [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 
0 
Fixed Income Investments [Member] |
Commingled Funds - Fixed Income Specialty [Member]
 
 
Defined benefit plan, fair value of pension plan assets
268.5 4
439.1 4
Fixed Income Investments [Member] |
Commingled Funds - Fixed Income Specialty [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 4
0 4
Fixed Income Investments [Member] |
Commingled Funds - Fixed Income Specialty [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
268.5 4
439.1 4
Fixed Income Investments [Member] |
Commingled Funds - Fixed Income Specialty [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 4
0 4
Fixed Income Investments [Member] |
Other Fixed Income [Member]
 
 
Defined benefit plan, fair value of pension plan assets
22.6 6
21.9 6
Fixed Income Investments [Member] |
Other Fixed Income [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 6
0 6
Fixed Income Investments [Member] |
Other Fixed Income [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
0 6
0 6
Fixed Income Investments [Member] |
Other Fixed Income [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
22.6 6
21.9 6
Gross of receivables and payables [Member]
 
 
Defined benefit plan, fair value of pension plan assets
2,786.3 
3,310.9 
Gross of receivables and payables [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
42.4 
45.5 
Gross of receivables and payables [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
2,643.9 
3,159.9 
Gross of receivables and payables [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Defined benefit plan, fair value of pension plan assets
100.0 
105.5 
Net of receivables and payables [Member]
 
 
Defined benefit plan, fair value of pension plan assets
$ 2,779.2 
$ 3,310.2 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Company's Postretirement Plans Benefit Obligations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Postretirement [Member]
 
 
Benefit obligation at beginning of year
$ 851.4 
$ 919.9 
Service cost
6.6 
7.3 
Interest cost
26.0 
30.8 
Plan participants' contributions
11.2 
19.1 
Actuarial (gains) losses
(109.8)
15.4 
Benefits paid, net of Medicare Part D subsidy
(56.4)1
(78.8)1
Settlements/curtailments
0 
0 
Amendments
0 
(62.3)
Other, including expenses paid
(1.6)
0 
Benefit obligation at end of year
713.3 
851.4 
Allegion [Member]
 
 
Increase (Decrease) in Pension Plan Obligations
(631.1)
 
Allegion [Member] |
Postretirement [Member]
 
 
Increase (Decrease) in Postretirement Obligations
$ (14.1)
$ 0 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Company's Postretirement Plans Funded Status) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Amounts included in the balance sheet:
 
 
Liabilities of Assets Held-for-sale
$ 0 
$ (531.8)
Postretirement [Member]
 
 
Plan assets less than the benefit obligations
(713.3)
(851.4)
Amounts included in the balance sheet:
 
 
Accrued compensation and benefits
(65.2)
(67.2)
Postemployment and other benefit liabilities
(648.1)
(766.2)
Liabilities of Assets Held-for-sale
0 
(18.0)
Net amount recognized
$ (713.3)
$ (851.4)
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Pretax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Other Than Pension) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Postretirement [Member]
 
Balance at December 31, 2011
$ (123.4)
Current year changes recorded to Accumulated other comprehensive income (loss)
109.9 
Amortization reclassified to earnings
(3.8)
Balance at December 31, 2012
(22.9)
Postretirement [Member] |
Net Actuarial Losses [Member]
 
Balance at December 31, 2011
(180.3)
Current year changes recorded to Accumulated other comprehensive income (loss)
109.9 
Amortization reclassified to earnings
6.5 
Settlements/curtailments reclassified to earnings
1.6 
Balance at December 31, 2012
(62.3)
Postretirement [Member] |
prior service gains [Member]
 
Balance at December 31, 2011
56.9 
Current year changes recorded to Accumulated other comprehensive income (loss)
0 
Amortization reclassified to earnings
(10.3)
Settlements/curtailments reclassified to earnings
(7.2)
Balance at December 31, 2012
39.4 
Pension Plans [Member]
 
Balance at December 31, 2011
(1,342.4)
Current year changes recorded to Accumulated other comprehensive income (loss)
247.8 
Amortization reclassified to earnings
67.7 
Settlements/curtailments reclassified to earnings
0.7 
Currency translation and other
(5.4)
Balance at December 31, 2012
(866.8)
Pension Plans [Member] |
Net Actuarial Losses [Member]
 
Balance at December 31, 2011
(1,318.9)
Current year changes recorded to Accumulated other comprehensive income (loss)
249.0 
Amortization reclassified to earnings
63.0 
Settlements/curtailments reclassified to earnings
0.7 
Currency translation and other
(5.4)
Balance at December 31, 2012
$ (849.1)
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Net Periodic Postretirement Benefit Cost) (Details) (Postretirement Benefit Costs [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Service cost
$ 6.6 
$ 7.3 
$ 8.4 
Interest cost
26.0 
30.8 
42.0 
Prior service gains, net amortization of
(10.3)
(10.3)
(3.5)
Plan net actuarial losses, net amortization of
6.5 
7.3 
1.6 
Net periodic benefit cost
28.8 
35.1 
48.5 
Net curtailment and settlement (gains) losses
0 
0 
(10.1)
Net periodic benefit cost after net curtailment and settlement (gains) losses
28.8 
35.1 
38.4 
Segment, Continuing Operations [Member]
 
 
 
Net periodic benefit cost after net curtailment and settlement (gains) losses
19.8 
22.2 
18.7 
Segment, Discontinued Operations [Member]
 
 
 
Net periodic benefit cost after net curtailment and settlement (gains) losses
$ 9.0 
$ 12.9 
$ 19.7 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Defined Benefit Plan Weighted Average Discount Rate Assumptions) (Details) (Postretirement [Member])
1 Months Ended 10 Months Ended 12 Months Ended
Dec. 31, 2013
Jan. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Nov. 30, 2013
Nov. 30, 2012
Nov. 30, 2011
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2013
current year medical inflation [Member]
Dec. 31, 2012
current year medical inflation [Member]
Dec. 31, 2011
current year medical inflation [Member]
Dec. 31, 2013
ultimate inflation rate [Member]
Dec. 31, 2012
ultimate inflation rate [Member]
Dec. 31, 2011
ultimate inflation rate [Member]
Dec. 31, 2012
Prior to 2012 plan amendment [Member]
Benefit obligations at December 31
4.25% 
 
 
4.00% 
 
 
 
 
4.00% 
 
 
 
 
 
 
3.25% 
Net periodic benefit cost
4.00% 
3.25% 
3.75% 
5.00% 
3.25% 
3.75% 
5.00% 
4.00% 
5.00% 
 
 
 
 
 
 
 
Ultimate inflation rate
 
 
 
 
 
 
 
 
 
7.65% 
8.05% 
8.45% 
5.00% 
5.00% 
5.00% 
 
Year that the rate reaches the ultimate trend rate
2021 
 
2021 
2021 
 
 
 
2021 
2021 
 
 
 
 
 
 
 
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Change in Medical Trend Rate Assumed for Postretirement Benefits) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Effect on total service and interest cost components, 1% Increase
$ 1.2 
Effect on total service and interest cost components, 1% Decrease
(1.0)
Effect on postretirement benefit obligation, 1% Increase
27.9 
Effect on postretirement benefit obligation, 1% Decrease
$ (24.5)
Pensions and Postretirement Benefits Other Than Pensions (Schedule of Benefit Payments for Postretirement Benefits) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Multiemployer plan, period contributions
$ 5.4 
$ 5.4 
$ 5.2 
Postretirement [Member]
 
 
 
2014
66.6 
 
 
2015
66.7 
 
 
2016
64.7 
 
 
2017
62.4 
 
 
2018
59.8 
 
 
2019-2023
$ 264.3 
 
 
Pensions and Postretirement Benefits Other Than Pensions Pensions and Postretirement Benefits Other Than Pensions (Schedule ofMultiemployer Plans) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
General Discussion of Pension and Other Postretirement Benefits [Abstract]
 
 
 
Total contributions
$ 5.4 
$ 5.4 
$ 5.2 
Equity (Narrative) (Details)
1 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2013
USD ($)
Dec. 31, 2013
Par Value US [Member]
USD ($)
Dec. 31, 2013
Par Value Euro [Member]
EUR (€)
Dec. 31, 2013
Ordinary shares [Member]
Dec. 31, 2013
Ordinary shares [Member]
Par Value US [Member]
Dec. 31, 2013
Ordinary shares [Member]
Par Value Euro [Member]
Dec. 31, 2013
Preferred Stock [Member]
Dec. 31, 2012
Preferred Stock [Member]
Dec. 31, 2012
Noncontrolling interest [Member]
Immaterial Reclassification Adjustment [Member]
USD ($)
Stock repurchase program, authorized amount
$ 2,000,000,000 
 
 
 
 
 
 
 
 
 
 
Stock repurchased and retired during period, shares
 
 
 
 
 
20,800,000 
 
 
 
 
 
Stock repurchased and retired during period, value
 
 
1,200,000,000 
 
 
 
 
 
 
 
 
Common stock, dividends, in dollars per share, declared
 
$ 0.21 
 
 
 
 
 
 
 
 
 
Authorized share capital
 
1,185,040,000 
1,185,040,000 
 
 
 
 
 
 
 
 
Number of ordinary shares
 
 
 
 
 
 
1,175,000,000 
40,000 
 
 
 
Ordinary shares, par value, in dollars or euros per share, as stated
$ 1.00 
$ 1.00 
$ 1.00 
$ 1.00 
€ 1.00 
 
 
 
 
 
 
Number of preference shares
 
 
 
 
 
 
 
 
10,000,000 
 
 
Preference shares, par value, in dollars per share
 
 
 
$ 0.001 
 
 
 
 
 
 
 
Currency translation and other
 
 
 
 
 
 
 
 
 
 
$ 11,500,000 
No preference shares outstanding
 
 
 
 
 
 
 
 
0 
0 
 
Equity (Reconciliation of Ordinary Shares) (Details) (Ordinary shares [Member])
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Ordinary shares [Member]
 
 
 
Beginning balance, shares
295.6 
297.1 
328.2 
Shares issued under incentive plans
7.9 
 
 
Shares issued for settlement of Exchangeable Senior Notes
 
10.8 
 
Repurchase of ordinary shares
(20.8)
(18.4)
(36.3)
Ending balance, shares
282.7 
295.6 
297.1 
Equity (Changes In Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2013
Dec. 31, 2013
Accumulated Other Comprehensive Income, Other [Member]
Dec. 31, 2013
Accumulated Spinoff Adjustments [Member]
Dec. 31, 2012
Cash flow hedges and marketable securities [Member]
Dec. 31, 2013
Cash flow hedges and marketable securities [Member]
Dec. 31, 2013
Cash flow hedges and marketable securities [Member]
Accumulated Other Comprehensive Income, Other [Member]
Dec. 31, 2013
Cash flow hedges and marketable securities [Member]
Accumulated Spinoff Adjustments [Member]
Dec. 31, 2012
Pension and OPEB Adjustments [Member]
Dec. 31, 2013
Pension and OPEB Adjustments [Member]
Dec. 31, 2013
Pension and OPEB Adjustments [Member]
Accumulated Other Comprehensive Income, Other [Member]
Dec. 31, 2013
Pension and OPEB Adjustments [Member]
Accumulated Spinoff Adjustments [Member]
Dec. 31, 2012
Foreign Currency Gain (Loss) [Member]
Dec. 31, 2013
Foreign Currency Gain (Loss) [Member]
Dec. 31, 2013
Foreign Currency Gain (Loss) [Member]
Accumulated Other Comprehensive Income, Other [Member]
Dec. 31, 2013
Foreign Currency Gain (Loss) [Member]
Accumulated Spinoff Adjustments [Member]
Accumulated other comprehensive income (loss)
$ (553.6)
$ (166.7)
 
 
$ (4.5)
$ 0.4 
 
 
$ (897.1)
$ (562.8)
 
 
$ 348.0 
$ 395.7 
 
 
Other comprehensive income (loss), net of tax
32.6 
 
294.7 
59.6 
3.1 
 
19.7 
(17.9)
(67.1)
 
263.3 
138.1 
96.6 
 
11.7 
(60.6)
Accumulated other comprehensive income (loss)
$ (521.0)
$ (166.7)
 
 
$ (1.4)
$ 0.4 
 
 
$ (964.2)
$ (562.8)
 
 
$ 444.6 
$ 395.7 
 
 
Equity Equity (Other Comprehensive Income in Noncontrolling Interest) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Noncontrolling Interest [Line Items]
 
 
 
Other comprehensive income (loss) attributable to noncontrolling interest, net of tax
$ 3.3 
$ (12.4)
$ (0.6)
Pension and OPEB Adjustments [Member]
 
 
 
Noncontrolling Interest [Line Items]
 
 
 
Other comprehensive income (loss) attributable to noncontrolling interest, net of tax
0 
(1.3)
(0.6)
Foreign Currency Gain (Loss) [Member]
 
 
 
Noncontrolling Interest [Line Items]
 
 
 
Other comprehensive income (loss) attributable to noncontrolling interest, net of tax
$ 3.3 
$ (11.1)
$ 0 
Share-Based Compensation (Narrative) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Jan. 31, 2012
Jun. 3, 2009
Dec. 1, 2013
Stock Options and SARs [Member]
Allegion [Member]
Dec. 31, 2013
Stock options and RSUs [Member]
Dec. 31, 2013
Stock Option [Member]
Dec. 31, 2013
Restricted Stock Units (RSUs) [Member]
Dec. 31, 2013
Performance Shares [Member]
Dec. 31, 2013
Stock Appreciation Rights (SARs) [Member]
Dec. 31, 2013
Vested stock grants outstanding [Member]
Dec. 31, 2013
Stock Options [Member]
Dec. 31, 2012
Stock Options [Member]
Dec. 31, 2011
Stock Options [Member]
Dec. 31, 2012
Stock Options [Member]
Immaterial Error Correction [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Spinoff Conversion Ratio
 
 
 
 
 
0.3333 
 
 
 
 
 
 
 
 
 
 
Total number of shares authorized by the shareholders
 
 
 
 
20,000,000 
 
 
 
 
 
 
 
 
 
 
 
Remains available for future incentive awards
19,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation expense
$ (77.9)
$ (52.6)
$ (43.1)
 
 
 
 
 
 
 
 
 
$ (23.0)
$ (5.7)
$ (22.3)
$ (13.5)
Share-based compensation expense, net of tax
(48.1)
(32.5)
(26.6)
 
 
 
 
 
 
 
 
 
 
 
 
(8.3)
Average fair value of stock options granted, in dollars per share
$ 16.55 
$ 13.67 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vesting period, in years
 
 
 
 
 
 
3 years 
 
 
 
10 years 
 
 
 
 
 
Total unrecognized compensation cost from stock option arrangements granted under the plan, in USD
 
 
 
 
 
 
 
13.6 
21.5 
12.9 
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
 
 
 
 
 
 
 
 
 
3 years 
 
 
 
 
 
 
Aggregate intrinsic value of options exercised, in USD
$ 155.5 
$ 89.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage Of Awards Applied To Performance Condition
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of Awards Applied to Market Condition
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Price Fixed For Performance Share Award Compensation Expense
 
 
 
$ 34.94 
 
 
 
 
 
 
 
 
 
 
 
 
SARs outstanding and vested
 
 
 
 
 
 
 
 
 
 
96,415 
 
 
 
 
 
Vested stock grants outstanding
 
 
 
 
 
 
 
 
 
 
 
52,565 
 
 
 
 
Share-Based Compensation (Compensation Expenses) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
$ (77.9)
$ (52.6)
$ (43.1)
Tax benefit
29.8 
20.1 
16.5 
Share-based compensation expense, net of tax
48.1 
32.5 
26.6 
Stock Options [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
(23.0)
(5.7)
(22.3)
Restricted Stock Units (RSUs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
(29.9)
(22.0)
(21.1)
Performance Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
(20.2)
(22.5)
(0.5)
Deferred Compensation [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
(1.9)
(0.1)
(1.1)
Other [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
(2.9)
(2.3)
(0.9)
Segment, Continuing Operations [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense, net of tax
43.4 
28.6 
24.0 
Segment, Discontinued Operations [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense, net of tax
$ 4.7 
$ 3.9 
$ 2.6 
Share-Based Compensation Share-Based Compensation (Fair Value of Stock Options Assumptions) (Details)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dividend yield
1.60% 
1.33% 
Volatility
42.15% 
43.60% 
Risk free rate of return
0.85% 
0.92% 
Expected life
5 years 1 month 6 days 
5 years 1 month 6 days 
Share-Based Compensation (Changes in Options Outstanding Under the Plans) (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2009
Weighted average remaining life, Exercisable, in years
4 years 2 months 
 
 
 
Stock Options [Member]
 
 
 
 
Shares subject to options, Beginning balance
14,090,962 
18,615,276 
21,706,228 
 
Shares subject to options, Granted
1,341,602 
1,463,352 
1,834,564 
 
Shares subject to options, Exercised
(6,994,024)
(5,578,783)
(4,275,088)
 
Shares subject to options, Cancelled
(110,496)
(408,883)
(650,428)
 
Shares subject to options, Ending balance
8,700,028 
14,090,962 
18,615,276 
 
Shares subject to options, Exercisable
5,695,290 
 
 
 
Weighted average exercise price, Beginning balance, in dollars per share
$ 36.47 
$ 33.97 
 
$ 32.30 
Weighted average exercise price, Granted, in dollars per share
$ 52.71 
$ 40.67 
$ 44.99 
 
Weighted average exercise price, Exercised, in dollars per share
$ 35.33 
$ 28.87 
$ 30.00 
 
Weighted average exercise price, Cancelled, in dollars per share
$ 44.57 
$ 41.30 
$ 35.36 
 
Weighted average exercise price, Ending Balance, in dollars per share
$ 31.87 
$ 36.47 
$ 33.97 
$ 32.30 
Weighted average exercise price, Exercisable, in dollars per share
$ 29.71 
 
 
 
Aggregate intrinsic value, Outstanding, in USD
$ 258.7 
 
 
 
Aggregate intrinsic value, Exercisable, in USD
$ 184.5 
 
 
 
Weighted average remaining life, Outstanding, in years
5 years 7 months 6 days 
 
 
 
Weighted average remaining life, Exercisable, in years
4 years 2 months 12 days 
 
 
 
Allegion [Member] |
Stock Options [Member]
 
 
 
 
Shares subject to options, Cancelled
(371,984)
 
 
 
Share-Based Compensation (Information Concerning Currently Outstanding and Exercisable Options) (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Number of options outstanding, in shares
8,700,028 
Weighted average remaining life, Outstanding, in years
5 years 7 months 
Weighted average exercise price, options outstanding, in dollars per share
$ 31.87 
Number of options exercisable, in shares
5,695,290 
Weighted average remaining life, Exercisable, in years
4 years 2 months 
Weighted average exercise price, option exercisable, in dollars per share
$ 29.21 
10.01 - 20.00 [Member]
 
Number of options outstanding, in shares
850,559 
Weighted average remaining life, Outstanding, in years
3 years 6 months 
Weighted average exercise price, options outstanding, in dollars per share
$ 14.81 
Number of options exercisable, in shares
850,559 
Weighted average remaining life, Exercisable, in years
3 years 6 months 
Weighted average exercise price, option exercisable, in dollars per share
$ 14.81 
20.01 - 30.00 [Member]
 
Number of options outstanding, in shares
1,635,997 
Weighted average remaining life, Outstanding, in years
5 years 1 month 
Weighted average exercise price, options outstanding, in dollars per share
$ 25.53 
Number of options exercisable, in shares
1,378,461 
Weighted average remaining life, Exercisable, in years
4 years 7 months 
Weighted average exercise price, option exercisable, in dollars per share
$ 25.69 
30.01 - 40.00 [Member]
 
Number of options outstanding, in shares
4,648,123 
Weighted average remaining life, Outstanding, in years
5 years 2 months 
Weighted average exercise price, options outstanding, in dollars per share
$ 33.81 
Number of options exercisable, in shares
3,263,037 
Weighted average remaining life, Exercisable, in years
4 years 4 months 
Weighted average exercise price, option exercisable, in dollars per share
$ 33.66 
40.01 - 50.00 [Member]
 
Number of options outstanding, in shares
1,561,333 
Weighted average remaining life, Outstanding, in years
8 years 4 months 
Weighted average exercise price, options outstanding, in dollars per share
$ 41.97 
Number of options exercisable, in shares
203,233 
Weighted average remaining life, Exercisable, in years
3 years 10 months 
Weighted average exercise price, option exercisable, in dollars per share
$ 41.85 
50.01 - 60.00 [Member]
 
Number of options outstanding, in shares
4,016 
Weighted average remaining life, Outstanding, in years
9 years 10 months 
Weighted average exercise price, options outstanding, in dollars per share
$ 51.92 
Number of options exercisable, in shares
0 
Weighted average remaining life, Exercisable, in years
0 years 
Weighted average exercise price, option exercisable, in dollars per share
$ 0.00 
Share-Based Compensation (RSU Activity During the Year) (Details) (Restricted Stock Units (RSUs) [Member], USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Outstanding and unvested, beginning balance, in shares
1,284,692 
1,307,173 
1,300,174 
RSUs, granted, in shares
685,441 
643,822 
672,185 
RSUs, vested, in shares
(669,079)
(575,214)
(512,614)
RSUs, cancelled, in shares
(63,954)
(91,089)
(152,572)
Outstanding and unvested, ending balance, in shares
1,340,982 
1,284,692 
1,307,173 
Weighted average grant date fair value, beginning of Period, in dollars per share
$ 39.81 
$ 35.00 
$ 26.14 
Weighted average grant date fair value, granted, in dollars per share
$ 53.78 
$ 40.74 
$ 43.87 
Weighted average grant date fair value, vested, in dollars per share
$ 38.44 
$ 30.05 
$ 24.20 
Weighted average grant date fair value, cancelled, in dollars per share
$ 43.98 
$ 38.92 
$ 34.87 
Weighted average grant date fair value, end of Period, in dollars per share
$ 38.49 
$ 39.81 
$ 35.00 
Allegion [Member]
 
 
 
RSUs, cancelled, in shares
(103,882)
 
 
Share-Based Compensation Share Based Compensation (Performance Shares Rollforward) (Details) (Performance Shares [Member], USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Outstanding and unvested, beginning balance, in shares
1,859,636 
2,632,996 
3,768,706 
Weighted average grant date fair value, beginning of Period, in dollars per share
$ 40.30 
$ 27.76 
$ 20.36 
Share based compensation (SARs or Performance shares), granted, in shares
580,910 
649,668 
614,006 
Weighted average grant date fair value, granted, in dollars per share
$ 61.24 
$ 50.75 
$ 46.66 
Performance shares, vested in period, in shares
(718,040)
0 
(633,504)
Performance shares, vested, weighted average grant date fair value
$ 34.94 
$ 0.00 
$ 16.95 
Share based compensation (SARs or Performance shares), cancelled, in shares
(150,636)
(1,423,028)
(1,116,212)
Weighted average grant date fair value, cancelled, in dollars per share
$ 51.43 
$ 18.68 
$ 19.31 
Outstanding and unvested, ending balance, in shares
1,952,650 
1,859,636 
2,632,996 
Weighted average grant date fair value, end of Period, in dollars per share
$ 39.20 
$ 40.30 
$ 27.76 
Allegion [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share based compensation (SARs or Performance shares), cancelled, in shares
(380,780)
 
 
Restructuring Activities (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Restructuring and related cost, incurred cost
$ 82.3 
$ 23.3 
$ 24.1 
Restructuring reserve, current
32.5 
8.7 
11.0 
Non qualified restructuring charges
0.7 
 
 
Industrial [Member]
 
 
 
Restructuring and related cost, incurred cost
14.5 
7.6 1
6.7 
Restructuring reserve, accrual adjustment
 
 
6.7 
Restructuring reserve, current
$ 9.5 
$ 2.1 
$ 4.2 
Restructuring Activities (Restructuring Charges) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Restructuring and related cost, incurred cost
$ 82.3 
$ 23.3 
$ 24.1 
Climate Solutions [Member]
 
 
 
Restructuring and related cost, incurred cost
47.5 
12.9 
17.1 
Industrial Technologies [Member]
 
 
 
Restructuring Reserve, Adjustment Description
 
 
6.7 
Restructuring and related cost, incurred cost
14.5 
7.6 1
6.7 
Corporate and Other [Member]
 
 
 
Restructuring and related cost, incurred cost
20.3 
2.8 
0.3 
Cost of goods sold [Member]
 
 
 
Restructuring and related cost, incurred cost
15.2 
10.3 
6.8 
selling and administrative expenses [Member]
 
 
 
Restructuring and related cost, incurred cost
$ 67.1 
$ 13.0 
$ 17.3 
Restructuring Activities (Restructuring Reserve) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Restructuring reserve, beginning balance
$ 8.7 
$ 11.0 
 
Additions
82.3 
23.3 
24.1 
Cash and non-cash uses
58.5 
25.7 
 
Currency translation
0 
0.1 
 
Restructuring reserve, ending balance
32.5 
8.7 
11.0 
Climate [Member]
 
 
 
Restructuring reserve, beginning balance
4.7 
5.1 
 
Additions
47.5 
12.9 
17.1 
Cash and non-cash uses
34.2 
13.4 
 
Currency translation
0 
0.1 
 
Restructuring reserve, ending balance
18.0 
4.7 
5.1 
Industrial [Member]
 
 
 
Restructuring reserve, beginning balance
2.1 
4.2 
 
Additions
14.5 
7.6 1
6.7 
Cash and non-cash uses
7.1 
9.7 
 
Currency translation
0 
0 
 
Restructuring reserve, ending balance
9.5 
2.1 
4.2 
Restructuring reserve, accrual adjustment
 
 
6.7 
Corporate and Other [Member]
 
 
 
Restructuring reserve, beginning balance
1.9 
1.7 
 
Additions
20.3 
2.8 
0.3 
Cash and non-cash uses
17.2 
2.6 
 
Currency translation
0 
0 
 
Restructuring reserve, ending balance
$ 5.0 
$ 1.9 
$ 1.7 
Other, Net (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Foreign Currency Transaction Gain (Loss), before Tax
$ (14.0)
$ 0.2 
$ (1.3)
Devaluation of Venezuela Bolivar [Member]
 
 
 
Foreign Currency Transaction Gain (Loss), before Tax
3.8 
 
 
Hussmann Business Equity Ownership [Member]
 
 
 
Earnings (loss) from equity investments
$ (2.6)
$ (5.9)
$ (3.5)
Other, Net Table (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Interest income
$ 12.8 
$ 16.3 
$ 25.5 
Exchange gain (loss)
(14.0)
0.2 
(1.3)
Other
7.2 
17.5 
7.7 
Other, net
3.4 
28.1 
28.4 
Hussmann Business Equity Ownership [Member]
 
 
 
Earnings (loss) from equity investments
(2.6)
(5.9)
(3.5)
Devaluation of Venezuela Bolivar [Member]
 
 
 
Exchange gain (loss)
$ 3.8 
 
 
Income Taxes (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2009
Jul. 20, 2007
Dec. 31, 2013
Hong Kong, Australia, and Canada Subsidiaries [Member]
Dec. 31, 2013
Allegion [Member]
Dec. 31, 2013
Trane [Member]
Sep. 30, 2012
Immaterial accounting error [Member]
Dec. 31, 2013
Immaterial accounting error [Member]
Dec. 31, 2012
Immaterial accounting error [Member]
Mar. 31, 2011
Healthcare Reform Legislation [Member]
Dec. 31, 2013
Healthcare Reform Legislation [Member]
Dec. 31, 2012
Decrease to valuation allowance [Member]
Dec. 31, 2013
Allegion [Member]
Dec. 31, 2013
Tax Year 2002 [Member]
Dec. 31, 2013
2003 to 2006 Tax Years [Member]
Dec. 31, 2013
2002 to 2006 Tax Years [Member]
Income tax holiday, aggregate dollar amount
 
$ 25.3 
$ 13.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undistributed earnings
7,400 
7,400 
 
 
 
 
740 
 
 
 
 
 
 
 
 
 
 
 
 
Net operating loss carryforward benefit would be recorded in Additional paid in capital
158.7 
158.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized tax benefits
363.3 
363.3 
497.5 
503.4 
505.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized tax benefits that would impact effective tax rate
278.3 
278.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indemnification on spin-off from unrecognized tax benefit
 
 
 
 
 
 
 
4.1 
3.7 
 
 
 
 
 
 
 
 
 
 
Indemnity Receivable Related to Competent Authority Relief
55.8 
55.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
55.8 
 
 
 
Interest and Penalties Related to Competent Authority Relief
10.4 
10.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indemnity Payable Related to Competent Authority Relief
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
9.5 
 
 
 
Unrecognized tax benefits, income tax penalties and interest accrued
71.9 
71.9 
85.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized tax benefits, income tax penalties and interest expense recognized
 
(5.9)
11.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit
4.5 
4.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period Changes In Unrecognized Tax Benefit, in months
 
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities
 
84.7 
50.6 
3.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Withholding Tax Percentage Proposed
 
 
 
 
 
30.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
IRS Assertion of Additional Withholding Tax Due
 
 
 
 
 
85.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Tax Examination, Estimate of Possible Loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
109.0 
665.0 
 
IRS assertion of additional taxes due
 
 
 
 
 
84.0 
 
 
 
 
 
 
 
 
 
 
 
455.0 
210.0 
Income Tax Examination, Increase (Decrease) in Liability from Prior Year
25.0 
25.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Penalty percentage on asserted underpayment of tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30.00% 
20.00% 
Non-cash charge to income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
36.6 
15.8 
 
 
 
 
 
Tax benefit to continuing operations
 
189.0 
56.0 
45.4 
 
 
 
 
 
 
 
 
 
 
140.0 
 
 
 
 
Tax error correction
 
 
 
 
 
 
 
 
 
38.2 
24.0 
3.9 
 
 
 
 
 
 
 
Deferred Foreign and State and Local Income Tax Expense (Benefit)
 
74.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Tax Expense (Benefit) From Change in Liability for Unrecognized Tax Benefits
 
36.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax Adjustments, Settlements, and Unusual Provisions
 
75.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Tax Liability Not Recognized, Tax Effects from Change of Tax Position
$ 51 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes Schedule of Earnings (Loss) Before Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Earnings (loss) before income taxes, United States
$ (147.4)
$ (49.3)
$ (1,066.3)
Earnings (loss) before income taxes, Non-U.S.
977.0 
897.3 
1,254.9 
Earnings (loss) before income taxes
$ 829.6 
$ 848.0 
$ 188.6 
Income Taxes (Schedule of Components of Provision for Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Current tax expense (benefit)
$ 159.6 
$ 103.9 
$ 216.7 
Deferred tax expense (benefit)
29.4 
(47.9)
(171.2)
Benefit (provision) for income taxes
189.0 
56.0 
45.4 
United States [Member]
 
 
 
Current tax expense (benefit)
2.1 
(70.1)
46.7 
Deferred tax expense (benefit)
19.2 
116.9 
(215.4)
Benefit (provision) for income taxes
21.3 
46.8 
(168.7)
Non-U.S. [Member]
 
 
 
Current tax expense (benefit)
157.5 
174.0 
170.0 
Deferred tax expense (benefit)
10.2 
(164.8)
44.2 
Benefit (provision) for income taxes
$ 167.7 
$ 9.2 
$ 214.1 
Income Taxes (Schedule of Reconciliation Between Statutory and Effective Tax Rate) (Details)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Statutory U.S. rate
35.00% 
35.00% 
35.00% 
Non US tax rate differential
(26.80%)
(22.50%)
(120.40%)
Tax on US subsidiaries on Non US earnings
2.00% 
4.10% 
24.00% 
State and local income taxes
6.30% 1
0.30% 1
(6.10%)1
Valuation allowances
2.50% 
(16.60%)
(0.80%)
Non-deductible goodwill write off
0.00% 
0.00% 
75.40% 
Reserves for uncertain tax positions
(2.90%)
2.40% 
15.30% 
Impact of change in taxation of retiree drugs subsidy
0.00% 
1.90% 
0.00% 
Provision to return and other true-up adjustments
(0.70%)
(0.10%)
(0.80%)
Other adjustments
1.20% 
2.10% 
2.50% 
Effective tax rate
22.80% 
6.60% 
24.10% 
Income Taxes (Schedule of Deferred Tax Accounts) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2009
Inventory and accounts receivable, deferred tax asset
$ 19.7 
$ 21.1 
 
 
Fixed assets and intangibles, deferred tax asset
3.3 
3.6 
 
 
Postemployment and other benefit liabilities, deferred tax asset
643.1 
755.0 
 
 
Product liability, deferred tax asset
221.7 
237.6 
 
 
Other reserves and accruals, deferred tax asset
198.5 
174.6 
 
 
Net operating losses and credit carryforwards, deferred tax asset
707.1 
868.8 
 
 
Other, deferred tax asset
59.2 
63.2 
 
 
Gross deferred tax assets
1,852.6 
2,123.9 
 
 
Deferred tax valuation allowances
(218.5)
(156.2)
(308.4)
(351.2)
Deferred tax assets net of valuation allowances
1,634.1 
1,967.7 
 
 
Inventory and accounts receivable, deferred tax liability
(46.8)
(48.8)
 
 
Fixed assets and intangibles, deferred tax liability
(2,046.8)
(2,090.6)
 
 
Postemployment and other benefit liabilities, deferred tax liability
(3.3)
(0.3)
 
 
Other reserves and accruals, deferred tax liability
(6.0)
(3.4)
 
 
Other, deferred tax liability
(49.1)
(6.0)
 
 
Gross deferred tax liability
(2,152.0)
(2,149.1)
 
 
Net deferred tax assets (liabilities)
$ (517.9)
$ (181.4)
 
 
Income Taxes (Operating Loss and Tax Credit Carryforwards) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
U.S. Federal net operating loss carryforwards
$ 707.1 
$ 868.8 
United States [Member]
 
 
U.S. Federal net operating loss carryforwards
895.0 
 
U.S. credit carryforwards
42.7 
 
State and Local Jurisdiction [Member]
 
 
U.S. credit carryforwards
29.8 
 
U.S. State net operating loss carryforwards
3,044.2 
 
Non-U.S. [Member]
 
 
Non-U.S. net operating loss carryforwards
1,128.0 
 
Non-U.S. credit carryforwards
$ 1.0 
 
Income Taxes (Valuation Allowance) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2009
Beginning balance
$ 156.2 
$ 308.4 
 
$ 351.2 
Other deductions
0 
0 
(0.3)
 
Accumulated other comprehensive income (loss)
(0.7)
(4.3)
(35.1)
 
Ending balance
218.5 
156.2 
308.4 
351.2 
Increase to valuation allowance [Member]
 
 
 
 
Valuation allowance change
89.3 
44.5 
14.9 
 
Decrease to valuation allowance [Member]
 
 
 
 
Valuation allowance change
$ (26.3)
$ (192.4)
$ (22.3)
 
Income Taxes (Unrecognized Tax Benefit) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2009
Beginning balance
$ 497.5 
$ 503.4 
 
$ 505.6 
Additions based on tax positions related to the current year
19.9 
8.5 
16.1 
 
Additions based on tax positions related to acquisitions
0 
0 
0 
 
Additions based on tax positions related to prior years
152.9 
88.2 
56.7 
 
Reductions based on tax positions related to prior years
(215.3)
(24.1)
(62.2)
 
Reductions related to settlements with tax authorities
(84.7)
(50.6)
(3.7)
 
Reductions related to lapses of statute of limitations
(8.4)
(29.5)
(9.2)
 
Translation (gain)/loss
1.4 
1.6 
0.1 
 
Ending balance
$ 363.3 
$ 497.5 
$ 503.4 
$ 505.6 
Divestitures and Discontinued Operations (Narrative) (Details) (USD $)
12 Months Ended 0 Months Ended 9 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 1 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2008
Dec. 1, 2013
Allegion [Member]
Sep. 30, 2013
Allegion [Member]
Jun. 30, 2012
Compact Equipment [Member]
Dec. 31, 2013
Compact Equipment [Member]
Dec. 31, 2008
Compact Equipment [Member]
Sep. 30, 2012
Hussmann Divestiture [Member]
Dec. 31, 2013
Hussmann Divestiture [Member]
Dec. 31, 2012
Hussmann Divestiture [Member]
Dec. 31, 2011
Hussmann Divestiture [Member]
Nov. 30, 2013
Security Technologies [Member]
Sep. 30, 2013
Security Technologies [Member]
Allegion [Member]
Dec. 31, 2013
Selling, General and Administrative Expenses [Member]
Spinoff [Member]
Dec. 31, 2012
Selling, General and Administrative Expenses [Member]
Spinoff [Member]
Discontinued Operations, Spinoff Transaction, Share Exchange Ratio
 
 
 
 
0.3333 
 
 
 
 
 
 
 
 
 
 
 
 
Number of spun off Entity's shares held in deferred compensation trust after spinoff
 
 
 
 
7,045 
 
 
 
 
 
 
 
 
 
 
 
 
Spin-off costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 128,000,000 
$ 5,700,000 
Tax charges from spinoff
71,400,000 
129,800,000 
71,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
148,200,000 
Goodwill, Impairment Loss
0 
0 
0 
2,496,000,000 
 
111,400,000 
 
 
 
 
 
 
 
 
111,400,000 
 
 
Goodwill, Impairment Loss, Net of Tax
 
 
 
 
 
106,200,000 
 
 
 
 
 
 
 
 
 
 
 
Commercial and Residential Security Business borrowing prior to spinoff
 
 
 
 
 
 
 
 
 
 
 
 
 
1,274,200,000 
 
 
 
Distribution made to shareholders in spin-off of Allegion
 
 
 
 
(500,000)
 
 
 
 
 
 
 
 
 
 
 
 
Assets distributed in spin-off of Allegion
 
 
 
 
1,953,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities distributed in spin-off of Allegion
 
 
 
 
1,974,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
Change in accumulated other comprehensive loss from distribution
 
 
 
 
(61,100,000)
 
 
 
 
 
 
 
 
 
 
 
 
Change in noncontrolling interest from distribution
17,600,000 
19,200,000 
30,100,000 
 
41,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
Gross proceeds from sale of businesses
 
 
 
 
 
 
 
 
4,900,000,000 
 
 
 
 
 
 
 
 
Purchase Price Adjustments
 
 
 
 
 
 
48,300,000 
 
 
 
 
 
 
 
 
 
 
Settlement For Post Closing Matters
 
 
 
 
 
 
 
46,500,000 
 
 
 
 
 
 
 
 
 
Cash proceeds, before purchase price adjustments
 
 
 
 
 
 
 
 
 
370,000,000 
 
 
 
 
 
 
 
Hussmann Parent Initial Ownership Interest, Hussmann Business
 
 
 
 
 
 
 
 
 
60.00% 
 
 
 
 
 
 
 
IR Ownership interest, Hussmann Business
 
 
 
 
 
 
 
 
 
40.00% 
37.20% 
 
 
 
 
 
 
Gain (loss) on sale/asset impairment
0 
4,500,000 
(646,900,000)
 
 
 
 
 
 
 
0 
4,500,000 1
(646,900,000)2
 
 
 
 
Transaction Costs
 
 
 
 
 
 
 
 
 
 
 
 
12,200,000 
 
 
 
 
Pre-tax gain (loss) on sale
$ 0 
$ 2,300,000 
$ (57,700,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Divestitures and Discontinued Operations (Summary of Financial Information for Discontinued Operations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Net revenues
$ 1,889.9 
$ 2,046.6 
$ 2,093.4 
Pre-tax earnings (loss) from operations
84.7 
379.5 
355.7 
Pre-tax gain (loss) on sale
0 
2.3 
(57.7)
Tax benefit (expense)
(71.4)
(129.8)
(71.9)
Discontinued operations, net of tax
$ 13.3 
$ 252.0 
$ 226.1 
Divestitures and Discontinued Operations Discontinued Operations by Business (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Discontinued operations, net of tax
$ 13.3 
$ 252.0 
$ 226.1 
Allegion [Member]
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Discontinued operations, net of tax
12.4 
254.2 
275.7 
Other Discontinued Operations [Member]
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Discontinued operations, net of tax
$ 0.9 
$ (2.2)
$ (49.6)
Divestitures and Discontinued Operations (Net Revenues and After-Tax Earnings) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net revenues
$ 1,889.9 
$ 2,046.6 
$ 2,093.4 
Discontinued operations, net of tax
13.3 
252.0 
226.1 
Allegion [Member]
 
 
 
Net revenues
1,889.9 
2,046.6 
2,021.2 
Discontinued operations, net of tax
$ 12.4 
$ 254.2 
$ 275.7 
Divestitures and Discontinued Operations Schedule Of Disposal Groups Including Discontinued Operations Balance Sheet (Details) (Allegion [Member], USD $)
In Millions, unless otherwise specified
Dec. 31, 2012
Allegion [Member]
 
Schedule Of Disposal Groups Including Discontinued Operations Balance Sheet [Line Items]
 
Current assets
$ 726.1 
Property, plant and equipment, net
226.5 
Goodwill
646.3 
Intangible assets, net
150.5 
Other assets and deferred income taxes
68.0 
Assets held for spin-off
1,817.4 
Current liabilities
362.9 
Noncurrent liabilities
168.9 
Liabilities held for spin-off
$ 531.8 
Divestitures and Discontinued Operations (Schedule of Other Discontinued Operations) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Discontinued operations, net of tax
$ 13.3 
$ 252.0 
$ 226.1 
Other Discontinued Operations [Member]
 
 
 
Retained costs, net of tax
0.9 
(16.2)
(34.8)
Net gain (loss) on disposals, net of tax
0 
14.0 
(14.8)
Discontinued operations, net of tax
$ 0.9 
$ (2.2)
$ (49.6)
Divestitures and Discontinued Operations Divestiture - Net earnings (loss) schedule (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Net revenues
$ 12,350.5 
$ 11,988.3 
$ 12,760.8 
Gain (loss) on sale/asset impairment
0 
4.5 
(646.9)
Net earnings (loss) attributable to Ingersoll-Rand plc
618.8 
1,018.6 
343.2 
Earnings Per Share, Diluted
$ 2.07 
$ 3.28 
$ 1.01 
Hussmann Divestiture [Member]
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
Net revenues
 
 
818.5 
Gain (loss) on sale/asset impairment
0 
4.5 1
(646.9)2
Net earnings (loss) attributable to Ingersoll-Rand plc
 
 
$ (513.1)
Earnings Per Share, Diluted
 
 
$ (1.51)
Earnings Per Share (EPS) (Details)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Weighted-average number of basic shares
294.1 
303.9 
324.8 
Shares issuable under incentive stock plans
4.2 
3.7 
3.8 
Exchangeable Senior Notes
0 
3.0 
10.7 
Weighted-average number of diluted shares
298.3 
310.6 
339.3 
Anti-dilutive shares
19.1 
5.2 
5.0 
Exchangeable Senior Notes [Member]
 
 
 
Shares issued for settlement of Exchangeable Senior Notes
 
10.8 
 
Commitments and Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Environmental remediation, recovery credited to expense
$ (0.5)
 
 
Expense for environmental remediation
 
3.1 
1.2 
Reserves for environmental matters
47.9 
55.6 
 
Reserve for environmental matters, current
13.5 
18.0 
 
Maximum annual inflation rate
2.50% 
 
 
Minimum annual inflation rate
1.50% 
 
 
Percentage of non-malignant claims, minimum
80.00% 
 
 
Total rental expense
165.0 
167.0 
192.3 
Minimum lease payments, due in current year
111.6 
 
 
Minimum lease payments, due in second year
85.2 
 
 
Minimum lease payments, due in third year
64.0 
 
 
Minimum lease payments, due in fourth year
42.7 
 
 
Minimum lease payments, due in fifth year
28.9 
 
 
Commitments and performance guarantees
422.4 
 
 
Trane [Member]
 
 
 
Settled with majority of insurers
95.00% 
 
 
Segment, Discontinued Operations [Member]
 
 
 
Reserves for environmental matters
42.1 
41.2 
 
Asbestos Issue [Member]
 
 
 
Total Asset For Probable Asbestos Related Insurance Recoveries
321.8 
320.3 
 
Asbestos Issue [Member] |
IR New Jersey [Member]
 
 
 
Total Asset For Probable Asbestos Related Insurance Recoveries
137.6 
125.5 
 
Asbestos Issue [Member] |
Trane [Member]
 
 
 
Total Asset For Probable Asbestos Related Insurance Recoveries
$ 172.0 
$ 194.8 
 
Commitments and Contingencies (Standard Product Warranty Liability) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Balance at beginning of period
$ 253.4 
$ 255.3 
Reductions for payments
156.7 
146.3 
Accruals for warranties issued during the current period
153.9 
144.6 
Changes to accruals related to preexisting warranties
(5.5)
(0.8)
Translation
0.6 
0.6 
Balance at end of period
245.7 
253.4 
Total current standard product warranty reserve
$ 127.9 
$ 137.8 
Commitments and Contingencies Commitments and Contingencies (Extended Product Warranty Liability) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Total current extended warranty liability
$ 98.5 
 
Extended Warranty [Member]
 
 
Balance at beginning of period
375.1 
372.0 
Amortization of deferred revenue for the period
(105.6)
(102.6)
Additions for extended warranties issued during the period
87.1 
105.2 
Changes to accruals related to preexisting warranties
3.0 
0.2 
Translation
(0.5)
0.3 
Balance at end of period
359.1 
375.1 
Extended warranty incurred costs
$ 61.6 
$ 60.3 
Business Segment Information Hussman Segment Operating Results (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Segment Reporting Information [Line Items]
 
 
 
Net revenues
$ 12,350.5 
$ 11,988.3 
$ 12,760.8 
Segment Operating Income
1,386.2 
1,273.4 
1,252.6 
Hussmann Divestiture [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Net revenues
 
 
818.5 
Segment Operating Income
 
 
$ 58.6 
Business Segment Information (Summary of Operations by Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net revenues
$ 12,350.5 
$ 11,988.3 
$ 12,760.8 
Segment Operating Income
1,386.2 
1,273.4 
1,252.6 
Capital expenditures
242.2 
219.5 
217.1 
Gain (loss) on sale/asset impairment
0 
4.5 
(646.9)
Operating income (loss)
1,105.0 
1,071.9 
438.7 
Operating income (loss) as a percentage of revenues
8.90% 
8.90% 
3.40% 
Depreciation and amortization
333.7 
333.8 
358.5 
Climate [Member]
 
 
 
Net revenues
9,414.0 
9,042.5 
9,907.9 
Segment Operating Income
930.2 1
817.6 1
837.1 
Segment Operating Income As a Percentage Of Revenues
9.90% 
9.00% 
8.40% 
Capital expenditures
129.4 
105.1 
105.3 
Depreciation and amortization
252.8 
257.0 
273.6 
Industrial [Member]
 
 
 
Net revenues
2,936.5 
2,945.8 
2,852.9 
Segment Operating Income
456.0 
455.8 
415.5 
Segment Operating Income As a Percentage Of Revenues
15.50% 
15.50% 
14.60% 
Capital expenditures
44.0 
62.6 
57.2 
Depreciation and amortization
43.9 
42.9 
40.3 
Segment Reconciling Items [Member]
 
 
 
Capital expenditures
68.8 
51.8 
54.6 
Operating Expenses
(281.2)
(206.0)
(167.0)
Depreciation and amortization
37.0 
33.9 
44.6 
Operating Segments [Member]
 
 
 
Capital expenditures
173.4 
167.7 
162.5 
Depreciation and amortization
296.7 
299.9 
313.9 
Hussmann Divestiture [Member]
 
 
 
Net revenues
 
 
818.5 
Segment Operating Income
 
 
58.6 
Gain (loss) on sale/asset impairment
$ 0 
$ 4.5 1
$ (646.9)2
Business Segment Information (Schedule of Revenues by Destination) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Long-Lived Assets
$ 2,788.4 
$ 2,874.5 
 
Net revenues
12,350.5 
11,988.3 
12,760.8 
UnitedStates [Member]
 
 
 
United States
7,298.0 
 
 
UnitedStates [Member]
 
 
 
Long-Lived Assets
2,216.8 
2,090.9 
 
United States
 
7,039.0 
7,442.4 
Non-U.S. [Member]
 
 
 
Long-Lived Assets
571.6 
783.6 
 
United States
$ 5,052.5 
$ 4,949.3 
$ 5,318.4 
Business Segment Information (Schedule of Long-Lived Asset by Geographic Area) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
United States
$ 2,788.4 
$ 2,874.5 
Long-Lived Assets
$ 2,788.4 
$ 2,874.5 
Guarantor Financial Information (Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2005
Senior Notes Due In Two Thousand Fifteen [Member]
Dec. 31, 2001
Senior Notes Due In Two Thousand Fifteen [Member]
Sep. 30, 2009
Ireland Reorganization Note [Member]
Dec. 31, 2011
Related Party Borrowing [Member]
Subsidiary of Common Parent [Member]
IR-New Jersey Note [Member]
Dec. 31, 2001
Related Party Borrowing [Member]
Subsidiary of Common Parent [Member]
IR-New Jersey Note [Member]
Debt instrument, face amount
$ 300,000,000 
 
$ 15,000,000,000 
 
$ 3,600,000,000 
Debt instrument, interest rate
 
4.75% 
 
 
11.00% 
Repayments of Notes Payable
 
 
 
1,000,000,000 
 
Settlement of net intercompany payables
 
 
$ 4,100,000,000 
 
 
Guarantor Financial Information (Condensed Consolidating Statement of Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net revenues
$ 12,350.5 
$ 11,988.3 
$ 12,760.8 
Cost of goods sold
(8,675.5)
(8,538.0)
(9,280.0)
Selling and administrative expenses
(2,570.0)
(2,382.9)
(2,395.2)
Gain (loss) on sale/asset impairment
0 
4.5 
(646.9)
Operating Income (Loss)
1,105.0 
1,071.9 
438.7 
Equity earnings (loss) in affiliates, net of tax
0 
0 
0 
Interest expense
(278.8)
(252.0)
(278.5)
Intercompany Interest And Fees
0 
0 
0 
Other, net
3.4 
28.1 
28.4 
Earnings (loss) before income taxes
829.6 
848.0 
188.6 
Benefit (provision) for income taxes
(189.0)
(56.0)
(45.4)
Earnings (loss) from continuing operations
640.6 
792.0 
143.2 
Discontinued operations, net of tax
13.3 
252.0 
226.1 
Net earnings
653.9 
1,044.0 
369.3 
Less: Net earnings attributable to noncontrolling interests
(35.1)
(25.4)
(26.1)
Net earnings (loss) attributable to Ingersoll-Rand plc
618.8 
1,018.6 
343.2 
Total comprehensive income (loss), net of tax
951.9 
1,064.2 
140.1 
Total comprehensive (income) loss attributable to noncontrolling interests
(38.4)
(13.0)
(25.5)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
913.5 
1,051.2 
114.6 
IR Ireland [Member]
 
 
 
Net revenues
0 
0 
0 
Cost of goods sold
0.7 
0 
0 
Selling and administrative expenses
(60.0)
(14.9)
(9.2)
Gain (loss) on sale/asset impairment
 
0 
0 
Operating Income (Loss)
(59.3)
(14.9)
(9.2)
Equity earnings (loss) in affiliates, net of tax
696.2 
1,048.8 
358.8 
Interest expense
0 
0 
0 
Intercompany Interest And Fees
(14.1)
(10.5)
(2.5)
Other, net
(3.9)
(4.8)
(3.9)
Earnings (loss) before income taxes
618.9 
1,018.6 
343.2 
Benefit (provision) for income taxes
(0.3)
(0.3)
0 
Earnings (loss) from continuing operations
618.6 
1,018.3 
343.2 
Discontinued operations, net of tax
0.2 
0.3 
0 
Net earnings
618.8 
1,018.6 
343.2 
Less: Net earnings attributable to noncontrolling interests
0 
0 
0 
Net earnings (loss) attributable to Ingersoll-Rand plc
618.8 
1,018.6 
343.2 
Total comprehensive income (loss), net of tax
913.5 
1,051.2 
114.3 
Total comprehensive (income) loss attributable to noncontrolling interests
0 
0 
0 
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
913.5 
1,051.2 
114.3 
IR Limited [Member]
 
 
 
Net revenues
0 
0 
0 
Cost of goods sold
0 
0 
0 
Selling and administrative expenses
(0.1)
(0.3)
(0.1)
Gain (loss) on sale/asset impairment
 
0 
0 
Operating Income (Loss)
(0.1)
(0.3)
(0.1)
Equity earnings (loss) in affiliates, net of tax
696.7 
848.3 
614.8 
Interest expense
0 
(0.1)
0 
Intercompany Interest And Fees
(0.4)
0 
0 
Other, net
0 
0 
(5.2)
Earnings (loss) before income taxes
696.2 
847.9 
609.5 
Benefit (provision) for income taxes
0 
0 
0 
Earnings (loss) from continuing operations
696.2 
847.9 
609.5 
Discontinued operations, net of tax
0 
0 
0 
Net earnings
696.2 
847.9 
609.5 
Less: Net earnings attributable to noncontrolling interests
0 
0 
0 
Net earnings (loss) attributable to Ingersoll-Rand plc
696.2 
847.9 
609.5 
Total comprehensive income (loss), net of tax
1,050.3 
880.6 
380.6 
Total comprehensive (income) loss attributable to noncontrolling interests
0.4 
0 
0 
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
1,050.7 
880.6 
380.6 
IR International [Member]
 
 
 
Net revenues
0 
0 
0 
Cost of goods sold
0 
0 
0 
Selling and administrative expenses
0 
0 
0 
Gain (loss) on sale/asset impairment
 
0 
0 
Operating Income (Loss)
0 
0 
0 
Equity earnings (loss) in affiliates, net of tax
791.0 
919.1 
757.5 
Interest expense
(15.8)
(15.8)
(15.7)
Intercompany Interest And Fees
(33.8)
(44.3)
(129.4)
Other, net
1.6 
0.7 
1.7 
Earnings (loss) before income taxes
743.0 
859.7 
614.1 
Benefit (provision) for income taxes
0 
0 
0 
Earnings (loss) from continuing operations
743.0 
859.7 
614.1 
Discontinued operations, net of tax
0 
0 
0 
Net earnings
743.0 
859.7 
614.1 
Less: Net earnings attributable to noncontrolling interests
0 
0 
0 
Net earnings (loss) attributable to Ingersoll-Rand plc
743.0 
859.7 
614.1 
Total comprehensive income (loss), net of tax
744.2 
860.9 
615.3 
Total comprehensive (income) loss attributable to noncontrolling interests
0 
0 
0 
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
744.2 
860.9 
615.3 
IR Global Holding [Member]
 
 
 
Net revenues
0 
0 
0 
Cost of goods sold
0 
0 
0 
Selling and administrative expenses
(1.1)
(0.6)
(0.4)
Gain (loss) on sale/asset impairment
 
0 
0 
Operating Income (Loss)
(1.1)
(0.6)
(0.4)
Equity earnings (loss) in affiliates, net of tax
1,008.0 
1,339.9 
653.0 
Interest expense
(196.4)
(168.3)
(193.2)
Intercompany Interest And Fees
(34.0)
(48.8)
52.5 
Other, net
0.8 
(200.6)
251.5 
Earnings (loss) before income taxes
777.3 
921.6 
763.4 
Benefit (provision) for income taxes
0 
0 
0 
Earnings (loss) from continuing operations
777.3 
921.6 
763.4 
Discontinued operations, net of tax
0 
0 
0 
Net earnings
777.3 
921.6 
763.4 
Less: Net earnings attributable to noncontrolling interests
0 
0 
0 
Net earnings (loss) attributable to Ingersoll-Rand plc
777.3 
921.6 
763.4 
Total comprehensive income (loss), net of tax
789.0 
922.0 
757.1 
Total comprehensive (income) loss attributable to noncontrolling interests
0 
0 
0 
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
789.0 
922.0 
757.1 
IR New Jersey [Member]
 
 
 
Net revenues
1,674.0 
932.7 
867.8 
Cost of goods sold
(1,100.4)
(613.7)
(584.8)
Selling and administrative expenses
(509.0)
(327.6)
(276.7)
Gain (loss) on sale/asset impairment
 
0 
0 
Operating Income (Loss)
64.6 
(8.6)
6.3 
Equity earnings (loss) in affiliates, net of tax
161.8 
198.3 
116.0 
Interest expense
(75.1)
(50.0)
(50.7)
Intercompany Interest And Fees
(13.7)
0.6 
(117.9)
Other, net
38.5 
53.9 
77.9 
Earnings (loss) before income taxes
176.1 
194.2 
31.6 
Benefit (provision) for income taxes
39.5 
(56.2)
18.9 
Earnings (loss) from continuing operations
215.6 
138.0 
50.5 
Discontinued operations, net of tax
(165.2)
(18.3)
(69.3)
Net earnings
50.4 
119.7 
(18.8)
Less: Net earnings attributable to noncontrolling interests
(1.2)
0 
0 
Net earnings (loss) attributable to Ingersoll-Rand plc
49.2 
119.7 
(18.8)
Total comprehensive income (loss), net of tax
138.8 
185.4 
(115.7)
Total comprehensive (income) loss attributable to noncontrolling interests
2.1 
0 
0 
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
140.9 
185.4 
(115.7)
Other Subsidiaries [Member]
 
 
 
Net revenues
10,676.5 
11,055.6 
11,893.0 
Cost of goods sold
(7,575.8)
(7,924.3)
(8,695.2)
Selling and administrative expenses
(1,999.8)
(2,039.5)
(2,108.8)
Gain (loss) on sale/asset impairment
 
4.5 
(646.9)
Operating Income (Loss)
1,100.9 
1,096.3 
442.1 
Equity earnings (loss) in affiliates, net of tax
792.1 
979.3 
595.2 
Interest expense
8.5 
(17.8)
(18.9)
Intercompany Interest And Fees
96.0 
103.0 
197.3 
Other, net
(30.6)
1.2 
(33.5)
Earnings (loss) before income taxes
1,966.9 
2,162.0 
1,182.2 
Benefit (provision) for income taxes
(228.2)
0.5 
(64.3)
Earnings (loss) from continuing operations
1,738.7 
2,162.5 
1,117.9 
Discontinued operations, net of tax
178.3 
270.0 
295.4 
Net earnings
1,917.0 
2,432.5 
1,413.3 
Less: Net earnings attributable to noncontrolling interests
(36.9)
(48.7)
(35.5)
Net earnings (loss) attributable to Ingersoll-Rand plc
1,880.1 
2,383.8 
1,377.8 
Total comprehensive income (loss), net of tax
2,173.5 
2,386.0 
1,291.3 
Total comprehensive (income) loss attributable to noncontrolling interests
(43.9)
(36.3)
(34.9)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
2,129.6 
2,349.7 
1,256.4 
Consolidating Adjustments [Member]
 
 
 
Net revenues
0 
0 
0 
Cost of goods sold
0 
0 
0 
Selling and administrative expenses
0 
0 
0 
Gain (loss) on sale/asset impairment
 
0 
0 
Operating Income (Loss)
0 
0 
0 
Equity earnings (loss) in affiliates, net of tax
(4,145.8)
(5,333.7)
(3,095.3)
Interest expense
0 
0 
0 
Intercompany Interest And Fees
0 
0 
0 
Other, net
(3.0)
177.7 
(260.1)
Earnings (loss) before income taxes
(4,148.8)
(5,156.0)
(3,355.4)
Benefit (provision) for income taxes
0 
0 
0 
Earnings (loss) from continuing operations
(4,148.8)
(5,156.0)
(3,355.4)
Discontinued operations, net of tax
0 
0 
0 
Net earnings
(4,148.8)
(5,156.0)
(3,355.4)
Less: Net earnings attributable to noncontrolling interests
3.0 
23.3 
9.4 
Net earnings (loss) attributable to Ingersoll-Rand plc
(4,145.8)
(5,132.7)
(3,346.0)
Total comprehensive income (loss), net of tax
(4,857.4)
(5,221.9)
(2,902.8)
Total comprehensive (income) loss attributable to noncontrolling interests
3.0 
23.3 
9.4 
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
$ (4,854.4)
$ (5,198.6)
$ (2,893.4)
Guarantor Financial Information (Condensed Consolidating Balance Sheet) (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Current assets:
 
 
 
 
 
Cash and cash equivalents
$ 1,937.2 1
$ 708.4 1
$ 987.0 1
$ 840.6 1
$ 840.6 
Accounts and notes receivable, net
2,071.5 
1,870.1 
 
 
 
Inventories
1,166.1 
1,144.0 
 
 
 
Other current assets
541.9 
454.0 
 
 
 
Accounts and notes receivable affiliates
0 
0 
 
 
 
Assets Held-for-sale, at Carrying Value
0 
1,817.4 
 
 
 
Total current assets
5,716.7 
5,993.9 
 
 
 
Investment in affiliates
0 
0 
 
 
 
Property, plant and equipment, net
1,468.4 
1,426.1 
 
 
 
Intangible assets, net
9,462.6 
9,543.0 
 
 
 
Other noncurrent assets
1,010.4 
1,519.1 
 
 
 
Total assets
17,658.1 
18,482.1 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable and accruals
3,040.9 
2,831.2 
 
 
 
Short-term borrowings and current maturities of long-term debt
367.7 
962.9 
 
 
 
Accounts and note payable affiliates
0 
0 
 
 
 
Total current liabilities
3,408.6 
4,325.9 
 
 
 
Long-term debt
3,153.5 
2,266.5 
 
 
 
Note payable affiliate
 
0 
 
 
 
Other noncurrent liabilities
3,964.7 
4,660.4 
 
 
 
Total liabilities
10,526.8 
11,252.8 
 
 
 
Equity:
 
 
 
 
 
Total equity
7,131.3 
7,229.3 
7,012.4 
8,059.1 
 
Total liabilities and equity
17,658.1 
18,482.1 
 
 
 
IR Ireland [Member]
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
0 
0 
0 
 
0.4 
Accounts and notes receivable, net
0 
0 
 
 
 
Inventories
0 
0 
 
 
 
Other current assets
0.1 
0.1 
 
 
 
Accounts and notes receivable affiliates
1,086.9 
148.9 
 
 
 
Assets Held-for-sale, at Carrying Value
 
0 
 
 
 
Total current assets
1,087.0 
149.0 
 
 
 
Investment in affiliates
8,697.8 
8,885.1 
 
 
 
Property, plant and equipment, net
0 
0 
 
 
 
Intangible assets, net
0 
0 
 
 
 
Other noncurrent assets
0 
0 
 
 
 
Total assets
9,784.8 
9,034.1 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable and accruals
30.6 
70.5 
 
 
 
Short-term borrowings and current maturities of long-term debt
0 
0 
 
 
 
Accounts and note payable affiliates
2,685.3 
1,734.3 
 
 
 
Total current liabilities
2,715.9 
1,804.8 
 
 
 
Long-term debt
0 
0 
 
 
 
Note payable affiliate
 
0 
 
 
 
Other noncurrent liabilities
0 
0 
 
 
 
Total liabilities
2,715.9 
1,804.8 
 
 
 
Equity:
 
 
 
 
 
Total equity
7,068.9 
7,229.3 
 
 
 
Total liabilities and equity
9,784.8 
9,034.1 
 
 
 
IR Limited [Member]
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
0 
0 
0 
 
0 
Accounts and notes receivable, net
0 
0 
 
 
 
Inventories
0 
0 
 
 
 
Other current assets
0 
0 
 
 
 
Accounts and notes receivable affiliates
309.6 
3,039.2 
 
 
 
Assets Held-for-sale, at Carrying Value
 
0 
 
 
 
Total current assets
309.6 
3,039.2 
 
 
 
Investment in affiliates
13,696.0 
7,095.3 
 
 
 
Property, plant and equipment, net
0 
0 
 
 
 
Intangible assets, net
0 
0 
 
 
 
Other noncurrent assets
(4.3)
0 
 
 
 
Total assets
14,001.3 
10,134.5 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable and accruals
0 
0 
 
 
 
Short-term borrowings and current maturities of long-term debt
0 
0 
 
 
 
Accounts and note payable affiliates
3,780.6 
34.3 
 
 
 
Total current liabilities
3,780.6 
34.3 
 
 
 
Long-term debt
0 
0 
 
 
 
Note payable affiliate
 
0 
 
 
 
Other noncurrent liabilities
0 
4.3 
 
 
 
Total liabilities
3,780.6 
38.6 
 
 
 
Equity:
 
 
 
 
 
Total equity
10,220.7 
10,095.9 
 
 
 
Total liabilities and equity
14,001.3 
10,134.5 
 
 
 
IR International [Member]
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
0 
0 
0 
 
12.0 
Accounts and notes receivable, net
0 
0 
 
 
 
Inventories
0 
0 
 
 
 
Other current assets
0 
0.1 
 
 
 
Accounts and notes receivable affiliates
2.3 
2.0 
 
 
 
Assets Held-for-sale, at Carrying Value
 
0 
 
 
 
Total current assets
2.3 
2.1 
 
 
 
Investment in affiliates
11,339.0 
21,185.6 
 
 
 
Property, plant and equipment, net
0 
0 
 
 
 
Intangible assets, net
0 
0 
 
 
 
Other noncurrent assets
0.3 
0.5 
 
 
 
Total assets
11,341.6 
21,188.2 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable and accruals
12.1 
4.0 
 
 
 
Short-term borrowings and current maturities of long-term debt
0 
0 
 
 
 
Accounts and note payable affiliates
4,803.3 
4,888.9 
 
 
 
Total current liabilities
4,815.4 
4,892.9 
 
 
 
Long-term debt
299.8 
299.7 
 
 
 
Note payable affiliate
 
10,755.7 
 
 
 
Other noncurrent liabilities
3.8 
3.8 
 
 
 
Total liabilities
5,119.0 
15,952.1 
 
 
 
Equity:
 
 
 
 
 
Total equity
6,222.6 
5,236.1 
 
 
 
Total liabilities and equity
11,341.6 
21,188.2 
 
 
 
IR Global Holding [Member]
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
975.3 
61.9 
241.8 
 
99.9 
Accounts and notes receivable, net
0 
0 
 
 
 
Inventories
0 
0 
 
 
 
Other current assets
0.2 
0.2 
 
 
 
Accounts and notes receivable affiliates
1,496.6 
2,189.0 
 
 
 
Assets Held-for-sale, at Carrying Value
 
0 
 
 
 
Total current assets
2,472.1 
2,251.1 
 
 
 
Investment in affiliates
7,144.5 
18,589.8 
 
 
 
Property, plant and equipment, net
0 
0.2 
 
 
 
Intangible assets, net
0 
0 
 
 
 
Other noncurrent assets
18.8 
10.0 
 
 
 
Total assets
9,635.4 
20,851.1 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable and accruals
27.5 
46.0 
 
 
 
Short-term borrowings and current maturities of long-term debt
0 
600.0 
 
 
 
Accounts and note payable affiliates
5,982.2 
7,602.2 
 
 
 
Total current liabilities
6,009.7 
8,248.2 
 
 
 
Long-term debt
2,295.7 
1,404.4 
 
 
 
Note payable affiliate
 
0 
 
 
 
Other noncurrent liabilities
0 
0 
 
 
 
Total liabilities
8,305.4 
9,652.6 
 
 
 
Equity:
 
 
 
 
 
Total equity
1,330.0 
11,198.5 
 
 
 
Total liabilities and equity
9,635.4 
20,851.1 
 
 
 
IR New Jersey [Member]
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
1,038.5 
59.1 
77.8 
 
135.5 
Accounts and notes receivable, net
1,518.8 
128.8 
 
 
 
Inventories
846.2 
73.1 
 
 
 
Other current assets
607.3 
149.3 
 
 
 
Accounts and notes receivable affiliates
2,368.3 
8,669.5 
 
 
 
Assets Held-for-sale, at Carrying Value
 
0 
 
 
 
Total current assets
6,379.1 
9,079.8 
 
 
 
Investment in affiliates
34,774.1 
8,179.9 
 
 
 
Property, plant and equipment, net
1,088.8 
254.0 
 
 
 
Intangible assets, net
8,582.4 
83.8 
 
 
 
Other noncurrent assets
689.5 
867.3 
 
 
 
Total assets
51,513.9 
18,464.8 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable and accruals
2,189.1 
420.2 
 
 
 
Short-term borrowings and current maturities of long-term debt
354.2 
350.5 
 
 
 
Accounts and note payable affiliates
6,905.6 
13,337.7 
 
 
 
Total current liabilities
9,448.9 
14,108.4 
 
 
 
Long-term debt
557.5 
364.7 
 
 
 
Note payable affiliate
 
0 
 
 
 
Other noncurrent liabilities
3,749.3 
1,620.0 
 
 
 
Total liabilities
13,755.7 
16,093.1 
 
 
 
Equity:
 
 
 
 
 
Total equity
37,758.2 
2,371.7 
 
 
 
Total liabilities and equity
51,513.9 
18,464.8 
 
 
 
Other Subsidiaries [Member]
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
0 
587.4 
667.4 
 
592.8 
Accounts and notes receivable, net
552.7 
1,741.3 
 
 
 
Inventories
319.9 
1,070.9 
 
 
 
Other current assets
(65.7)
304.3 
 
 
 
Accounts and notes receivable affiliates
15,729.2 
23,772.0 
 
 
 
Assets Held-for-sale, at Carrying Value
 
1,817.4 
 
 
 
Total current assets
16,536.1 
29,293.3 
 
 
 
Investment in affiliates
23,921.0 
99,205.0 
 
 
 
Property, plant and equipment, net
379.6 
1,171.9 
 
 
 
Intangible assets, net
880.2 
9,459.2 
 
 
 
Other noncurrent assets
306.1 
641.3 
 
 
 
Total assets
42,023.0 
139,770.7 
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable and accruals
858.2 
2,290.5 
 
 
 
Short-term borrowings and current maturities of long-term debt
13.5 
12.4 
 
 
 
Accounts and note payable affiliates
(3,082.0)
9,867.6 
 
 
 
Total current liabilities
(2,210.3)
12,702.3 
 
 
 
Long-term debt
0.5 
197.7 
 
 
 
Note payable affiliate
 
0 
 
 
 
Other noncurrent liabilities
211.6 
3,032.3 
 
 
 
Total liabilities
(1,998.2)
15,932.3 
 
 
 
Equity:
 
 
 
 
 
Total equity
44,021.2 
123,838.4 
 
 
 
Total liabilities and equity
42,023.0 
139,770.7 
 
 
 
Consolidating Adjustments [Member]
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
(76.6)
0 
0 
 
0 
Accounts and notes receivable, net
0 
0 
 
 
 
Inventories
0 
0 
 
 
 
Other current assets
0 
0 
 
 
 
Accounts and notes receivable affiliates
(20,992.9)
(37,820.6)
 
 
 
Assets Held-for-sale, at Carrying Value
 
0 
 
 
 
Total current assets
(21,069.5)
(37,820.6)
 
 
 
Investment in affiliates
(99,572.4)
(163,140.7)
 
 
 
Property, plant and equipment, net
0 
0 
 
 
 
Intangible assets, net
0 
0 
 
 
 
Other noncurrent assets
0 
0 
 
 
 
Total assets
(120,641.9)
(200,961.3)
 
 
 
Current liabilities:
 
 
 
 
 
Accounts payable and accruals
(76.6)
0 
 
 
 
Short-term borrowings and current maturities of long-term debt
0 
0 
 
 
 
Accounts and note payable affiliates
(21,075.0)
(37,465.0)
 
 
 
Total current liabilities
(21,151.6)
(37,465.0)
 
 
 
Long-term debt
0 
0 
 
 
 
Note payable affiliate
 
(10,755.7)
 
 
 
Other noncurrent liabilities
0 
0 
 
 
 
Total liabilities
(21,151.6)
(48,220.7)
 
 
 
Equity:
 
 
 
 
 
Total equity
(99,490.3)
(152,740.6)
 
 
 
Total liabilities and equity
$ (120,641.9)
$ (200,961.3)
 
 
 
Guarantor Financial Information (Condensed Consolidating Statement of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net cash (used in) provided by continuing operating activities
$ 877.7 
$ 868.1 
$ 786.3 
Net cash (used in) provided by discontinued operating activities
292.7 
312.9 
400.5 
Net cash provided by (used in) operating activities
1,170.4 
1,181.0 
1,186.8 
Capital expenditures
(242.2)
(243.1)
(217.1)
Acquisition of businesses, net of cash acquired
0 
0 
(1.9)
Proceeds from sale of property, plant and equipment
24.3 
17.9 
48.5 
Proceeds from business dispositions, net of cash sold
4.7 
52.7 
400.3 
Net cash (used in) provided by continuing investing activities
(213.2)
(128.2)
229.8 
Net cash (used in) provided by discontinued investing activities
(2.2)
(18.3)
(22.3)
Net cash provided by (used in) investing activities
(215.4)
(146.5)
207.5 
Net proceeds (repayments) in debt
291.7 
(413.4)
(52.8)
Debt issuance costs
(13.2)
(2.5)
(2.3)
Excess tax benefit from share based compensation
19.5 
19.6 
24.6 
Net inter-company (payments) proceeds
0 
0 
0 
Dividends paid to ordinary shareholders
(245.5)
(192.4)
(137.3)
Dividends paid to noncontrolling interests
(12.4)
(13.9)
(20.8)
Acquisition/divestiture of noncontrolling Interest
0 
(1.5)
(1.3)
Proceeds shares issued under incentive plans
253.0 
152.9 
109.0 
Repurchase of ordinary shares
(1,213.2)
(839.8)
(1,157.5)
Transfer from Discontinued Operations
1,274.2 
 
 
Other, net
0 
(4.7)
(1.4)
Net cash (used in) provided by continuing financing activities
354.1 
(1,295.7)
(1,239.8)
Cash Provided by (Used in) Financing Activities, Discontinued Operations
(7.5)
(8.2)
(6.6)
Net Cash Provided by (Used in) Financing Activities
346.6 
(1,303.9)
(1,246.4)
Effect of exchange rate changes on cash and cash equivalents
(72.8)
(9.2)
(1.5)
Net (decrease) increase in cash and cash equivalents
1,228.8 
(278.6)
146.4 
Cash and cash equivalents - beginning of period
708.4 1
987.0 1
840.6 1
Cash and cash equivalents - end of period
1,937.2 1
708.4 1
987.0 1
IR Ireland [Member]
 
 
 
Net cash (used in) provided by continuing operating activities
(63.2)
(19.7)
(13.1)
Net cash (used in) provided by discontinued operating activities
0 
0 
0 
Net cash provided by (used in) operating activities
(63.2)
(19.7)
(13.1)
Capital expenditures
0 
0 
0 
Acquisition of businesses, net of cash acquired
 
 
0 
Proceeds from sale of property, plant and equipment
0 
0 
0 
Proceeds from business dispositions, net of cash sold
0 
0 
0 
Net cash (used in) provided by continuing investing activities
0 
0 
0 
Net cash (used in) provided by discontinued investing activities
0 
0 
0 
Net cash provided by (used in) investing activities
0 
0 
0 
Net proceeds (repayments) in debt
0 
0 
0 
Debt issuance costs
0 
0 
0 
Excess tax benefit from share based compensation
19.5 
19.6 
0 
Net inter-company (payments) proceeds
(24.8)
884.5 
1,199.0 
Dividends paid to ordinary shareholders
(245.5)
(192.4)
(137.3)
Dividends paid to noncontrolling interests
0 
0 
0 
Acquisition/divestiture of noncontrolling Interest
 
(0.4)
0 
Proceeds shares issued under incentive plans
253.0 
152.9 
109.0 
Repurchase of ordinary shares
(1,213.2)
(839.8)
(1,157.5)
Transfer from Discontinued Operations
1,274.2 
 
 
Other, net
 
(4.7)
(0.5)
Net cash (used in) provided by continuing financing activities
63.2 
19.7 
12.7 
Cash Provided by (Used in) Financing Activities, Discontinued Operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
63.2 
19.7 
12.7 
Effect of exchange rate changes on cash and cash equivalents
0 
0 
0 
Net (decrease) increase in cash and cash equivalents
0 
0 
(0.4)
Cash and cash equivalents - beginning of period
0 
0 
 
Cash and cash equivalents - end of period
0 
0 
0 
IR Limited [Member]
 
 
 
Net cash (used in) provided by continuing operating activities
(0.1)
(0.4)
(5.3)
Net cash (used in) provided by discontinued operating activities
0 
0 
0 
Net cash provided by (used in) operating activities
(0.1)
(0.4)
(5.3)
Capital expenditures
0 
0 
0 
Acquisition of businesses, net of cash acquired
 
 
0 
Proceeds from sale of property, plant and equipment
0 
0 
0 
Proceeds from business dispositions, net of cash sold
0 
0 
0 
Net cash (used in) provided by continuing investing activities
0 
0 
0 
Net cash (used in) provided by discontinued investing activities
0 
0 
0 
Net cash provided by (used in) investing activities
0 
0 
0 
Net proceeds (repayments) in debt
0 
0 
0 
Debt issuance costs
0 
0 
0 
Excess tax benefit from share based compensation
0 
0 
0 
Net inter-company (payments) proceeds
1,274.3 
0.4 
5.3 
Dividends paid to ordinary shareholders
(1,274.2)
0 
0 
Dividends paid to noncontrolling interests
0 
0 
0 
Acquisition/divestiture of noncontrolling Interest
 
0 
0 
Proceeds shares issued under incentive plans
0 
0 
0 
Repurchase of ordinary shares
0 
0 
0 
Transfer from Discontinued Operations
0 
 
 
Other, net
 
0 
0 
Net cash (used in) provided by continuing financing activities
0.1 
0.4 
5.3 
Cash Provided by (Used in) Financing Activities, Discontinued Operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
0.1 
0.4 
5.3 
Effect of exchange rate changes on cash and cash equivalents
0 
0 
0 
Net (decrease) increase in cash and cash equivalents
0 
0 
0 
Cash and cash equivalents - beginning of period
0 
0 
 
Cash and cash equivalents - end of period
0 
0 
0 
IR International [Member]
 
 
 
Net cash (used in) provided by continuing operating activities
(14.2)
(15.1)
(14.0)
Net cash (used in) provided by discontinued operating activities
0 
0 
0 
Net cash provided by (used in) operating activities
(14.2)
(15.1)
(14.0)
Capital expenditures
0 
0 
0 
Acquisition of businesses, net of cash acquired
 
 
0 
Proceeds from sale of property, plant and equipment
0 
0 
0 
Proceeds from business dispositions, net of cash sold
0 
0 
0 
Net cash (used in) provided by continuing investing activities
0 
0 
0 
Net cash (used in) provided by discontinued investing activities
0 
0 
0 
Net cash provided by (used in) investing activities
0 
0 
0 
Net proceeds (repayments) in debt
0 
0 
0 
Debt issuance costs
0 
0 
0 
Excess tax benefit from share based compensation
0 
0 
0 
Net inter-company (payments) proceeds
699.7 
15.1 
2.0 
Dividends paid to ordinary shareholders
(685.5)
0 
0 
Dividends paid to noncontrolling interests
0 
0 
0 
Acquisition/divestiture of noncontrolling Interest
 
0 
0 
Proceeds shares issued under incentive plans
0 
0 
0 
Repurchase of ordinary shares
0 
0 
0 
Transfer from Discontinued Operations
0 
 
 
Other, net
 
0 
0 
Net cash (used in) provided by continuing financing activities
14.2 
15.1 
2.0 
Cash Provided by (Used in) Financing Activities, Discontinued Operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
14.2 
15.1 
2.0 
Effect of exchange rate changes on cash and cash equivalents
0 
0 
0 
Net (decrease) increase in cash and cash equivalents
0 
0 
(12.0)
Cash and cash equivalents - beginning of period
0 
0 
 
Cash and cash equivalents - end of period
0 
0 
0 
IR Global Holding [Member]
 
 
 
Net cash (used in) provided by continuing operating activities
(196.7)
(570.5)
(185.3)
Net cash (used in) provided by discontinued operating activities
0 
0 
0 
Net cash provided by (used in) operating activities
(196.7)
(570.5)
(185.3)
Capital expenditures
0 
0 
0 
Acquisition of businesses, net of cash acquired
 
 
0 
Proceeds from sale of property, plant and equipment
0 
0 
0 
Proceeds from business dispositions, net of cash sold
0 
0 
0 
Net cash (used in) provided by continuing investing activities
0 
0 
0 
Net cash (used in) provided by discontinued investing activities
0 
0 
0 
Net cash provided by (used in) investing activities
0 
0 
0 
Net proceeds (repayments) in debt
291.2 
(344.5)
(0.2)
Debt issuance costs
(13.2)
(2.5)
(2.3)
Excess tax benefit from share based compensation
0 
0 
0 
Net inter-company (payments) proceeds
2,106.3 
737.6 
329.7 
Dividends paid to ordinary shareholders
(1,274.2)
0 
0 
Dividends paid to noncontrolling interests
0 
0 
0 
Acquisition/divestiture of noncontrolling Interest
 
0 
0 
Proceeds shares issued under incentive plans
0 
0 
0 
Repurchase of ordinary shares
0 
0 
0 
Transfer from Discontinued Operations
0 
 
 
Other, net
 
0 
0 
Net cash (used in) provided by continuing financing activities
1,110.1 
390.6 
327.2 
Cash Provided by (Used in) Financing Activities, Discontinued Operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
1,110.1 
390.6 
327.2 
Effect of exchange rate changes on cash and cash equivalents
0 
0 
0 
Net (decrease) increase in cash and cash equivalents
913.4 
(179.9)
141.9 
Cash and cash equivalents - beginning of period
61.9 
241.8 
 
Cash and cash equivalents - end of period
975.3 
61.9 
241.8 
IR New Jersey [Member]
 
 
 
Net cash (used in) provided by continuing operating activities
540.8 
(103.5)
133.2 
Net cash (used in) provided by discontinued operating activities
(78.5)
(18.3)
(69.3)
Net cash provided by (used in) operating activities
462.3 
(121.8)
63.9 
Capital expenditures
(151.9)
(74.9)
(47.6)
Acquisition of businesses, net of cash acquired
 
 
0 
Proceeds from sale of property, plant and equipment
11.2 
3.1 
3.1 
Proceeds from business dispositions, net of cash sold
0 
0 
0 
Net cash (used in) provided by continuing investing activities
(140.7)
(71.8)
(44.5)
Net cash (used in) provided by discontinued investing activities
0 
0 
0 
Net cash provided by (used in) investing activities
(140.7)
(71.8)
(44.5)
Net proceeds (repayments) in debt
(6.7)
(9.2)
(7.7)
Debt issuance costs
0 
0 
0 
Excess tax benefit from share based compensation
0 
0 
11.8 
Net inter-company (payments) proceeds
664.5 
184.1 
(81.2)
Dividends paid to ordinary shareholders
0 
0 
0 
Dividends paid to noncontrolling interests
0 
0 
0 
Acquisition/divestiture of noncontrolling Interest
 
0 
0 
Proceeds shares issued under incentive plans
0 
0 
0 
Repurchase of ordinary shares
0 
0 
0 
Transfer from Discontinued Operations
0 
 
 
Other, net
 
0 
0 
Net cash (used in) provided by continuing financing activities
657.8 
174.9 
(77.1)
Cash Provided by (Used in) Financing Activities, Discontinued Operations
0 
0 
0 
Net Cash Provided by (Used in) Financing Activities
657.8 
174.9 
(77.1)
Effect of exchange rate changes on cash and cash equivalents
0 
0 
0 
Net (decrease) increase in cash and cash equivalents
979.4 
(18.7)
(57.7)
Cash and cash equivalents - beginning of period
59.1 
77.8 
 
Cash and cash equivalents - end of period
1,038.5 
59.1 
77.8 
Other Subsidiaries [Member]
 
 
 
Net cash (used in) provided by continuing operating activities
3,927.7 
1,896.8 
892.3 
Net cash (used in) provided by discontinued operating activities
371.2 
331.2 
469.8 
Net cash provided by (used in) operating activities
4,298.9 
2,228.0 
1,362.1 
Capital expenditures
(90.3)
(168.2)
(169.5)
Acquisition of businesses, net of cash acquired
 
 
(1.9)
Proceeds from sale of property, plant and equipment
13.1 
14.8 
45.4 
Proceeds from business dispositions, net of cash sold
4.7 
52.7 
400.3 
Net cash (used in) provided by continuing investing activities
(72.5)
(56.4)
274.3 
Net cash (used in) provided by discontinued investing activities
(2.2)
(18.3)
(22.3)
Net cash provided by (used in) investing activities
(74.7)
(74.7)
252.0 
Net proceeds (repayments) in debt
7.2 
(59.7)
(44.9)
Debt issuance costs
0 
0 
0 
Excess tax benefit from share based compensation
0 
0 
12.8 
Net inter-company (payments) proceeds
(4,720.0)
(1,821.7)
(1,454.8)
Dividends paid to ordinary shareholders
(1.2)
(314.0)
(12.5)
Dividends paid to noncontrolling interests
(12.4)
(13.9)
(20.8)
Acquisition/divestiture of noncontrolling Interest
 
(1.1)
(1.3)
Proceeds shares issued under incentive plans
0 
0 
0 
Repurchase of ordinary shares
0 
0 
0 
Transfer from Discontinued Operations
0 
 
 
Other, net
 
0 
(0.9)
Net cash (used in) provided by continuing financing activities
(4,726.4)
(2,210.4)
(1,522.4)
Cash Provided by (Used in) Financing Activities, Discontinued Operations
(12.4)
(13.7)
(15.6)
Net Cash Provided by (Used in) Financing Activities
(4,738.8)
(2,224.1)
(1,538.0)
Effect of exchange rate changes on cash and cash equivalents
(72.8)
(9.2)
(1.5)
Net (decrease) increase in cash and cash equivalents
(587.4)
(80.0)
74.6 
Cash and cash equivalents - beginning of period
587.4 
667.4 
 
Cash and cash equivalents - end of period
0 
587.4 
667.4 
Consolidating Adjustments [Member]
 
 
 
Net cash (used in) provided by continuing operating activities
(3,316.6)
(319.5)
(21.5)
Net cash (used in) provided by discontinued operating activities
0 
0 
0 
Net cash provided by (used in) operating activities
(3,316.6)
(319.5)
(21.5)
Capital expenditures
0 
0 
0 
Acquisition of businesses, net of cash acquired
 
 
0 
Proceeds from sale of property, plant and equipment
0 
0 
0 
Proceeds from business dispositions, net of cash sold
0 
0 
0 
Net cash (used in) provided by continuing investing activities
0 
0 
0 
Net cash (used in) provided by discontinued investing activities
0 
0 
0 
Net cash provided by (used in) investing activities
0 
0 
0 
Net proceeds (repayments) in debt
0 
0 
0 
Debt issuance costs
0 
0 
0 
Excess tax benefit from share based compensation
0 
0 
0 
Net inter-company (payments) proceeds
0 
0 
0 
Dividends paid to ordinary shareholders
3,235.1 
314.0 
12.5 
Dividends paid to noncontrolling interests
0 
0 
0 
Acquisition/divestiture of noncontrolling Interest
 
0 
0 
Proceeds shares issued under incentive plans
0 
0 
0 
Repurchase of ordinary shares
0 
0 
0 
Transfer from Discontinued Operations
0 
 
 
Other, net
 
0 
0 
Net cash (used in) provided by continuing financing activities
3,235.1 
314.0 
12.5 
Cash Provided by (Used in) Financing Activities, Discontinued Operations
4.9 
5.5 
9.0 
Net Cash Provided by (Used in) Financing Activities
3,240.0 
319.5 
21.5 
Effect of exchange rate changes on cash and cash equivalents
0 
0 
0 
Net (decrease) increase in cash and cash equivalents
(76.6)
0 
0 
Cash and cash equivalents - beginning of period
0 
0 
 
Cash and cash equivalents - end of period
$ (76.6)
$ 0 
$ 0 
Valuation and Qualifying Accounts (Valuation and Qualifying Accounts Allowance For Doubtful Accounts) (Details) (Allowances for Doubtful Accounts [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Allowances for Doubtful Accounts [Member]
 
 
 
Balance at the beginning of period
$ 24.8 
$ 23.7 
$ 36.4 
Additions charged to costs and expenses
20.8 
13.7 
11.7 
Deductions
(9.7)1
(12.8)1
(23.9)1
Business acquisitions and divestitures, net
(7.2)
 
(0.2)
Currency translation
(0.5)
(0.6)
(0.3)
Other
7.2 
0.8 
 
Balance at the end of period
$ 35.4 
$ 24.8 
$ 23.7