INGERSOLL-RAND PLC, 10-Q filed on 4/25/2013
Quarterly Report
Document and Entity Information Document
3 Months Ended
Mar. 31, 2013
Apr. 12, 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-Q 
 
Document Period End Date
Mar. 31, 2013 
 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
298,892,270 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net revenues
$ 3,112.4 
$ 3,150.7 
Cost of goods sold
(2,192.1)
(2,249.4)
Selling and administrative expenses
(726.8)
(689.6)
Gain (loss) on sale/asset impairment
0.3 
Operating income
193.5 
212.0 
Interest expense
(61.0)
(69.4)
Other, net
(7.0)
(0.2)
Earnings before income taxes
125.5 
142.4 
Provision for income taxes
(23.7)
(38.0)
Earnings from continuing operations
101.8 
104.4 
Discontinued operations, net of tax
(7.2)
(2.2)
Net earnings
94.6 
102.2 
Less: Net earnings attributable to noncontrolling interests
(6.6)
(6.6)
Net earnings attributable to Ingersoll-Rand plc
88.0 
95.6 
Amounts attributable to Ingersoll-Rand plc ordinary shareholders:
 
 
Continuing operations
95.2 
97.8 
Discontinued operations
(7.2)
(2.2)
Net earnings attributable to Ingersoll-Rand plc
88.0 
95.6 
Basic:
 
 
Continuing operations (in dollars per share)
$ 0.32 
$ 0.33 
Discontinued operations (in dollars per share)
$ (0.03)
$ (0.01)
Net earnings (in dollars per share)
$ 0.29 
$ 0.32 
Diluted:
 
 
Continuing operations (in dollars per share)
$ 0.31 
$ 0.31 
Discontinued operations (in dollars per share)
$ (0.02)
$ 0.00 
Net earnings (in dollars per share)
$ 0.29 
$ 0.31 
Weighted-average shares outstanding
 
 
Basic
298.9 
299.2 
Diluted
302.5 
312.4 
Dividends declared per ordinary share
$ 0.00 
$ 0.00 
Total comprehensive income (loss)
9.6 
267.2 
Less: Total comprehensive (income) loss attributable to noncontrolling interests
(7.8)
(6.6)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
$ 1.8 
$ 260.6 
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
ASSETS
 
 
Cash and cash equivalents
$ 832.9 
$ 882.1 
Accounts and notes receivable, net
2,218.8 
2,157.5 
Inventories
1,466.3 
1,308.8 
Other current assets
599.4 
594.3 
Total current assets
5,117.4 
4,942.7 
Property, plant and equipment, net
1,653.0 
1,652.6 
Goodwill
6,098.3 
6,138.9 
Intangible assets, net
4,163.6 
4,200.9 
Other noncurrent assets
1,561.0 
1,557.8 
Total assets
18,593.3 
18,492.9 
LIABILITIES AND EQUITY
 
 
Accounts payable
1,330.6 
1,230.2 
Accrued compensation and benefits
415.7 
506.8 
Accrued expenses and other current liabilities
1,459.5 
1,460.6 
Short-term borrowings and current maturities of long-term debt
965.1 
963.7 
Total current liabilities
4,170.9 
4,161.3 
Long-term debt
2,271.1 
2,269.3 
Postemployment and other benefit liabilities
1,822.3 
1,823.2 
Deferred and noncurrent income taxes
1,598.8 
1,592.8 
Other noncurrent liabilities
1,382.7 
1,417.0 
Total liabilities
11,245.8 
11,263.6 
Equity:
 
 
Ordinary shares
299.6 
295.6 
Capital in excess of par value
1,122.7 
1,014.5 
Retained earnings
6,445.9 
6,358.7 
Accumulated other comprehensive income (loss)
(607.2)
(521.0)
Total Ingersoll-Rand plc shareholders' equity
7,261.0 
7,147.8 
Noncontrolling interest
86.5 
81.5 
Total equity
7,347.5 
7,229.3 
Total liabilities and equity
$ 18,593.3 
$ 18,492.9 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash flows from operating activities:
 
 
Net earnings
$ 94.6 
$ 102.2 
(Income) loss from discontinued operations, net of tax
7.2 
2.2 
Adjustments to arrive at net cash provided by (used in) operating activities:
 
 
(Gain) loss on sale/asset impairment
(0.3)
Depreciation and amortization
94.7 
98.0 
Stock settled share-based compensation
21.5 
6.9 
(Gain) loss on sale of property, plant and equipment
1.4 
1.1 
Changes in other assets and liabilities, net
(212.9)
(218.9)
Other, net
(7.3)
91.0 
Net cash provided by (used in) continuing operating activities
(0.8)
82.2 
Net cash provided by (used in) discontinued operating activities
(7.2)
(65.8)
Net cash provided by (used in) operating activities
(8.0)
16.4 
Cash flows from investing activities:
 
 
Capital expenditures
(71.4)
(52.9)
Proceeds from sale of property, plant and equipment
4.2 
3.2 
Net cash provided by (used in) continuing investing activities
(67.2)
(49.7)
Net cash provided by (used in) discontinued investing activities
Net cash provided by (used in) investing activities
(67.2)
(49.7)
Cash flows from financing activities:
 
 
Short-term borrowings, net
3.1 
0.4 
Payments of long-term debt
(0.4)
(1.7)
Net proceeds (repayments) in debt
2.7 
(1.3)
Debt issuance costs
(2.4)
Dividends paid to ordinary shareholders
(62.8)
(46.6)
Dividends paid to noncontrolling interests
(4.0)
(4.5)
Proceeds from shares issued under incentive plans
90.7 
12.9 
Net cash provided by (used in) continuing financing activities
26.6 
(41.9)
Effect of exchange rate changes on cash and cash equivalents
(0.6)
4.0 
Net increase (decrease) in cash and cash equivalents
(49.2)
(71.2)
Cash and cash equivalents - beginning of period
882.1 
1,160.7 
Cash and cash equivalents - end of period
$ 832.9 
$ 1,089.5 
Basis of Presentation
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
Basis of Presentation
The accompanying condensed consolidated financial statements of Ingersoll-Rand plc (IR-Ireland), an Irish public limited company, and its consolidated subsidiaries (collectively, the Company), reflect the consolidated operations of the Company and have been prepared in accordance with United States Securities and Exchange Commission (SEC) interim reporting requirements. Accordingly, the accompanying condensed consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP) for full financial statements and should be read in conjunction with the consolidated financial statements included in the IR-Ireland Annual Report on Form 10-K for the year ended December 31, 2012. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to present fairly the consolidated unaudited results for the interim periods presented. Certain reclassifications of amounts reported in prior years have been made to conform to the 2013 classification.
Proposed Spin Off Transaction (Notes)
Proposed Spin Off Transaction [Text Block]
Proposed Spin-Off Transaction
In December 2012, the Company's Board of Directors announced a plan to spin off the commercial and residential security businesses (the New Security Company). The separation will result in two standalone companies: Ingersoll-Rand plc; and the New Security Company, a leading global provider of electronic and mechanical security products and services, delivering comprehensive solutions to commercial and residential customers. This new company’s portfolio of brands will include Schlage, LCN®, Von Duprin®, Steelcraft®, Interflex®, CISA®, Briton®, Bricard®, BOCOM® Systems, Dexter®, Kryptonite®, Falcon® and Fusion® Hardware Group.
The completion of the spin-off is subject to certain customary conditions, including receipt of regulatory approvals, receipt of a ruling from the U.S. Internal Revenue Service as to the tax-free nature of the spin-off, as well as certain other matters relating to the spin-off: receipt of legal opinions, execution of intercompany agreements, effectiveness of appropriate filings with the SEC, and final approval of the transactions contemplated by the spin-off, as may be required under Irish law. There can be no assurance that any separation transaction will ultimately occur, or, if one does occur, its terms or timing. The disclosures and financial statements within these condensed consolidated financial statements include the results of operations, financial position, and cash flows of the commercial and residential security businesses as continuing operations.
Upon completion of the spin-off the New Security Company will become an independent publicly traded company. The New Security Company is anticipated to be an Irish public limited company.
In the first quarter of 2013, the Company incurred $11.0 million of professional service fees related to the proposed spin transaction. These costs are reported in Selling and administrative expenses in the Condensed Consolidated Statement of Comprehensive Income.
Recent Accounting Pronouncements
Recently Accounting Pronouncements [Text Block]
Recent Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In December 2011, the Financial Accounting Standards Board (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 condensed 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 condensed 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 condensed consolidated financial statements. The revised disclosure requirements are reflected in Note 11.
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 condensed 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 US 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.
Inventories
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.
The major classes of inventory were as follows:
In millions
March 31,
2013
 
December 31,
2012
Raw materials
$
503.9

 
$
501.9

Work-in-process
146.7

 
109.6

Finished goods
918.4

 
800.2

 
1,569.0

 
1,411.7

LIFO reserve
(102.7
)
 
(102.9
)
Total
$
1,466.3

 
$
1,308.8

Goodwill
Goodwill
Goodwill
The changes in the carrying amount of goodwill for the three months ended March 31, 2013 were as follows:  
In millions
Climate
Solutions
 
Residential
Solutions
 
Industrial
Technologies
 
Security
Technologies
 
Total
December 31, 2012 (gross)
$
5,370.6

 
$
2,317.1

 
$
368.7

 
$
922.5

 
$
8,978.9

Acquisitions and adjustments *
(1.4
)
 
14.9

 
1.1

 
(14.6
)
 

Currency translation
(32.4
)
 

 
(2.4
)
 
(5.8
)
 
(40.6
)
March 31, 2013 (gross)
5,336.8

 
2,332.0

 
367.4

 
902.1

 
8,938.3

Accumulated impairment **
(839.8
)
 
(1,656.2
)
 

 
(344.0
)
 
(2,840.0
)
Goodwill (net)
$
4,497.0

 
$
675.8

 
$
367.4

 
$
558.1

 
$
6,098.3

* During 2013, the Company made reclassifications to goodwill across all segments, including a reclassification of goodwill related to a product line transfer from the Security Technologies segment to the Residential Solutions segment.
** No impairment charges were recorded by the Company in 2013 or 2012.
Intangible Assets
Intangible Assets
Intangible Assets
The gross amount of the Company’s intangible assets and related accumulated amortization were as follows:
 
 
March 31, 2013
 
December 31, 2012
In millions
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
Completed technologies/patents
 
$
199.3

 
$
(135.8
)
 
$
63.5

 
$
203.2

 
$
(134.4
)
 
$
68.8

Customer relationships
 
1,961.3

 
(549.7
)
 
1,411.6

 
1,966.8

 
(523.6
)
 
1,443.2

Trademarks (finite-lived)
 
95.2

 
(32.1
)
 
63.1

 
98.0

 
(32.1
)
 
65.9

Other
 
77.2

 
(62.8
)
 
14.4

 
71.4

 
(59.4
)
 
12.0

Total finite-lived intangible assets
 
2,333.0

 
$
(780.4
)
 
1,552.6

 
2,339.4

 
$
(749.5
)
 
1,589.9

Trademarks (indefinite-lived)
 
2,611.0

 
 
 
2,611.0

 
2,611.0

 
 
 
2,611.0

Total
 
$
4,944.0

 
 
 
$
4,163.6

 
$
4,950.4

 
 
 
$
4,200.9


Intangible asset amortization expense was $35.1 million for the three months ended March 31, 2013 and 2012. Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $129 million for 2013, $128 million for 2014, $127 million for 2015, $110 million for 2016, and $110 million for 2017.
Debt and Credit Facilities
Debt and Credit Facilities
Debt and Credit Facilities
Short-term borrowings and current maturities of long-term debt consisted of the following:
In millions
March 31,
2013
 
December 31,
2012
Debentures with put feature
$
343.0

 
$
343.0

6.000% Senior notes due 2013
600.0


600.0

Other current maturities of long-term debt
9.0

 
10.8

Other short-term borrowings
13.1

 
9.9

Total
$
965.1

 
$
963.7


Commercial Paper Program
The Company uses borrowings under its commercial paper program for general corporate purposes. The Company had no commercial paper outstanding at March 31, 2013 and December 31, 2012, respectively.
Debentures with Put Feature
At March 31, 2013 and December 31, 2012, the Company had $343.0 million of fixed rate debentures outstanding, 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.
On February 15, 2013, holders of these debentures had the option to exercise the put feature on $37.2 million of the outstanding debentures. No holder chose to exercise the put feature at that date.
Long-term debt excluding current maturities consisted of the following:
In millions
March 31,
2013
 
December 31,
2012
9.500% Senior notes due 2014
655.0

 
655.0

5.50% Senior notes due 2015
198.4

 
196.4

4.75% Senior notes due 2015
299.7

 
299.7

6.875% Senior notes due 2018
749.4

 
749.4

9.00% Debentures due 2021
125.0

 
125.0

7.20% Debentures due 2014-2025
90.0

 
90.0

6.48% Debentures due 2025
149.7

 
149.7

Other loans and notes
3.9

 
4.1

Total
$
2,271.1

 
$
2,269.3


Credit Facilities
As of March 31, 2013, the Company has a 5-year, $1.0 billion revolving credit facility maturing on March 15, 2017, and a 4-year, $1.0 billion revolving credit facility maturing on May 20, 2015, through its wholly-owned subsidiary, Ingersoll-Rand Global Holding Company Limited (IR-Global).
IR-Ireland, Ingersoll-Rand Company Limited (IR-Limited), and Ingersoll-Rand International Holding Limited (IR-International) have each provided an irrevocable and unconditional guarantee for these credit facilities. 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 for other general corporate purposes.
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, a cash flow hedge of a recognized asset or liability, 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 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 $1,632.1 million and $1,656.7 million at March 31, 2013 and December 31, 2012, respectively. At March 31, 2013 and December 31, 2012, a loss of $4.7 million and $4.0 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 $4.7 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 March 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 $250 million of forward starting interest rate swaps which represents a portion of the forecasted issuance of 30 year fixed rate debt expected to be issued during 2013. At inception these forward starting interest rate swaps met the criteria to be accounted for as cash flow hedges of a forecasted transaction, and they continue to be assessed as highly effective as of March 31, 2013. Consequently, the changes in fair value of the forward starting interest rate swaps have been recognized in AOCI. At March 31, 2013, these forward starting interest rate swaps have an unrealized loss of $4.5 million.
In February 2013, the Company entered into $500 million of forward starting interest rate swaps which represents a portion of the forecasted issuance of 10 year fixed rate debt expected to be issued during 2013. At inception these forward starting interest rate swaps met the criteria to be accounted for as cash flow hedges of a forecasted transaction, and they continue to be assessed as highly effective as of March 31, 2013. Consequently, the changes in fair value of the forward starting interest rate swaps have been recognized in AOCI. At March 31, 2013, these forward starting interest rate swaps have an unrealized loss of $5.4 million.
During the third quarter of 2008, the Company entered into interest rate locks for the forecasted issuance of approximately $1.4 billion of Senior Notes due in 2013 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 will be recognized into Interest expense over the term of the notes. At March 31, 2013 and December 31, 2012, $6.7 million and $7.2 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 $1.4 million.
In March 2005, the Company entered into interest rate locks for the forecasted issuance of $300 million of Senior Notes due 2015. 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 will be recognized into Interest expense over the term of the notes. At March 31, 2013 and December 31, 2012, $2.7 million and $3.1 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 $1.3 million.
The fair values of derivative instruments included within the Condensed Consolidated Balance Sheets were as follows:
 
Asset derivatives
 
Liability derivatives
In millions
March 31,
2013
 
December 31,
2012
 
March 31,
2013
 
December 31,
2012
Derivatives designated as hedges:

 

 

 

Currency derivatives
$
0.6

 
$
0.1

 
$
6.0

 
$
4.6

Interest rate swaps

 

 
9.9

 

Derivatives not designated as hedges:

 

 

 

Currency derivatives
3.4

 
4.6

 
12.0

 
7.1

Total derivatives
$
4.0

 
$
4.7

 
$
27.9

 
$
11.7


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 three months ended March 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
 
 
2013
 
2012
Currency derivatives
$
(3.1
)
 
$
(4.9
)
 
Cost of goods sold
 
$
(2.2
)
 
$
0.4

Interest rate swaps
(9.9
)
 

 
Interest expense
 

 

Interest rate locks

 

 
Interest expense
 
(0.9
)
 
(0.8
)
Total
$
(13.0
)
 
$
(4.9
)
 

 
$
(3.1
)
 
$
(0.4
)

The amounts associated with derivatives not designated as hedges affecting Net earnings for the three months ended March 31 were as follows:
  
Location of gain (loss)         
recognized in Net earnings
 
Amount of gain (loss)         
recognized in Net earnings
In millions
2013
 
2012
Currency derivatives
Other, net
 
$
(14.3
)
 
$
22.6

Total

 
$
(14.3
)
 
$
22.6


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.
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 retired employees.
Pension Plans
The noncontributory defined benefit pension plans covering non-collectively bargained U.S. employees provide benefits on an average pay formula while most plans for collectively bargained U.S. employees provide benefits on a flat dollar benefit 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 employees.
The components of the Company’s net periodic pension benefit costs for the three months ended March 31 were as follows:
In millions
2013
 
2012
Service cost
$
23.1

 
$
25.3

Interest cost
39.2

 
41.3

Expected return on plan assets
(42.0
)
 
(43.3
)
Net amortization of:

 

Prior service costs
1.2

 
1.4

Plan net actuarial losses
15.5

 
14.9

Net periodic pension benefit cost
37.0

 
39.6

Net curtailment and settlement losses

 
0.1

Net periodic pension benefit cost after net curtailment and  settlement losses
$
37.0

 
$
39.7

Amounts recorded in continuing operations
$
34.7

 
$
36.8

Amounts recorded in discontinued operations
2.3

 
2.9

Total
$
37.0

 
$
39.7


The Company made required and discretionary employer contributions of $6.8 million and $8.2 million to its defined benefit pension plans during the three months ended March 31, 2013 and 2012, respectively.
The curtailment and settlement losses in 2012 are associated with lump sum distributions under supplemental benefit plans for officers and other key employees.
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 retired employees. The Company funds postretirement benefit obligations principally on a pay as you go basis. Generally, postretirement health benefits are contributory with contributions adjusted annually. Life insurance plans for retirees are primarily noncontributory.
The components of net periodic postretirement benefit cost for the three months ended March 31 were as follows:
In millions
2013
 
2012
Service cost
$
1.7

 
$
2.0

Interest cost
6.7

 
8.1

Net amortization of:
 
 
 
Prior service gains
(2.6
)
 
(2.0
)
Net actuarial losses
2.7

 
2.5

Net periodic postretirement benefit cost
$
8.5

 
$
10.6

Amounts recorded in continuing operations
$
5.4

 
$
6.7

Amounts recorded in discontinued operations
3.1

 
3.9

Total
$
8.5

 
$
10.6

Fair Value Measurement
Fair Value Measurement
Fair Value Measurement
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.
Assets and liabilities measured at fair value at March 31, 2013 were as follows:
 
Fair value measurements
 
Total
fair value
In millions
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Recurring fair value measurements
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Marketable securities
$
17.7

 
$

 
$

 
$
17.7

Derivative instruments

 
4.0

 

 
4.0

Total asset recurring fair value measurements
$
17.7

 
$
4.0

 
$

 
$
21.7

Liabilities:

 

 

 

Derivative instruments
$

 
$
27.9

 
$

 
$
27.9

Total liability recurring fair value measurements
$

 
$
27.9

 
$

 
$
27.9

Financial instruments not carried at fair value
 
 
 
 
 
 
 
Total debt
$

 
$
3,617.0

 
$

 
$
3,617.0

Total financial instruments not carried at fair value
$

 
$
3,617.0

 
$

 
$
3,617.0


Assets and liabilities measured at fair value at December 31, 2012 were as follows:
 
Fair value measurements
 
Total
fair value
In millions
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Recurring fair value measurements
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Marketable securities
$
16.7

 
$

 
$

 
$
16.7

Derivative instruments

 
4.7

 

 
4.7

Total asset recurring fair value measurements
$
16.7

 
$
4.7

 
$

 
$
21.4

Liabilities:

 

 

 

Derivative instruments
$

 
$
11.7

 
$

 
$
11.7

Total liability recurring fair value measurements
$

 
$
11.7

 
$

 
$
11.7

Financial instruments not carried at fair value
 
 
 
 
 
 
 
Total debt
$

 
$
3,663.1

 
$

 
$
3,663.1

Total financial instruments not carried at fair value
$

 
$
3,663.1

 
$

 
$
3,663.1


The Company determines the fair value of its financial assets and liabilities using the following methodologies:
Marketable securities – These securities include investments in publicly traded stock of non-U.S. companies held by non-U.S. subsidiaries of the Company. The fair value is obtained for the securities based on observable market prices quoted on public stock exchanges.
Derivative instruments – These instruments include forward contracts related to non-U.S. currencies and forward starting interest rate swaps. The fair value of the derivative instruments are determined based on a pricing model that uses inputs from actively quoted currency markets that are readily accessible and observable.
Debt – These securities are recorded at cost and include fixed-rate debentures maturing in 2027 and 2028, which only require early prepayment at the option of the holder; senior notes maturing through 2025. The fair value of the long-term debt instruments is obtained based on observable market prices quoted on public exchanges for similar assets.
The carrying values of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings are a reasonable estimate of their fair value due to the short-term nature of these instruments.
These methodologies used by the Company to determine the fair value of its financial assets and liabilities at March 31, 2013 are the same as those used at December 31, 2012. There have been no significant transfers between Level 1 and Level 2 categories.
Equity
Equity
Equity
The reconciliation of Ordinary shares is as follows:
In millions
Total
December 31, 2012
295.6

Shares issued under incentive plans, net
4.0

March 31, 2013
299.6


The components of Equity for the three months ended March 31, 2013 were as follows:
In millions
IR-Ireland
shareholders’
equity
 
Noncontrolling
interests
 
Total
equity
Balance at December 31, 2012
$
7,147.8

 
$
81.5

 
$
7,229.3

Net earnings
88.0

 
6.6

 
94.6

Currency translation
(104.8
)
 
1.2

 
(103.6
)
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax
(8.6
)
 

 
(8.6
)
Pension and OPEB adjustments, net of tax
27.2

 

 
27.2

Total comprehensive income
1.8

 
7.8

 
9.6

Share-based compensation
21.5

 

 
21.5

Dividends to noncontrolling interests

 
(2.8
)
 
(2.8
)
Dividends to ordinary shareholders
(0.8
)
 

 
(0.8
)
Shares issued under incentive plans, net
90.7

 

 
90.7

Balance at March 31, 2013
$
7,261.0

 
$
86.5

 
$
7,347.5


The components of Equity for the three months ended March 31, 2012 were as follows:
In millions
IR-Ireland
shareholders’
equity
 
Noncontrolling
interests
 
Total
equity
Balance at December 31, 2011
$
6,924.3

 
$
88.1

 
$
7,012.4

Net earnings
95.6

 
6.6

 
102.2

Currency translation
136.5

 

 
136.5

Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax
(1.4
)
 

 
(1.4
)
Pension and OPEB adjustments, net of tax
29.9

 

 
29.9

Total comprehensive income
260.6

 
6.6

 
267.2

Share-based compensation
6.9

 

 
6.9

Dividends to noncontrolling interests

 
(3.5
)
 
(3.5
)
Dividends to ordinary shareholders
(0.2
)
 

 
(0.2
)
Accretion of Exchangeable Senior Notes from Temporary equity
2.7

 

 
2.7

Shares issued under incentive plans, net
13.0

 

 
13.0

Balance at March 31, 2012
$
7,207.3

 
$
91.2

 
$
7,298.5


Other Comprehensive Income (Loss)
The changes in Accumulated other comprehensive income (loss) for the three months ended March 31, 2013 are as follows:
In millions
 
Cash flow hedges and marketable securities
 
Pension and OPEB Items
 
Foreign Currency Items
 
Total
December 31, 2012
 
$
(1.4
)
 
$
(964.2
)
 
$
444.6

 
$
(521.0
)
Other comprehensive income before reclassifications
 
(11.5
)
 
16.3

 
(104.8
)
 
(100.0
)
Amounts reclassified from accumulated other comprehensive income
 
3.1

 
16.8

 

 
19.9

Tax (expense) benefit
 
(0.2
)
 
(5.9
)
 

 
(6.1
)
March 31, 2013
 
$
(10.0
)
 
$
(937.0
)
 
$
339.8

 
$
(607.2
)


The reclassifications out of Accumulated other comprehensive income (loss) for the three months ended March 31, 2013 were as follows:
 
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
 
In millions
 
2013
 
Statement of Comprehensive Income Line Item
Reclasses below represent (Income) loss to the Statement of Comprehensive Income
 
 
 
 
 
Gains and losses on cash flow hedges:
 
 
 
 
Interest rate locks
 
$
0.9

 
 Interest expense
Foreign exchange contracts
 
2.2

 
 Cost of goods sold
 
 
3.1

 
 Earnings before income taxes
 
 

 
 Provision for income taxes
 
 
3.1

 
 Earnings from continuing operations
 
 
 
 
 
Defined benefit pension items:
 
 
 
 
Amortization of:
 
 
 
 
Prior-service (gains) costs
 
$
(1.4
)
 
 (a)
Actuarial (gains) losses
 
18.2

 
 (a)
 
 
16.8

 
 Earnings before income taxes
 
 
(5.9
)
 
 Provision for income taxes
 
 
10.9

 
 Earnings from continuing operations
 
 
 
 
 
Total reclassifications for the period
 
$
14.0

 
 Earnings from continuing operations
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 9 for additional details).
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, restricted stock units (RSUs), performance share units (PSUs) and deferred compensation.
Compensation Expense
Share-based compensation expense relates to continuing operations and is included in Selling and administrative expenses. The expenses recognized for the three months ended March 31 were as follows:
In millions
2013
 
2012
Stock options
$
7.9

 
$
(6.7
)
RSUs
10.1

 
8.0

PSUs
3.9

 
5.6

Deferred compensation
0.4

 
0.4

Other
0.7

 
1.3

Pre-tax expense
23.0

 
8.6

Tax benefit
(8.8
)
 
(3.3
)
After-tax expense
$
14.2

 
$
5.3



During the first quarter of 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 concluded the correcting adjustment is not 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. Grants issued during the three months ended March 31 were as follows:
 
2013
 
2012
 
Number
granted
 
Weighted-
average fair
value per award
 
Number
granted
 
Weighted-
average fair
value per award
Stock options
1,318,418

 
$
16.51

 
1,459,640

 
$
13.67

RSUs
527,923

 
$
52.32

 
618,562

 
$
40.67


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 is determined using the Black-Scholes option-pricing model. The following assumptions were used during the three months ended March 31:
 
 
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 years

 
5.1 years


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.
PSUs
The Company has a Performance Share Program 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 unless deferred. During the three months ended March 31, 2013, the Company granted PSUs with a maximum award level of approximately 0.5 million shares.
Awards granted in 2011 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 three-year performance period.
Awards granted after 2011 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 three-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.
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 issued stock grants as an incentive plan to certain key employees, with varying vesting periods. All stock grants are settled with the Company’s ordinary shares.
Restructuring Activities
Restructuring and Related Activities Disclosure [Text Block]
Restructuring Activities
Restructuring charges recorded during the three months ended March 31 were as follows:
In millions
2013
 
2012
Climate Solutions
$
17.2

 
$
7.5

Residential Solutions

 
0.5

Industrial Technologies
2.8

 
5.8

Security Technologies
4.5

 
3.8

Corporate and Other
2.0

 
1.1

Total
$
26.5

 
$
18.7

Cost of goods sold
$
12.5

 
$
8.4

Selling and administrative expenses
14.0

 
10.3

Total
$
26.5

 
$
18.7


The changes in the restructuring reserve during the three months ended March 31, 2013 were as follows:
In millions
Climate
Solutions
 
Residential
Solutions
 
Industrial
Technologies
 
Security
Technologies
 
Corporate
and Other
 
Total
December 31, 2012
$
4.7

 
$

 
$
2.1

 
$
3.1

 
$
1.9

 
$
11.8

Additions, net of reversals
17.2

 

 
2.8

 
4.5

 
2.0

 
26.5

Cash and non-cash uses
(7.6
)
 

 
(2.0
)
 
(0.7
)
 
(0.9
)
 
(11.2
)
Currency translation
(0.2
)
 

 

 
(0.3
)
 

 
(0.5
)
March 31, 2013
$
14.1

 
$

 
$
2.9

 
$
6.6

 
$
3.0

 
$
26.6


During the three months ended March 31, 2013 and 2012, the Company incurred costs of $26.5 million and $18.7 million, respectively, associated with restructuring actions. The 2013 charges primarily represent termination benefits to improve the Company's cost structure. The 2012 actions included workforce reductions, as well as the consolidation of manufacturing facilities, in an effort to increase efficiencies across multiple lines of business. As of March 31, 2013, the Company had $26.6 million accrued for costs associated with its ongoing restructuring actions, of which a majority will be paid within one year.
In addition to the 2013 restructuring charges described above, the Company incurred $0.2 million of non-qualified restructuring charges 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
The components of Other, net for the three months ended March 31 were as follows:
In millions
2013

2012
Interest income
$
3.5

 
$
4.7

Exchange gain (loss)
(6.9
)
 
(1.8
)
Earnings (loss) from equity investments
(4.2
)
 
(5.2
)
Other
0.6

 
2.1

Other, net
$
(7.0
)
 
$
(0.2
)

Included within Earnings (loss) from equity investments for the three months ended March 31, 2013 and 2012 is $4.2 million and $5.2 million of equity losses on the Hussmann equity investment, respectively. The Company's ownership percentage in Hussmann Parent, an affiliate of private equity firm Clayton Dubilier & Rice, LLC, was 37.2% as of March 31, 2013 and is recorded using the equity method of accounting.  The Company's equity investment in the Hussmann Parent is reported within Other noncurrent assets.
Included within Exchange gain (loss) for the three months ended March 31, 2013 is an $8.7 million realized foreign currency translation loss related to the devaluation of the Venezuelan Bolivar from the pre-existing exchange rate of 4.29 Bolivars to the U.S. dollar to 6.3 Bolivars to the U.S. dollar.
Income Taxes
Income Taxes
Income Taxes
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, Germany, Ireland, Italy, 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 most significant adjustments proposed by the IRS involve treating the entire intercompany debt incurred in connection with the Company’s reincorporation in Bermuda as equity. As a result of this recharacterization, the IRS disallowed the deduction of interest paid on the debt and imposed dividend withholding taxes on the payments denominated as interest. The IRS also asserted an alternative argument to be applied if the intercompany debt is respected as debt. In that circumstance the IRS proposed to ignore the entities that hold the 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 under this alternative theory that the Company owes 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 with the IRS.
In 2010, the Company received an amended notice from the IRS eliminating its assertion that the intercompany debt incurred in connection with the Company’s reincorporation in Bermuda should be treated as equity. However, the IRS continues to assert the alternative position described above and proposes adjustments to the Company’s 2002 tax filings. If this alternative position is upheld, the Company would be required to record additional charges. In addition, the IRS also provided notice that it is assessing penalties of 30% on the asserted underpayment of tax described above.
The Company has and intends to continue to vigorously contest these proposed adjustments. The Company, in consultation with its outside advisors, carefully considered the form and substance of the Company’s intercompany financing arrangements including the actions necessary to qualify for the benefits of the applicable U.S. income tax treaties. The Company believes that these financing arrangements are in accordance with the laws of the relevant jurisdictions including the U.S., that the entities involved should be respected and that the interest payments qualify for the U.S. income tax treaty benefits claimed.
Although the outcome of this matter 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 for this matter 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 this matter 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 2002 is ultimately sustained it will have a material adverse impact on the Company's future results of operations, financial condition and cash flows.
Although the Company expects them to do so, at this time the IRS has not yet proposed any similar adjustments for years subsequent to 2002 as the federal income tax audits for those years are still in process or have not yet begun. It is unclear how the IRS will apply their position to subsequent years or whether the IRS will take a similar position with respect to other intercompany debt instruments.
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.
Total unrecognized tax benefits as of March 31, 2013 and December 31, 2012 were $532.9 million and $533.7 million, respectively.
Divestitures and Discontinued Operations
Divestitures and Discontinued Operations
Discontinued Operations
The components of Discontinued operations, net of tax for the three months ended March 31 were as follows:  
In millions
2013
 
2012
Net revenues
$

 
$

Pre-tax earnings (loss) from operations
$
(10.5
)
 
$
(13.1
)
Pre-tax gain (loss) on sale

 

Tax benefit (expense)
3.3

 
10.9

Discontinued operations, net of tax
$
(7.2
)
 
$
(2.2
)

Discontinued operations, net of tax from previously sold businesses is mainly related to postretirement benefits, product liability, worker's compensation, legal costs (mostly asbestos-related), and tax effects of post-closing purchase price adjustments.
Earnings Per Share (EPS)
Earnings Per Share (EPS)
Earnings Per Share (EPS)
Basic EPS is calculated by dividing Net earnings attributable to IR-Ireland 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 settled in April 2012. The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations for the three months ended March 31:
In millions
2013
 
2012
Weighted-average number of basic shares
298.9

 
299.2

Shares issuable under incentive stock plans
3.6

 
2.9

Exchangeable Senior Notes

 
10.3

Weighted-average number of diluted shares
302.5

 
312.4

Anti-dilutive shares
1.6

 
12.4

Business Segment Information
Business Segment Information
Business Segment Information
The Company classifies its businesses into the following four reportable segments based on industry and market focus: Climate Solutions, Residential Solutions, Industrial Technologies and Security Technologies.
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.
A summary of operations by reportable segment for the three months ended March 31 was as follows:
In millions
2013
 
2012
Net revenues
 
 
 
Climate Solutions
$
1,616.4

 
$
1,661.8

Residential Solutions
464.0

 
421.7

Industrial Technologies
680.3

 
688.7

Security Technologies
351.7

 
378.5

Total
$
3,112.4

 
$
3,150.7

Segment operating income
 
 
 
Climate Solutions *
$
81.2

 
$
94.0

Residential Solutions
6.9

 
(10.7
)
Industrial Technologies
102.1

 
91.5

Security Technologies
58.8

 
69.9

Total
$
249.0

 
$
244.7

Reconciliation to Operating income
 
 
 
Gain (loss) on sale/asset impairment *

 
0.3

Unallocated corporate expense
(55.5
)
 
(33.0
)
Operating income
$
193.5

 
$
212.0


* During the three months ended March 31, 2012, the Company recorded $0.3 million of purchase price adjustments related to the 2011 Hussmann sale. These amounts have been excluded from Segment operating income within the Climate Solutions segment as management excludes these charges from Operating income when making operating decisions about the business.
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.
During the three months ended March 31, 2013 and 2012, the Company incurred $0.7 million and $1.7 million, respectively, of expenses for environmental remediation at sites presently or formerly owned or leased by us. As of March 31, 2013 and December 31, 2012, the Company has recorded reserves for environmental matters of $64.0 million and $65.9 million, respectively. Of these amounts, $47.9 million and $47.3 million 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 March 31, 2013 and December 31, 2012 was $21.9 million and $22.2 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 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 against it and the historical ratio between the numbers of non-malignancy and 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;
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 March 31, 2013 and December 31, 2012, 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 were included in the following balance sheet accounts:
In millions
March 31,
2013
 
December 31,
2012
Accrued expenses and other current liabilities
$
69.1

 
$
69.1

Other noncurrent liabilities
790.0

 
810.4

Total asbestos-related liabilities
$
859.1

 
$
879.5

Other current assets
$
22.5

 
$
22.5

Other noncurrent assets
295.2

 
297.8

Total asset for probable asbestos-related insurance recoveries
$
317.7

 
$
320.3


The Company's asbestos insurance receivable related to IR-New Jersey and Trane was $125.9 million and $191.8 million at March 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 three months ended March 31 were as follows:
In millions
2013
 
2012
Continuing operations
$
(2.1
)
 
$
0.3

Discontinued operations
(2.4
)
 
(1.5
)
Total
$
(4.5
)
 
$
(1.2
)

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 March 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 had been paying a portion of IR-New Jersey's asbestos claim defense and indemnity costs. The action involves 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.
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.
Other
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 three months ended March 31 were as follows:
In millions
2013
 
2012
Balance at beginning of period
$
263.1

 
$
264.4

Reductions for payments
(34.9
)
 
(33.5
)
Accruals for warranties issued during the current period
30.1

 
36.5

Changes to accruals related to preexisting warranties
(3.7
)
 
(1.0
)
Translation
(1.0
)
 
1.0

Balance at end of period
$
253.6

 
$
267.4


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 March 31, 2013 and December 31, 2012 was $140.8 million and $147.4 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 three months ended March 31 were as follows:
In millions
2013
 
2012
Balance at beginning of period
$
375.1

 
$
372.0

Amortization of deferred revenue for the period
(23.7
)
 
(22.5
)
Additions for extended warranties issued during the period
21.2

 
23.2

Changes to accruals related to preexisting warranties
2.5

 

Translation
(0.3
)
 
0.3

Balance at end of period
$
374.8

 
$
373.0


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 March 31, 2013 and December 31, 2012 was $99.3 million and $98.5 million, respectively. For the three months ended March 31, 2013 and 2012, the Company incurred costs of $12.4 million and $12.7 million, respectively, related to extended warranties.
Trane has commitments and performance guarantees, including energy savings guarantees, totaling $435.5 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 March 31, 2013, the Company has experienced no significant losses under such arrangements and considers the probability of any significant future losses to be remote.
Guarantor Financial Information
Condensed Financial Information of Parent Company Only Disclosure
Guarantor Financial Information
Ingersoll-Rand plc, an Irish public limited company (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).
As part of the Bermuda Reorganization, IR-New Jersey and certain of its subsidiaries hold non-voting, Class B common shares of IR-Limited. In addition, 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 and interest on IR-Limited's 4.75% Senior Notes due in 2015 in the aggregate principal amount of $300.0 million. The guarantee is unsecured and provided on an unsubordinated basis. The guarantee ranks 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. Neither IR-Ireland nor IR-Limited has issued or intends to issue guarantees in respect of any public indebtedness incurred by Trane. 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 $15.0 billion, which was then immediately reduced by the settlement of net intercompany payables of $4.1 billion. At March 31, 2013, $10.8 billion remains outstanding.
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 GAAP, 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.
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 SEC. 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 three months ended March 31, 2013
In millions
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
IR Ireland
Consolidated
Net revenues
$

 
$

 
$

 
$

 
$
225.5

 
$
2,886.9

 
$

 
$
3,112.4

Cost of goods sold

 

 

 

 
(136.6
)
 
(2,055.5
)
 

 
(2,192.1
)
Selling and administrative expenses
(2.6
)
 

 

 
(0.4
)
 
(107.2
)
 
(616.6
)
 

 
(726.8
)
Gain (loss) on sale/asset impairment

 

 

 

 

 

 

 

Operating income (loss)
(2.6
)
 

 

 
(0.4
)
 
(18.3
)
 
214.8

 

 
193.5

Equity earnings (loss) in affiliates, net of tax
92.6

 
92.6

 
108.3

 
153.9

 
38.2

 
97.9

 
(583.5
)
 

Interest expense

 

 
(4.0
)
 
(39.7
)
 
(12.6
)
 
(4.7
)
 

 
(61.0
)
Intercompany interest and fees
(3.0
)
 

 
(8.8
)
 
(9.6
)
 
(0.5
)
 
21.9

 

 

Other, net
0.3

 

 
0.6

 
0.3

 
(2.7
)
 
4.5

 
(10.0
)
 
(7.0
)
Earnings (loss) before income taxes
87.3

 
92.6

 
96.1

 
104.5

 
4.1

 
334.4

 
(593.5
)
 
125.5

Benefit (provision) for income taxes
0.7

 

 

 

 
7.3

 
(31.7
)
 

 
(23.7
)
Earnings (loss) from continuing operations
88.0

 
92.6

 
96.1

 
104.5

 
11.4

 
302.7

 
(593.5
)
 
101.8

Discontinued operations, net of tax

 

 

 

 
(9.9
)
 
2.7

 

 
(7.2
)
Net earnings (loss)
88.0

 
92.6

 
96.1

 
104.5

 
1.5

 
305.4

 
(593.5
)
 
94.6

Less: Net earnings attributable to noncontrolling interests

 

 

 

 

 
(16.6
)
 
10.0

 
(6.6
)
Net earnings (loss) attributable to Ingersoll-Rand plc
$
88.0

 
$
92.6

 
$
96.1

 
$
104.5

 
$
1.5

 
$
288.8

 
$
(583.5
)
 
$
88.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income (loss)
1.7

 
6.3

 
96.4

 
95.1

 
6.9

 
228.2

 
(425.0
)
 
9.6

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

 

 

 

 

 
(17.8
)
 
10.0

 
(7.8
)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
$
1.7

 
$
6.3

 
$
96.4

 
$
95.1

 
$
6.9

 
$
210.4

 
$
(415.0
)
 
$
1.8


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended March 31, 2012
In millions
IR
Ireland
 
IR
Limited
 
IR
International
 
IR Global
 
IR New
Jersey
 
Other
Subsidiaries
 
Consolidating
Adjustments
 
IR Ireland
Consolidated
Net revenues
$

 
$

 
$

 
$

 
$
217.2

 
$
2,933.5

 
$

 
$
3,150.7

Cost of goods sold

 

 

 

 
(142.2
)
 
(2,107.2
)
 

 
(2,249.4
)
Selling and administrative expenses
(1.8
)
 

 

 
(0.2
)
 
(79.7
)
 
(607.9
)
 

 
(689.6
)
Gain (loss) on sale/asset impairment

 

 

 

 

 
0.3

 

 
0.3

Operating income (loss)
(1.8
)
 

 

 
(0.2
)
 
(4.7
)
 
218.7

 

 
212.0

Equity earnings (loss) in affiliates, net of tax
99.7

 
(103.3
)
 
(71.5
)
 
190.7

 
65.0

 
(31.2
)
 
(149.4
)
 

Interest expense

 

 
(3.9
)
 
(47.8
)
 
(12.6
)
 
(5.1
)
 

 
(69.4
)
Intercompany interest and fees
(2.9
)
 

 
(11.6
)
 
(11.6
)
 
1.4

 
24.7

 

 

Other, net

 

 
0.1

 
(202.6
)
 
1.4

 
3.3

 
197.6

 
(0.2
)
Earnings (loss) before income taxes
95.0

 
(103.3
)
 
(86.9
)
 
(71.5
)
 
50.5

 
210.4

 
48.2

 
142.4

Benefit (provision) for income taxes
0.6

 

 

 

 
(9.1
)
 
(29.5
)
 

 
(38.0
)
Earnings (loss) from continuing operations
95.6

 
(103.3
)
 
(86.9
)
 
(71.5
)
 
41.4

 
180.9

 
48.2

 
104.4

Discontinued operations, net of tax

 

 

 

 
14.3

 
(16.5
)
 

 
(2.2
)
Net earnings (loss)
95.6

 
(103.3
)
 
(86.9
)
 
(71.5
)
 
55.7

 
164.4

 
48.2

 
102.2

Less: Net earnings attributable to noncontrolling interests

 

 

 

 

 
(11.9
)
 
5.3

 
(6.6
)
Net earnings (loss) attributable to Ingersoll-Rand plc
$
95.6

 
$
(103.3
)
 
$
(86.9
)
 
$
(71.5
)
 
$
55.7

 
$
152.5

 
$
53.5

 
$
95.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive income (loss)
260.6

 
61.7

 
(86.6
)
 
(70.2
)
 
87.1

 
296.7

 
(282.1
)
 
267.2

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

 

 

 

 

 
(11.9
)
 
5.3

 
(6.6
)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
$
260.6

 
$
61.7

 
$
(86.6
)
 
$
(70.2
)
 
$
87.1

 
$
284.8

 
$
(276.8
)
 
$
260.6


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Balance Sheet
March 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
$

 
$

 
$

 
$

 
$
91.4

 
$
741.5

 
$

 
$
832.9

Accounts and notes receivable, net

 

 

 

 
132.1

 
2,086.7

 

 
2,218.8

Inventories

 

 

 

 
83.4

 
1,382.9

 

 
1,466.3

Other current assets
0.4

 

 
1.5

 

 
112.2

 
485.3

 

 
599.4

Accounts and notes receivable affiliates
304.9

 
3,039.2

 
2.2

 
2,174.9

 
9,226.0

 
24,539.9

 
(39,287.1
)
 

Total current assets
305.3

 
3,039.2

 
3.7

 
2,174.9

 
9,645.1

 
29,236.3

 
(39,287.1
)
 
5,117.4

Investment in affiliates
8,917.8

 
7,106.6

 
21,294.2

 
18,734.2

 
8,223.0

 
99,870.5

 
(164,146.3
)
 

Property, plant and equipment, net

 

 

 
0.2

 
264.7

 
1,388.1

 

 
1,653.0

Intangible assets, net

 

 

 

 
83.8

 
10,178.1

 

 
10,261.9

Other noncurrent assets

 

 
0.4

 
9.1

 
834.9

 
716.6

 

 
1,561.0

Total assets
$
9,223.1

 
$
10,145.8

 
$
21,298.3

 
$
20,918.4

 
$
19,051.5

 
$
141,389.6

 
$
(203,433.4
)
 
$
18,593.3

Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accruals
$
7.5

 
$

 
$
6.2

 
$
50.5

 
$
405.6

 
$
2,736.0

 
$

 
$
3,205.8

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

 

 

 
600.0

 
350.5

 
14.6

 

 
965.1

Accounts and note payable affiliates
1,868.1

 
34.3

 
4,900.1

 
7,579.2

 
14,006.9

 
10,556.4

 
(38,945.0
)
 

Total current liabilities
1,875.6

 
34.3

 
4,906.3

 
8,229.7

 
14,763.0

 
13,307.0

 
(38,945.0
)
 
4,170.9

Long-term debt

 

 
299.7

 
1,404.4

 
364.7

 
202.3

 

 
2,271.1

Note payable affiliate

 

 
10,755.7

 

 

 

 
(10,755.7
)
 

Other noncurrent liabilities

 

 
3.8

 

 
1,604.6

 
3,195.4

 

 
4,803.8

Total liabilities
1,875.6

 
34.3

 
15,965.5

 
9,634.1

 
16,732.3

 
16,704.7

 
(49,700.7
)
 
11,245.8

Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total equity
7,347.5

 
10,111.5

 
5,332.8

 
11,284.3

 
2,319.2

 
124,684.9

 
(153,732.7
)
 
7,347.5

Total liabilities and equity
$
9,223.1

 
$
10,145.8

 
$
21,298.3

 
$
20,918.4

 
$
19,051.5

 
$
141,389.6

 
$
(203,433.4
)
 
$
18,593.3


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

 
$
761.1

 
$

 
$
882.1

Accounts and notes receivable, net

 

 

 

 
128.8

 
2,028.7

 

 
2,157.5

Inventories

 

 

 

 
73.1

 
1,235.7

 

 
1,308.8

Other current assets
0.1

 

 
0.1

 
0.2

 
149.3

 
444.6

 

 
594.3

Accounts and notes receivable affiliates
148.9

 
3,039.2

 
2.0

 
2,189.0

 
8,669.5

 
23,772.0

 
(37,820.6
)
 

Total current assets
149.0

 
3,039.2

 
2.1

 
2,251.1

 
9,079.8

 
28,242.1

 
(37,820.6
)
 
4,942.7

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

 
1,398.4

 

 
1,652.6

Intangible assets, net

 

 

 

 
83.8

 
10,256.0

 

 
10,339.8

Other noncurrent assets

 

 
0.5

 
10.0

 
867.3

 
680.0

 

 
1,557.8

Total assets
$
9,034.1

 
$
10,134.5

 
$
21,188.2

 
$
20,851.1

 
$
18,464.8

 
$
139,781.5

 
$
(200,961.3
)
 
$
18,492.9

Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable and accruals
$
70.5

 
$

 
$
4.0

 
$
46.0

 
$
420.2

 
$
2,656.9

 
$

 
$
3,197.6

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

 

 

 
600.0

 
350.5

 
13.2

 

 
963.7

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
)
 

Total current liabilities
1,804.8

 
34.3

 
4,892.9

 
8,248.2

 
14,108.4

 
12,537.7

 
(37,465.0
)
 
4,161.3

Long-term debt

 

 
299.7

 
1,404.4

 
364.7

 
200.5

 

 
2,269.3

Note payable affiliate

 

 
10,755.7

 

 

 

 
(10,755.7
)
 

Other noncurrent liabilities

 
4.3

 
3.8

 

 
1,620.0

 
3,204.9

 

 
4,833.0

Total liabilities
1,804.8

 
38.6

 
15,952.1

 
9,652.6

 
16,093.1

 
15,943.1

 
(48,220.7
)
 
11,263.6

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

 
$
139,781.5

 
$
(200,961.3
)
 
$
18,492.9


Condensed Consolidating Statement of Cash Flows
For the three months ended March 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
$
(2.3
)
 
$

 
$
(3.4
)
 
$
(39.8
)
 
$
(194.7
)
 
$
239.8

 
$
(0.4
)
 
$
(0.8
)
Net cash provided by (used in) discontinued operating activities

 

 

 

 
(9.9
)
 
2.7

 

 
(7.2
)
Net cash provided by (used in) operating activities
(2.3
)
 

 
(3.4
)
 
(39.8
)
 
(204.6
)
 
242.5

 
(0.4
)
 
(8.0
)
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 

 

 
(20.8
)
 
(50.6
)
 

 
(71.4
)
Proceeds from sale of property, plant and equipment

 

 

 

 
0.2

 
4.0

 

 
4.2

Net cash provided by (used in) continuing investing activities

 

 

 

 
(20.6
)
 
(46.6
)
 

 
(67.2
)
Net cash provided by (used in) discontinued investing activities

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

 

 

 
(20.6
)
 
(46.6
)
 

 
(67.2
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds (repayments) in debt

 

 

 

 

 
2.7

 

 
2.7

Net inter-company proceeds (payments)
(25.6
)
 

 
3.4

 
(22.1
)
 
257.5

 
(213.2
)
 

 

Dividends paid
(62.8
)
 

 

 

 

 
(4.4
)
 
0.4

 
(66.8
)
Proceeds from shares issued under incentive plans
90.7

 

 

 

 

 

 

 
90.7

Net cash provided by (used in) continuing financing activities
2.3

 

 
3.4

 
(22.1
)
 
257.5

 
(214.9
)
 
0.4

 
26.6

Effect of exchange rate changes on cash and cash equivalents

 

 

 

 

 
(0.6
)
 

 
(0.6
)
Net increase (decrease) in cash and cash equivalents

 

 

 
(61.9
)
 
32.3

 
(19.6
)
 

 
(49.2
)
Cash and cash equivalents - beginning of period

 

 

 
61.9

 
59.1

 
761.1

 

 
882.1

Cash and cash equivalents - end of period
$

 
$

 
$

 
$

 
$
91.4

 
$
741.5

 
$

 
$
832.9


Condensed Consolidating Statement of Cash Flows
For the three months ended March 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
$
(1.8
)
 
$

 
$
(3.8
)
 
$
(47.8
)
 
$
(87.4
)
 
$
223.5

 
$
(0.5
)
 
$
82.2

Net cash provided by (used in) discontinued operating activities

 

 

 

 
14.3

 
(80.1
)
 

 
(65.8
)
Net cash provided by (used in) operating activities
(1.8
)
 

 
(3.8
)
 
(47.8
)
 
(73.1
)
 
143.4

 
(0.5
)
 
16.4

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures

 

 

 

 
(13.5
)
 
(39.4
)
 

 
(52.9
)
Proceeds from sale of property, plant and equipment

 

 

 

 

 
3.2

 

 
3.2

Net cash provided by (used in) continuing investing activities

 

 

 

 
(13.5
)
 
(36.2
)
 

 
(49.7
)
Net cash provided by (used in) discontinued investing activities

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

 

 

 
(13.5
)
 
(36.2
)
 

 
(49.7
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds (repayments) in debt

 

 

 

 
(0.1
)
 
(1.2
)
 

 
(1.3
)
Debt issuance costs

 

 

 
(2.4
)
 

 

 

 
(2.4
)
Net inter-company proceeds (payments)
35.5

 

 
3.8

 
(70.8
)
 
211.9

 
(180.4
)
 

 

Dividends paid
(46.6
)
 

 

 

 

 
(5.0
)
 
0.5

 
(51.1
)
Proceeds from shares issued under incentive plans
12.9

 

 

 

 

 

 

 
12.9

Net cash provided by (used in) continuing financing activities
1.8

 

 
3.8

 
(73.2
)
 
211.8

 
(186.6
)
 
0.5

 
(41.9
)
Effect of exchange rate changes on cash and cash equivalents

 

 

 

 

 
4.0

 

 
4.0

Net increase (decrease) in cash and cash equivalents

 

 

 
(121.0
)
 
125.2

 
(75.4
)
 

 
(71.2
)
Cash and cash equivalents - beginning of period

 

 

 
241.8

 
77.8

 
841.1

 

 
1,160.7

Cash and cash equivalents - end of period
$

 
$

 
$

 
$
120.8

 
$
203.0

 
$
765.7

 
$

 
$
1,089.5


Inventories (Tables)
MajorClassesOfInventory [Table Text Block]
The major classes of inventory were as follows:
In millions
March 31,
2013
 
December 31,
2012
Raw materials
$
503.9

 
$
501.9

Work-in-process
146.7

 
109.6

Finished goods
918.4

 
800.2

 
1,569.0

 
1,411.7

LIFO reserve
(102.7
)
 
(102.9
)
Total
$
1,466.3

 
$
1,308.8

Goodwill (Tables)
Changes in Goodwill Carrying Amounts
The changes in the carrying amount of goodwill for the three months ended March 31, 2013 were as follows:  
In millions
Climate
Solutions
 
Residential
Solutions
 
Industrial
Technologies
 
Security
Technologies
 
Total
December 31, 2012 (gross)
$
5,370.6

 
$
2,317.1

 
$
368.7

 
$
922.5

 
$
8,978.9

Acquisitions and adjustments *
(1.4
)
 
14.9

 
1.1

 
(14.6
)
 

Currency translation
(32.4
)
 

 
(2.4
)
 
(5.8
)
 
(40.6
)
March 31, 2013 (gross)
5,336.8

 
2,332.0

 
367.4

 
902.1

 
8,938.3

Accumulated impairment **
(839.8
)
 
(1,656.2
)
 

 
(344.0
)
 
(2,840.0
)
Goodwill (net)
$
4,497.0

 
$
675.8

 
$
367.4

 
$
558.1

 
$
6,098.3

* During 2013, the Company made reclassifications to goodwill across all segments, including a reclassification of goodwill related to a product line transfer from the Security Technologies segment to the Residential Solutions segment.
** No impairment charges were recorded by the Company in 2013 or 2012.
Intangible Assets (Tables)
Schedule of Intangible Asset Net of Goodwill
The gross amount of the Company’s intangible assets and related accumulated amortization were as follows:
 
 
March 31, 2013
 
December 31, 2012
In millions
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
 
Gross carrying amount
 
Accumulated amortization
 
Net carrying amount
Completed technologies/patents
 
$
199.3

 
$
(135.8
)
 
$
63.5

 
$
203.2

 
$
(134.4
)
 
$
68.8

Customer relationships
 
1,961.3

 
(549.7
)
 
1,411.6

 
1,966.8

 
(523.6
)
 
1,443.2

Trademarks (finite-lived)
 
95.2

 
(32.1
)
 
63.1

 
98.0

 
(32.1
)
 
65.9

Other
 
77.2

 
(62.8
)
 
14.4

 
71.4

 
(59.4
)
 
12.0

Total finite-lived intangible assets
 
2,333.0

 
$
(780.4
)
 
1,552.6

 
2,339.4

 
$
(749.5
)
 
1,589.9

Trademarks (indefinite-lived)
 
2,611.0

 
 
 
2,611.0

 
2,611.0

 
 
 
2,611.0

Total
 
$
4,944.0

 
 
 
$
4,163.6

 
$
4,950.4

 
 
 
$
4,200.9

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

 
$
343.0

6.000% Senior notes due 2013
600.0


600.0

Other current maturities of long-term debt
9.0

 
10.8

Other short-term borrowings
13.1

 
9.9

Total
$
965.1

 
$
963.7

Long-term debt excluding current maturities consisted of the following:
In millions
March 31,
2013
 
December 31,
2012
9.500% Senior notes due 2014
655.0

 
655.0

5.50% Senior notes due 2015
198.4

 
196.4

4.75% Senior notes due 2015
299.7

 
299.7

6.875% Senior notes due 2018
749.4

 
749.4

9.00% Debentures due 2021
125.0

 
125.0

7.20% Debentures due 2014-2025
90.0

 
90.0

6.48% Debentures due 2025
149.7

 
149.7

Other loans and notes
3.9

 
4.1

Total
$
2,271.1

 
$
2,269.3

Financial Instruments (Tables)
The fair values of derivative instruments included within the Condensed Consolidated Balance Sheets were as follows:
 
Asset derivatives
 
Liability derivatives
In millions
March 31,
2013
 
December 31,
2012
 
March 31,
2013
 
December 31,
2012
Derivatives designated as hedges:

 

 

 

Currency derivatives
$
0.6

 
$
0.1

 
$
6.0

 
$
4.6

Interest rate swaps

 

 
9.9

 

Derivatives not designated as hedges:

 

 

 

Currency derivatives
3.4

 
4.6

 
12.0

 
7.1

Total derivatives
$
4.0

 
$
4.7

 
$
27.9

 
$
11.7

The amounts associated with derivatives designated as hedges affecting Net earnings and AOCI for the three months ended March 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
 
 
2013
 
2012
Currency derivatives
$
(3.1
)
 
$
(4.9
)
 
Cost of goods sold
 
$
(2.2
)
 
$
0.4

Interest rate swaps
(9.9
)
 

 
Interest expense
 

 

Interest rate locks

 

 
Interest expense
 
(0.9
)
 
(0.8
)
Total
$
(13.0
)
 
$
(4.9
)
 

 
$
(3.1
)
 
$
(0.4
)
The amounts associated with derivatives not designated as hedges affecting Net earnings for the three months ended March 31 were as follows:
  
Location of gain (loss)         
recognized in Net earnings
 
Amount of gain (loss)         
recognized in Net earnings
In millions
2013
 
2012
Currency derivatives
Other, net
 
$
(14.3
)
 
$
22.6

Total

 
$
(14.3
)
 
$
22.6

Pensions and Postretirement Benefits Other than Pensions (Tables)
The components of the Company’s net periodic pension benefit costs for the three months ended March 31 were as follows:
In millions
2013
 
2012
Service cost
$
23.1

 
$
25.3

Interest cost
39.2

 
41.3

Expected return on plan assets
(42.0
)
 
(43.3
)
Net amortization of:

 

Prior service costs
1.2

 
1.4

Plan net actuarial losses
15.5

 
14.9

Net periodic pension benefit cost
37.0

 
39.6

Net curtailment and settlement losses

 
0.1

Net periodic pension benefit cost after net curtailment and  settlement losses
$
37.0

 
$
39.7

Amounts recorded in continuing operations
$
34.7

 
$
36.8

Amounts recorded in discontinued operations
2.3

 
2.9

Total
$
37.0

 
$
39.7

The components of net periodic postretirement benefit cost for the three months ended March 31 were as follows:
In millions
2013
 
2012
Service cost
$
1.7

 
$
2.0

Interest cost
6.7

 
8.1

Net amortization of:
 
 
 
Prior service gains
(2.6
)
 
(2.0
)
Net actuarial losses
2.7

 
2.5

Net periodic postretirement benefit cost
$
8.5

 
$
10.6

Amounts recorded in continuing operations
$
5.4

 
$
6.7

Amounts recorded in discontinued operations
3.1

 
3.9

Total
$
8.5

 
$
10.6

Fair Value Measurement (Tables)
3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]
Assets and liabilities measured at fair value at March 31, 2013 were as follows:
 
Fair value measurements
 
Total
fair value
In millions
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Recurring fair value measurements
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Marketable securities
$
17.7

 
$

 
$

 
$
17.7

Derivative instruments

 
4.0

 

 
4.0

Total asset recurring fair value measurements
$
17.7

 
$
4.0

 
$

 
$
21.7

Liabilities:

 

 

 

Derivative instruments
$

 
$
27.9

 
$

 
$
27.9

Total liability recurring fair value measurements
$

 
$
27.9

 
$

 
$
27.9

Financial instruments not carried at fair value
 
 
 
 
 
 
 
Total debt
$

 
$
3,617.0

 
$

 
$
3,617.0

Total financial instruments not carried at fair value
$

 
$
3,617.0

 
$

 
$
3,617.0

Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block]
Assets and liabilities measured at fair value at December 31, 2012 were as follows:
 
Fair value measurements
 
Total
fair value
In millions
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
 
Recurring fair value measurements
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
Marketable securities
$
16.7

 
$

 
$

 
$
16.7

Derivative instruments

 
4.7

 

 
4.7

Total asset recurring fair value measurements
$
16.7

 
$
4.7

 
$

 
$
21.4

Liabilities:

 

 

 

Derivative instruments
$

 
$
11.7

 
$

 
$
11.7

Total liability recurring fair value measurements
$

 
$
11.7

 
$

 
$
11.7

Financial instruments not carried at fair value
 
 
 
 
 
 
 
Total debt
$

 
$
3,663.1

 
$

 
$
3,663.1

Total financial instruments not carried at fair value
$

 
$
3,663.1

 
$

 
$
3,663.1

Equity (Tables)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Stockholders' Equity Note [Abstract]
 
 
Reconciliation of Ordinary Shares
 
Components Of Shareholders Equity Rollforward
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
 
Disclosure of Reclassification Amount [Text Block]
 
The reconciliation of Ordinary shares is as follows:
In millions
Total
December 31, 2012
295.6

Shares issued under incentive plans, net
4.0

March 31, 2013
299.6

The components of Equity for the three months ended March 31, 2013 were as follows:
In millions
IR-Ireland
shareholders’
equity
 
Noncontrolling
interests
 
Total
equity
Balance at December 31, 2012
$
7,147.8

 
$
81.5

 
$
7,229.3

Net earnings
88.0

 
6.6

 
94.6

Currency translation
(104.8
)
 
1.2

 
(103.6
)
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax
(8.6
)
 

 
(8.6
)
Pension and OPEB adjustments, net of tax
27.2

 

 
27.2

Total comprehensive income
1.8

 
7.8

 
9.6

Share-based compensation
21.5

 

 
21.5

Dividends to noncontrolling interests

 
(2.8
)
 
(2.8
)
Dividends to ordinary shareholders
(0.8
)
 

 
(0.8
)
Shares issued under incentive plans, net
90.7

 

 
90.7

Balance at March 31, 2013
$
7,261.0

 
$
86.5

 
$
7,347.5

The components of Equity for the three months ended March 31, 2012 were as follows:
In millions
IR-Ireland
shareholders’
equity
 
Noncontrolling
interests
 
Total
equity
Balance at December 31, 2011
$
6,924.3

 
$
88.1

 
$
7,012.4

Net earnings
95.6

 
6.6

 
102.2

Currency translation
136.5

 

 
136.5

Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax
(1.4
)
 

 
(1.4
)
Pension and OPEB adjustments, net of tax
29.9

 

 
29.9

Total comprehensive income
260.6

 
6.6

 
267.2

Share-based compensation
6.9

 

 
6.9

Dividends to noncontrolling interests

 
(3.5
)
 
(3.5
)
Dividends to ordinary shareholders
(0.2
)
 

 
(0.2
)
Accretion of Exchangeable Senior Notes from Temporary equity
2.7

 

 
2.7

Shares issued under incentive plans, net
13.0

 

 
13.0

Balance at March 31, 2012
$
7,207.3

 
$
91.2

 
$
7,298.5

The changes in Accumulated other comprehensive income (loss) for the three months ended March 31, 2013 are as follows:
In millions
 
Cash flow hedges and marketable securities
 
Pension and OPEB Items
 
Foreign Currency Items
 
Total
December 31, 2012
 
$
(1.4
)
 
$
(964.2
)
 
$
444.6

 
$
(521.0
)
Other comprehensive income before reclassifications
 
(11.5
)
 
16.3

 
(104.8
)
 
(100.0
)
Amounts reclassified from accumulated other comprehensive income
 
3.1

 
16.8

 

 
19.9

Tax (expense) benefit
 
(0.2
)
 
(5.9
)
 

 
(6.1
)
March 31, 2013
 
$
(10.0
)
 
$
(937.0
)
 
$
339.8

 
$
(607.2
)
The reclassifications out of Accumulated other comprehensive income (loss) for the three months ended March 31, 2013 were as follows:
 
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
 
In millions
 
2013
 
Statement of Comprehensive Income Line Item
Reclasses below represent (Income) loss to the Statement of Comprehensive Income
 
 
 
 
 
Gains and losses on cash flow hedges:
 
 
 
 
Interest rate locks
 
$
0.9

 
 Interest expense
Foreign exchange contracts
 
2.2

 
 Cost of goods sold
 
 
3.1

 
 Earnings before income taxes
 
 

 
 Provision for income taxes
 
 
3.1

 
 Earnings from continuing operations
 
 
 
 
 
Defined benefit pension items:
 
 
 
 
Amortization of:
 
 
 
 
Prior-service (gains) costs
 
$
(1.4
)
 
 (a)
Actuarial (gains) losses
 
18.2

 
 (a)
 
 
16.8

 
 Earnings before income taxes
 
 
(5.9
)
 
 Provision for income taxes
 
 
10.9

 
 Earnings from continuing operations
 
 
 
 
 
Total reclassifications for the period
 
$
14.0

 
 Earnings from continuing operations
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 9 for additional details)
Share-Based Compensation (Tables)
The expenses recognized for the three months ended March 31 were as follows:
In millions
2013
 
2012
Stock options
$
7.9

 
$
(6.7
)
RSUs
10.1

 
8.0

PSUs
3.9

 
5.6

Deferred compensation
0.4

 
0.4

Other
0.7

 
1.3

Pre-tax expense
23.0

 
8.6

Tax benefit
(8.8
)
 
(3.3
)
After-tax expense
$
14.2

 
$
5.3

Grants issued during the three months ended March 31 were as follows:
 
2013
 
2012
 
Number
granted
 
Weighted-
average fair
value per award
 
Number
granted
 
Weighted-
average fair
value per award
Stock options
1,318,418

 
$
16.51

 
1,459,640

 
$
13.67

RSUs
527,923

 
$
52.32

 
618,562

 
$
40.67

The following assumptions were used during the three months ended March 31:
 
 
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 years

 
5.1 years

Restructuring Activities (Tables)
Restructuring charges recorded during the three months ended March 31 were as follows:
In millions
2013
 
2012
Climate Solutions
$
17.2

 
$
7.5

Residential Solutions

 
0.5

Industrial Technologies
2.8

 
5.8

Security Technologies
4.5

 
3.8

Corporate and Other
2.0

 
1.1

Total
$
26.5

 
$
18.7

Cost of goods sold
$
12.5

 
$
8.4

Selling and administrative expenses
14.0

 
10.3

Total
$
26.5

 
$
18.7


The changes in the restructuring reserve during the three months ended March 31, 2013 were as follows:
In millions
Climate
Solutions
 
Residential
Solutions
 
Industrial
Technologies
 
Security
Technologies
 
Corporate
and Other
 
Total
December 31, 2012
$
4.7

 
$

 
$
2.1

 
$
3.1

 
$
1.9

 
$
11.8

Additions, net of reversals
17.2

 

 
2.8

 
4.5

 
2.0

 
26.5

Cash and non-cash uses
(7.6
)
 

 
(2.0
)
 
(0.7
)
 
(0.9
)
 
(11.2
)
Currency translation
(0.2
)
 

 

 
(0.3
)
 

 
(0.5
)
March 31, 2013
$
14.1

 
$

 
$
2.9

 
$
6.6

 
$
3.0

 
$
26.6


Other, Net (Tables)
Other, Net
The components of Other, net for the three months ended March 31 were as follows:
In millions
2013

2012
Interest income
$
3.5

 
$
4.7

Exchange gain (loss)
(6.9
)
 
(1.8
)
Earnings (loss) from equity investments
(4.2
)
 
(5.2
)
Other
0.6

 
2.1

Other, net
$
(7.0
)
 
$
(0.2
)
Divestitures and Discontinued Operations (Tables)
Summarized Financial Information For Discontinued Operations Text Block [Table Text Block]
The components of Discontinued operations, net of tax for the three months ended March 31 were as follows:  
In millions
2013
 
2012
Net revenues
$

 
$

Pre-tax earnings (loss) from operations
$
(10.5
)
 
$
(13.1
)
Pre-tax gain (loss) on sale

 

Tax benefit (expense)
3.3

 
10.9

Discontinued operations, net of tax
$
(7.2
)
 
$
(2.2
)
Earnings Per Share (EPS) (Tables)
Schedule of Earnings Per Share Basic and Diluted Shares
The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations for the three months ended March 31:
In millions
2013
 
2012
Weighted-average number of basic shares
298.9

 
299.2

Shares issuable under incentive stock plans
3.6

 
2.9

Exchangeable Senior Notes

 
10.3

Weighted-average number of diluted shares
302.5

 
312.4

Anti-dilutive shares
1.6

 
12.4

Business Segment Information (Tables)
Summary of Operations by Reportable Segments
A summary of operations by reportable segment for the three months ended March 31 was as follows:
In millions
2013
 
2012
Net revenues
 
 
 
Climate Solutions
$
1,616.4

 
$
1,661.8

Residential Solutions
464.0

 
421.7

Industrial Technologies
680.3

 
688.7

Security Technologies
351.7

 
378.5

Total
$
3,112.4

 
$
3,150.7

Segment operating income
 
 
 
Climate Solutions *
$
81.2

 
$
94.0

Residential Solutions
6.9

 
(10.7
)
Industrial Technologies
102.1

 
91.5

Security Technologies
58.8

 
69.9

Total
$
249.0

 
$
244.7

Reconciliation to Operating income
 
 
 
Gain (loss) on sale/asset impairment *

 
0.3

Unallocated corporate expense
(55.5
)
 
(33.0
)
Operating income
$
193.5

 
$
212.0


* During the three months ended March 31, 2012, the Company recorded $0.3 million of purchase price adjustments related to the 2011 Hussmann sale. These amounts have been excluded from Segment operating income within the Climate Solutions segment as management excludes these charges from Operating income when making operating decisions about the business.
Commitments and Contingencies (Tables)
The Company’s liability for asbestos-related matters and the asset for probable asbestos-related insurance recoveries were included in the following balance sheet accounts:
In millions
March 31,
2013
 
December 31,
2012
Accrued expenses and other current liabilities
$
69.1

 
$
69.1

Other noncurrent liabilities
790.0

 
810.4

Total asbestos-related liabilities
$
859.1

 
$
879.5

Other current assets
$
22.5

 
$
22.5

Other noncurrent assets
295.2

 
297.8

Total asset for probable asbestos-related insurance recoveries
$
317.7

 
$
320.3

The (costs) income associated with the settlement and defense of asbestos-related claims after insurance recoveries for the three months ended March 31 were as follows:
In millions
2013
 
2012
Continuing operations
$
(2.1
)
 
$
0.3

Discontinued operations
(2.4
)
 
(1.5
)
Total
$
(4.5
)
 
$
(1.2
)
The changes in the standard product warranty liability for the three months ended March 31 were as follows:
In millions
2013
 
2012
Balance at beginning of period
$
263.1

 
$
264.4

Reductions for payments
(34.9
)
 
(33.5
)
Accruals for warranties issued during the current period
30.1

 
36.5

Changes to accruals related to preexisting warranties
(3.7
)
 
(1.0
)
Translation
(1.0
)
 
1.0

Balance at end of period
$
253.6

 
$
267.4

The changes in the extended warranty liability for the three months ended March 31 were as follows:
In millions
2013
 
2012
Balance at beginning of period
$
375.1

 
$
372.0

Amortization of deferred revenue for the period
(23.7
)
 
(22.5
)
Additions for extended warranties issued during the period
21.2

 
23.2

Changes to accruals related to preexisting warranties
2.5

 

Translation
(0.3
)
 
0.3

Balance at end of period
$
374.8

 
$
373.0

Proposed Spin Off Transaction (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Spin related costs
$ 11.0 
Inventories (Schedule of Major Classes of Inventory) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Raw materials
$ 503.9 
$ 501.9 
Work-in-process
146.7 
109.6 
Finished goods
918.4 
800.2 
Sub-total
1,569.0 
1,411.7 
LIFO reserve
(102.7)
(102.9)
Total
$ 1,466.3 
$ 1,308.8 
Goodwill (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Goodwill [Roll Forward]
 
 
December 31, 2012 (gross)
$ 8,978.9 
 
Acquisitions and adjustments
1
 
Currency translation
(40.6)
 
March 31, 2013 (gross)
8,938.3 
 
Accumulated Impairment
(2,840.0)2
 
Goodwill (net)
6,098.3 
6,138.9 
Climate Solutions [Member]
 
 
Goodwill [Roll Forward]
 
 
December 31, 2012 (gross)
5,370.6 
 
Acquisitions and adjustments
(1.4)1
 
Currency translation
(32.4)
 
March 31, 2013 (gross)
5,336.8 
 
Accumulated Impairment
(839.8)2
 
Goodwill (net)
4,497.0 
 
Residential Solutions [Member]
 
 
Goodwill [Roll Forward]
 
 
December 31, 2012 (gross)
2,317.1 
 
Acquisitions and adjustments
14.9 1
 
Currency translation
 
March 31, 2013 (gross)
2,332.0 
 
Accumulated Impairment
(1,656.2)2
 
Goodwill (net)
675.8 
 
Industrial Technologies [Member]
 
 
Goodwill [Roll Forward]
 
 
December 31, 2012 (gross)
368.7 
 
Acquisitions and adjustments
1.1 1
 
Currency translation
(2.4)
 
March 31, 2013 (gross)
367.4 
 
Accumulated Impairment
2
 
Goodwill (net)
367.4 
 
Security Technologies [Member]
 
 
Goodwill [Roll Forward]
 
 
December 31, 2012 (gross)
922.5 
 
Acquisitions and adjustments
(14.6)1
 
Currency translation
(5.8)
 
March 31, 2013 (gross)
902.1 
 
Accumulated Impairment
(344.0)2
 
Goodwill (net)
$ 558.1 
 
Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Finite-lived intangible assets, gross
$ 2,333.0 
 
$ 2,339.4 
Accumulated amortization
(780.4)
 
(749.5)
Net finite-lived intangible assets
1,552.6 
 
1,589.9 
Total intangible assets, gross
4,944.0 
 
4,950.4 
Intangible assets, net
4,163.6 
 
4,200.9 
Amortization of intangible assets
35.1 
35.1 
 
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months
129 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Two
128 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Three
127 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Four
110 
 
 
Finite-Lived Intangible Assets, Amortization Expense, Year Five
110 
 
 
Trademarks [Member]
 
 
 
Trademarks (indefinite-lived)
2,611.0 
 
2,611.0 
Completed technologies/patents [Member]
 
 
 
Finite-lived intangible assets, gross
199.3 
 
203.2 
Accumulated amortization
(135.8)
 
(134.4)
Net finite-lived intangible assets
63.5 
 
68.8 
Customer Relationships [Member]
 
 
 
Finite-lived intangible assets, gross
1,961.3 
 
1,966.8 
Accumulated amortization
(549.7)
 
(523.6)
Net finite-lived intangible assets
1,411.6 
 
1,443.2 
Trademarks [Member]
 
 
 
Finite-lived intangible assets, gross
95.2 
 
98.0 
Accumulated amortization
(32.1)
 
(32.1)
Net finite-lived intangible assets
63.1 
 
65.9 
Other Intangible Assets [Member]
 
 
 
Finite-lived intangible assets, gross
77.2 
 
71.4 
Accumulated amortization
(62.8)
 
(59.4)
Net finite-lived intangible assets
$ 14.4 
 
$ 12.0 
Debt and Credit Facilities (Narrative) (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Feb. 15, 2013
Dec. 31, 2012
Commercial Paper
$ 0 
 
$ 0 
Short-term borrowings and current maturities of long-term debt
965,100,000 
 
963,700,000 
Line of credit facility, amount outstanding
2,000,000,000 
 
 
Four Year Revolving Credit Facility [Member]
 
 
 
Line of credit facility, amount outstanding
1,000,000,000 
 
 
Line of credit facility, expiration date
May 20, 2015 
 
 
Five Year Revolving Credit Facility [Member]
 
 
 
Line of credit facility, amount outstanding
1,000,000,000 
 
 
Line of credit facility, expiration date
Mar. 15, 2017 
 
 
Debentures With Put Feature [Member]
 
 
 
Short-term borrowings and current maturities of long-term debt
343,000,000 
 
343,000,000 
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 exercised
 
$ 37,200,000 
 
Debt and Credit Facilities (Short-Term Borrowings and Current Maturities of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Short-term borrowings and current maturities of long-term debt
$ 965.1 
$ 963.7 
Debentures With Put Feature [Member]
 
 
Short-term borrowings and current maturities of long-term debt
343.0 
343.0 
6.000% Senior Notes Due 2013 [Member]
 
 
Short-term borrowings and current maturities of long-term debt
600.0 
600.0 
Current Maturities Of Long Term Debt [Member]
 
 
Short-term borrowings and current maturities of long-term debt
9.0 
10.8 
Other Short Term Borrowings [Member]
 
 
Short-term borrowings and current maturities of long-term debt
$ 13.1 
$ 9.9 
Debt and Credit Facilities (Long-Term Debt Excluding Current Maturities) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Long-term debt excluding current maturities
$ 2,271.1 
$ 2,269.3 
9.500% Senior Notes Due 2014 [Member]
 
 
Long-term debt excluding current maturities
655.0 
655.0 
5.50% Senior Notes Due 2015 [Member]
 
 
Long-term debt excluding current maturities
198.4 
196.4 
4.75% Senior Notes Due 2015 [Member]
 
 
Long-term debt excluding current maturities
299.7 
299.7 
6.875% Senior Notes Due 2018 [Member]
 
 
Long-term debt excluding current maturities
749.4 
749.4 
9.00% Debentures Due 2021 [Member]
 
 
Long-term debt excluding current maturities
125.0 
125.0 
7.20% Debentures Due 2014-2025 [Member]
 
 
Long-term debt excluding current maturities
90.0 
90.0 
6.48% Debentures Due 2025 [Member]
 
 
Long-term debt excluding current maturities
149.7 
149.7 
Other Loans and Notes [Member]
 
 
Long-term debt excluding current maturities
$ 3.9 
$ 4.1 
Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2008
Senior Notes Due In Two Thousand Thirteen And Eighteen [Member]
Mar. 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 Two Thousand Fifteen [Member]
Mar. 31, 2013
Senior Notes Due In Two Thousand Fifteen [Member]
March 2005 Interest Rate Locks [Member]
Dec. 31, 2012
Senior Notes Due In Two Thousand Fifteen [Member]
March 2005 Interest Rate Locks [Member]
Mar. 31, 2013
Forecasted debt issuance of 30 year notes [Member]
Mar. 31, 2013
Forecasted debt issuance of 10 year notes [Member]
Mar. 31, 2013
Designated as Hedging Instrument [Member]
Dec. 31, 2012
Designated as Hedging Instrument [Member]
Mar. 31, 2013
Interest Rate Swap [Member]
Dec. 31, 2012
Interest Rate Swap [Member]
Mar. 31, 2013
Interest Rate Swap [Member]
Forecasted debt issuance of 10 year notes [Member]
Mar. 31, 2013
Interest Rate Swap [Member]
Forecasted debt issuance of 30 year notes [Member]
Notional amounts of currency derivatives
$ 1,632.1 
$ 1,656.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred gain/loss, net of tax, included in accumulated other comprehensive income (AOCI) related to the fair value of the Company's currency derivatives designated as accounting hedges
(607.2)
(521.0)
 
 
 
 
 
 
 
 
(4.7)
(4.0)
 
 
 
 
Currency derivatives expected to be reclassified into earnings over the next twelve months
(4.7)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Approximate maximum term of currency derivatives, in months
12 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal amount of notes
 
 
1,400.0 
 
 
300.0 
 
 
250.0 
500.0 
 
 
 
 
 
 
Derivatives designated as hedges, liability at fair value
 
 
 
 
 
 
 
 
 
 
 
 
9.9 
5.4 
4.5 
Deferred (loss) remaining in AOCI related to the interest rate locks
 
 
 
(6.7)
(7.2)
 
(2.7)
(3.1)
 
 
 
 
 
 
 
 
Amount expected to be reclassified into interest expense over the next twelve months
 
 
 
$ 1.4 
 
 
$ 1.3 
 
 
 
 
 
 
 
 
 
Financial Instruments Schedule of the Fair Values of Derivative Instruments (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Cash Flow Hedging [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedges, asset at fair value
$ 0.6 
$ 0.1 
Derivatives designated as hedges, liability at fair value
6.0 
4.6 
Interest Rate Swap [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives designated as hedges, asset at fair value
Derivatives designated as hedges, liability at fair value
9.9 
Nondesignated [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivatives not designated as hedges, asset at fair value
3.4 
4.6 
Derivatives not designated as hedges, liability at fair value
12.0 
7.1 
Recurring fair value measurements [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset fair value
4.0 
4.7 
Derivative liability fair value
27.9 
11.7 
Significant Other Observable Inputs (Level 2) [Member] |
Recurring fair value measurements [Member]
 
 
Derivatives, Fair Value [Line Items]
 
 
Derivative asset fair value
4.0 
4.7 
Derivative liability fair value
$ 27.9 
$ 11.7 
Financial Instruments Schedule of Derivatives Designated as Hedges Affecting Condensed Consolidated Income Statement and Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income
$ (13.0)
$ (4.9)
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income
(3.1)
(0.4)
Currency Derivatives
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income
(3.1)
(4.9)
Interest Rate Swap [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income
(9.9)
Interest Rate Locks
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income
cost of goods sold [Member] |
Currency Derivatives
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income
(2.2)
0.4 
Interest Expense [Member] |
Interest Rate Swap [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income
Interest Expense [Member] |
Interest Rate Locks
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income
$ (0.9)
$ (0.8)
Financial Instruments Schedule of Gains and Losses of Derivative Financial Instruments Not Designated as Hedges (Details) (Currency Derivatives, Nondesignated [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Recognized in Income
$ (14.3)
$ 22.6 
Other, net [Member]
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
Derivative Instruments, Gain (Loss) Recognized in Income
$ (14.3)
$ 22.6 
Pensions and Postretirement Benefits Other than Pensions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Company contributions
$ 6.8 
$ 8.2 
Pensions and Postretirement Benefits Other than Pensions (Components of Net Periodic Postretirement Benefit Cost) (Details) (Postretirement Benefit Costs [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Service cost
$ 1.7 
$ 2.0 
Interest cost
6.7 
8.1 
Net amortization of prior service gains
(2.6)
(2.0)
Net amortization of plan net actuarial losses
2.7 
2.5 
Total
8.5 
10.6 
Segment, Continuing Operations [Member]
 
 
Total
5.4 
6.7 
Segment, Discontinued Operations [Member]
 
 
Total
$ 3.1 
$ 3.9 
Fair Value Measurement (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Senior Notes [Member]
Mar. 31, 2013
Debentures With Put Feature [Member]
Mar. 31, 2013
Recurring fair value measurements [Member]
Dec. 31, 2012
Recurring fair value measurements [Member]
Mar. 31, 2013
Recurring fair value measurements [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Dec. 31, 2012
Recurring fair value measurements [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Mar. 31, 2013
Recurring fair value measurements [Member]
Significant Other Observable Inputs (Level 2) [Member]
Dec. 31, 2012
Recurring fair value measurements [Member]
Significant Other Observable Inputs (Level 2) [Member]
Mar. 31, 2013
Recurring fair value measurements [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2012
Recurring fair value measurements [Member]
Significant Unobservable Inputs (Level 3) [Member]
Mar. 31, 2013
Financial Instruments not carried at fair value [Member]
Dec. 31, 2012
Financial Instruments not carried at fair value [Member]
Mar. 31, 2013
Financial Instruments not carried at fair value [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Dec. 31, 2012
Financial Instruments not carried at fair value [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Mar. 31, 2013
Financial Instruments not carried at fair value [Member]
Significant Other Observable Inputs (Level 2) [Member]
Dec. 31, 2012
Financial Instruments not carried at fair value [Member]
Significant Other Observable Inputs (Level 2) [Member]
Mar. 31, 2013
Financial Instruments not carried at fair value [Member]
Significant Unobservable Inputs (Level 3) [Member]
Dec. 31, 2012
Financial Instruments not carried at fair value [Member]
Significant Unobservable Inputs (Level 3) [Member]
Assets, fair value measurements [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Marketable securities
 
 
$ 17.7 
$ 16.7 
$ 17.7 
$ 16.7 
$ 0 
$ 0 
$ 0 
$ 0 
 
 
 
 
 
 
 
 
Derivative instruments
 
 
4.0 
4.7 
4.0 
4.7 
 
 
 
 
 
 
 
 
Total assets, fair value measurements
 
 
21.7 
21.4 
17.7 
16.7 
4.0 
4.7 
 
 
 
 
 
 
 
 
Liabilities, fair value measurements [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative instruments
 
 
27.9 
11.7 
27.9 
11.7 
 
 
 
 
 
 
 
 
Total liability, fair value measurements
 
 
27.9 
11.7 
27.9 
11.7 
 
 
 
 
 
 
 
 
Total debt
 
 
 
 
 
 
 
 
 
 
3,617.0 
3,663.1 
3,617.0 
3,663.1 
Total financial instruments not carried at fair value
 
 
 
 
 
 
 
 
 
 
$ 3,617.0 
$ 3,663.1 
$ 0 
$ 0 
$ 3,617.0 
$ 3,663.1 
$ 0 
$ 0 
Debt instrument, maturity date range, start
 
Jan. 01, 2027 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, maturity date range, end
Dec. 31, 2025 
Dec. 31, 2028 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity (Reconciliation of Ordinary Shares) (Details) (Common Stock [Member])
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Common Stock [Member]
 
December 31, 2012
295.6 
Shares issued under incentive plans, net
4.0 
March 31, 2013
299.6 
Equity (Components of Shareholders' Equity) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Balance at December 31:
$ 7,229.3 
$ 7,012.4 
Net earnings
94.6 
102.2 
Currency translation
(103.6)
136.5 
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax
(8.6)
(1.4)
Pension and OPEB adjustments, net of tax
27.2 
29.9 
Total comprehensive income (loss)
9.6 
267.2 
Share-based compensation
21.5 
6.9 
Dividends to noncontrolling interests
(2.8)
(3.5)
Dividends to ordinary shareholders
(0.8)
(0.2)
Accretion of Exchangeable Senior Notes from Temporary Equity
 
2.7 
Shares issued under incentive plans, net
90.7 
13.0 
Balance at March 31:
7,347.5 
7,298.5 
Shareholders' Equity [Member]
 
 
Balance at December 31:
7,147.8 
6,924.3 
Net earnings
88.0 
95.6 
Currency translation
(104.8)
136.5 
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax
(8.6)
(1.4)
Pension and OPEB adjustments, net of tax
27.2 
29.9 
Total comprehensive income (loss)
1.8 
260.6 
Share-based compensation
21.5 
6.9 
Dividends to noncontrolling interests
Dividends to ordinary shareholders
(0.8)
(0.2)
Accretion of Exchangeable Senior Notes from Temporary Equity
 
2.7 
Shares issued under incentive plans, net
90.7 
13.0 
Balance at March 31:
7,261.0 
7,207.3 
Noncontrolling Interest [Member]
 
 
Balance at December 31:
81.5 
88.1 
Net earnings
6.6 
6.6 
Currency translation
1.2 
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax
Pension and OPEB adjustments, net of tax
Total comprehensive income (loss)
7.8 
6.6 
Share-based compensation
Dividends to noncontrolling interests
(2.8)
(3.5)
Dividends to ordinary shareholders
Accretion of Exchangeable Senior Notes from Temporary Equity
 
Shares issued under incentive plans, net
Balance at March 31:
$ 86.5 
$ 91.2 
Equity Equity (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Balance at December 31:
$ (521.0)
Other comprehensive income before reclassifications
(100.0)
Amounts reclassified from accumulated other comprehensive income
19.9 
Tax (expense) benefit
(6.1)
Balance at March 31:
(607.2)
Cash flow hedges and marketable securities [Member]
 
Balance at December 31:
(1.4)
Other comprehensive income before reclassifications
(11.5)
Amounts reclassified from accumulated other comprehensive income
3.1 
Tax (expense) benefit
(0.2)
Balance at March 31:
(10.0)
Pension and OPEB Adjustments [Member]
 
Balance at December 31:
(964.2)
Other comprehensive income before reclassifications
16.3 
Amounts reclassified from accumulated other comprehensive income
16.8 
Tax (expense) benefit
(5.9)
Balance at March 31:
(937.0)
Foreign Currency Gain (Loss) [Member]
 
Balance at December 31:
444.6 
Other comprehensive income before reclassifications
(104.8)
Amounts reclassified from accumulated other comprehensive income
Tax (expense) benefit
Balance at March 31:
$ 339.8 
Equity Equity (Reclassification Adjustments out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Amortization of prior service (gains) costs
$ (1.4)
Amortization of actuarial (gains) losses
18.2 
Earnings before income taxes [Member]
 
Gains and losses on cash flow hedges
3.1 
Defined benefit plan reclassification adjustments
16.8 
Earnings from continuing operations [Member]
 
Cash flow hedge reclassification adjustments, net of tax
3.1 
Defined benefit plan reclassification adjustments, net of tax
10.9 
Total reclassifications from Other comprehensive income (loss), net of tax
14.0 
Interest Expense [Member] |
Interest Rate Locks
 
Gains and losses on cash flow hedges
0.9 
Provision for income taxes [Member]
 
Tax effect on cash flow hedge reclassification adjustments
Tax effect on defined benefit plan reclassification adjustments
(5.9)
cost of goods sold [Member] |
Currency Derivatives
 
Gains and losses on cash flow hedges
$ 2.2 
Share-Based Compensation (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Share based compensation expense
$ 23.0 
$ 8.6 
Share based compensation expense, net of tax
14.2 
5.3 
Percentage Of Awards Applied To Performance Condition
50.00% 
 
Percentage of Awards Applied to Market Condition
50.00% 
 
Number Of Shares To Companys Maximum Award Level For Eligible Employees (in millions)
0.5 
 
Stock options and Restricted Stock Units (RSUs) [Member]
 
 
Vesting period, in years
3 years 
 
Stock Options [Member]
 
 
Share based compensation expense
7.9 
(6.7)
Immaterial Error Correction [Member] |
Stock Options [Member]
 
 
Share based compensation expense
 
13.5 
Share based compensation expense, net of tax
 
$ 8.3 
Share-Based Compensation (Share-Based Compensation Expense) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Share based compensation expense
$ 23.0 
$ 8.6 
Tax benefit
(8.8)
(3.3)
After-tax expense
14.2 
5.3 
Stock Options [Member]
 
 
Share based compensation expense
7.9 
(6.7)
Restricted Stock Units (RSUs) [Member]
 
 
Share based compensation expense
10.1 
8.0 
Performance Shares [Member]
 
 
Share based compensation expense
3.9 
5.6 
Deferred Compensation [Member]
 
 
Share based compensation expense
0.4 
0.4 
Other share based compensation [Member]
 
 
Share based compensation expense
$ 0.7 
$ 1.3 
Share-Based Compensation (Grants of Stock Options and RSUs) (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Stock Options [Member]
 
 
Equity awards, granted, in shares
1,318,418 
1,459,640 
Weighted average fair value per award, in dollars per share
$ 16.51 
$ 13.67 
RSUs [Member]
 
 
Equity awards, granted, in shares
527,923 
618,562 
Weighted average fair value per award, in dollars per share
$ 52.32 
$ 40.67 
Share-Based Compensation Share-Based Compensation (Average Fair Value of Stock Options Granted, Assumptions) (Details)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dividend yield
1.60% 
1.33% 
Volatility
42.15% 
43.60% 
Risk-free rate of return
0.85% 
0.92% 
Expected life, in years
5 years 1 month 0 days 
5 years 1 month 0 days 
Restructuring Activities (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Restructuring charges
$ 26.5 
$ 18.7 
 
Restructuring reserve, current
26.6 
 
11.8 
Non-qualified restructuring costs
$ 0.2 
 
 
Restructuring Activities (Schedule of Restructuring Charges Recorded) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Restructuring charges
$ 26.5 
$ 18.7 
Climate Solutions [Member]
 
 
Restructuring charges
17.2 
7.5 
Residential Solutions [Member]
 
 
Restructuring charges
0.5 
Industrial Technologies [Member]
 
 
Restructuring charges
2.8 
5.8 
Security Technologies [Member]
 
 
Restructuring charges
4.5 
3.8 
Corporate and Other [Member]
 
 
Restructuring charges
2.0 
1.1 
cost of goods sold [Member]
 
 
Restructuring charges
12.5 
8.4 
selling and administrative expenses [Member]
 
 
Restructuring charges
$ 14.0 
$ 10.3 
Restructuring Activities (Schedule of Changes in Restructuring Reserve) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
December 31, 2012
$ 11.8 
 
Additions, net of reversals
26.5 
18.7 
Cash and non-cash uses
(11.2)
 
Currency translation
(0.5)
 
March 31, 2013
26.6 
 
Climate Solutions [Member]
 
 
December 31, 2012
4.7 
 
Additions, net of reversals
17.2 
7.5 
Cash and non-cash uses
(7.6)
 
Currency translation
(0.2)
 
March 31, 2013
14.1 
 
Residential Solutions [Member]
 
 
December 31, 2012
 
Additions, net of reversals
0.5 
Cash and non-cash uses
 
Currency translation
 
March 31, 2013
 
Industrial Technologies [Member]
 
 
December 31, 2012
2.1 
 
Additions, net of reversals
2.8 
5.8 
Cash and non-cash uses
(2.0)
 
Currency translation
 
March 31, 2013
2.9 
 
Security Technologies [Member]
 
 
December 31, 2012
3.1 
 
Additions, net of reversals
4.5 
3.8 
Cash and non-cash uses
(0.7)
 
Currency translation
(0.3)
 
March 31, 2013
6.6 
 
Corporate and Other [Member]
 
 
December 31, 2012
1.9 
 
Additions, net of reversals
2.0 
1.1 
Cash and non-cash uses
(0.9)
 
Currency translation
 
March 31, 2013
$ 3.0 
 
Other, Net (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2013
Devaluation of Venezuela Bolivar [Member]
Mar. 31, 2013
Bolivar to US Dollar exchange rate [Member]
Dec. 31, 2012
Bolivar to US Dollar exchange rate [Member]
Mar. 31, 2013
HussmannBusinessEquityOwnership [Member]
Mar. 31, 2012
HussmannBusinessEquityOwnership [Member]
Mar. 31, 2013
Hussmann Divestiture [Member]
Component of Other Income, Nonoperating [Line Items]
 
 
 
 
 
 
 
 
Interest income
$ 3.5 
$ 4.7 
 
 
 
 
 
 
Exchange gain (loss)
(6.9)
(1.8)
8.7 
 
 
 
 
 
Earnings (loss) from equity investments
 
 
 
 
 
(4.2)
(5.2)
 
Other
0.6 
2.1 
 
 
 
 
 
 
Other, net
$ (7.0)
$ (0.2)
 
 
 
 
 
 
IR ownership interest, hussmann parent
 
 
 
 
 
 
 
37.20% 
Exchange rate
 
 
 
6.3 
4.29 
 
 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Jan. 19, 2010
Jul. 20, 2007
Withholding tax percentage proposed
 
 
 
30.00% 
IRS assertion of additional taxes due
 
 
 
$ 84 
Penalty percentage on asserted underpayment of tax
 
 
30.00% 
 
Total unrecognized tax benefits
$ 532.9 
$ 533.7 
 
 
Divestitures and Discontinued Operations (Summary of Financial Information for Discontinued Operations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net revenues
$ 0 
$ 0 
Pre-tax earnings (loss) from operations
(10.5)
(13.1)
Pre-tax gain (loss) on sale
Tax benefit (expense)
3.3 
10.9 
Discontinued operations, net of tax
$ (7.2)
$ (2.2)
Earnings Per Share (EPS) (Details)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Weighted-average number of basic shares
298.9 
299.2 
Shares issuable under incentive stock plans
3.6 
2.9 
Exchangeable Senior Notes
10.3 
Weighted average number of diluted shares
302.5 
312.4 
Anti-dilutive shares
1.6 
12.4 
Business Segment Information Business Segments Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Gain (loss) on sale/asset impairment
$ 0 
$ 0.3 
Hussmann Divestiture [Member]
 
 
Gain (loss) on sale/asset impairment
$ 0 1
$ 0.3 1
Business Segment Information (Summary of Operations by Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net revenues
$ 3,112.4 
$ 3,150.7 
Segment operating income
249.0 
244.7 
Gain (loss) on sale/asset impairment
0.3 
Operating income
193.5 
212.0 
Climate Solutions [Member]
 
 
Net revenues
1,616.4 
1,661.8 
Segment operating income
81.2 1
94.0 1
Residential Solutions [Member]
 
 
Net revenues
464.0 
421.7 
Segment operating income
6.9 
(10.7)
Industrial Technologies [Member]
 
 
Net revenues
680.3 
688.7 
Segment operating income
102.1 
91.5 
Security Technologies [Member]
 
 
Net revenues
351.7 
378.5 
Segment operating income
58.8 
69.9 
Unallocated Amount to Segment [Member]
 
 
Unallocated corporate expense
55.5 
33.0 
Hussmann Divestiture(Included in Climate Solutions) [Member]
 
 
Gain (loss) on sale/asset impairment
$ 0 1
$ 0.3 1
Commitments and Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Expense for environmental remediation
$ 0.7 
$ 1.7 
 
Reserves for environmental matters
64.0 
 
65.9 
Reserves for environmental matters, current
21.9 
22.2 
 
Expected annual inflation rate
2.50% 
 
 
Adjusted expected annual inflation rate
1.50% 
 
 
Percentage of non-malignant claims, minimum
80.00% 
 
80.00% 
Total current standard product warranty reserve
140.8 
 
147.4 
Total current extended warranty liability
99.3 
 
98.5 
Commitments and performance guarantees
435.5 
 
 
Trane [Member]
 
 
 
Settled with majority of insurers
95.00% 
 
 
Segment, Discontinued Operations [Member]
 
 
 
Reserves for environmental matters
47.9 
 
47.3 
Extended Warranty [Member]
 
 
 
Product warranty expense
$ 12.4 
$ 12.7 
 
Commitments and Contingencies (Product Warranty Liability) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Balance at beginning of period
$ 263.1 
$ 264.4 
Reductions for payments
(34.9)
(33.5)
Accruals for warranties issued during the current period
30.1 
36.5 
Changes to accruals related to preexisting warranties
(3.7)
(1.0)
Translation
(1.0)
1.0 
Balance at end of period
$ 253.6 
$ 267.4 
Commitments and Contingencies Commitments and Contingencies (Extended Warranty Accrual) (Details) (Extended Warranty [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Extended Warranty [Member]
 
 
Balance at beginning of period
$ 375.1 
$ 372.0 
Amortization of deferred revenue for the period
(23.7)
(22.5)
Additions for extended warranties issued during the period
21.2 
23.2 
Changes to accruals related to preexisting warranties
2.5 
Translation
(0.3)
0.3 
Balance at end of period
$ 374.8 
$ 373.0 
Guarantor Financial Information (Narrative) (Details) (USD $)
Mar. 31, 2013
Ireland Reorganization Note [Member]
Sep. 30, 2009
Ireland Reorganization Note [Member]
Mar. 31, 2005
Senior Notes Due in 2015 [Member]
Dec. 31, 2001
Senior Notes Due in 2015 [Member]
Stated interest rate for debt instruments
 
 
 
4.75% 
Principal amount of notes
 
$ 15,000,000,000 
$ 300,000,000 
 
Settlement of net intercompany payables
 
4,100,000,000 
 
 
Amount outstanding
$ 10,800,000,000 
 
 
 
Guarantor Financial Information (Condensed Consolidating Statements of Comprehensive Income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net revenues
$ 3,112.4 
$ 3,150.7 
Cost of goods sold
(2,192.1)
(2,249.4)
Selling and administrative expenses
(726.8)
(689.6)
Gain (loss) on sale/asset impairment
0.3 
Operating income (loss)
193.5 
212.0 
Equity earnings (loss) in affiliates, net of tax
Interest expense
(61.0)
(69.4)
Intercompany interest and fees
Other, net
(7.0)
(0.2)
Earnings (loss) before income taxes
125.5 
142.4 
Benefit (provision) for income taxes
(23.7)
(38.0)
Earnings (loss) from continuing operations
101.8 
104.4 
Discontinued operations, net of tax
(7.2)
(2.2)
Net earnings (loss)
94.6 
102.2 
Less: Net earnings attributable to noncontrolling interests
(6.6)
(6.6)
Net earnings (loss) attributable to Ingersoll-Rand plc
88.0 
95.6 
Total comprehensive income (loss)
9.6 
267.2 
Less: Total comprehensive (income) loss attributable to noncontrolling interests
(7.8)
(6.6)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
1.8 
260.6 
IR Ireland [Member]
 
 
Net revenues
Cost of goods sold
Selling and administrative expenses
(2.6)
(1.8)
Gain (loss) on sale/asset impairment
Operating income (loss)
(2.6)
(1.8)
Equity earnings (loss) in affiliates, net of tax
92.6 
99.7 
Interest expense
Intercompany interest and fees
(3.0)
(2.9)
Other, net
0.3 
Earnings (loss) before income taxes
87.3 
95.0 
Benefit (provision) for income taxes
0.7 
0.6 
Earnings (loss) from continuing operations
88.0 
95.6 
Discontinued operations, net of tax
Net earnings (loss)
88.0 
95.6 
Less: Net earnings attributable to noncontrolling interests
Net earnings (loss) attributable to Ingersoll-Rand plc
88.0 
95.6 
Total comprehensive income (loss)
1.7 
260.6 
Less: Total comprehensive (income) loss attributable to noncontrolling interests
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
1.7 
260.6 
IR Limited [Member]
 
 
Net revenues
Cost of goods sold
Selling and administrative expenses
Gain (loss) on sale/asset impairment
Operating income (loss)
Equity earnings (loss) in affiliates, net of tax
92.6 
(103.3)
Interest expense
Intercompany interest and fees
Other, net
Earnings (loss) before income taxes
92.6 
(103.3)
Benefit (provision) for income taxes
Earnings (loss) from continuing operations
92.6 
(103.3)
Discontinued operations, net of tax
Net earnings (loss)
92.6 
(103.3)
Less: Net earnings attributable to noncontrolling interests
Net earnings (loss) attributable to Ingersoll-Rand plc
92.6 
(103.3)
Total comprehensive income (loss)
6.3 
61.7 
Less: Total comprehensive (income) loss attributable to noncontrolling interests
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
6.3 
61.7 
IR International [Member]
 
 
Net revenues
Cost of goods sold
Selling and administrative expenses
Gain (loss) on sale/asset impairment
Operating income (loss)
Equity earnings (loss) in affiliates, net of tax
108.3 
(71.5)
Interest expense
(4.0)
(3.9)
Intercompany interest and fees
(8.8)
(11.6)
Other, net
0.6 
0.1 
Earnings (loss) before income taxes
96.1 
(86.9)
Benefit (provision) for income taxes
Earnings (loss) from continuing operations
96.1 
(86.9)
Discontinued operations, net of tax
Net earnings (loss)
96.1 
(86.9)
Less: Net earnings attributable to noncontrolling interests
Net earnings (loss) attributable to Ingersoll-Rand plc
96.1 
(86.9)
Total comprehensive income (loss)
96.4 
(86.6)
Less: Total comprehensive (income) loss attributable to noncontrolling interests
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
96.4 
(86.6)
IR Global [Member]
 
 
Net revenues
Cost of goods sold
Selling and administrative expenses
(0.4)
(0.2)
Gain (loss) on sale/asset impairment
Operating income (loss)
(0.4)
(0.2)
Equity earnings (loss) in affiliates, net of tax
153.9 
190.7 
Interest expense
(39.7)
(47.8)
Intercompany interest and fees
(9.6)
(11.6)
Other, net
0.3 
(202.6)
Earnings (loss) before income taxes
104.5 
(71.5)
Benefit (provision) for income taxes
Earnings (loss) from continuing operations
104.5 
(71.5)
Discontinued operations, net of tax
Net earnings (loss)
104.5 
(71.5)
Less: Net earnings attributable to noncontrolling interests
Net earnings (loss) attributable to Ingersoll-Rand plc
104.5 
(71.5)
Total comprehensive income (loss)
95.1 
(70.2)
Less: Total comprehensive (income) loss attributable to noncontrolling interests
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
95.1 
(70.2)
IR New Jersey [Member]
 
 
Net revenues
225.5 
217.2 
Cost of goods sold
(136.6)
(142.2)
Selling and administrative expenses
(107.2)
(79.7)
Gain (loss) on sale/asset impairment
Operating income (loss)
(18.3)
(4.7)
Equity earnings (loss) in affiliates, net of tax
38.2 
65.0 
Interest expense
(12.6)
(12.6)
Intercompany interest and fees
(0.5)
1.4 
Other, net
(2.7)
1.4 
Earnings (loss) before income taxes
4.1 
50.5 
Benefit (provision) for income taxes
7.3 
(9.1)
Earnings (loss) from continuing operations
11.4 
41.4 
Discontinued operations, net of tax
(9.9)
14.3 
Net earnings (loss)
1.5 
55.7 
Less: Net earnings attributable to noncontrolling interests
Net earnings (loss) attributable to Ingersoll-Rand plc
1.5 
55.7 
Total comprehensive income (loss)
6.9 
87.1 
Less: Total comprehensive (income) loss attributable to noncontrolling interests
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
6.9 
87.1 
Other Subsidiaries [Member]
 
 
Net revenues
2,886.9 
2,933.5 
Cost of goods sold
(2,055.5)
(2,107.2)
Selling and administrative expenses
(616.6)
(607.9)
Gain (loss) on sale/asset impairment
0.3 
Operating income (loss)
214.8 
218.7 
Equity earnings (loss) in affiliates, net of tax
97.9 
(31.2)
Interest expense
(4.7)
(5.1)
Intercompany interest and fees
21.9 
24.7 
Other, net
4.5 
3.3 
Earnings (loss) before income taxes
334.4 
210.4 
Benefit (provision) for income taxes
(31.7)
(29.5)
Earnings (loss) from continuing operations
302.7 
180.9 
Discontinued operations, net of tax
2.7 
(16.5)
Net earnings (loss)
305.4 
164.4 
Less: Net earnings attributable to noncontrolling interests
(16.6)
(11.9)
Net earnings (loss) attributable to Ingersoll-Rand plc
288.8 
152.5 
Total comprehensive income (loss)
228.2 
296.7 
Less: Total comprehensive (income) loss attributable to noncontrolling interests
(17.8)
(11.9)
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
210.4 
284.8 
Consolidating Adjustments [Member]
 
 
Net revenues
Cost of goods sold
Selling and administrative expenses
Gain (loss) on sale/asset impairment
Operating income (loss)
Equity earnings (loss) in affiliates, net of tax
(583.5)
(149.4)
Interest expense
Intercompany interest and fees
Other, net
(10.0)
197.6 
Earnings (loss) before income taxes
(593.5)
48.2 
Benefit (provision) for income taxes
Earnings (loss) from continuing operations
(593.5)
48.2 
Discontinued operations, net of tax
Net earnings (loss)
(593.5)
48.2 
Less: Net earnings attributable to noncontrolling interests
10.0 
5.3 
Net earnings (loss) attributable to Ingersoll-Rand plc
(583.5)
53.5 
Total comprehensive income (loss)
(425.0)
(282.1)
Less: Total comprehensive (income) loss attributable to noncontrolling interests
10.0 
5.3 
Total comprehensive income (loss) attributable to Ingersoll-Rand plc
$ (415.0)
$ (276.8)
Guarantor Financial Information (Condensed Consolidating Balance Sheets) (Details) (USD $)
In Millions, unless otherwise specified
Mar. 31, 2013
Dec. 31, 2012
Mar. 31, 2012
Dec. 31, 2011
Current assets:
 
 
 
 
Cash and cash equivalents
$ 832.9 
$ 882.1 
$ 1,089.5 
$ 1,160.7 
Accounts and notes receivable, net
2,218.8 
2,157.5 
 
 
Inventories
1,466.3 
1,308.8 
 
 
Other current assets
599.4 
594.3 
 
 
Accounts and notes receivable affiliates
 
 
Total current assets
5,117.4 
4,942.7 
 
 
Investment in affiliates
 
 
Property, plant and equipment, net
1,653.0 
1,652.6 
 
 
Intangible assets, net
10,261.9 
10,339.8 
 
 
Other noncurrent assets
1,561.0 
1,557.8 
 
 
Total assets
18,593.3 
18,492.9 
 
 
Current liabilities:
 
 
 
 
Accounts payable and accruals
3,205.8 
3,197.6 
 
 
Short-term borrowings and current maturities of long-term debt
965.1 
963.7 
 
 
Accounts and note payable affiliates
 
 
Total current liabilities
4,170.9 
4,161.3 
 
 
Long-term debt
2,271.1 
2,269.3 
 
 
Note payable affiliate
 
 
Other noncurrent liabilities
4,803.8 
4,833.0 
 
 
Total liabilities
11,245.8 
11,263.6 
 
 
Equity:
 
 
 
 
Total equity
7,347.5 
7,229.3 
7,298.5 
7,012.4 
Total liabilities and equity
18,593.3 
18,492.9 
 
 
IR Ireland [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Accounts and notes receivable, net
 
 
Inventories
 
 
Other current assets
0.4 
0.1 
 
 
Accounts and notes receivable affiliates
304.9 
148.9 
 
 
Total current assets
305.3 
149.0 
 
 
Investment in affiliates
8,917.8 
8,885.1 
 
 
Property, plant and equipment, net
 
 
Intangible assets, net
 
 
Other noncurrent assets
 
 
Total assets
9,223.1 
9,034.1 
 
 
Current liabilities:
 
 
 
 
Accounts payable and accruals
7.5 
70.5 
 
 
Short-term borrowings and current maturities of long-term debt
 
 
Accounts and note payable affiliates
1,868.1 
1,734.3 
 
 
Total current liabilities
1,875.6 
1,804.8 
 
 
Long-term debt
 
 
Note payable affiliate
 
 
Other noncurrent liabilities
 
 
Total liabilities
1,875.6 
1,804.8 
 
 
Equity:
 
 
 
 
Total equity
7,347.5 
7,229.3 
 
 
Total liabilities and equity
9,223.1 
9,034.1 
 
 
IR Limited [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Accounts and notes receivable, net
 
 
Inventories
 
 
Other current assets
 
 
Accounts and notes receivable affiliates
3,039.2 
3,039.2 
 
 
Total current assets
3,039.2 
3,039.2 
 
 
Investment in affiliates
7,106.6 
7,095.3 
 
 
Property, plant and equipment, net
 
 
Intangible assets, net
 
 
Other noncurrent assets
 
 
Total assets
10,145.8 
10,134.5 
 
 
Current liabilities:
 
 
 
 
Accounts payable and accruals
 
 
Short-term borrowings and current maturities of long-term debt
 
 
Accounts and note payable affiliates
34.3 
34.3 
 
 
Total current liabilities
34.3 
34.3 
 
 
Long-term debt
 
 
Note payable affiliate
 
 
Other noncurrent liabilities
4.3 
 
 
Total liabilities
34.3 
38.6 
 
 
Equity:
 
 
 
 
Total equity
10,111.5 
10,095.9 
 
 
Total liabilities and equity
10,145.8 
10,134.5 
 
 
IR International [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Accounts and notes receivable, net
 
 
Inventories
 
 
Other current assets
1.5 
0.1 
 
 
Accounts and notes receivable affiliates
2.2 
2.0 
 
 
Total current assets
3.7 
2.1 
 
 
Investment in affiliates
21,294.2 
21,185.6 
 
 
Property, plant and equipment, net
 
 
Intangible assets, net
 
 
Other noncurrent assets
0.4 
0.5 
 
 
Total assets
21,298.3 
21,188.2 
 
 
Current liabilities:
 
 
 
 
Accounts payable and accruals
6.2 
4.0 
 
 
Short-term borrowings and current maturities of long-term debt
 
 
Accounts and note payable affiliates
4,900.1 
4,888.9 
 
 
Total current liabilities
4,906.3 
4,892.9 
 
 
Long-term debt
299.7 
299.7 
 
 
Note payable affiliate
10,755.7 
10,755.7 
 
 
Other noncurrent liabilities
3.8 
3.8 
 
 
Total liabilities
15,965.5 
15,952.1 
 
 
Equity:
 
 
 
 
Total equity
5,332.8 
5,236.1 
 
 
Total liabilities and equity
21,298.3 
21,188.2 
 
 
IR Global [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
61.9 
120.8 
241.8 
Accounts and notes receivable, net
 
 
Inventories
 
 
Other current assets
0.2 
 
 
Accounts and notes receivable affiliates
2,174.9 
2,189.0 
 
 
Total current assets
2,174.9 
2,251.1 
 
 
Investment in affiliates
18,734.2 
18,589.8 
 
 
Property, plant and equipment, net
0.2 
0.2 
 
 
Intangible assets, net
 
 
Other noncurrent assets
9.1 
10.0 
 
 
Total assets
20,918.4 
20,851.1 
 
 
Current liabilities:
 
 
 
 
Accounts payable and accruals
50.5 
46.0 
 
 
Short-term borrowings and current maturities of long-term debt
600.0 
600.0 
 
 
Accounts and note payable affiliates
7,579.2 
7,602.2 
 
 
Total current liabilities
8,229.7 
8,248.2 
 
 
Long-term debt
1,404.4 
1,404.4 
 
 
Note payable affiliate
 
 
Other noncurrent liabilities
 
 
Total liabilities
9,634.1 
9,652.6 
 
 
Equity:
 
 
 
 
Total equity
11,284.3 
11,198.5 
 
 
Total liabilities and equity
20,918.4 
20,851.1 
 
 
IR New Jersey [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
91.4 
59.1 
203.0 
77.8 
Accounts and notes receivable, net
132.1 
128.8 
 
 
Inventories
83.4 
73.1 
 
 
Other current assets
112.2 
149.3 
 
 
Accounts and notes receivable affiliates
9,226.0 
8,669.5 
 
 
Total current assets
9,645.1 
9,079.8 
 
 
Investment in affiliates
8,223.0 
8,179.9 
 
 
Property, plant and equipment, net
264.7 
254.0 
 
 
Intangible assets, net
83.8 
83.8 
 
 
Other noncurrent assets
834.9 
867.3 
 
 
Total assets
19,051.5 
18,464.8 
 
 
Current liabilities:
 
 
 
 
Accounts payable and accruals
405.6 
420.2 
 
 
Short-term borrowings and current maturities of long-term debt
350.5 
350.5 
 
 
Accounts and note payable affiliates
14,006.9 
13,337.7 
 
 
Total current liabilities
14,763.0 
14,108.4 
 
 
Long-term debt
364.7 
364.7 
 
 
Note payable affiliate
 
 
Other noncurrent liabilities
1,604.6 
1,620.0 
 
 
Total liabilities
16,732.3 
16,093.1 
 
 
Equity:
 
 
 
 
Total equity
2,319.2 
2,371.7 
 
 
Total liabilities and equity
19,051.5 
18,464.8 
 
 
Other Subsidiaries [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
741.5 
761.1 
765.7 
841.1 
Accounts and notes receivable, net
2,086.7 
2,028.7 
 
 
Inventories
1,382.9 
1,235.7 
 
 
Other current assets
485.3 
444.6 
 
 
Accounts and notes receivable affiliates
24,539.9 
23,772.0 
 
 
Total current assets
29,236.3 
28,242.1 
 
 
Investment in affiliates
99,870.5 
99,205.0 
 
 
Property, plant and equipment, net
1,388.1 
1,398.4 
 
 
Intangible assets, net
10,178.1 
10,256.0 
 
 
Other noncurrent assets
716.6 
680.0 
 
 
Total assets
141,389.6 
139,781.5 
 
 
Current liabilities:
 
 
 
 
Accounts payable and accruals
2,736.0 
2,656.9 
 
 
Short-term borrowings and current maturities of long-term debt
14.6 
13.2 
 
 
Accounts and note payable affiliates
10,556.4 
9,867.6 
 
 
Total current liabilities
13,307.0 
12,537.7 
 
 
Long-term debt
202.3 
200.5 
 
 
Note payable affiliate
 
 
Other noncurrent liabilities
3,195.4 
3,204.9 
 
 
Total liabilities
16,704.7 
15,943.1 
 
 
Equity:
 
 
 
 
Total equity
124,684.9 
123,838.4 
 
 
Total liabilities and equity
141,389.6 
139,781.5 
 
 
Consolidating Adjustments [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
Accounts and notes receivable, net
 
 
Inventories
 
 
Other current assets
 
 
Accounts and notes receivable affiliates
(39,287.1)
(37,820.6)
 
 
Total current assets
(39,287.1)
(37,820.6)
 
 
Investment in affiliates
(164,146.3)
(163,140.7)
 
 
Property, plant and equipment, net
 
 
Intangible assets, net
 
 
Other noncurrent assets
 
 
Total assets
(203,433.4)
(200,961.3)
 
 
Current liabilities:
 
 
 
 
Accounts payable and accruals
 
 
Short-term borrowings and current maturities of long-term debt
 
 
Accounts and note payable affiliates
(38,945.0)
(37,465.0)
 
 
Total current liabilities
(38,945.0)
(37,465.0)
 
 
Long-term debt
 
 
Note payable affiliate
(10,755.7)
(10,755.7)
 
 
Other noncurrent liabilities
 
 
Total liabilities
(49,700.7)
(48,220.7)
 
 
Equity:
 
 
 
 
Total equity
(153,732.7)
(152,740.6)
 
 
Total liabilities and equity
$ (203,433.4)
$ (200,961.3)
 
 
Guarantor Financial Information (Condensed Consolidating Statements of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Net cash provided by (used in) continuing operating activities
$ (0.8)
$ 82.2 
Net cash provided by (used in) discontinued operating activities
(7.2)
(65.8)
Net cash provided by (used in) operating activities
(8.0)
16.4 
Capital expenditures
(71.4)
(52.9)
Proceeds from sale of property, plant and equipment
4.2 
3.2 
Net cash provided by (used in) continuing investing activities
(67.2)
(49.7)
Net cash provided by (used in) discontinued investing activities
Net cash provided by (used in) investing activities
(67.2)
(49.7)
Net proceeds (repayments) in debt
2.7 
(1.3)
Debt issuance costs
(2.4)
Net inter-company proceeds (payments)
Dividends paid
66.8 
51.1 
Proceeds from shares issued under incentive plans
90.7 
12.9 
Net cash provided by (used in) continuing financing activities
26.6 
(41.9)
Effect of exchange rate changes on cash and cash equivalents
(0.6)
4.0 
Net increase (decrease) in cash and cash equivalents
(49.2)
(71.2)
Cash and cash equivalents - beginning of period
882.1 
1,160.7 
Cash and cash equivalents - end of period
832.9 
1,089.5 
IR Ireland [Member]
 
 
Net cash provided by (used in) continuing operating activities
(2.3)
(1.8)
Net cash provided by (used in) discontinued operating activities
Net cash provided by (used in) operating activities
(2.3)
(1.8)
Capital expenditures
Proceeds from sale of property, plant and equipment
Net cash provided by (used in) continuing investing activities
Net cash provided by (used in) discontinued investing activities
Net cash provided by (used in) investing activities
Net proceeds (repayments) in debt
Debt issuance costs
 
Net inter-company proceeds (payments)
(25.6)
35.5 
Dividends paid
62.8 
46.6 
Proceeds from shares issued under incentive plans
90.7 
12.9 
Net cash provided by (used in) continuing financing activities
2.3 
1.8 
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of period
Cash and cash equivalents - end of period
IR Limited [Member]
 
 
Net cash provided by (used in) continuing operating activities
Net cash provided by (used in) discontinued operating activities
Net cash provided by (used in) operating activities
Capital expenditures
Proceeds from sale of property, plant and equipment
Net cash provided by (used in) continuing investing activities
Net cash provided by (used in) discontinued investing activities
Net cash provided by (used in) investing activities
Net proceeds (repayments) in debt
Debt issuance costs
 
Net inter-company proceeds (payments)
Dividends paid
Proceeds from shares issued under incentive plans
Net cash provided by (used in) continuing financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of period
Cash and cash equivalents - end of period
IR International [Member]
 
 
Net cash provided by (used in) continuing operating activities
(3.4)
(3.8)
Net cash provided by (used in) discontinued operating activities
Net cash provided by (used in) operating activities
(3.4)
(3.8)
Capital expenditures
Proceeds from sale of property, plant and equipment
Net cash provided by (used in) continuing investing activities
Net cash provided by (used in) discontinued investing activities
Net cash provided by (used in) investing activities
Net proceeds (repayments) in debt
Debt issuance costs
 
Net inter-company proceeds (payments)
3.4 
3.8 
Dividends paid
Proceeds from shares issued under incentive plans
Net cash provided by (used in) continuing financing activities
3.4 
3.8 
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of period
Cash and cash equivalents - end of period
IR Global [Member]
 
 
Net cash provided by (used in) continuing operating activities
(39.8)
(47.8)
Net cash provided by (used in) discontinued operating activities
Net cash provided by (used in) operating activities
(39.8)
(47.8)
Capital expenditures
Proceeds from sale of property, plant and equipment
Net cash provided by (used in) continuing investing activities
Net cash provided by (used in) discontinued investing activities
Net cash provided by (used in) investing activities
Net proceeds (repayments) in debt
Debt issuance costs
 
(2.4)
Net inter-company proceeds (payments)
(22.1)
(70.8)
Dividends paid
Proceeds from shares issued under incentive plans
Net cash provided by (used in) continuing financing activities
(22.1)
(73.2)
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
(61.9)
(121.0)
Cash and cash equivalents - beginning of period
61.9 
241.8 
Cash and cash equivalents - end of period
120.8 
IR New Jersey [Member]
 
 
Net cash provided by (used in) continuing operating activities
(194.7)
(87.4)
Net cash provided by (used in) discontinued operating activities
(9.9)
14.3 
Net cash provided by (used in) operating activities
(204.6)
(73.1)
Capital expenditures
(20.8)
(13.5)
Proceeds from sale of property, plant and equipment
0.2 
Net cash provided by (used in) continuing investing activities
(20.6)
(13.5)
Net cash provided by (used in) discontinued investing activities
Net cash provided by (used in) investing activities
(20.6)
(13.5)
Net proceeds (repayments) in debt
(0.1)
Debt issuance costs
 
Net inter-company proceeds (payments)
257.5 
211.9 
Dividends paid
Proceeds from shares issued under incentive plans
Net cash provided by (used in) continuing financing activities
257.5 
211.8 
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
32.3 
125.2 
Cash and cash equivalents - beginning of period
59.1 
77.8 
Cash and cash equivalents - end of period
91.4 
203.0 
Other Subsidiaries [Member]
 
 
Net cash provided by (used in) continuing operating activities
239.8 
223.5 
Net cash provided by (used in) discontinued operating activities
2.7 
(80.1)
Net cash provided by (used in) operating activities
242.5 
143.4 
Capital expenditures
(50.6)
(39.4)
Proceeds from sale of property, plant and equipment
4.0 
3.2 
Net cash provided by (used in) continuing investing activities
(46.6)
(36.2)
Net cash provided by (used in) discontinued investing activities
Net cash provided by (used in) investing activities
(46.6)
(36.2)
Net proceeds (repayments) in debt
2.7 
(1.2)
Debt issuance costs
 
Net inter-company proceeds (payments)
(213.2)
(180.4)
Dividends paid
4.4 
5.0 
Proceeds from shares issued under incentive plans
Net cash provided by (used in) continuing financing activities
(214.9)
(186.6)
Effect of exchange rate changes on cash and cash equivalents
(0.6)
4.0 
Net increase (decrease) in cash and cash equivalents
(19.6)
(75.4)
Cash and cash equivalents - beginning of period
761.1 
841.1 
Cash and cash equivalents - end of period
741.5 
765.7 
Consolidating Adjustments [Member]
 
 
Net cash provided by (used in) continuing operating activities
(0.4)
(0.5)
Net cash provided by (used in) discontinued operating activities
Net cash provided by (used in) operating activities
(0.4)
(0.5)
Capital expenditures
Proceeds from sale of property, plant and equipment
Net cash provided by (used in) continuing investing activities
Net cash provided by (used in) discontinued investing activities
Net cash provided by (used in) investing activities
Net proceeds (repayments) in debt
Debt issuance costs
 
Net inter-company proceeds (payments)
Dividends paid
(0.4)
(0.5)
Proceeds from shares issued under incentive plans
Net cash provided by (used in) continuing financing activities
0.4 
0.5 
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - beginning of period
Cash and cash equivalents - end of period
$ 0 
$ 0