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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)

		
☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the fiscal year ended December 31, 2019
or

		
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934	
For the transition period from             to          
Commission File No. 001-34400
INGERSOLL-RAND PUBLIC LIMITED COMPANY
(Exact name of registrant as specified in its charter)

	
			
Ireland	 	98-0626632	
(State or other jurisdiction of incorporation or organization)	 	(I.R.S. Employer
Identification No.)	
170/175 Lakeview Dr.
Airside Business Park
Swords Co. Dublin
Ireland
(Address of principal executive offices)
Registrant’s telephone number, including area code: +(353) (0) 18707400

					
Securities registered pursuant to Section 12(b) of the Act:

Title of each class	 	Trading Symbol	 	Name of each exchange on which registered	
Ordinary Shares, Par Value $1.00 per Share	 	IR	 	New York Stock Exchange	
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x    No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐    No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x    No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

									
 	Large accelerated filer	x	 	Accelerated filer	☐	 	Emerging growth company	☐	
 	 	 	 	 	 	 	 	 	
 	Non-accelerated filer	☐	 	Smaller reporting company	☐	 	 	 	
 	 	 	 	 	 	 	 	 	
 	If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ 	

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐     No x
The aggregate market value of ordinary shares held by nonaffiliates on June 28, 2019 was approximately $30.5 billion based on the closing price of such stock on the New York Stock Exchange.
The number of ordinary shares outstanding as of February 1, 2020 was 238,401,033.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s proxy statement to be filed within 120 days of the close of the registrant’s fiscal year in connection with the registrant’s Annual General Meeting of Shareholders to be held June 4, 2020 are incorporated by reference into Part II and Part III of this Form 10-K.

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INGERSOLL-RAND PLC

Form 10-K
For the Fiscal Year Ended December 31, 2019
TABLE OF CONTENTS

	
				
 	 	 	Page	
Part I	Item 1.	Business	3	
 	 	 	 	
 	Item 1A.	Risk Factors	9	
 	 	 	 	
 	Item 1B.	Unresolved Staff Comments	17	
 	 	 	 	
 	Item 2.	Properties	18	
 	 	 	 	
 	Item 3.	Legal Proceedings	19	
 	 	 	 	
 	Item 4.	Mine Safety Disclosures	19	
 	 	 	 	
Part II	Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	19	
 	 	 	 	
 	Item 6.	Selected Financial Data	21	
 	 	 	 	
 	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22	
 	 	 	 	
 	Item 7A.	Quantitative and Qualitative Disclosure About Market Risk	34	
 	 	 	 	
 	Item 8.	Financial Statements and Supplementary Data	36	
 	 	 	 	
 	Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	37	
 	 	 	 	
 	Item 9A.	Controls and Procedures	37	
 	 	 	 	
 	Item 9B.	Other Information	37	
 	 	 	 	
Part III	Item 10.	Directors, Executive Officers and Corporate Governance	38	
 	 	 	 	
 	Item 11.	Executive Compensation	38	
 	 	 	 	
 	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	38	
 	 	 	 	
 	Item 13.	Certain Relationships and Related Transactions, and Director Independence	38	
 	 	 	 	
 	Item 14.	Principal Accountant Fees and Services	38	
 	 	 	 	
Part IV	Item 15.	Exhibits and Financial Statement Schedules	39	
 	 	 	 	
 	Item 16.	Form 10-K Summary	49	
 	 	 	 	
 	Signatures	 	50	

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CAUTIONARY STATEMENT FOR FORWARD LOOKING STATEMENTS
Certain statements in this report, other than purely historical information, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements.
Forward-looking statements may relate to such matters as projections of revenue, margins, expenses, tax provisions, earnings, cash flows, benefit obligations, share or debt repurchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including those relating to any statements concerning expected development, performance or market share relating to our products and services; any statements regarding future economic conditions or our performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. These statements are based on currently available information and our current assumptions, expectations and projections about future events. While we believe that our assumptions, expectations and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on our forward-looking statements. You are advised to review any further disclosures we make on related subjects in materials we file with or furnish to the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made and are not guarantees of future performance. They are subject to future events, risks and uncertainties - many of which are beyond our control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from our expectations and projections. We do not undertake to update any forward-looking statements.
Factors that might affect our forward-looking statements include, among other things:

•	overall economic, political and business conditions in the markets in which we operate;	
		
•	the demand for our products and services;	
		
•	competitive factors in the industries in which we compete;	
		
•	changes in tax laws and requirements (including tax rate changes, new tax laws, new and/or revised tax law interpretations and any legislation that may limit or eliminate potential tax benefits resulting from our incorporation in a non-U.S. jurisdiction, such as Ireland);	
		
•	trade protection measures such as import or export restrictions and requirements, the imposition of tariffs and quotas or revocation or material modification of trade agreements;	
		
•	the outcome of any litigation, governmental investigations, claims or proceedings;	
		
•	the outcome of any income tax audits or settlements;	
		
•	interest rate fluctuations and other changes in borrowing costs;	
		
•	other capital market conditions, including availability of funding sources;	
		
•	currency exchange rate fluctuations, exchange controls and currency devaluations;	
		
•	availability of and fluctuations in the prices of key commodities;	
		
•	impairment of our goodwill, indefinite-lived intangible assets and/or our long-lived assets;	
		
•	climate change, changes in weather patterns, natural disasters, seasonal fluctuations, health epidemics or pandemics or other contagious outbreaks;	
		
•	the impact of potential information technology, data security breaches or other cybersecurity issues; and	
		
•	the strategic acquisition or divestiture of businesses (including the proposed separation of our Industrial segment pursuant to a Reverse Morris Trust transaction), product lines and joint ventures;	
Some of the significant risks and uncertainties that could cause actual results to differ materially from our expectations and projections are described more fully in Part I, Item 1A “Risk Factors.” You should read that information in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of this report and our Consolidated Financial Statements and related notes in Part II, Item 8 “Financial Statements and Supplementary Data” of this report. We note such information for investors as permitted by the Private Securities Litigation Reform Act of 1995.

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PART I
Item 1.      BUSINESS
Overview
Ingersoll-Rand plc (Plc or Parent Company), a public limited company incorporated in Ireland in 2009, and its consolidated subsidiaries (collectively, we, our, the Company) is a diversified, global company that provides products, services and solutions to enhance the quality, energy efficiency and comfort of air in homes and buildings, transport and protect food and perishables and increase industrial productivity and efficiency. Our business segments consist of Climate and Industrial, both with strong brands and highly differentiated products within their respective markets. We generate revenue and cash primarily through the design, manufacture, sale and service of a diverse portfolio of industrial and commercial products that include well-recognized, premium brand names such as American Standard®, ARO®, Club Car®, Ingersoll-Rand®, Thermo King® and Trane®.
To achieve our mission of being a world leader in creating comfortable, sustainable and efficient environments, we continue to focus on growth by increasing our recurring revenue stream from parts, services, controls, used equipment and rentals; and to continuously improve the efficiencies and capabilities of the products and services of our businesses. We also continue to focus on operational excellence strategies as a central theme to improving our earnings and cash flow.
Business Segments
Our business segments provide products, services and solutions used to increase the efficiency and productivity of both industrial and commercial operations and homes, as well as improve the health and comfort of people around the world.
Our business segments are as follows:
Climate
Our Climate segment delivers energy-efficient products and innovative energy services. It includes Trane® and American Standard® Heating & Air Conditioning which provide heating, ventilation and air conditioning (HVAC) systems, and commercial and residential building services, parts, support and controls; energy services and building automation through Trane Building AdvantageTM and NexiaTM; and Thermo King® transport temperature control solutions. This segment had 2019 net revenues of $13,075.9 million.
Industrial
Our Industrial segment delivers products and services that enhance energy efficiency, productivity and operations. It includes compressed air and gas systems and services, power tools, material handling systems, fluid management systems, as well as Club Car ® golf, utility and consumer low-speed vehicles. This segment had 2019 net revenues of $3,523.0 million.

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Products and Services
Our principal products and services by business segment include the following:

			
Climate	
Aftermarket and OEM parts and supplies	  	Indoor air quality	
Air conditioners	 	Industrial refrigeration	
Air exchangers	 	Installation contracting	
Air handlers	 	Large commercial unitary	
Airside and terminal devices	 	Light commercial unitary	
Auxiliary power units	 	Motor replacements	
Building management systems	 	Multi-pipe HVAC systems	
Bus and rail HVAC systems	 	Package heating and cooling systems	
Chillers	 	Performance contracting	
Coils and condensers	 	Rail refrigeration systems	
Container refrigeration systems and gensets	  	Refrigerant reclamation	
Control systems	  	Repair and maintenance services	
Cryogenic refrigeration systems	  	Rental services	
Diesel-powered refrigeration systems	 	Self-powered truck refrigeration systems	
Ductless systems	  	Service agreements	
Energy management services	  	Temporary heating and cooling systems	
Facility management services	  	Thermostats/controls	
Furnaces	  	Trailer refrigeration systems	
Geothermal systems	  	Transport heater products	
Heat pumps	  	Unitary systems (light and large)	
Home automation	  	Variable Refrigerant Flow	
Humidifiers	 	Vehicle-powered truck refrigeration systems	
Hybrid and non-diesel transport refrigeration solutions	 	Water source heat pumps	
Ice energy storage solutions	 	 	

			
Industrial	
Air compressors (centrifugal, reciprocating and rotary)	 	Hydrogen compression, dispensing and refueling systems	
Air-operated pumps (diaphragm and piston)	 	Installation contracting	
Air treatment and air separation systems	 	Liquid and gas sampling systems	
Aftermarket and OEM parts and supplies	 	Maintenance and repair services	
Airends	 	Metering and process pumps, skids and systems	
Blowers	 	Mixers	
Controllers and control systems dryers	 	Odorant injection systems	
Digital Systems Monitoring	 	Power tools (pneumatic, cordless and electric)	
Engine starting systems	 	Precision fastening tools, software and systems	
Ergonomic material handling systems	 	Rental services	
Filters, regulators and lubricators	 	Rough terrain (AWD) vehicles	
Fluid power components	 	Service agreements	
Gas boosters and high-pressure valves	 	Utility and consumer low-speed vehicles	
Gas compressors	 	Mobile golf information systems	
Golf vehicles	 	Water-powered dosing pumps	
Hoists (pneumatic, hydraulic, electric and manual)	 	Winches (pneumatic, hydraulic and electric)	
These products are sold primarily under our name and under other names including American Standard®, ARO®, Club Car®, Ingersoll-Rand®, Thermo King® and Trane®.

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Separation of Industrial Segment Businesses
In April 2019, Ingersoll-Rand plc and Gardner Denver Holdings, Inc. (GDI) announced that they entered into definitive agreements pursuant to which we will separate our Industrial segment businesses (IR Industrial) by way of spin-off to our shareholders and then combine with GDI to create a new company focused on flow creation and industrial technologies. This business is expected to be renamed Ingersoll-Rand, Inc. Our remaining HVAC and transport refrigeration businesses, reported under the Climate segment, will focus on climate control solutions for buildings, homes and transportation and be renamed Trane Technologies plc. The transaction is expected to close by early 2020, subject to approval by GDI’s shareholders, regulatory approvals and customary closing conditions.
Acquisitions and Equity Investments
During 2019, we acquired several businesses that complement existing products and services. In May 2019, we acquired 100% of the outstanding stock of Precision Flow Systems (PFS). PFS, reported in the Industrial segment, is a manufacturer of precision flow control equipment including precision dosing pumps and controls that serve the global water, oil and gas, agriculture, industrial and specialty market segments. Acquisitions within the Climate segment consisted of an independent dealer to support the ongoing strategy to expand our distribution network as well as other businesses that strengthen our product portfolio.
During 2018, we acquired several businesses and entered into a joint venture. In May 2018, we completed our investment of a 50% ownership interest in a joint venture with Mitsubishi Electric Corporation (Mitsubishi). The joint venture, reported within the Climate segment, focuses on marketing, selling and supporting variable refrigerant flow (VRF) and ductless heating and air conditioning systems through Trane, American Standard and Mitsubishi channels in the U.S. and select Latin American countries. In January 2018, we acquired 100% of the outstanding stock of ICS Group Holdings Limited (ICS Cool Energy). The acquired business, reported within the Climate segment, specializes in the temporary rental of energy efficient chillers for commercial and industrial buildings across Europe. It also sells, permanently installs and services high performance temperature control systems for all types of industrial processes.
During 2017, we acquired several businesses, including channel acquisitions, that complement existing products and services. Acquisitions within the Climate segment primarily consisted of independent dealers which support the ongoing strategy to expand our distribution network. Acquisitions within the Industrial segment primarily consisted of a telematics business which builds upon our growing portfolio of connected assets.
Competitive Conditions
Our products and services are sold in highly competitive markets throughout the world. Due to the diversity of these products and services and the variety of markets served, we encounter a wide variety of competitors that vary by product line and services. They include well-established regional or specialized competitors, as well as larger U.S. and non-U.S. corporations or divisions of larger companies.
The principal methods of competition in these markets relate to price, quality, delivery, service and support, technology and innovation. We believe that we are one of the leading manufacturers in the world of HVAC systems and services, air compression systems, transport temperature control products, power tools, and golf, utility and consumer low-speed vehicles.
Distribution
Our products are distributed by a number of methods, which we believe are appropriate to the type of product. U.S. sales are made through branch sales offices, distributors and dealers across the country. Non-U.S. sales are made through numerous subsidiary sales and service companies with a supporting chain of distributors throughout the world.
Operations by Geographic Area
Approximately 34% of our net revenues in 2019 were derived outside the U.S. and we sold products in more than 100 countries. Therefore, the attendant risks of manufacturing or selling in a particular country, such as currency devaluation, nationalization and establishment of common markets, may have an adverse impact on our non-U.S. operations.
Customers
We have no customer that accounted for more than 10% of our consolidated net revenues in 2019, 2018 or 2017. No material part of our business is dependent upon a single customer or a small group of customers; therefore, the loss of any one customer would not have a material adverse effect on our results of operations or cash flows.

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Raw Materials
We manufacture many of the components included in our products, which requires us to employ a wide variety of commodities. Principal commodities, such as steel, copper and aluminum, are purchased from a large number of independent sources around the world, primarily within the region where the products are manufactured. We believe that available sources of supply will generally be sufficient for the foreseeable future. There have been no commodity shortages which have had a material adverse effect on our businesses.
Working Capital
We manufacture products that must be readily available to meet our customers’ rapid delivery requirements. Therefore, we maintain an adequate level of working capital to support our business needs and our customers’ requirements. Such working capital requirements are not, however, in the opinion of management, materially different from those experienced by our major competitors. We believe our sales and payment terms are competitive in and appropriate for the markets in which we compete.
Seasonality
Demand for certain of our products and services is influenced by weather conditions. For instance, sales in our commercial and residential HVAC businesses historically tend to be seasonally higher in the second and third quarters of the year because this represents spring and summer in the U.S. and other northern hemisphere markets, which are the peak seasons for sales of air conditioning systems and services. Therefore, results of any quarterly period may not be indicative of expected results for a full year and unusual weather patterns or events could negatively or positively affect certain segments of our business and impact overall results of operations.
Research and Development
We engage in research and development activities in an effort to introduce new products, enhance existing product effectiveness, improve ease of use and reliability as well as expand the various applications for which our products may be appropriate. In addition, we continually evaluate developing technologies in areas that we believe will enhance our business for possible investment or acquisition. We anticipate that we will continue to make significant expenditures for research and development activities as we look to maintain and improve our competitive position.
Patents and Licenses
Our intellectual property rights are important to our business and include numerous patents, trademarks, copyrights, trade secrets, proprietary technology, technical data, business processes, and other confidential information. Although in aggregate we consider our intellectual property rights to be valuable to our operations, we do not believe that our business is materially dependent on a single intellectual property right or any group of them. In our opinion, engineering, production skills and experience are more responsible for our market position than our patents and/or licenses.
Backlog
Our approximate backlog of orders, believed to be firm, at December 31, was as follows:

									
In millions	 	2019	 	2018	
Climate	 	$	2,513.3		 	$	2,914.4		
Industrial	 	622.5		 	514.8		
Total	 	$	3,135.8		 	$	3,429.2		
These backlog figures are based on orders received. While the major portion of our products are built in advance of order and either shipped or assembled from stock, orders for specialized machinery or specific customer application are submitted with extensive lead times and are often subject to revision and deferral, and to a lesser extent cancellation or termination. We expect to ship a majority of the December 31, 2019 backlog during 2020.
Environmental Matters
We continue to be dedicated to environmental and sustainability programs to minimize the use of natural resources, and reduce the utilization and generation of hazardous materials from our manufacturing processes and to remediate identified environmental concerns. As to the latter, we are currently engaged in site investigations and remediation activities to address environmental cleanup from past operations at current and former manufacturing facilities.

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We are sometimes a party to environmental lawsuits and claims and have received notices of potential violations of environmental laws and regulations from the Environmental Protection Agency and similar state authorities. We have 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, our involvement is minimal.
In estimating our liability, we have assumed that we 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.
For a further discussion of our potential environmental liabilities, see Note 22 to the Consolidated Financial Statements.
Asbestos-Related Matters
Certain of our wholly-owned subsidiaries and former companies are named as defendants in asbestos-related lawsuits in state and federal courts. In many of the lawsuits, a large number of other companies have also been named as defendants. The vast majority of those claims allege injury caused by exposure to asbestos contained in certain historical products, primarily pumps, boilers and railroad brake shoes. None of our existing or previously-owned businesses were a producer or manufacturer of asbestos.
See also the discussion under Part I, Item 3, "Legal Proceedings," and Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," "Contingent Liabilities," as well as further detail in Note 22 to the Consolidated Financial Statements.
Employees
As of December 31, 2019, we employed approximately 50,000 people throughout the world.
Available Information
We file annual, quarterly, and current reports, proxy statements, and other documents with the Securities and Exchange Commission under the Securities Exchange Act of 1934.
This Annual Report on Form 10-K, as well as our quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to all of the foregoing reports, are made available free of charge on our Internet website (http://www.ingersollrand.com) as soon as reasonably practicable after such reports are electronically filed with or furnished to the Securities and Exchange Commission. The Board of Directors of the Company has also adopted and posted in the Investor Relations section of the Company’s website our Corporate Governance Guidelines and charters for each of the Board’s standing committees. The contents of the Company’s website are not incorporated by reference in this report.

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Executive Officers of the Registrant
The following is a list of executive officers of the Company as of February 18, 2020.

					
Name and Age	  	Date of
Service as
an Executive
Officer	 	Principal Occupation and
Other Information for Past Five Years	
Michael W. Lamach (56)	  	2/16/2004	 	Chairman of the Board (since June 2010) and Chief Executive Officer (since February 2010)	
 	 	 	 	 	
Susan K. Carter (61)	 	10/2/2013	  	Senior Vice President and Chief Financial Officer (since October 2013)

The Company announced on December 10, 2019 that Ms. Carter will retire as Chief Financial Officer of the Company effective upon the close of the Reverse Morris Trust transaction.	
 	 	 	 	 	
David S. Regnery (57)	 	8/5/2017	 	President and Chief Operating Officer (since January 1, 2020); Executive Vice President (September 2017 to December 2019); Vice President, President of Commercial HVAC, North America and EMEA (2013 to 2017)	
 	 	 	 	 	
Marcia J. Avedon (58)	 	2/7/2007	 	Executive Vice President, Chief Human Resources, Marketing and Communications Officer (since January 1, 2020); Senior Vice President, Human Resources, Communications and Corporate Affairs (June 2013 to December 2019); Senior Vice President, Human Resources and Communications (2007 - 2013)	
 	 	 	 	 	
Paul A. Camuti (58)	 	8/1/2011	 	Executive Vice President and Chief Technology and Strategy Officer (since January 1, 2020); Senior Vice President, Innovation and Chief Technology Officer (August 2011 to December 2019)	
 	 	 	  	 	
Evan M. Turtz (51)	 	4/3/2019	 	Senior Vice President and General Counsel (since April 2019); Secretary (Since October 2013); Vice President (Since 2008); Deputy General Counsel-Industrial (Since 2016); General Counsel-Compression Technologies and Services (Since July 2016); Deputy General Counsel-Labor and Employment (2008-2016)	
 	 	 	 	 	
Keith A. Sultana (50)
	 	10/12/2015
	 	Senior Vice President, Global Operations and Integrated Supply Chain (since October 2015); Vice President, Global Procurement (January 2015 to October 2015); Vice President, Global Integrated Supply Chain (GISC) for Climate Solutions (May 2010 to December 2014)	
 	 	 	 	 	
Christopher J. Kuehn (47)	 	6/1/2015	 	Vice President and Chief Accounting Officer (since June 2015); Vice President, Corporate Controller and Chief Accounting Officer, Whirlpool Corporation (a global manufacturer and marketer of major home appliances), (2012-2015)

The Company announced on December 10, 2019 that Mr. Kuehn will succeed Ms. Carter as Chief Financial Officer of the Company effective upon the close of the Reverse Morris Trust transaction.
	
No family relationship exists between any of the above-listed executive officers of the Company. All officers are elected to hold office for one year or until their successors are elected and qualified.

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Item 1A.    RISK FACTORS
Our business, financial condition, results of operations, and cash flows are subject to a number of risks that could cause the actual results and conditions to differ materially from those projected in forward-looking statements contained in this Annual Report on Form 10-K. The risks set forth below are those we consider most significant. We face other risks, however, that we do not currently perceive to be material which could cause actual results and conditions to differ materially from our expectations. You should evaluate all risks before you invest in our securities. If any of the risks actually occur, our business, financial condition, results of operations or cash flows could be adversely impacted. In that case, the trading price of our ordinary shares could decline, and you may lose all or part of your investment.
Our global operations subject us to economic risks.
Our global operations are dependent upon products manufactured, purchased and sold in the U.S. and internationally. These activities are subject to risks that are inherent in operating globally, including:

•	changes in local laws and regulations or imposition of currency restrictions and other restraints;	

•	limitation of ownership rights, including expropriation of assets by a local government, and limitation on the ability to repatriate earnings;	

•	sovereign debt crises and currency instability in developed and developing countries;	

•	trade protection measures such as import or export restrictions and requirements, the imposition of burdensome tariffs and quotas or revocation or material modification of trade agreements;	

•	difficulty in staffing and managing global operations;	

•	difficulty of enforcing agreements, collecting receivables and protecting assets through non-U.S. legal systems;	

•	national and international conflict, including war, civil disturbances and terrorist acts; and	

•	recessions, economic downturns, slowing economic growth and social and political instability.	
These risks could increase our cost of doing business internationally, increase our counterparty risk, disrupt our operations, disrupt the ability of suppliers and customers to fulfill their obligations, limit our ability to sell products in certain markets and have a material adverse impact on our results of operations, financial condition, and cash flows.
We face significant competition in the markets that we serve and our growth is dependent, in part, on the development, commercialization and acceptance of new products and services.
The markets that we serve are highly competitive. We compete worldwide with a number of other manufacturers and distributors that produce and sell similar products. There has been consolidation and new entrants (including non-traditional competitors) within our industries and there may be future consolidation and new entrants which could result in increased competition and significantly alter the dynamics of the competitive landscape in which we operate. Due to our global footprint we are competing worldwide with large companies and with smaller, local operators who may have customer, regulatory or economic advantages in the geographies in which they are located. In addition, some of our competitors may employ pricing and other strategies that are not traditional. While we understand our markets and competitive landscape, there is always the risk of disruptive technologies coming from companies that are not traditionally manufacturers or service providers of our products.
In addition, we must develop and commercialize new products and services in a rapidly changing technological and business environment in order to remain competitive in our current and future markets and in order to continue to grow our business. The development and commercialization of new products and services require a significant investment of resources and an anticipation of the impact of new technologies and the ability to compete with others who may have superior resources in specific technology domains. We cannot provide any assurance that any new product or service will be successfully commercialized in a timely manner, if ever, or, if commercialized, will result in returns greater than our investment. Investment in a product or service could divert our attention and resources from other projects that become more commercially viable in the market. We also cannot provide any assurance that any new product or service will be accepted by our current and future markets.  Failure to develop new products and services that are accepted by these markets could have a material adverse impact on our competitive position, results of operations, financial condition, and cash flows.
The capital and credit markets are important to our business.
Instability in U.S. and global capital and credit markets, including market disruptions, limited liquidity and interest rate volatility, or reductions in the credit ratings assigned to us by independent rating agencies could reduce our access to capital markets or increase the cost of funding our short and long term credit requirements. In particular, if we are unable to access capital and credit markets on terms that are acceptable to us, we may not be able to make certain investments or fully execute our business plans and strategies.

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Our suppliers and customers are also dependent upon the capital and credit markets. Limitations on the ability of customers, suppliers or financial counterparties to access credit at interest rates and on terms that are acceptable to them could lead to insolvencies of key suppliers and customers, limit or prevent customers from obtaining credit to finance purchases of our products and services and cause delays in the delivery of key products from suppliers.
In addition, changes in regulatory standards or industry practices, such as the transition away from LIBOR as a benchmark for short-term interest rates, could create incremental uncertainty in obtaining financing or increase the cost of borrowing for us, our suppliers or our customers.
Currency exchange rate fluctuations and other related risks may adversely affect our results.
We are exposed to a variety of market risks, including the effects of changes in currency exchange rates. See Part II Item 7A, "Quantitative and Qualitative Disclosure About Market Risk."
We have operations throughout the world that manufacture and sell products in various international markets. As a result, we are exposed to movements in exchange rates of various currencies against the U.S. dollar as well as against other currencies throughout the world.
Many of our non-U.S. operations have a functional currency other than the U.S. dollar, and their results are translated into U.S. dollars for reporting purposes. Therefore, our reported results will be higher or lower depending on the weakening or strengthening of the U.S. dollar against the respective foreign currency.
We use derivative instruments to hedge those material exposures that cannot be naturally offset. The instruments utilized are viewed as risk management tools, involve little complexity and are not used for trading or speculative purposes. To minimize the risk of counter party non-performance, derivative instrument agreements are made only through major financial institutions with significant experience in such derivative instruments.
We also face risks arising from the imposition of exchange controls and currency devaluations. Exchange controls may limit our ability to convert foreign currencies into U.S. dollars or to remit dividends and other payments by our foreign subsidiaries or businesses located in or conducted within a country imposing controls. Currency devaluations result in a diminished value of funds denominated in the currency of the country instituting the devaluation.
Material adverse legal judgments, fines, penalties or settlements could adversely affect our results of operations or financial condition.
We are currently and may in the future become involved in legal proceedings and disputes incidental to the operation of our business or the business operations of previously-owned entities. Our business may be adversely affected by the outcome of these proceedings and other contingencies (including, without limitation, contract claims or other commercial disputes, product liability, product defects and asbestos-related matters) that cannot be predicted with certainty. Moreover, any insurance or indemnification rights that we may have may be insufficient or unavailable to protect us against the total aggregate amount of losses sustained as a result of such proceedings and contingencies. As required by generally accepted accounting principles in the United States, we establish reserves based on our assessment of contingencies. Subsequent developments in legal proceedings and other events could affect our assessment and estimates of the loss contingency recorded as a reserve and we may be required to make additional material payments, which could have a material adverse impact on our liquidity, results of operations, financial condition, and cash flows.
Our reputation, ability to do business and results of operations could be impaired by improper conduct by any of our employees, agents or business partners.
We are subject to regulation under a wide variety of U.S. federal and state and non-U.S. laws, regulations and policies, including laws related to anti-corruption, anti-bribery, export and import compliance, anti-trust and money laundering, due to our global operations. We cannot provide assurance our internal controls will always protect us from the improper conduct of our employees, agents and business partners. Any violations of law or improper conduct could damage our reputation and, depending on the circumstances, subject us to, among other things, civil and criminal penalties, material fines, equitable remedies (including profit disgorgement and injunctions on future conduct), securities litigation and a general loss of investor confidence, any one of which could have a material adverse impact on our business prospects, financial condition, results of operations, cash flows, and the market value of our stock.
We may be subject to risks relating to our information technology systems.
We rely extensively on information technology systems, some of which are supported by third party vendors including cloud services, to manage and operate our business. We invest in new information technology systems designed to improve our operations. If these systems cease to function properly, if these systems experience security breaches or disruptions or if these systems do not

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provide the anticipated benefits, our ability to manage our operations could be impaired, which could have a material adverse impact on our results of operations, financial condition, and cash flows.
Security breaches or disruptions of our technology systems, infrastructure or products could negatively impact our business and financial results.
Our information technology systems, networks and infrastructure and technology embedded in certain of our control products may be subject to cyber attacks and unauthorized security intrusions. It is possible for such vulnerabilities to remain undetected for an extended period. Like other large companies, certain of our information technology systems have been subject to computer viruses, malicious code, unauthorized access, phishing attempts, denial-of-service attacks and other cyber attacks and we expect to be subject to similar attacks in the future. The methods used to obtain unauthorized access, disable or degrade service, or sabotage information technology systems are constantly changing and evolving. Despite having instituted security policies and business continuity plans, and implementing and regularly reviewing and updating processes and procedures to protect against unauthorized access, the ever-evolving threats mean we must continually evaluate and adapt our systems and processes, and there is no guarantee that they will be adequate to safeguard against all data security breaches or misuses of data. Hardware, software or applications we develop or obtain from third parties may contain defects in design or deployment or other problems that could unexpectedly result in security breaches or disruptions. Our systems, networks and certain of our control products may also be vulnerable to system damage, malicious attacks from hackers, employee errors or misconduct, viruses, power and utility outages, and other catastrophic events. Any of these incidents could cause significant harm to our business by negatively impacting our business operations, compromising the security of our proprietary information or the personally identifiable information of our customers, employees and business partners, exposing us to litigation or other legal actions against us or the imposition of penalties, fines, fees or liabilities. Such events could have a material adverse impact on our results of operations, financial condition and cash flows and could damage our reputation which could adversely affect our business. Our insurance coverage may not be adequate to cover all the costs related to a cybersecurity attack or disruptions resulting from such attacks. Customers are increasingly requiring cybersecurity protections and mandating cybersecurity standards in our products, and we may incur additional costs to comply with such demands. In addition, data privacy and protection laws are evolving and present increasing compliance challenges, which increase our costs, affect our competitiveness and can expose us to substantial fines or other penalties.
Commodity shortages and price increases could adversely affect our financial results.
We rely on suppliers to secure commodities, particularly steel and non-ferrous metals, required for the manufacture of our products. A disruption in deliveries from our suppliers or decreased availability of commodities could have an adverse effect on our ability to meet our commitments to customers or increase our operating costs. We believe that available sources of supply will generally be sufficient for our needs for the foreseeable future. Nonetheless, the unavailability of some commodities could have a material adverse impact on our results of operations and cash flows.
Volatility in the prices of these commodities or the impact of inflationary increases could increase the costs of our products and services. We may not be able to pass on these costs to our customers and this could have a material adverse impact on our results of operations and cash flows. Conversely, in the event there is deflation, we may experience pressure from our customers to reduce prices. There can be no assurance that we would be able to reduce our costs (through negotiations with suppliers or other measures) to offset any such price concessions which could adversely impact results of operations and cash flows. While we may use financial derivatives or supplier price locks to hedge against this volatility, by using these instruments we may potentially forego the benefits that might result from favorable fluctuations in prices and could experience lower margins in periods of declining commodity prices. In addition, while hedging activity may minimize near-term volatility of the commodity prices, it would not protect us from long-term commodity price increases.
Some of our purchases are from sole or limited source suppliers for reasons of cost effectiveness, uniqueness of design, or product quality. If these suppliers encounter financial or operating difficulties, we might not be able to quickly establish or qualify replacement sources of supply.
We may be required to recognize impairment charges for our goodwill and other indefinite-lived intangible assets.
At December 31, 2019, the net carrying value of our goodwill and other indefinite-lived intangible assets totaled $6.8 billion and $2.8 billion, respectively. In accordance with generally accepted accounting principles, we assess these assets annually during the fourth quarter for impairment or when there is a significant change in events or circumstances that indicate that the fair value of an asset is more likely than not less than the carrying amount of the asset. Significant negative industry or economic trends, disruptions to our business, unexpected significant changes or planned changes in use of the assets, divestitures and sustained market capitalization declines may result in recognition of impairments to goodwill or other indefinite-lived assets. Any charges relating to such impairments could have a material adverse impact on our results of operations in the periods recognized.

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Global climate change and related regulations could negatively affect our business.
Refrigerants are essential to many of our products and there is concern regarding the global warming potential of such materials. As such, national, regional and international regulations and policies are being implemented to curtail their use. As regulations reduce the use of the current class of widely used refrigerants, our next generation solutions are being adopted globally, with sales in more than 30 countries to date. Our climate commitment requires us to offer a full line of next generation, lower global warming potential products by 2030 without compromising safety or energy efficiency. Additionally, we committed to increase energy efficiency and reduce the greenhouse gas footprint of our operations by 35 percent by 2020, which we achieved in 2018, two years early. While we are committed to pursuing these sustainable solutions, there can be no assurance that our commitments will be successful, that our products will be accepted by the market, that proposed regulation or deregulation will not have a negative competitive impact or that economic returns will match the investment that we are making in new product development.

Concerns regarding global climate change have resulted in the Kigali amendment to the Montreal Protocol, pursuant to which countries have agreed to a scheduled phase down of certain high global warming potential refrigerants. Countries may pass regulations that are even more restrictive than this international accord. Some countries, including the U.S., have not yet ratified the amendment and there could be lower customer demand for next generation products in these countries. There continues to be a lack of consistent climate legislation, which creates economic and regulatory uncertainty. In addition, the U.S. withdrawal from the Paris Accord could affect our competitiveness in certain markets. Such regulatory uncertainty extends to future incentives for energy efficient buildings and vehicles and costs of compliance, which may impact the demand for our products, obsolescence of our products and our results of operations.
Natural disasters, epidemics or other unexpected events may disrupt our operations, adversely affect our results of operations and financial condition, and may not be fully covered by insurance.
The occurrence of one or more unexpected events including hurricanes, fires, earthquakes, floods and other forms of severe weather, health epidemics or pandemics or other contagious outbreaks or other unexpected events in the U.S. or in other countries in which we operate or are located could adversely affect our operations and financial performance. Natural disasters, power outages, health epidemics or pandemics or other contagious outbreaks or other unexpected events could result in physical damage to and complete or partial closure of one or more of our plants, temporary or long-term disruption of our operations by causing business interruptions or by impacting the availability and cost of materials needed for manufacturing. Existing insurance arrangements may not provide full protection for the costs that may arise from such events, particularly if such events are catastrophic in nature or occur in combination. The occurrence of any of these events could increase our insurance and other operating costs or harm our sales in affected areas.
Some of the markets in which we operate are cyclical and seasonal and demand for our products and services could be adversely affected by downturns in these industries.
Demand for most of our products and services depends on the level of new capital investment and planned maintenance expenditures by our customers. The level of capital expenditures by our customers fluctuates based on planned expansions, new builds, repairs, commodity prices, general economic conditions, availability of credit, inflation, interest rates, market forecasts, tax and regulatory developments, trade policies, fiscal spending and sociopolitcal factors among others.
Our commercial and residential HVAC businesses provide products and services to a wide range of markets, including significant sales to the commercial and residential construction markets. Weakness in either or both of these construction markets may negatively impact the demand for our products and services.
Demand for our commercial and residential HVAC business is also influenced by weather conditions. For instance, sales in our commercial and residential HVAC businesses historically tend to be seasonally higher in the second and third quarters of the year because, in the U.S. and other northern hemisphere markets, spring and summer are the peak seasons for sales of air conditioning systems and services. The results of any quarterly period may not be indicative of expected results for a full year and unusual weather patterns or events could negatively or positively affect our business and impact overall results of operations.
The business of many of our industrial customers, particularly oil and gas companies are to varying degrees cyclical and have experienced periodic downturns. During such economic downturns, customers in these industries historically have tended to delay major capital projects, maintenance projects and upgrades.
Decrease in the demand for our products and services could have a material adverse impact on our results of operations and cash flow.

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Our business strategy includes acquiring companies, product lines, plants and assets, entering into joint ventures and making investments that complement our existing businesses. We also occasionally divest businesses that we own. We may not identify acquisition or joint venture candidates at the same rate as the past. Acquisitions, dispositions, joint ventures and investments that we identify could be unsuccessful or consume significant resources, which could adversely affect our operating results.
We continue to analyze and evaluate the acquisition and divestiture of strategic businesses and product lines, technologies and capabilities, plants and assets, joint ventures and investments with the potential to strengthen our industry position, to enhance our existing set of product and services offerings, to increase productivity and efficiencies, to grow revenues, earnings and cash flow, to help us stay competitive or to reduce costs. There can be no assurance that we will identify or successfully complete transactions with suitable candidates in the future, that we will consummate these transactions at rates similar to the past or that completed transactions will be successful. Strategic transactions may involve significant cash expenditures, debt incurrence, operating losses and expenses that could have a material adverse effect on our business, financial condition, results of operations and cash flows. Such transactions involve numerous other risks, including:

•	diversion of management time and attention from daily operations;	

•	difficulties integrating acquired businesses, technologies and personnel into our business;	

•	difficulties in obtaining and verifying the financial statements and other business information of acquired businesses;	

•	inability to obtain required regulatory approvals and/or required financing on favorable terms;	

•	potential loss of key employees, key contractual relationships or key customers of either acquired businesses or our business;	

•	assumption of the liabilities and exposure to unforeseen or undisclosed liabilities of acquired businesses and exposure to regulatory sanctions;	

•	inheriting internal control deficiencies;	

•	dilution of interests of holders of our common shares through the issuance of equity securities or equity-linked securities; and	

•	in the case of joint ventures and other investments, interests that diverge from those of our partners without the ability to direct the management and operations of the joint venture or investment in the manner we believe most appropriate to achieve the expected value.	
It may be difficult for us to complete transactions quickly without high costs and to integrate acquired operations efficiently into our business operations. Any acquisitions, divestitures, joint ventures or investments may ultimately harm our business, financial condition, results of operations and cash flows. There are additional risks related to our Reverse Morris Trust transaction, see page 15 under "Risks Related to the Transactions" for more information.
Our operations are subject to regulatory risks.
Our U.S. and non-U.S. operations are subject to a number of laws and regulations, including among others, laws related to the environment and health and safety. We have made, and will be required to continue to make, significant expenditures to comply with these laws and regulations. Any violations of applicable laws and regulations could lead to significant penalties, fines or other sanctions. Changes in current laws and regulations could require us to increase our compliance expenditures, cause us to significantly alter or discontinue offering existing products and services or cause us to develop new products and services. Altering current products and services or developing new products and services to comply with changes in the applicable laws and regulations could require significant research and development investments, increase the cost of providing the products and services and adversely affect the demand for our products and services. The U.S. federal government and various states and municipalities have enacted or may enact legislation intended to deny government contracts to U.S. companies that reincorporate outside of the U.S. or have reincorporated outside of the U.S or may take other actions negatively impacting such companies. If we are unable to effectively respond to changes to applicable laws and regulations, interpretations of applicable laws and regulations, or comply with existing and future laws and regulations, our competitive position, results of operations, financial condition and cash flows could be materially adversely impacted.
Intellectual property infringement claims of others and the inability to protect our intellectual property rights could harm our competitive position.
The Company's intellectual property rights are important to its business and include numerous patents, trademarks, copyrights, trade secrets, proprietary technology, technical data, business processes, and other confidential information. Although in aggregate we consider our intellectual property rights to be valuable to our operations, we do not believe that our business is materially dependent on a single intellectual property right or any group of them. In our opinion, engineering, production skills and experience are more responsible for our market position than our patents and/or licenses.

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Nonetheless, this intellectual property may be subject to challenge, infringement, invalidation or circumvention by third parties. Despite extensive security measures, our intellectual property may be subject to misappropriation through unauthorized access of our information technology systems, employee theft, or theft by private parties or foreign actors, including those affiliated with or controlled by state actors. Our business and competitive position could be harmed by such events. Our ability to protect our intellectual property rights by legal recourse or otherwise may be limited, particularly in countries where laws or enforcement practices are inadequate or undeveloped. Our inability to enforce our IP rights under any of these circumstances could have an impact on our competitive position and business.
Risks Relating to Our Operations and Corporate Structure
Our corporate structure has resulted from prior corporate reorganizations and related transactions. These various transactions exposed us and our shareholders to the risks described below. In addition, we cannot be assured that all of the anticipated benefits of our operations and corporate structure will be realized.
Changes in tax or other laws, regulations or treaties, including the enactment of the U.S. Tax Cuts and Jobs Act, changes in our status under U.S. or non-U.S. laws or adverse determinations by taxing or other governmental authorities could increase our tax burden or otherwise affect our financial condition or operating results, as well as subject our shareholders to additional taxes.
The realization of any tax benefit related to our operations and corporate structure could be impacted by changes in tax or other laws, treaties or regulations or the interpretation or enforcement thereof by the U.S. or non-U.S. tax or other governmental authorities. Enacted comprehensive tax reform legislation in December 2017 known as the Tax Cuts and Jobs Act (the Act) made broad and complex changes to the U.S. tax code. As part of the migration from a worldwide system of taxation to a modified territorial system for corporations, the Act imposed a transition tax on certain unrepatriated earnings of non-U.S. subsidiaries. We recorded certain charges and benefits in connection with the Act and have taken a charge in connection with the mandatory deemed repatriation of earnings of certain of our Non-U.S. subsidiaries, and we have recorded other charges and benefits, set forth in greater detail in Note 18 to the Consolidated Financial Statements. Any additional impacts from the Act will be determined as the U.S. Department of Treasury and/or the IRS continue to release proposed and final guidance on certain relevant provisions of the Act which should provide better clarity regarding the interpretation, interaction and application of these rules; the new law’s substantial limitations on, and/or elimination of, certain tax deductions and the introduction of new taxing provisions, among other items, may increase our overall tax burden or otherwise negatively impact the Company. Moreover, our overall tax burden may also be adversely impacted by any tax law changes implemented by other countries.
Notwithstanding this change in U.S. tax law, we continue to monitor for other tax changes, U.S. and non-U.S. related. From time to time, proposals have been made and/or legislation has been introduced to change the tax laws, regulations or interpretations thereof of various jurisdictions or limit tax treaty benefits that if enacted or implemented could materially increase our tax burden and/or effective tax rate and could have a material adverse impact on our financial condition and results of operations. Moreover, the Organisation for Economic Co-operation and Development has released proposals to create an agreed set of international rules for fighting base erosion and profit shifting, such that tax laws in countries in which we do business could change on a prospective or retroactive basis, and any such changes could adversely impact us. Finally, the European Commission has been very active in investigating whether various tax regimes or private tax rulings provided by a country to particular taxpayers may constitute State Aid. We cannot predict the outcome of any of these potential changes or investigations in any of the jurisdictions, but if any of the above occurs and impacts us, this could materially increase our tax burden and/or effective tax rate and could have a material adverse impact on our financial condition and results of operations.
While we monitor proposals and other developments that would materially impact our tax burden and/or effective tax rate and investigate our options, we could still be subject to increased taxation on a going forward basis no matter what action we undertake if certain legislative proposals or regulatory changes are enacted, certain tax treaties are amended and/or our interpretation of applicable tax or other laws is challenged and determined to be incorrect. In particular, any changes and/or differing interpretations of applicable tax law that have the effect of disregarding the shareholders' decision to reorganize in Ireland, limiting our ability to take advantage of tax treaties between jurisdictions, modifying or eliminating the deductibility of various currently deductible payments, or increasing the tax burden of operating or being resident in a particular country, could subject us to increased taxation.
In addition, tax authorities periodically review income tax returns filed by us and can raise issues regarding our filing positions, timing and amount of income or deductions, and the allocation of income among the jurisdictions in which we operate. These examinations on their own, or any subsequent litigation related to the examinations, may result in additional taxes or penalties against us. If the ultimate result of these audits differ from our original or adjusted estimates, they could have a material impact on our tax provision.

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Irish law differs from the laws in effect in the United States and may afford less protection to holders of our securities.
The United States currently does not have a treaty with Ireland providing for the reciprocal recognition and enforcement of judgments in civil and commercial matters. As such, there is some uncertainty as to whether the courts of Ireland would recognize or enforce judgments of U.S. courts obtained against us or our directors or officers based on U.S. federal or state civil liability laws, including the civil liability provisions of the U.S. federal or state securities laws, or hear actions against us or those persons based on those laws.
As an Irish company, we are governed by the Irish Companies Act, which differs in some material respects from laws generally applicable to U.S. corporations and shareholders, including, among others, differences relating to interested director and officer transactions, indemnification of directors and shareholder lawsuits. Likewise, the duties of directors and officers of an Irish company generally are owed to the company only. Shareholders of Irish companies generally do not have a personal right of action against directors or officers of the company and may exercise such rights of action on behalf of the company only in limited circumstances. Accordingly, holders of our securities may have more difficulty protecting their interests than would holders of securities of a corporation incorporated in a jurisdiction of the United States. In addition, Irish law does not allow for any form of legal proceedings directly equivalent to the class action available in the United States.
Irish law allows shareholders to authorize share capital which then can be issued by a board of directors without shareholder approval. Also, subject to specified exceptions, Irish law grants statutory pre-emptive rights to existing shareholders to subscribe for new issuances of shares for cash, but allows shareholders to authorize the waiver of the statutory pre-emptive rights with respect to any particular allotment of shares. Under Irish law, we must have authority from our shareholders to issue any shares, including shares that are part of the Company’s authorized but unissued share capital. In addition, unless otherwise authorized by its shareholders, when an Irish company issues shares for cash to new shareholders, it is required first to offer those shares on the same or more favorable terms to existing shareholders on a pro-rata basis. If we are unable to obtain these authorizations from our shareholders, or are otherwise limited by the terms of our authorizations, our ability to issue shares or otherwise raise capital could be adversely affected.
Dividends received by our shareholders may be subject to Irish dividend withholding tax.
In certain circumstances, we are required to deduct Irish dividend withholding tax (currently at the rate of 25%) from dividends paid to our shareholders. In the majority of cases, shareholders resident in the United States will not be subject to Irish withholding tax, and shareholders resident in a number of other countries will not be subject to Irish withholding tax provided that they complete certain Irish dividend withholding tax forms. However, some shareholders may be subject to withholding tax, which could have an adverse impact on the price of our shares.
Dividends received by our shareholders could be subject to Irish income tax.
Dividends paid in respect of our shares will generally not be subject to Irish income tax where the beneficial owner of these dividends is exempt from dividend withholding tax, unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in Ingersoll-Rand plc.
Our shareholders who receive their dividends subject to Irish dividend withholding tax will generally have no further liability to Irish income tax on the dividends unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in Ingersoll-Rand plc.
Risks Related to the Transactions
In April 2019, we announced that we entered into a Reverse Morris Trust transaction with Gardner Denver Holdings, Inc. (GDI) pursuant to which we would cause specific assets and liabilities of our Industrial segment to be transferred to a newly formed wholly-owned subsidiary, Ingersoll-Rand U.S. HoldCo. Inc. (Ingersoll Rand Industrial), and then distribute the shares of common stock of Ingersoll Rand Industrial to our shareholders (the Distribution). Charm Merger Sub Inc., which is a newly formed wholly-owned subsidiary of GDI (Merger Sub), would be merged with and into Ingersoll Rand Industrial, with Ingersoll Rand Industrial surviving such merger as a wholly-owned subsidiary of GDI. We refer to these transactions as the “Transactions.” The Transactions will result in GDI acquiring our Industrial business and our shareholders receiving shares of GDI as a result of the merger. Following the merger, the combined company is expected to be renamed and operate under the name Ingersoll Rand Inc. and its common stock is expected to be listed on the New York Stock Exchange under our existing ticker symbol “IR”. Our remaining Climate business will be renamed Trane Technologies plc and will trade under the ticker symbol “TT.”
The proposed Reverse Morris Trust transaction with GDI is subject to various risks and uncertainties, and there is no assurance that the transaction will be completed on the terms or timeline contemplated, if at all.
The consummation of the merger is subject to numerous conditions, including (i) consummation of certain transactions (such as the separation of the Ingersoll Rand Industrial Business from our other business) and financings, (ii) the receipt of GDI stockholder approval for the transaction, and (iii) the receipt of certain regulatory approvals. The completion of the pending Reverse Morris

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Trust transaction is also subject to our receipt of an opinion (i) from U.S. tax counsel regarding the qualification of each of the distribution of shares of a company comprised of our Industrial segment businesses to our shareholders, certain internal transactions undertaken in anticipation of such distribution and the subsequent merger of this company with GDI as a tax-free transaction for U.S. federal income tax purposes and (ii) from Irish tax counsel that there will be no adverse Irish tax consequences, other than in respect of certain tax matters relevant only to certain of our Irish shareholders, as a result of the transaction. The completion of the transaction is also subject to the receipt by GDI of an opinion from its U.S. tax counsel regarding the qualification of the merger as a tax-free transaction for U.S. federal income tax purposes.
There can be no assurance that the merger and related transactions will be consummated on the terms or timeline currently contemplated, or at all.
Governmental agencies may not approve the merger or the related transactions necessary to complete the merger or may impose conditions to the approval of such transactions or require changes to the terms of such transactions. Any such conditions or changes could have the effect of delaying completion of the merger or otherwise reducing the anticipated benefits of the merger and such condition or change might cause the Company and/or GDI to restructure or terminate the merger or the related transactions.
We are subject to business uncertainties while the Reverse Morris Trust transaction with GDI is pending and the transaction may have an adverse effect on us even if not completed.
Uncertainty about the effect of the pending Reverse Morris Trust transaction with GDI on our employees, customers, partners, and suppliers may have adverse effects on our business, financial condition and results of operations. Our employees may be distracted due to uncertainty about their future roles with each of the separate companies pending the completion of the transaction, and we may face challenges in attracting, retaining and motivating key employees. Some of our suppliers or customers may delay or defer decisions or may end their relationships with us or our Industrial segment businesses, which could negatively affect revenues, earnings and cash flows of ours and our Industrial segment businesses. Execution of the proposed transaction will require significant time and attention from management, which may distract management from the operation of our businesses and the execution of other initiatives that may have been beneficial to us. Any delays in completion of the proposed Reverse Morris Trust transaction may increase the amount of time, effort, and expense that we devote to the transaction. We will be required to pay certain costs and expenses relating to the transaction, such as legal, accounting and other professional fees, whether or not it is completed. We may experience negative reactions from the financial markets if we fail to complete the transaction. Any of these factors could have a material adverse effect on our financial condition, results of operations, cash flows and the market price of our shares.
We may be unable to achieve some or all of the benefits that we expect to achieve from the transaction.
Although we believe that the pending Reverse Morris Trust transaction will provide financial, operational, managerial and other benefits to us and our shareholders, the transaction may not provide the results on the scope or on the scale we anticipate, and the assumed benefits of the transaction may not be fully realized. Accordingly, the transaction might not provide us and our shareholders benefits or value in excess of the benefits and value that might have been created or realized had we retained the Industrial segment businesses or undertaken another strategic alternative involving such businesses. Following the separation, distribution and subsequent merger, our remaining company Trane Technologies will be less diversified with a focus on climate control solutions for buildings, homes and transportation and may be more vulnerable to changing market conditions, which could materially adversely affect our business, results of operations and financial condition. These changes may not meet some shareholders’ investment strategies, which could cause investors to sell their holdings in our shares and result in a decrease in the market price of our shares.
If the Distribution together with certain related transactions do not qualify as tax-free under Sections 355 and 368(a) of the Code, including as a result of subsequent acquisitions of stock of the Company or GDI, then the Company and our shareholders may be required to pay substantial U.S. federal income taxes, and GDI may be obligated to indemnify the Company for such taxes imposed on the Company.
The Distribution together with certain related transactions and the merger are conditioned upon our receipt of an opinion of counsel, to the effect that the Distribution together with certain related transactions will qualify as tax-free to our Company, Ingersoll Rand Industrial, other of our subsidiaries and our shareholders, as applicable, for U.S. federal income tax purposes. The opinion of our counsel will be based on, among other things, certain representations and assumptions as to factual matters made by GDI, Ingersoll Rand Industrial and the Company. The failure of any factual representation or assumption to be true, correct and complete in all material respects could adversely affect the validity of the opinion of counsel. An opinion of counsel represents counsel’s best legal judgment, is not binding on the Internal Revenue Service (IRS) or the courts, and the IRS or the courts may not agree with the opinion. In addition, the opinion will be based on current law, and cannot be relied upon if current law changes with retroactive effect.
The Distribution will be taxable to the Company pursuant to Section 355(e) of the Code if there is a 50% or greater change in ownership of either the Company or Ingersoll Rand Industrial, directly or indirectly, as part of a plan or series of related transactions

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that include the Distribution. A Section 355(e) change of ownership would not make the Distribution taxable to our shareholders, but instead may result in corporate-level taxable gain to certain of our subsidiaries. Because our shareholders will collectively be treated as owning more than 50% of the GDI common stock following the merger, the merger alone should not cause the Distribution to be taxable to our subsidiaries under Section 355(e). However, Section 355(e) might apply if other acquisitions of stock of the Company before or after the merger, or of GDI before or after the merger, are considered to be part of a plan or series of related transactions that include the Distribution together with certain related transactions. If Section 355(e) applied, certain of our subsidiaries might recognize a very substantial amount of taxable gain, although if this applied as a result of certain actions taken by Ingersoll Rand Industrial, GDI or certain specified GDI stockholders, GDI would be required to bear the cost of any resultant tax liability under Section 355(e) pursuant to the terms of the Tax Matters Agreement.
If the merger does not qualify as a tax-free reorganization under Section 368(a) of the Code, our shareholders may be required to pay substantial U.S. federal income taxes.
The obligations of Ingersoll Rand Industrial and GDI to consummate the merger are conditioned, respectively, on our receipt of an opinion from our counsel and GDI’s receipt of an opinion from their counsel in each case to the effect that the merger will qualify as a reorganization within the meaning of Section 368(a) of the Code. These opinions will be based upon, among other things, certain representations and assumptions as to factual matters made by GDI, the Company, Ingersoll Rand Industrial and Merger Sub. The failure of any factual representation or assumption to be true, correct and complete in all material respects could adversely affect the validity of the opinions. An opinion of counsel represents counsel’s best legal judgment, is not binding on the IRS or the courts, and the IRS or the courts may not agree with the opinion. In addition, the opinions will be based on current law, and cannot be relied upon if current law changes with retroactive effect. If the merger were taxable, U.S. holders, of Ingersoll Rand Industrial would be considered to have made a taxable sale of their Ingersoll Rand Industrial common stock to GDI, and such U.S. holders of Ingersoll Rand Industrial would generally recognize taxable gain or loss on their receipt of GDI common stock in the merger.
Item 1B.    UNRESOLVED STAFF COMMENTS
None.

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Item 2.    PROPERTIES
As of December 31, 2019, we owned or leased a total of approximately 33 million square feet of space worldwide. Manufacturing and assembly operations are conducted in 59 plants across the world. We also maintain various warehouses, offices and repair centers throughout the world. The majority of our plant facilities are owned by us with the remainder under long-term lease arrangements. We believe that our plants have been well maintained, are generally in good condition and are suitable for the conduct of our business.
The locations by segment of our principal plant facilities at December 31, 2019 were as follows:

					
Climate	
Americas	 	Europe and Middle East	 	Asia Pacific and India	
Arecibo, Puerto Rico	 	Barcelona, Spain	 	Bangkok, Thailand	
Brampton, Ontario	 	Bari, Italy	 	Taicang, China	
Charlotte, North Carolina	 	Charmes, France	 	Zhongshan, China	
Clarksville, Tennessee	 	Essen, Germany	 	 	
Columbia, South Carolina	 	Galway, Ireland	 	 	
Curitiba, Brazil	 	Golbey, France	 	 	
Fairlawn, New Jersey	 	King Abdullah Economic City, Saudi Arabia	 	 	
Fort Smith, Arkansas	 	Kolin, Czech Republic	 	 	
Fremont, Ohio	 	 	 	 	
Grand Rapids, Michigan	 	 	 	 	
Hastings, Nebraska	 	 	 	 	
La Crosse, Wisconsin	 	 	 	 	
Lexington, Kentucky	 	 	 	 	
Lynn Haven, Florida	 	 	 	 	
Monterrey, Mexico	 	 	 	 	
Newberry, South Carolina	 	 	 	 	
Pueblo, Colorado	 	 	 	 	
Rushville, Indiana	 	 	 	 	
St. Paul, Minnesota	 	 	 	 	
Trenton, New Jersey	 	 	 	 	
Tyler, Texas	 	 	 	 	
Vidalia, Georgia	 	 	 	 	
Waco, Texas	 	 	 	 	

					
Industrial	
Americas	 	Europe and Middle East	 	Asia Pacific and India	
Augusta, Georgia	 	Bordeaux, France	 	Changzhou, China	
Burbank, California	 	Fogliano Redipuglia, Italy	 	Chennai, India	
Campbellsville, Kentucky	 	Logatec, Slovenia	 	Guilin, China	
Dorval, Canada	 	Pont St. Pierre, France	 	Naroda, India	
Ivyland, Pennsylvania	 	Sin le Noble, France	 	Sahibabad, India	
Kent, Washington	 	Sunderland, UK	 	Shanghai, China	
Mocksville, North Carolina	 	Vignate, Italy	 	Wujiang, China	
Sarasota, Florida	 	Wasquehal, France	 	 	
Southern Pines, North Carolina	 	 	 	 	
West Chester, Pennsylvania	 	 	 	 	

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Item 3. LEGAL PROCEEDINGS
In the normal course of business, we are involved in a variety of lawsuits, claims and legal proceedings, including commercial and contract disputes, employment matters, product liability and product defect claims, asbestos-related claims, environmental liabilities, intellectual property disputes, and tax-related matters. In our opinion, pending legal matters are not expected to have a material adverse impact on our results of operations, financial condition, liquidity or cash flows.
Asbestos-Related Matters
Certain of our wholly-owned subsidiaries and former companies 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 allege injury caused by exposure to asbestos contained in certain historical products, primarily pumps, boilers and railroad brake shoes. None of our existing or previously-owned businesses were a producer or manufacturer of asbestos.
See also the discussion under Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," "Contingent Liabilities," and also Note 22 to the Consolidated Financial Statements.
Item 4. MINE SAFETY DISCLOSURES

Not applicable.
PART II
 
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES
Information regarding the principal market for our ordinary shares and related shareholder matters is as follows:
Our ordinary shares are traded on the New York Stock Exchange under the symbol IR. As of February 1, 2020, the approximate number of record holders of ordinary shares was 2,753.
Issuer Purchases of Equity Securities
The following table provides information with respect to purchases by us of our ordinary shares during the quarter ended December 31, 2019:

															
Period	 	Total number of shares purchased (000's) (a) (b)	 	Average price paid per share (a) (b)	 	Total number of shares purchased as part of program (000's) (a)	 	Approximate dollar value of shares still available to be purchased under the program ($000's) (a)	
October 1 - October 31	 	0.4		 	$	117.02		 	—		 	$	999,961		
November 1 - November 30	 	1,016.6		 	129.43		 	1,016.6		 	$	868,382		
December 1 - December 31	 	897.9		 	132.10		 	896.4		 	$	749,959		
Total	 	1,914.9		 	$	130.68		 	1,913.0		 	 	
(a) Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements. In October 2018, our Board of Directors authorized the repurchase of up to $1.5 billion of our ordinary shares under a share repurchase program (2018 Authorization) upon completion of the prior authorized share repurchase program. During the fourth quarter of 2019, we repurchased and canceled approximately $250 million of our ordinary shares leaving approximately $750 million remaining under the 2018 Authorization.
(b) We may also reacquire shares outside of the repurchase program from time to time in connection with the surrender of shares to cover taxes on vesting of share based awards. We reacquired 394 shares in October, 9 shares in November and 1,411 shares in December in transactions outside the repurchase programs.

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Performance Graph
The following graph compares the cumulative total shareholder return on our ordinary shares with the cumulative total return on (i) the Standard & Poor’s 500 Stock Index and (ii) the Standard & Poor’s 500 Industrial Index for the five years ended December 31, 2019. The graph assumes an investment of $100 in our ordinary shares, the Standard & Poor’s 500 Stock Index and the Standard & Poor’s 500 Industrial Index on December 31, 2014 and assumes the reinvestment of dividends.

	
							
Company/Index	2014	2015	2016	2017	2018	2019	
Ingersoll Rand	100	89	123	149	156	231	
S&P 500	100	101	113	138	132	174	
S&P 500 Industrials Index	100	97	116	140	121	157	

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Item 6.     SELECTED FINANCIAL DATA
In millions, except per share amounts:

																					
At and for the years ended December 31,	 	2019 (1)	 	2018	 	2017	 	2016	 	2015	
 	 	 	 	 	 	 	 	 	 	 	
Net revenues	 	$	16,598.9		 	$	15,668.2		 	$	14,197.6		 	$	13,508.9		 	$	13,300.7		
 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss) attributable to Ingersoll-Rand plc ordinary shareholders:	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	1,370.3		 	1,359.1		 	1,328.0		 	1,443.3		 	688.9		
Discontinued operations	 	40.6		 	(21.5	)	 	(25.4	)	 	32.9		 	(24.3	)	
 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	20,492.3		 	17,914.9		 	18,173.3		 	17,397.4		 	16,717.6		
 	 	 	 	 	 	 	 	 	 	 	
Total debt	 	5,573.4		 	4,091.3		 	4,064.0		 	4,070.2		 	4,217.8		
 	 	 	 	 	 	 	 	 	 	 	
Total Ingersoll-Rand plc shareholders’ equity	 	7,267.6		 	7,022.7		 	7,140.3		 	6,643.8		 	5,816.7		
 	 	 	 	 	 	 	 	 	 	 	
Earnings (loss) per share attributable to Ingersoll-Rand plc ordinary shareholders:	 	 	 	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	5.67		 	$	5.50		 	$	5.21		 	$	5.57		 	$	2.60		
Discontinued operations	 	0.17		 	(0.09	)	 	(0.10	)	 	0.13		 	(0.09	)	
 	 	 	 	 	 	 	 	 	 	 	
Diluted:	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	5.61		 	$	5.43		 	$	5.14		 	$	5.52		 	$	2.57		
Discontinued operations	 	0.16		 	(0.08	)	 	(0.09	)	 	0.13		 	(0.09	)	
 	 	 	 	 	 	 	 	 	 	 	
Dividends declared per ordinary share	 	$	2.12		 	$	1.96		 	$	1.70		 	$	1.36		 	$	1.16		
(1) During 2019, the Company acquired PFS and adopted ASU 2016-02, “Leases” (ASC 842). Refer to Note 19, "Acquisitions and Divestitures" and Note 3, "Summary of Significant Accounting Policies" for additional information related to the acquisition of PFS and adoption of ASC 842, respectively.

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause a difference include, but are not limited to, those discussed under Item 1A. Risk Factors in this Annual Report on Form 10-K. The following section is qualified in its entirety by the more detailed information, including our financial statements and the notes thereto, which appears elsewhere in this Annual Report.
This section discusses 2019 and 2018 items and year-to-year comparisons between 2019 and 2018. Discussions of 2017 items and year-to-year comparisons between 2018 and 2017 have been excluded in this Form 10-K and can be found in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2018.
Overview
Organization
We are a diversified, global company that provides products, services and solutions to enhance the quality, energy efficiency and comfort of air in homes and buildings, transport and protect food and perishables and increase industrial productivity and efficiency. Our business segments consist of Climate and Industrial, both with strong brands and highly differentiated products within their respective markets. We generate revenue and cash primarily through the design, manufacture, sale and service of a diverse portfolio of industrial and commercial products that include well-recognized, premium brand names such as American Standard®, ARO®, Club Car®, Ingersoll-Rand®, Thermo King® and Trane®.
To achieve our mission of being a world leader in creating comfortable, sustainable and efficient environments, we continue to focus on growth by increasing our recurring revenue stream from parts, service, controls, used equipment and rentals; and to continuously improve the efficiencies and capabilities of the products and services of our businesses. We also continue to focus on operational excellence strategies as a central theme to improving our earnings and cash flows.
Trends and Economic Events
We are a global corporation with worldwide operations. As a global business, our operations are affected by worldwide, regional and industry-specific economic factors, as well as political factors, wherever we operate or do business. Our geographic and industry diversity, and the breadth of our product and services portfolios, have helped mitigate the impact of any one industry or the economy of any single country on our consolidated operating results.
Given the broad range of products manufactured and geographic markets served, management uses a variety of factors to forecast the outlook for the Company. We monitor key competitors and customers in order to gauge relative performance and the outlook for the future. We regularly perform detailed evaluations of the different market segments we are serving to proactively detect trends and to adapt our strategies accordingly. In addition, we believe our order rates are indicative of future revenue and thus a key measure of anticipated performance. In those industry segments where we are a capital equipment provider, revenues depend on the capital expenditure budgets and spending patterns of our customers, who may delay or accelerate purchases in reaction to changes in their businesses and in the economy.
Current economic conditions have moderated during the year and are mixed between the businesses in which we participate. Heating, Ventilation, and Air Conditioning (HVAC) equipment, replacement, services, controls and aftermarket continue to experience healthy demand. In addition, Residential and Commercial markets have seen continued momentum in the United States, positively impacting the results of our HVAC businesses. While geopolitical uncertainty exists in markets such as Europe, Asia and Latin America, we expect growth in our HVAC markets in 2020. Transport markets moderated in the second half of 2019 and we expect softer Transport markets in 2020. Global Industrial markets have moderated during the year and are now mixed with continued economic uncertainty driving weak short-cycle Industrial investment spending. We expect growth at the enterprise level to continue in 2020, benefiting from operational excellence initiatives, new product launches and continued sales excellence programs.
We believe we have a solid foundation of global brands that are highly differentiated in all of our major product lines. Our growing geographic and industry diversity coupled with our large installed product base provides growth opportunities within our service, parts and replacement revenue streams. In addition, we are investing substantial resources to innovate and develop new products and services which we expect will drive our future growth.

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Significant Events
Separation of Industrial Segment Businesses
In April 2019, Ingersoll-Rand plc and Gardner Denver Holdings, Inc. (GDI) announced that they entered into definitive agreements pursuant to which we will separate our Industrial segment businesses (IR Industrial) by way of spin-off to our shareholders and then combine with GDI to create a new company focused on flow creation and industrial technologies. This business is expected to be renamed Ingersoll-Rand Inc. Our remaining HVAC and transport refrigeration businesses, reported under the Climate segment, will focus on climate control solutions for buildings, homes and transportation and be renamed Trane Technologies plc. The transaction is expected to close by early 2020, subject to approval by GDI’s shareholders, regulatory approvals and customary closing conditions.
Acquisitions and Equity Investments
During 2019, we acquired several businesses that complement existing products and services. In May 2019, we acquired 100% of the outstanding stock of Precision Flow Systems (PFS). PFS, reported in the Industrial segment, is a manufacturer of precision flow control equipment including precision dosing pumps and controls that serve the global water, oil and gas, agriculture, industrial and specialty market segments. Acquisitions within the Climate segment consisted of an independent dealer to support the ongoing strategy to expand our distribution network in North America as well as other businesses that strengthen our product portfolio.
During 2018, we acquired several businesses and entered into a joint venture. In May 2018, we completed our investment of a 50% ownership interest in a joint venture with Mitsubishi Electric Corporation (Mitsubishi). The joint venture, reported within the Climate segment, focuses on marketing, selling and supporting variable refrigerant flow (VRF) and ductless heating and air conditioning systems through Trane, American Standard and Mitsubishi channels in the U.S. and select Latin American countries. In January 2018, we acquired 100% of the outstanding stock of ICS Group Holdings Limited (ICS Cool Energy). The acquired business, reported within the Climate segment, specializes in the temporary rental of energy efficient chillers for commercial and industrial buildings across Europe. It also sells, permanently installs and services high performance temperature control systems for all types of industrial processes.
Share Repurchase Program and Dividends
Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements. In February 2017, our Board of Directors authorized the repurchase of up to $1.5 billion of our ordinary shares under a share repurchase program (the 2017 Authorization) upon completion of the prior authorized share repurchase program. Repurchases under the 2017 Authorization began in May 2017 and ended in December 2018, completing the program. In October 2018, our Board of Directors authorized the repurchase of up to $1.5 billion of our ordinary shares under a share repurchase program (2018 Authorization) upon completion of the 2017 Authorization. No material amounts were repurchased under this program in 2018. During the year ended December 31, 2019, we repurchased and canceled approximately $750 million of our ordinary shares leaving approximately $750 million remaining under the 2018 Authorization.
In June 2018, we announced an increase in our quarterly share dividend from $0.45 to $0.53 per ordinary share. This reflected an 18% increase that began with our September 2018 payment and an 83% increase since the beginning of 2016. Looking forward, we expect to maintain our current quarterly share dividend through 2020 and then continue our long-standing capital deployment priorities to raise the dividend with earnings growth for 2021 and beyond.
Issuance of Senior Notes
In March 2019, we issued $1.5 billion principal amount of senior notes in three tranches through Ingersoll-Rand Luxembourg Finance S.A., an indirect, wholly-owned subsidiary. The tranches consist of $400 million aggregate principal amount of 3.500% senior notes due 2026, $750 million aggregate principal amount of 3.800% senior notes due 2029 and $350 million aggregate principal amount of 4.500% senior notes due 2049. The net proceeds were used to finance the acquisition of PFS and for general corporate purposes.
In February 2018, we issued $1.15 billion principal amount of senior notes in three tranches through an indirect, wholly-owned subsidiary. The tranches consist of $300 million aggregate principal amount of 2.900% senior notes due 2021, $550 million aggregate principal amount of 3.750% senior notes due 2028 and $300 million aggregate principal amount of 4.300% senior notes due 2048. In March 2018, we used the proceeds to fund the redemption of $750 million aggregate principal amount of 6.875% senior notes due 2018 and $350 million aggregate principal amount of 2.875% senior notes due 2019, with the remainder used for general corporate purposes.

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Results of Operations
Our Climate segment delivers energy-efficient products and innovative energy services. It includes Trane® and American Standard® Heating & Air Conditioning which provide heating, ventilation and air conditioning (HVAC) systems, and commercial and residential building services, parts, support and controls; energy services and building automation through Trane Building AdvantageTM and NexiaTM ; and Thermo King® transport temperature control solutions.
Our Industrial segment delivers products and services that enhance energy efficiency, productivity and operations. It includes compressed air and gas systems and services, power tools, material handling systems, fluid management systems, as well as Club Car ® golf, utility and consumer low-speed vehicles.
Year Ended December 31, 2019 Compared to the Year Ended December 31, 2018 - Consolidated Results

																	
Dollar amounts in millions	 	2019	 	2018	 	Period Change	 	2019
 % of Revenues	 	2018
 % of Revenues	
Net revenues	 	$	16,598.9		 	$	15,668.2		 	$	930.7		 	 	 	 	
Cost of goods sold	 	(11,451.5	)	 	(10,847.6	)	 	(603.9	)	 	69.0%	 	69.2%	
Selling and administrative expenses	 	(3,129.8	)	 	(2,903.2	)	 	(226.6	)	 	18.8%	 	18.6%	
Operating income	 	2,017.6		 	1,917.4		 	100.2		 	12.2%	 	12.2%	
Interest expense	 	(243.0	)	 	(220.7	)	 	(22.3	)	 	 	 	 	
Other income/(expense), net	 	(33.0	)	 	(36.4	)	 	3.4		 	 	 	 	
Earnings before income taxes	 	1,741.6		 	1,660.3		 	81.3		 	 	 	 	
Provision for income taxes	 	(353.7	)	 	(281.3	)	 	(72.4	)	 	 	 	 	
Earnings from continuing operations	 	1,387.9		 	1,379.0		 	8.9		 	 	 	 	
Discontinued operations, net of tax	 	40.6		 	(21.5	)	 	62.1		 	 	 	 	
Net earnings	 	$	1,428.5		 	$	1,357.5		 	$	71.0		 	 	 	 	
Net Revenues
Net revenues for the year ended December 31, 2019 increased by 5.9%, or $930.7 million, compared with the same period of 2018. The components of the period change are as follows:

			
Volume	4.0	 %	
Acquisitions	1.5	 %	
Pricing	1.7	 %	
Currency translation	(1.3	)%	
Total	5.9	 %	
The increase was primarily driven by higher volumes in our Climate segment. Improved pricing, along with incremental revenues from acquisitions, further contributed to the year-over-year increase. However, each segment was impacted by unfavorable foreign currency exchange rate movements. Refer to the "Results by Segment" below for a discussion of Net Revenues by segment.

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Cost of Goods Sold
Cost of goods sold for the year ended December 31, 2019 increased by 5.6%, or $603.9 million, compared with the same period of 2018. The increase was primarily driven by volume growth, with equipment sales growing faster than service and parts sales, which are lower cost. In addition, incremental cost of goods sold related to revenues from acquisitions, material inflation, higher tariffs and acquisition related inventory step-up further contributed to the year-over-year increase. These increases were partially offset by favorable foreign currency exchange rate movements. Cost of goods sold as a percentage of net revenues was relatively flat year-over-year, decreasing 20 basis points from 69.2% of net revenues in 2018 to 69.0% of net revenues in 2019.
Selling and Administrative Expenses
Selling and administrative expenses for the year ended December 31, 2019 increased by 7.8%, or $226.6 million, compared with the same period of 2018. The increase in selling and administrative expenses was primarily driven by higher compensation and benefit charges related to variable compensation, Industrial Segment separation-related costs and PFS acquisition-related costs. In addition, amortization of intangibles related to the PFS acquisition further contributed to the year-over-year increase. Selling and administrative expenses as a percentage of net revenues increased 20 basis points from 18.6% to 18.8% in 2019 primarily due to the Industrial Segment separation-related costs and PFS acquisition-related costs, which increased Selling and administrative expenses as a percentage of net revenues by 60 basis points in 2019.  
Operating Income/Margin
Operating margin remained flat at 12.2% for the year ended December 31, 2019 compared with the same period of 2018. Factors impacting operating margin included material and other inflation, an unfavorable shift in product mix primarily related to faster growth in equipment sales compared to higher margin service and parts sales, Industrial Segment separation-related costs and PFS acquisition-related costs, increased spending on business investments and unfavorable foreign currency exchange rate movements. These unfavorable impacts were offset by improved pricing and productivity gains. Refer to the "Results by Segment" below for a discussion of operating margin by segment.
Interest Expense
Interest expense for the year ended December 31, 2019 increased by $22.3 million compared with the same period of 2018. The increase primarily relates to new debt issuances during the first quarter of 2019 and 2018. During the first quarter of 2018, we incurred $15.4 million of premium expense and $1.2 million of unamortized costs in Interest expense as a result of the redemption of $1.1 billion of senior notes.
Other income/(expense), net
The components of Other income/(expense), net, for the years ended December 31 are as follows:

													
In millions	 	2019	 	2018	 	Period Change	
Interest income	 	$	3.1		 	$	6.4		 	$	(3.3	)	
Foreign currency exchange gain (loss)	 	(12.3	)	 	(17.6	)	 	5.3		
Other components of net periodic benefit cost	 	(39.3	)	 	(21.9	)	 	(17.4	)	
Other activity, net	 	15.5		 	(3.3	)	 	18.8		
Other income/(expense), net	 	$	(33.0	)	 	$	(36.4	)	 	$	3.4		
Other income /(expense), net includes the results from activities other than normal business operations such as interest income and foreign currency gains and losses on transactions that are denominated in a currency other than an entity’s functional currency. In addition, we include the components of net periodic benefit cost for pension and post retirement obligations other than the service cost component. Other activity, net primarily includes items associated with our Trane business for the settlement of asbestos-related claims, insurance settlements on asbestos-related matters and the revaluation of its liability and corresponding insurance asset for potential future claims and recoveries.
Provision for Income Taxes
The 2019 effective tax rate was 20.3% which is slightly lower than the U.S. Statutory rate of 21% primarily due to a reduction in deferred tax asset valuation allowances for certain non-U.S. net deferred tax assets and excess tax benefits from employee share-based payments. These amounts were partially offset by U.S. state and local taxes, an increase in a deferred tax asset valuation allowance for certain state net deferred tax assets and certain non-deductible expenses. In addition, the reduction was also driven by earnings in non-U.S. jurisdictions, which in aggregate, have a lower effective tax rate. Revenues from non-U.S. jurisdictions accounted for approximately 34% of our total 2019 revenues, such that a material portion of our pretax income was earned and

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taxed outside the U.S. at rates ranging from 0% to 38%. When comparing the results of multiple reporting periods, among other factors, the mix of earnings between U.S. and foreign jurisdictions can cause variability in our overall effective tax rate.
The 2018 effective tax rate was 16.9% which is lower than the U.S. Statutory rate of 21% primarily due to the measurement period adjustment related to the change in permanent reinvestment assertion on unremitted earnings of certain foreign subsidiaries, the deduction for Foreign Derived Intangible Income, the recognition of excess tax benefits from employee share based payments and a reduction in a valuation allowance for certain state net deferred tax assets. This decrease was partially offset by the measurement period adjustment related to a valuation allowance on excess foreign tax credits, U.S. state and local income taxes and certain non-deductible employee expenses. In addition, the reduction was also driven by earnings in non-U.S. jurisdictions, which in aggregate, have a lower effective tax rate. Revenues from non-U.S. jurisdictions accounted for approximately 36% of our total 2018 revenues, such that a material portion of our pretax income was earned and taxed outside the U.S. at rates ranging from 0% to 38%. When comparing the results of multiple reporting periods, among other factors, the mix of earnings between U.S. and foreign jurisdictions can cause variability in our overall effective tax rate.
Discontinued Operations
The components of Discontinued operations, net of tax for the years ended December 31 are as follows:

													
In millions	 	2019	 	2018	 	Period Change	
Pre-tax earnings (loss) from discontinued operations	 	$	54.8		 	$	(85.5	)	 	$	140.3		
Tax benefit (expense)	 	(14.2	)	 	64.0		 	(78.2	)	
Discontinued operations, net of tax	 	$	40.6		 	$	(21.5	)	 	$	62.1		
Discontinued operations are retained obligations from previously sold businesses, including amounts related to the 2013 spin-off of our commercial and residential security business, that primarily include ongoing expenses for postretirement benefits, product liability and legal costs. In addition, we include costs associated with Ingersoll-Rand Company for the settlement and defense of asbestos-related claims, insurance settlements on asbestos-related matters and the revaluation of our liability for potential future claims and recoveries. During 2019, we reached settlements with several insurance carriers associated with pending asbestos insurance coverage litigation.
Year Ended December 31, 2019 Compared to the Year Ended December 31, 2018 - Results by Segment
Segment operating income on an as reported basis is the measure of profit and loss that our 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, we believe that Segment operating income represents the most relevant measure of segment profit and loss. We define Segment operating margin as Segment operating income as a percentage of Net revenues.

																
Dollar amounts in millions	 	2019	 	2018	 	Period Change	 	% Change	
Climate	 	 	 	 	 			 	 	
Net Revenues	 	$	13,075.9		 	$	12,343.8		 	$	732.1		 	5.9	%	
Segment operating income	 	1,908.5		 	1,766.2		 	142.3		 	8.1	%	
Segment operating income as a percentage of net revenues	 	14.6	%	 	14.3	%	 	 	 			
Industrial	 	 	 	 	 			 	 	
Net Revenues	 	3,523.0		 	3,324.4		 	198.6		 	6.0	%	
Segment operating income	 	455.0		 	405.3		 	49.7		 	12.3	%	
Segment operating income as a percentage of net revenues	 	12.9	%	 	12.2	%	 			 	 	
 	 	 	 	 	 			 	 	
Total net revenues	 	$	16,598.9		 	$	15,668.2		 	$	930.7		 	5.9	%	
 	 	 	 	 	 			 	 	
Reconciliation to Operating Income	 	 	 	 	 			 	 	
Segment operating income from reportable segments	 	2,363.5		 	2,171.5		 	192.0		 	8.8	%	
Unallocated corporate expenses	 	(345.9	)	 	(254.1	)	 	(91.8	)	 	36.1	%	
Total operating income	 	$	2,017.6		 	$	1,917.4		 	$	100.2		 	5.2	%	

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Climate
Net revenues for the year ended December 31, 2019 increased by 5.9% or $732.1 million, compared with the same period of 2018. The components of the period change are as follows:

			
Volume	5.2	 %	
Pricing	1.9	 %	
Currency translation	(1.2	)%	
Total	5.9	 %	
Segment operating margin increased 30 basis points to 14.6% for the year ended December 31, 2019, compared with 14.3% for the same period of 2018. The increase was primarily driven by higher volume, improved pricing and productivity gains, partially offset by increased spend on investments and restructuring, material and other inflation and a shift in product mix, primarily related to faster growth in equipment sales compared to higher margin service and parts sales.
Industrial
Net revenues for the year ended December 31, 2019 increased by 6.0% or $198.6 million, compared with the same period of 2018. The components of the period change are as follows:

			
Volume	(0.6	)%	
Acquisitions	7.4	 %	
Pricing	1.2	 %	
Currency translation	(2.0	)%	
Total	6.0	 %	
Segment operating margin increased 70 basis points to 12.9% for the year ended December 31, 2019 compared with 12.2% for the same period of 2018. The increase was primarily driven by productivity benefits, decreased spending on restructuring and pricing improvements, partially offset by lower volumes, unfavorable foreign currency movements, material and other inflation and a shift in product mix, primarily related to faster growth in equipment sales compared to higher margin service and parts sales.
Unallocated Corporate Expense
Unallocated corporate expense for the year ended December 31, 2019 increased by 36.1% or $91.8 million, compared with the same period of 2018. The primary drivers of the increase were due to Industrial Segment separation-related costs of $94.6 million and PFS acquisition-related transaction costs of $12.9 million. These costs were partially offset by lower functional costs.
Liquidity and Capital Resources
We assess our liquidity in terms of our ability to generate cash to fund our operating, investing and financing activities. In doing so, we review and analyze our current cash on hand, the number of days our sales are outstanding, inventory turns, capital expenditure commitments and income tax payments. Our cash requirements primarily consist of the following:

•	Funding of working capital	
		
•	Funding of capital expenditures	
		
•	Dividend payments	
		
•	Debt service requirements	

Our primary sources of liquidity include cash balances on hand, cash flows from operations, proceeds from debt offerings, commercial paper, and borrowing availability under our existing credit facilities. We earn a significant amount of our operating income in jurisdictions where it is deemed to be permanently reinvested. Our most prominent jurisdiction of operation is the U.S. We expect existing cash and cash equivalents available to the U.S. operations, the cash generated by our U.S. operations, our committed credit lines as well as our expected ability to access the capital and debt markets will be sufficient to fund our U.S. operating and capital needs for at least the next twelve months and thereafter for the foreseeable future. In addition, we expect existing non-U.S. cash and cash equivalents and the cash generated by our non-U.S. operations will be sufficient to fund our non-U.S. operating and capital needs for at least the next twelve months and thereafter for the foreseeable future.
As of December 31, 2019, we had $1,303.6 million of cash and cash equivalents on hand, of which $931.3 million was held by non-U.S. subsidiaries. Cash and cash equivalents held by our non-U.S. subsidiaries are generally available for use in our U.S. operations via intercompany loans, equity infusions or via distributions from direct or indirectly owned non-U.S. subsidiaries for

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which we do not assert permanent reinvestment. As a result of the Tax Cuts and Jobs Act in 2017, additional repatriation opportunities to access cash and cash equivalents held by non-U.S. subsidiaries have been created. In general, repatriation of cash to the U.S. can be completed with no significant incremental U.S. tax. However, to the extent that we repatriate funds from non-U.S. subsidiaries for which we assert permanent reinvestment to fund our U.S. operations, we would be required to accrue and pay applicable non-U.S. taxes. As of December 31, 2019, we currently have no plans to repatriate funds from subsidiaries for which we assert permanent reinvestment.
Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements. In February 2017, our Board of Directors authorized the repurchase of up to $1.5 billion of our ordinary shares under a share repurchase program (the 2017 Authorization) upon completion of the prior authorized share repurchase program. Repurchases under the 2017 Authorization began in May 2017 and ended in December 2018, completing the program. In October 2018, our Board of Directors authorized the repurchase of up to $1.5 billion of our ordinary shares under a share repurchase program (2018 Authorization) upon completion of the 2017 Authorization. No material amounts were repurchased under this program in 2018. During the year ended December 31, 2019, we repurchased and canceled approximately $750 million of our ordinary shares leaving approximately $750 million remaining under the 2018 Authorization.
In June 2018, we announced an increase in our quarterly share dividend from $0.45 to $0.53 per ordinary share. This reflected an 18% increase that began with our September 2018 payment and an 83% increase since the beginning of 2016. Looking forward, we expect to maintain our current quarterly share dividend through 2020 and then continue our long-standing capital deployment priorities to raise the dividend with earnings growth for 2021 and beyond.
We continue to be active with acquisitions and joint venture activity. Since the beginning of 2018, we entered into a joint venture and acquired several businesses, including channel acquisitions, that complement existing products and services further growing our product portfolio. In May 2019, we acquired all the outstanding capital stock of PFS and utilized net proceeds from our $1.5 billion senior note debt issuance to finance the transaction. In addition, we have incurred approximately $95 million in costs related to the separation of IR Industrial as previously described. We anticipate to incur costs at the high end of the $150 million to $200 million range related to the separation activities. Lastly, we incur ongoing costs associated with restructuring initiatives intended to result in improved operating performance, profitability and working capital levels. Actions associated with these initiatives may include workforce reductions, improving manufacturing productivity, realignment of management structures and rationalizing certain assets. Post separation through 2021, we expect to reduce stranded costs by $100 million and expect to incur $100 million to $150 million in cost to realize the stranded cost savings. We expect that our available cash flow, committed credit lines and access to the capital markets will be sufficient to fund share repurchases, dividends, ongoing restructuring actions, acquisitions, separation-related activities and joint venture activity.
Liquidity
The following table contains several key measures of our financial condition and liquidity at the periods ended December 31:

									
In millions	 	2019	 	2018	
Cash and cash equivalents	 	$	1,303.6		 	$	903.4		
Short-term borrowings and current maturities of long-term debt (1)	 	650.5		 	350.6		
Long-term debt (2)	 	4,922.9		 	3,740.7		
Total debt	 	5,573.4		 	4,091.3		
Total Ingersoll-Rand plc shareholders’ equity	 	7,267.6		 	7,022.7		
Total equity	 	7,312.4		 	7,064.8		
Debt-to-total capital ratio	 	43.3	%	 	36.7	%	
(1) During the first quarter of 2018, we redeemed our 6.875% Senior notes due 2018 and our 2.875% Senior notes due 2019. During the second quarter of 2019, we reclassified our 2.625% Senior notes due May 2020 from noncurrent to current.
(2) We issued $1.15 billion principal amount of senior notes during February 2018 and $1.5 billion principal amount of senior notes during March 2019.
Debt and Credit Facilities
Our short-term obligations primarily consists of current maturities of long-term debt including $299.8 million of 2.625% Senior notes due in May 2020. In addition, we have outstanding $343.0 million of fixed rate debentures that contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, we are 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. We also maintain a commercial paper program which is used for general corporate purposes. Under the program, the maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, is $2.0 billion as of

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December 31, 2019. We had no commercial paper outstanding at December 31, 2019 and December 31, 2018. See Note 8 to the Consolidated Financial Statements for additional information regarding the terms of our short-term obligations.
Our long-term obligations primarily consist of long-term debt with final maturity dates ranging between 2021 and 2049. In addition, we maintain two 5-year, $1.0 billion revolving credit facilities. Each senior unsecured credit facility, one of which matures in March 2021 and the other in April 2023, provides support for our commercial paper program and can be used for working capital and other general corporate purposes. Total commitments of $2.0 billion were unused at December 31, 2019 and December 31, 2018. See Note 8 and Note 23 to the Consolidated Financial Statements for additional information regarding the terms of our long-term obligations and their related guarantees.
Pension Plans
Our investment objective in managing defined benefit plan assets is to ensure that all present and future benefit obligations are met as they come due. We seek to achieve this goal while trying to mitigate volatility in plan funded status, contribution and expense by better matching the characteristics of the plan assets to that of the plan liabilities. Our approach to asset allocation is to increase fixed income assets as the plan's funded status improves. We monitor plan funded status and asset allocation regularly in addition to investment manager performance. In addition, we monitor the impact of market conditions on our defined benefit plans on a regular basis. None of our defined benefit pension plans have experienced a significant impact on their liquidity due to market volatility. See Note 12 to the Consolidated Financial Statements for additional information regarding pensions.
Cash Flows
The following table reflects the major categories of cash flows for the years ended December 31, respectively. For additional details, please see the Consolidated Statements of Cash Flows in the Consolidated Financial Statements.

									
In millions	 	2019	 	2018	
Net cash provided by (used in) continuing operating activities	 	$	1,956.3		 	$	1,474.5		
Net cash provided by (used in) investing activities	 	(1,780.0	)	 	(629.4	)	
Net cash provided by (used in) financing activities	 	270.5		 	(1,378.8	)	
Operating Activities
Net cash provided by continuing operating activities for the year ended December 31, 2019 was $1,956.3 million, of which net income provided $2,015.9 million after adjusting for non-cash transactions. Changes in other assets and liabilities used $59.6 million. Net cash provided by continuing operating activities for the year ended December 31, 2018 was $1,474.5 million, of which net income provided $1,794.3 million after adjusting for non-cash transactions. Changes in other assets and liabilities used $319.8 million. The year-over-year increase in net cash provided by continuing operating activities was primarily driven by higher net earnings as well as a focus on working capital whereby lower inventory levels and improvements in accounts receivable efforts more than offset reductions in outstanding accounts payable balances.
Investing Activities
Cash flows from investing activities represents inflows and outflows regarding the purchase and sale of assets.  Primary activities associated with these items include capital expenditures, proceeds from the sale of property, plant and equipment, acquisitions, investments in joint ventures and divestitures. During the year ended December 31, 2019, net cash used in investing activities from continuing operations was $1,780.0 million. The primary driver of the usage was attributable to acquisitions in the period, including PFS, in which the total outflow, net of cash acquired, was approximately $1.5 billion. Other outflows included capital expenditures of $254.1 million. During the year ended December 31, 2018, net cash used in investing activities from continuing operations was $629.4 million. The primary driver of the usage is attributable to the acquisition of several businesses and the investment of a 50% ownership interest in a joint venture with Mitsubishi. The total outflow, net of cash acquired, was $285.2 million. Other outflows included capital expenditures of $365.6 million.
Financing Activities
Cash flows from financing activities represent inflows and outflows that account for external activities affecting equity and debt.  Primary activities associated with these actions include paying dividends to shareholders, repurchasing our own shares, issuing our stock and debt transactions. During the year ended December 31, 2019, net cash provided by financing activities from continuing operations was $270.5 million. The primary driver of the inflow related to the issuance of $1.5 billion of senior notes during the period to finance the acquisition of PFS and other general corporate expenses. This amount was partially offset by the repurchase of 6.4 million ordinary shares totaling $750.1 million and $510.1 million of dividends paid to ordinary shareholders. During the year ended December 31, 2018, net cash used in financing activities from continuing operations was $1,378.8 million. Primary drivers of the cash outflow related to the repurchase of 9.7 million ordinary shares totaling $900.2 million and $479.5 million of

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dividends paid to ordinary shareholders. In addition, we issued $1.15 billion of senior notes which was predominately offset by the redemption of $1.1 billion of senior notes.
Discontinued Operations
Cash flows from discontinued operations primarily represent ongoing costs associated with postretirement benefits, product liability and legal costs from previously sold businesses. Net cash used in discontinued operating activities during the year ended December 31, 2019 was $36.8 million and primarily related to ongoing costs, partially offset by settlements reached with several insurance carriers associated with pending asbestos insurance coverage litigation. Net cash used in discontinued operating activities for the year ended December 31, 2018 was $66.7 million and primarily related to ongoing costs.
Capital Resources
Based on historical performance and current expectations, we believe our cash and cash equivalents balance, the cash generated from our operations, our committed credit lines and our expected ability to access capital markets will satisfy our working capital needs, capital expenditures, dividends, share repurchases, upcoming debt maturities, and other liquidity requirements associated with our operations for the foreseeable future.
Capital expenditures were $254.1 million, $365.6 million and $221.3 million for the years ended December 31, 2019, 2018 and 2017, respectively. Our investments continue to improve manufacturing productivity, reduce costs, provide environmental enhancements, upgrade information technology infrastructure and security and advanced technologies for existing facilities. The capital expenditure program for 2020 is estimated to be approximately one to two percent of revenues, including amounts approved in prior periods. Many of these projects are subject to review and cancellation at our option without incurring substantial charges.
For financial market risk impacting the Company, see Item 7A. "Quantitative and Qualitative Disclosure About Market Risk."
Capitalization
In addition to cash on hand and operating cash flow, we maintain significant credit availability under our Commercial Paper Program. Our ability to borrow at a cost-effective rate under the Commercial Paper Program is contingent upon maintaining an investment-grade credit rating. As of December 31, 2019, our credit ratings were as follows, remaining unchanged from 2018:

					
 	 	Short-term	 	Long-term	
Moody’s	 	P-2	 	Baa2	
Standard and Poor’s	 	A-2	 	BBB	
The credit ratings set forth above are not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal by the assigning rating organization. Each rating should be evaluated independently of any other rating.
Our public debt does not contain financial covenants and our revolving credit lines have a debt-to-total capital covenant of 65%. As of December 31, 2019, our debt-to-total capital ratio was significantly beneath this limit.
Contractual Obligations
The following table summarizes our contractual cash obligations by required payment period:

																					
In millions	 	Less than
1 year	 	1 - 3
years	 	3 - 5
years	 	More than
5 years	 	Total	
Long-term debt	 	$	650.5		(a) 	$	440.2		 	$	1,215.0		 	$	3,307.2		 	$	5,612.9		
Interest payments on long-term debt	 	240.3		 	446.7		 	384.3		 	1,802.9		 	2,874.2		
Purchase obligations	 	1,020.0		  	—		 	—		 	—		 	1,020.0		
Operating leases	 	192.3		 	258.4		 	115.3		 	68.1		 	634.1		
Total contractual cash obligations	 	$	2,103.1		  	$	1,145.3		 	$	1,714.6		 	$	5,178.2		 	$	10,141.2		
		
(a)	Includes $343.0 million of debt redeemable at the option of the holder. The scheduled maturities of these bonds range between 2027 and 2028.	
Future expected obligations under our pension and postretirement benefit plans, income taxes, environmental, asbestos-related, and product liability matters have not been included in the contractual cash obligations table above.

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Pensions
At December 31, 2019, we had a net unfunded liability of $714.4 million, which consists of noncurrent pension assets of $50.4 million and current and non-current pension benefit liabilities of $764.8 million. It is our objective to contribute to the pension plans to ensure adequate funds are available in the plans to make benefit payments to plan participants and beneficiaries when required. We currently project that we will contribute approximately $90 million to our enterprise plans worldwide in 2020. The timing and amounts of future contributions are dependent upon the funding status of the plan, which is expected to vary as a result of changes in interest rates, returns on underlying assets, and other factors. Therefore, pension contributions have been excluded from the preceding table. See Note 12 to the Consolidated Financial Statements for additional information regarding pensions.
Postretirement Benefits Other than Pensions
At December 31, 2019, we had postretirement benefit obligations of $428.8 million. We fund postretirement benefit costs principally on a pay-as-you-go basis as medical costs are incurred by covered retiree populations. Benefit payments, which are net of expected plan participant contributions and Medicare Part D subsidy, are expected to be approximately $42 million in 2020. Because benefit payments are not required to be funded in advance, and the timing and amounts of future payments are dependent on the cost of benefits for retirees covered by the plan, they have been excluded from the preceding table. See Note 12 to the Consolidated Financial Statements for additional information regarding postretirement benefits other than pensions.
Income Taxes
At December 31, 2019, we have total unrecognized tax benefits for uncertain tax positions of $78.2 million and $16.9 million of related accrued interest and penalties, net of tax. The liability has been excluded from the preceding table as we are unable to reasonably estimate the amount and period in which these liabilities might be paid. See Note 18 to the Consolidated Financial Statements for additional information regarding income taxes, including unrecognized tax benefits.
Contingent Liabilities
We are involved in various litigation, claims and administrative proceedings, including those related to environmental, asbestos-related, and product liability matters. We believe that these liabilities are subject to the uncertainties inherent in estimating future costs for contingent liabilities, and will likely be resolved over an extended period of time. Because the timing and amounts of potential future cash flows are uncertain, they have been excluded from the preceding table. See Note 22 to the Consolidated Financial Statements for additional information regarding contingent liabilities.
Critical Accounting Policies
Management’s Discussion and Analysis of Financial Condition and Results of Operations are based upon our Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). The preparation of financial statements in conformity with those accounting principles requires management to use judgment in making estimates and assumptions based on the relevant information available at the end of each period. These estimates and assumptions have a significant effect on reported amounts of assets and liabilities, revenue and expenses as well as the disclosure of contingent assets and liabilities because they result primarily from the need to make estimates and assumptions on matters that are inherently uncertain. Actual results may differ from these estimates. If updated information or actual amounts are different from previous estimates, the revisions are included in our results for the period in which they become known.
The following is a summary of certain accounting estimates and assumptions made by management that we consider critical.
		
•	Goodwill and indefinite-lived intangible assets – We have significant goodwill and indefinite-lived intangible assets on our balance sheet related to acquisitions. These assets are tested and reviewed annually during the fourth quarter for impairment or when there is a significant change in events or circumstances that indicate that the fair value of an asset is more likely than not less than the carrying amount of the asset.	
The determination of estimated fair value requires us to make assumptions about estimated cash flows, including profit margins, long-term forecasts, discount rates and terminal growth rates. We developed these assumptions based on the market and geographic risks unique to each reporting unit. For our annual impairment testing performed during the fourth quarter of 2019, we calculated the fair value for each of the reporting units and indefinite-lived intangibles. Based on the results of these calculations and further outlined below, we determined that the fair value of the reporting units and indefinite-lived intangible assets exceeded their respective carrying values. The estimates of fair value are based on the best information available as of the date of the assessment, which primarily incorporates management assumptions about expected future cash flows.
Goodwill - Impairment of goodwill is assessed at the reporting unit level and begins with a qualitative assessment to determine if it is more likely than not that the fair value of each reporting unit is less than its carrying amount as a basis for

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determining whether it is necessary to perform the goodwill impairment test under ASC 350, "Intangibles-Goodwill and Other" (ASC 350). For those reporting units that bypass or fail the qualitative assessment, the test compares the carrying amount of the reporting unit to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss would be recognized for the amount by which the reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit.
As quoted market prices are not available for our reporting units, the calculation of their estimated fair value is determined using three valuation techniques: a discounted cash flow model (an income approach), a market-adjusted multiple of earnings and revenues (a market approach), and a similar transactions method (also a market approach). The discounted cash flow approach relies on our estimates of future cash flows and explicitly addresses factors such as timing, growth and margins, with due consideration given to forecasting risk. The earnings and revenue multiple approach reflects the market's expectations for future growth and risk, with adjustments to account for differences between the guideline publicly traded companies and the subject reporting units. The similar transactions method considers prices paid in transactions that have recently occurred in our industry or in related industries. These valuation techniques are weighted 50%, 40% and 10%, respectively.
Under the income approach, we assumed a forecasted cash flow period of five years with discount rates ranging from 10.0% to 13.0% and terminal growth rates ranging from 2.0% to 3.5%. Under the guideline public company method, we used an adjusted multiple ranging from 5.5 to 13.0 of projected earnings before interest, taxes, depreciation and amortization (EBITDA) based on the market information of comparable companies. Additionally, we compared the estimated aggregate fair value of our reporting units to our overall market capitalization. For all reporting units except one in Latin America, the excess of the estimated fair value over carrying value (expressed as a percentage of carrying value) was a minimum of 32%. The one reporting unit with a percentage of carrying value less than 32% exceeded its carrying value by 5.4%. The reporting unit, reported within the Climate segment, has approximately $190 million of goodwill at the testing date. A significant increase in the discount rate, decrease in the long-term growth rate, or substantial reductions in our end markets and volume assumptions could have a negative impact on the estimated fair value of these reporting units.
Other Indefinite-lived intangible assets – Impairment of other intangible assets with indefinite useful lives is first assessed using a qualitative assessment to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired. This assessment is used as a basis for determining whether it is necessary to calculate the fair value of an indefinite-lived intangible asset. For those indefinite-lived assets where it is required, a fair value is determined on a relief from royalty methodology (income approach) which is based on the implied royalty paid, at an appropriate discount rate, to license the use of an asset rather than owning the asset. The present value of the after-tax cost savings (i.e. royalty relief) indicates the estimated fair value of the asset. Any excess of the carrying value over the estimated fair value would be recognized as an impairment loss equal to that excess.
In testing our other indefinite-lived intangible assets for impairment, we assumed forecasted revenues for a period of five years with discount rates ranging from 10.0% to 14.5%, terminal growth rates of 3.0%, and royalty rates ranging from 0.5% to 4.5%. A significant increase in the discount rate, decrease in the long-term growth rate, decrease in the royalty rate or substantial reductions in our end markets and volume assumptions could have a negative impact on the estimated fair values of any of our tradenames.
		
•	Long-lived assets and finite-lived intangibles – Long-lived assets and finite-lived intangibles are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset may not be fully recoverable. Assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows can be generated. Impairment in the carrying value of an asset would be recognized whenever anticipated future undiscounted cash flows from an asset are less than its carrying value. The impairment is measured as the amount by which the carrying value exceeds the fair value of the asset as determined by an estimate of discounted cash flows. Changes in business conditions could potentially require future adjustments to these valuations.	
		
•	Business combinations – In accordance with ASC 805, "Business Combinations" (ASC 805), acquisitions are recorded using the acquisition method of accounting. We include the operating results of acquired entities from their respective dates of acquisition.We recognize and measure the identifiable assets acquired, liabilities assumed, and any non-controlling interest as of the acquisition date fair value. The valuation of intangible assets was determined using an income approach methodology. Our key assumptions used in valuing the intangible assets include projected future revenues, customer attrition rates, royalty rates, tax rates and discount rates. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed, and any non-controlling interest is recognized as goodwill. Costs incurred as a result of a business combination other than costs related to the issuance of debt or equity securities are recorded in the period the costs are incurred.	

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•	Asbestos matters – Certain of our wholly-owned subsidiaries and former companies are named as defendants in asbestos-related lawsuits in state and federal courts. We record a liability for our actual and anticipated future claims as well as an asset for anticipated insurance settlements. We engage an outside expert to perform a detailed analysis and project an estimated range of the total liability for pending and unasserted future asbestos-related claims. In accordance with ASC 450, "Contingencies" (ASC 450), we record the liability at the low end of the range as we believe that no amount within the range is a better estimate than any other amount. Our key assumptions underlying the estimated asbestos-related liabilities include the number of people occupationally exposed and likely to develop asbestos-related diseases such as mesothelioma and lung cancer, the number of people likely to file an asbestos-related personal injury claim against us, the average settlement and resolution of each claim and the percentage of claims resolved with no payment. Asbestos-related defense costs are excluded from the asbestos claims liability and are recorded separately as services are incurred. None of our existing or previously-owned businesses were a producer or manufacturer of asbestos. We record certain income and expenses associated with our asbestos liabilities and corresponding insurance recoveries within Discontinued operations, net of tax, as they relate to previously divested businesses, except for amounts associated with Trane’s asbestos liabilities and corresponding insurance recoveries which are recorded within continuing operations. See Note 22 to the Consolidated Financial Statements for further information regarding asbestos-related matters.	
		
•	Revenue recognition – Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. A majority of our revenues are recognized at a point-in-time as control is transferred at a distinct point in time per the terms of a contract. However, a portion of our revenues are recognized over time as the customer simultaneously receives control as we perform work under a contract. For these arrangements, the cost-to-cost input method is used as it best depicts the transfer of control to the customer that occurs as we incurs costs. We adopted ASU No. 2014-09, "Revenue from Contracts with Customers" (ASC 606), on January 1, 2018 using the modified retrospective approach. Refer to Note 3, "Summary of Significant Accounting Policies" and Note 13, "Revenue" for additional information related to the adoption of ASC 606.	
The transaction price allocated to performance obligations reflects our expectations about the consideration we will be entitled to receive from a customer. To determine the transaction price, variable and noncash consideration are assessed as well as whether a significant financing component exists. We include variable consideration in the estimated transaction price when it is probable that significant reversal of revenue recognized would not occur when the uncertainty associated with variable consideration is subsequently resolved. We consider historical data in determining our best estimates of variable consideration, and the related accruals are recorded using the expected value method.
We enter into sales arrangements that contain multiple goods and services, such as equipment, installation and extended warranties. For these arrangements, each good or service is evaluated to determine whether it represents a distinct performance obligation and whether the sales price for each obligation is representative of standalone selling price. If available, we utilize observable prices for goods or services sold separately to similar customers in similar circumstances to evaluate relative standalone selling price. List prices are used if they are determined to be representative of standalone selling prices. Where necessary, we ensure that the total transaction price is then allocated to the distinct performance obligations based on the determination of their relative standalone selling price at the inception of the arrangement.
We recognize revenue for delivered goods or services when the delivered good or service is distinct, control of the good or service has transferred to the customer, and only customary refund or return rights related to the goods or services exist. For extended warranties and long-term service agreements, revenue for these distinct performance obligations are recognized over time on a straight-line basis over the respective contract term.
		
•	Income taxes – Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. We recognize future tax benefits, such as net operating losses and tax credits, to the extent that realizing these benefits is considered in our judgment to be more likely than not. We regularly review the recoverability of our deferred tax assets considering our historic profitability, projected future taxable income, timing of the reversals of existing temporary differences and the feasibility of our tax planning strategies. Where appropriate, we record a valuation allowance with respect to a future tax benefit.	
The provision for income taxes involves a significant amount of management judgment regarding interpretation of relevant facts and laws in the jurisdictions in which we operate. Future changes in applicable laws, projected levels of taxable income, and tax planning could change the effective tax rate and tax balances recorded by us. In addition, tax authorities periodically review income tax returns filed by us and can raise issues regarding our filing positions, timing and amount of income or deductions, and the allocation of income among the jurisdictions in which we operate. 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. We believe that we have adequately provided for any reasonably foreseeable resolution of these matters. We will adjust our estimate if significant events so dictate. To the extent that the ultimate results differ from our

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original or adjusted estimates, the effect will be recorded in the provision for income taxes in the period that the matter is finally resolved.
		
•	Employee benefit plans – We provide a range of benefits to eligible employees and retirees, including pensions, postretirement and postemployment benefits. Determining the cost associated with such benefits is dependent on various actuarial assumptions including discount rates, expected return on plan assets, compensation increases, mortality, turnover rates and healthcare cost trend rates. Actuarial valuations are performed to determine expense in accordance with GAAP. Actual results may differ from the actuarial assumptions and are generally accumulated and amortized into earnings over future periods. We review our actuarial assumptions at each measurement date and make modifications to the assumptions based on current rates and trends, if appropriate. The discount rate, the rate of compensation increase and the expected long-term rates of return on plan assets are determined as of each measurement date.	
The rate of compensation increase is dependent on expected future compensation levels. The expected long-term rate of return on plan assets reflects the average rate of returns expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation. The expected long-term rate of return on plan assets is based on what is achievable given the plan’s investment policy, the types of assets held and the target asset allocation. The expected long-term rate of return is determined as of each measurement date. We believe that the assumptions utilized in recording our obligations under our plans are reasonable based on input from our actuaries, outside investment advisors and information as to assumptions used by plan sponsors.
Changes in any of the assumptions can have an impact on the net periodic pension cost or postretirement benefit cost. Estimated sensitivities to the expected 2020 net periodic pension cost of a 0.25% rate decline in the two basic assumptions are as follows: the decline in the discount rate would increase expense by approximately $8.8 million and the decline in the estimated return on assets would increase expense by approximately $7.7 million. A 0.25% rate decrease in the discount rate for postretirement benefits would increase expected 2020 net periodic postretirement benefit cost by $0.7 million and a 1.0% increase in the healthcare cost trend rate would increase the service and interest cost by approximately $0.5 million.
Recent Accounting Pronouncements
See Note 3 to the Consolidated Financial Statements for a discussion of recent accounting pronouncements.
Item 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
We are exposed to fluctuations in currency exchange rates, interest rates and commodity prices which could impact our results of operations and financial condition.
Foreign Currency Exposures
We have operations throughout the world that manufacture and sell products in various international markets. As a result, we are exposed to movements in exchange rates of various currencies against the U.S. dollar as well as against other currencies throughout the world.
Many of our non-U.S. operations have a functional currency other than the U.S. dollar, and their results are translated into U.S. dollars for reporting purposes. Therefore, our reported results will be higher or lower depending on the weakening or strengthening of the U.S. dollar against the respective foreign currency. Our largest concentration of revenues from non-U.S. operations as of December 31, 2019 are in Euros and Chinese Yuan. A hypothetical 10% unfavorable change in the average exchange rate used to translate Net revenues for the year ended December 31, 2019 from either Euros or Chinese Yuan-based operations into U.S. dollars would not have a material impact on our financial statements.
We use derivative instruments to hedge those material exposures that cannot be naturally offset. The instruments utilized are viewed as risk management tools, primarily involve little complexity and are not used for trading or speculative purposes. To minimize the risk of counter party non-performance, derivative instrument agreements are made only through major financial institutions with significant experience in such derivative instruments.
We evaluate our exposure to changes in currency exchange rates on our foreign currency derivatives using a sensitivity analysis. The sensitivity analysis is a measurement of the potential loss in fair value based on a percentage change in exchange rates. Based on the firmly committed currency derivative instruments in place at December 31, 2019, a hypothetical change in fair value of those derivative instruments assuming a 10% adverse change in exchange rates would result in an unrealized loss of approximately $23.2 million, as compared with $17.6 million at December 31, 2018. These amounts, when realized, would be offset by changes in the fair value of the underlying transactions.
Commodity Price Exposures
We are exposed to volatility in the prices of commodities used in some of our products and we use fixed price contracts to manage this exposure. We do not have committed commodity derivative instruments in place at December 31, 2019.

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Interest Rate Exposure
Our debt portfolio mainly consists of fixed-rate instruments, and therefore any fluctuation in market interest rates is not expected to have a material effect on our results of operations.

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Item 8.      FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

(a)	The following Consolidated Financial Statements and Financial Statement Schedules and the report thereon of PricewaterhouseCoopers LLP dated February 18, 2020, are presented in this Annual Report on Form 10-K beginning on page F-1.	
Consolidated Financial Statements:
Report of independent registered public accounting firm
Consolidated Statements of Comprehensive Income for the years ended December 31, 2019, 2018 and 2017
Consolidated Balance Sheets at December 31, 2019 and 2018
For the years ended December 31, 2019, 2018 and 2017:
Consolidated Statements of Equity
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Financial Statement Schedule:
Schedule II – Valuation and Qualifying Accounts for the years ended December 31, 2019, 2018 and 2017

(b)	The unaudited selected quarterly financial data for the two years ended December 31, is as follows:	

																	
 	 	2019	
In millions, except per share amounts	 	First
Quarter	 	Second
Quarter	 	Third
Quarter	 	Fourth
Quarter	
Net revenues	 	$	3,575.9		 	$	4,527.8		 	$	4,344.3		 	$	4,150.9		
Cost of goods sold	 	(2,517.3	)	 	(3,094.1	)	 	(2,935.8	)	 	(2,904.3	)	
Operating income	 	318.5		 	650.5		 	623.2		 	425.4		
Earnings from continuing operations	 	205.8		 	465.9		 	439.0		 	277.2		
Net earnings	 	203.7		 	460.3		 	463.4		 	301.1		
Net earnings attributable to Ingersoll-Rand plc	 	199.9		 	456.1		 	458.8		 	296.1		
Earnings per share attributable to Ingersoll-Rand plc ordinary shareholders:	 	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.83		 	$	1.91		 	$	1.80		 	$	1.13		
Discontinued operations	 	$	(0.01	)	 	$	(0.03	)	 	$	0.10		 	$	0.10		
Diluted:	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.82		 	$	1.88		 	$	1.78		 	$	1.12		
Discontinued operations	 	$	—		 	$	(0.02	)	 	$	0.10		 	$	0.10		
 	 	2018	
 	 	First
Quarter	 	Second
Quarter	 	Third
Quarter	 	Fourth
Quarter	
Net revenues	 	$	3,384.5		 	$	4,357.7		 	$	4,030.9		 	$	3,895.1		
Cost of goods sold	 	(2,420.2	)	 	(2,964.1	)	 	(2,718.3	)	 	(2,745.0	)	
Operating income	 	243.4		 	640.3		 	587.0		 	446.7		
Earnings from continuing operations	 	133.5		 	458.5		 	531.1		 	256.0		
Net earnings	 	124.1		 	452.6		 	519.4		 	261.4		
Net earnings attributable to Ingersoll-Rand plc	 	120.4		 	448.1		 	515.1		 	254.0		
Earnings per share attributable to Ingersoll-Rand plc ordinary shareholders:	 	 	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.52		 	$	1.83		 	$	2.14		 	$	1.02		
Discontinued operations	 	$	(0.04	)	 	$	(0.02	)	 	$	(0.05	)	 	$	0.02		
Diluted:	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.51		 	$	1.82		 	$	2.11		 	$	1.00		
Discontinued operations	 	$	(0.03	)	 	$	(0.03	)	 	$	(0.05	)	 	$	0.03		

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Item 9.      CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None.
Item 9A.    CONTROLS AND PROCEDURES

		
(a)	Evaluation of Disclosure Controls and Procedures	
The Company's management, including its Chief Executive Officer and Chief Financial Officer, have conducted an evaluation of the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)), as of the end of the period covered by this Annual Report on Form 10-K. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded as of December 31, 2019, that the Company's disclosure controls and procedures were effective in ensuring that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act has been recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms, and that such information has been accumulated and communicated to the Company's management including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

		
(b)	Management's Report on Internal Control Over Financial Reporting	
The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined under Exchange Act Rules 13a-15(f) and 15d-15(f). Internal control over financial reporting is a process designed by, or under the supervision of, the Chief Executive Officer and Chief Financial Officer and effected by the Company's Board of Directors to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies and procedures may deteriorate.
Management has assessed the effectiveness of internal control over financial reporting as of December 31, 2019. In making its assessment, management has utilized the criteria set forth by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission in Internal Control - Integrated Framework (2013). Management concluded that based on its assessment, the Company's internal control over financial reporting was effective as of December 31, 2019.
In May 2019, the Company acquired Precision Flow Systems (PFS), which has total assets, excluding intangible assets and goodwill arising from the acquisition, and total revenue of approximately 2% and 1%, respectively, of the amounts reported as total assets and net revenue in the consolidated financial statements as of and for the year ended December 31, 2019. Management's assessment of the effectiveness of our internal control over financial reporting as of December 31, 2019 excluded the PFS acquisition, as the Company is in the process of aligning and integrating various processes, systems and internal controls related to the business and operations of this subsidiary, excluding intangible assets and goodwill, which are included within the scope of Management's assessment. Guidance issued by the SEC staff permits management to omit from the scope of its assessment a recently acquired business in the year of acquisition.
The effectiveness of the Company's internal control over financial reporting as of December 31, 2019 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears herein.

		
(c)	Changes in Internal Control Over Financial Reporting	
There were no changes in internal control over financial reporting (as defined by Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during the quarter ended December 31, 2019 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
Item 9B.    OTHER INFORMATION

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PART III
Item 10.     DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information regarding our executive officers is included in Part I under the caption “Executive Officers of Registrant.”
The other information required by this item is incorporated herein by reference to the information contained under the headings “Item 1. Election of Directors”, “Delinquent Section 16(a) Reports” and “Corporate Governance” in our definitive proxy statement for the 2020 annual general meeting of shareholders (2020 Proxy Statement).
Item 11.     EXECUTIVE COMPENSATION
The other information required by this item is incorporated herein by reference to the information contained under the headings “Compensation Discussion and Analysis,” “Compensation of Directors,” “Executive Compensation,” “Compensation Committee Report” and “Compensation Committee Interlocks and Insider Participation” in our 2020 Proxy Statement.
Item 12.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
The other information required by this item is incorporated herein by reference to the information contained under the headings “Security Ownership of Certain Beneficial Owners and Management” and “Equity Compensation Plan Information” in our 2020 Proxy Statement.
Item 13.     CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The other information required by this item is incorporated herein by reference to the information contained under the headings “Corporate Governance” and “Certain Relationships and Related Person Transactions” in our 2020 Proxy Statement.
Item 14.    PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this item is incorporated herein by reference to the information contained under the caption “Fees of the Independent Auditors” in our 2020 Proxy Statement.

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PART IV
Item 15.    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

	
		
(a) 1. and 2.	Financial statements and financial statement schedule
See Item 8.	
 	 	
3.	Exhibits	
 	The exhibits listed on the accompanying index to exhibits are filed as part of this Annual Report on Form 10-K.	

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INGERSOLL-RAND PLC
INDEX TO EXHIBITS
(Item 15(a))
Description
Pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), Ingersoll-Rand plc (the “Company”) has filed certain agreements as exhibits to this Annual Report on Form 10-K. These agreements may contain representations and warranties by the parties. These representations and warranties have been made solely for the benefit of the other party or parties to such agreements and (i) may have been qualified by disclosures made to such other party or parties, (ii) were made only as of the date of such agreements or such other date(s) as may be specified in such agreements and are subject to more recent developments, which may not be fully reflected in our public disclosure, (iii) may reflect the allocation of risk among the parties to such agreements and (iv) may apply materiality standards different from what may be viewed as material to investors. Accordingly, these representations and warranties may not describe our actual state of affairs at the date hereof and should not be relied upon.
On July 1, 2009, Ingersoll-Rand Company Limited, a Bermuda company, completed a reorganization to change the jurisdiction of incorporation of the parent company from Bermuda to Ireland. As a result, Ingersoll-Rand plc replaced Ingersoll-Rand Company Limited as the ultimate parent company effective July 1, 2009. All references related to the Company prior to July 1, 2009 relate to Ingersoll-Rand Company Limited.
(a) Exhibits

	
					
Exhibit No.	 	Description	  	Method of Filing	

2.1	 	Separation and Distribution Agreement between Ingersoll-Rand plc and Allegion plc, dated November 29, 2013.
	  	Incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on December 2, 2013.

2.2	 	Agreement and Plan of Merger, dated as of April 30, 2019, by and among the Company, Gardner Denver Holdings, Inc., Ingersoll-Rand U.S. HoldCo, Inc. and Charm Merger Sub Inc.	 	Incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on May 6, 2019.	
 	 	 	 	 	
2.3	 	Separation and Distribution Agreement, dated as of April 30, 2019, by and between Ingersoll-Rand plc and Ingersoll-Rand U.S. HoldCo, Inc.	 	Incorporated by reference to Exhibit 2.2 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on May 6, 2019).	
 	 	 	 	 	
3.1	 	Constitution of the Company, as amended and restated on June 2, 2016	  	Incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on June 7, 2016.	
 	 	 	 	 	
 	 	The Company and its subsidiaries are parties to several long-term debt instruments under which, in each case, the total amount of securities authorized does not exceed 10% of the total assets of the Company and its subsidiaries on a consolidated basis.	  	Pursuant to paragraph 4 (iii)(A) of Item 601 (b) of Regulation S-K, the Company agrees to furnish a copy of such instruments to the Securities and Exchange Commission upon request.

4.1	 	Indenture, dated as of June 20, 2013, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Company Limited and Ingersoll-Rand International Holding Limited, as guarantors and The Bank of New York Mellon, as Trustee..	 	Incorporated by reference to Exhibit 4.1 to the Company's Form 8-K (File No. 001-34400) filed with the SEC on June 26, 2013.

4.2	 	First Supplemental Indenture, dated as of June 20, 2013, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Company Limited and Ingersoll-Rand International Holding Limited, as guarantors and The Bank of New York Mellon, as Trustee, relating to the 2.875% Senior Notes due 2019.	 	Incorporated by reference to Exhibit 4.2 to the Company's Form 8-K (File No. 001-34400) filed with the SEC on June 26, 2013.

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Exhibit No.	 	Description	  	Method of Filing	
4.3	 	Second Supplemental Indenture, dated as of June 20, 2013, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Company Limited and Ingersoll-Rand International Holding Limited, as guarantors and The Bank of New York Mellon, as Trustee, relating to the 4.250% Senior Notes due 2023.	 	Incorporated by reference to Exhibit 4.3 to the Company's Form 8-K (File No. 001-34400) filed with the SEC on June 26, 2013.	
 	 	 	 	 	
4.4	 	Third Supplemental Indenture, dated as of June 20, 2013, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Company Limited and Ingersoll-Rand International Holding Limited, as guarantors and The Bank of New York Mellon, as Trustee, relating to the 5.750% Senior Notes due 2043.	 	Incorporated by reference to Exhibit 4.4 to the Company's Form 8-K (File No. 001-34400) filed with the SEC on June 26, 2013.

4.5	 	Fourth Supplemental Indenture, dated as of November 20, 2013, among Ingersoll-Rand Global Holding Company Limited, a Bermuda company, Ingersoll-Rand Company Limited, a Bermuda company, Ingersoll-Rand International Holding Limited, a Bermuda company, Ingersoll-Rand plc, an Irish public limited company, Ingersoll-Rand Company, a New Jersey corporation, and The Bank of New York Mellon, as Trustee, to the Indenture dated as of June 20, 2013.	 	Incorporated by reference to Exhibit 4.1 to the Company's Form 8-K (File No. 001-34400) filed with the SEC on November 26, 2013.

4.6	 	Fifth Supplemental Indenture, dated as of October 28, 2014, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand Company, as co-obligor, Ingersoll-Rand plc, Ingersoll-Rand Company Limited, Ingersoll-Rand International Holding Limited, Ingersoll-Rand Luxembourg Finance S.A., as guarantors, and The Bank of New York Mellon, as Trustee, to an Indenture, dated as of June 20, 2013.	 	Incorporated by reference to Exhibit 4.5 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on October 29, 2014.

4.7	 	Sixth Supplemental Indenture, dated as of December 18, 2015, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand Company, as co-obligor, Ingersoll-Rand plc, Ingersoll-Rand International Holding Limited, Ingersoll-Rand Luxembourg Finance S.A., and Ingersoll-Rand Lux International Holding Company S.à.r.l. as guarantors, and The Bank of New York Mellon, as Trustee, to an Indenture, dated as of June 20, 2013.  	 	Incorporated by reference to Exhibit 4.21 to the Company's Form 10-K for the fiscal year ended 2015 (File No. 001-34400) filed with the SEC on February 12, 2016.

4.8	 	Seventh Supplemental Indenture, dated as of April 5, 2016, by and among Ingersoll-Rand Global Holding company Limited, as issuer, Ingersoll-Rand Company, as co-obligor, Ingersoll-Rand plc, Ingersoll-Rand International Holding Limited, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., and Ingersoll-Rand Irish Holdings Unlimited Company, as guarantors, and The Bank of New York Mellon, as Trustee, to an indenture, dated as of June 20, 2013.
	 	Incorporated by reference to Exhibit 4.19 to the Company’s Form 10-K for the fiscal year ended 2016 (File No. 001-34400) filed with the SEC on February 13, 2017.

 	 	 	 	 	

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Exhibit No.	 	Description	  	Method of Filing	
4.9	 	Indenture, dated as of October 28, 2014, by and among Ingersoll-Rand Luxembourg Finance S.A., as issuer, and Ingersoll-Rand plc, Ingersoll-Rand Company Limited, Ingersoll-Rand International Holding Limited, Ingersoll-Rand Company and Ingersoll-Rand Global Holding Company Limited, as guarantors, and The Bank of New York Mellon, as Trustee.	 	Incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on October 29, 2014

4.10	 	First Supplemental Indenture, dated as of October 28, 2014, by and among Ingersoll-Rand Luxembourg Finance S.A., as issuer, and Ingersoll-Rand plc, Ingersoll-Rand Company Limited, Ingersoll-Rand International Holding Limited, Ingersoll-Rand Company and Ingersoll-Rand Global Holding Company Limited, as guarantors, and The Bank of New York Mellon, as Trustee, relating to the 2.625% Senior Notes due 2020.	 	Incorporated by reference to Exhibit 4.2 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on October 29, 2014.

4.11	 	Second Supplemental Indenture, dated as of October 28, 2014, by and among Ingersoll-Rand Luxembourg Finance S.A., as issuer, and Ingersoll-Rand plc, Ingersoll-Rand Company Limited, Ingersoll-Rand International Holding Limited, Ingersoll-Rand Company and Ingersoll-Rand Global Holding Company Limited, as guarantors, and The Bank of New York Mellon, as Trustee, relating to the 3.550% Senior Notes due 2024.	 	Incorporated by reference to Exhibit 4.3 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on October 29, 2014.

4.12	 	Third Supplemental Indenture, dated as of October 28, 2014, by and among Ingersoll-Rand Luxembourg Finance S.A., as issuer, and Ingersoll-Rand plc, Ingersoll-Rand Company Limited, Ingersoll-Rand International Holding Limited, Ingersoll-Rand Company and Ingersoll-Rand Global Holding Company Limited, as guarantors, and The Bank of New York Mellon, as Trustee, relating to the 4.650% Senior Notes due 2044.	 	Incorporated by reference to Exhibit 4.3 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on October 29, 2014.	
 	 	 	 	 	
4.13	 	Fourth Supplemental Indenture, dated as of December 18, 2015, by and among Ingersoll-Rand Luxembourg Finance S.A., as issuer, and Ingersoll-Rand plc, Ingersoll-Rand International Holding Limited, Ingersoll-Rand Company, Ingersoll-Rand Global Holding Company Limited, and Ingersoll-Rand Lux International Holding Company S.à.r.l. as guarantors, and The Bank of New York Mellon, as Trustee.	 	Incorporated by reference to Exhibit 4.27 to the Company's Form 10-K for the fiscal year ended 2015 (File No. 001-34400) filed with the SEC on February 12, 2016.	
 	 	 	 	 	
4.14	 	Fifth Supplemental Indenture, dated as of April 5, 2016, by and among Ingersoll-Rand Luxembourg Finance S.A., as Issuer, and Ingersoll-Rand plc, Ingersoll-Rand Company Limited, Ingersoll-Rand Company, Ingersoll-Rand International Holding Limited, Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand Irish Holdings Unlimited Company, as guarantors, and The Bank of New York Mellon, as Trustee.
	 	Incorporated by reference to Exhibit 4.25 to the Company’s Form 10-K for the fiscal year ended 2016 (File No. 001-34400) filed with the SEC on February 13, 2017.	
 	 	 	 	 	
4.15	 	Indenture, dated as of February 21, 2018, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand Irish Holdings Unlimited Company and Ingersoll-Rand Company, as guarantors, and Wells Fargo Bank, National Association, as Trustee.	 	Incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on February 26, 2018.	

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Exhibit No.	 	Description	  	Method of Filing	
 	 	 	 	 	
4.16	 	First Supplemental Indenture, dated as of February 21, 2018, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand Irish Holdings Unlimited Company and Ingersoll-Rand Company, as guarantors, and Wells Fargo Bank, National Association, as Trustee, relating to the 2.900% Senior Notes due 2021.	 	Incorporated by reference to Exhibit 4.2 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on February 26, 2018.	
 	 	 	 	 	
4.17	 	Second Supplemental Indenture, dated as of February 21, 2018, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand Irish Holdings Unlimited Company and Ingersoll-Rand Company, as guarantors, and Wells Fargo Bank, National Association, as Trustee, relating to the 3.750% Senior Notes due 2028.	 	Incorporated by reference to Exhibit 4.4 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on February 26, 2018.	
 	 	 	 	 	
4.18	 	Third Supplemental Indenture, dated as of February 21, 2018, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand Irish Holdings Unlimited Company and Ingersoll-Rand Company, as guarantors, and Wells Fargo Bank, National Association, as Trustee, relating to the 4.300% Senior Notes due 2048.	 	Incorporated by reference to Exhibit 4.6 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on February 26, 2018.	
 	 	 	 	 	
4.19	 	Fourth Supplemental Indenture, dated as of March 21, 2019, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand Irish Holdings Unlimited Company and Ingersoll-Rand Company, as guarantors, and Wells Fargo Bank, National Association, as Trustee, relating to the 3.500% Senior Notes due 2026.	 	Incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on March 26, 2019.	
 	 	 	 	 	
4.20	 	Fifth Supplemental Indenture, dated as of March 21, 2019, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand Irish Holdings Unlimited Company and Ingersoll-Rand Company, as guarantors, and Wells Fargo Bank, National Association, as Trustee, relating to the 3.800% Senior Notes due 2029.	 	Incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on March 26, 2019.	
 	 	 	 	 	
4.22	 	Sixth Supplemental Indenture, dated as of March 21, 2019, by and among Ingersoll-Rand Global Holding Company Limited, as issuer, Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand Irish Holdings Unlimited Company and Ingersoll-Rand Company, as guarantors, and Wells Fargo Bank, National Association, as Trustee, relating to the 4.500% Senior Notes due 2049.	 	Incorporated by reference to Exhibit 4.5 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on March 26, 2019.	

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Exhibit No.	 	Description	  	Method of Filing	
4.23	 	Form of Ordinary Share Certificate of Ingersoll-Rand plc.	  	Incorporated by reference to Exhibit 4.6 to the Company’s Form S-3 (File No. 333-161334) filed with the SEC on August 13, 2009.	
 	 	 	 	 	
4.24	 	Description of Registrant's Securities.	 	Filed herewith.	
 	 	 	 	 	
10.1*	 	Form of Global Stock Option Award Agreement (June 2018).	  	Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on June 12, 2018.

10.2*	 	Form of Global Restricted Stock Unit Award Agreement (June 2018).	  	Incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on June 12, 2018.	
 	 	 	 	 	
10.3*	 	Form of Global Performance Stock Unit Award Agreement (June 2018).	  	Incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on June 12, 2018.	
 	 	 	 	 	
10.4	 	Credit Agreement dated March 15, 2016 among Ingersoll-Rand Global Holding Company Limited, Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand International Holding Limited, Ingersoll-Rand Company, JPMorgan Chase Bank, N.A., as Administrative Agent, Citibank, N.A., as Syndication Agent, Bank of America, N.A., BNP Paribas, Deutsche Bank Securities, Inc., Goldman Sachs Bank USA, Mizuho Bank, Ltd., and The Bank of Tokyo-Mitsubishi UFJ, Ltd. as Documentation Agents, and JPMorgan Chase Bank, N.A. and Citigroup Global Markets Inc., as joint lead arrangers and joint bookrunners, and certain lending institutions from time to time parties thereto.	 	Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on March 17, 2016.	
 	 	 	 	 	
10.5	 	Supplemental Guarantee dated as of April 5, 2016 made by Ingersoll-Rand Irish Holdings Unlimited Company in favor of JPMorgan Chase Bank, N.A., as Administrative Agent for the Banks that are parties to the Credit Agreement dated as of March 15, 2016.	 	Incorporated by reference to Exhibit 10.8 to the Company’s Form 10-K for the fiscal year ended 2017 (File No. 001-34400) filed with the SEC on February 13, 2017.	
 	 	 	 	 	
10.6	 	Credit Agreement dated April 17, 2018 among Ingersoll-Rand Global Holding Company Limited, Ingersoll-Rand plc, Ingersoll-Rand Luxembourg Finance S.A., Ingersoll-Rand Lux International Holding Company S.à r.l., Ingersoll-Rand Irish Holdings Unlimited Company, Ingersoll-Rand Company, JPMorgan Chase Bank, N.A., as Administrative Agent, Citibank, N.A., as Syndication Agent, Bank of America, N.A., BNP Paribas, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Mizuho Bank, Ltd., and MUFG Bank Ltd. as Documentation Agents, and JPMorgan Chase Bank, N.A. and Citigroup Global Markets Inc., as joint lead arrangers and joint bookrunners, and certain lending institutions from time to time parties thereto.
	 	Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on April 19, 2018.	

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Exhibit No.	 	Description	  	Method of Filing	
10.7	 	Deed Poll Indemnity of Ingersoll-Rand plc, an Irish public limited company, as to the directors, secretary and officers and senior executives of Ingersoll-Rand plc and the directors and officers of Ingersoll-Rand plc’s subsidiaries.
	 	Incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on July 1, 2009.	
 	 	 	 	 	
10.8	 	Tax Sharing Agreement, dated as of July 16, 2007, by and among American Standard Companies Inc. and certain of its subsidiaries and WABCO Holdings Inc. and certain of its subsidiaries.
	 	Incorporated by reference to Exhibit 10.1 to Trane Inc.’s Form 8-K (File No. 001-11415) filed with the SEC on July 20, 2007.	
 	 	 	 	 	
10.9	 	Tax Matters Agreement between Ingersoll-Rand plc and Allegion plc, dated November 30, 2013.	  	Incorporated by reference to Exhibit 10.2 to the Company's Form 8-K (File No. 001-34400) filed with the SEC on December 2, 2013.	
 	 	 	 	 	
10.10*	 	Ingersoll-Rand plc Incentive Stock Plan of 2013.	  	Incorporated by reference to Exhibit 4.5 to the Company's Form S-8 (File No. 333-189446) filed with the SEC on June 19, 2013.	
 	 	 	 	 	
10.11*	 	Ingersoll-Rand plc Incentive Stock Plan of 2018.	 	Incorporated by reference to Exhibit 4.3 to the Company’s Form S-8 (File No. 333-225575) filed with the SEC on June 12, 2018.	
 	 	 	 	 	
10.12*	 	IR Executive Deferred Compensation Plan (as amended and restated effective January 1, 2017).	 	Incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended June 30, 2017 (File No. 001-34400) filed with the SEC on July 26, 2017.	
 	 	 	 	 	
10.13*	 	IR Executive Deferred Compensation Plan II (as amended and restated effective January 1, 2017).	  	Incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q for the quarter ended June 30, 2017 (File No. 001-34400) filed with the SEC on July 26, 2017.	
 	 	 	 	 	
10.14*	 	First Amendment to IR Executive Deferred Compensation Plan II (dated December 22, 2009).	  	Incorporated by reference to Exhibit 10.19 to the Company’s Form 10-K for the fiscal year ended 2011 (File No. 001-34400) filed with the SEC on February 21, 2012.	
 	 	 	 	 	
10.15*	 	Second Amendment to IR Executive Deferred Compensation Plan II (dated December 23, 2010).	  	Incorporated by reference to Exhibit 10.20 to the Company’s Form 10-K for the fiscal year ended 2011 (File No. 001-16831) filed with the SEC on February 21, 2012.	
 	 	 	 	 	
10.16*	 	IR-plc Director Deferred Compensation and Stock Award Plan (as amended and restated effective July 1, 2009).	 	Incorporated by reference to Exhibit 10.11 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on July 1, 2009.	
 	 	 	 	 	
10.17*	 	IR-plc Director Deferred Compensation and Stock Award Plan II (as amended and restated effective July 1, 2009).	 	Incorporated by reference to Exhibit 10.12 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on July 1, 2009.	
 	 	 	 	 	
10.18*	 	Ingersoll-Rand Company Supplemental Employee Savings Plan (amended and restated effective October 1, 2012).	  	Incorporated by reference to exhibit 10.23 to the Company's Form 10-K for the fiscal year ended 2012 (File No. 001-34400) filed with the SEC on February 14, 2013.	
 	 	 	 	 	
10.19*	 	Amendment to the Ingersoll-Rand Company Supplemental Employee Savings Plan dated April 6, 2017.	  	Incorporated by reference to Exhibit 10.21 to the Company’s Form 10-K (File No. 001-34400) filed with the SEC on February 12, 2018.	
 	 	 	 	 	
10.20*	 	Ingersoll-Rand Company Supplemental Employee Savings Plan II (effective January 1, 2005 and amended and restated through October 1, 2012).	  	Incorporated by reference to exhibit 10.24 to the Company's Form 10-K for the fiscal year ended 2012 (File No. 001-34400) filed with the SEC on February 14, 2013.	

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Exhibit No.	 	Description	  	Method of Filing	
10.21*	 	Amendment to the Ingersoll-Rand Company Supplemental Employee Savings Plan II dated April 6, 2017.	 	Incorporated by reference to Exhibit 10.23 to the Company’s Form 10-K (File No. 001-34400) filed with the SEC on February 12, 2018.	
 	 	 	 	 	
10.22*	 	Trane Inc. Deferred Compensation Plan (as amended and restated as of July 1, 2009, except where otherwise stated).	  	Incorporated by reference to Exhibit 10.19 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on July 1, 2009.	
 	 	 	 	 	
10.23*	 	Amendment to Trane Inc. Deferred Compensation Plan dated April 6, 2017.	 	Incorporated by reference to Exhibit 10.25 to the Company’s Form 10-K (File No. 001-34400) filed with the SEC on February 12, 2018.	
 	 	 	 	 	
10.24*	 	Ingersoll-Rand Company Supplemental Pension Plan (Amended and Restated Effective January 1, 2005).	 	Incorporated by reference to Exhibit 10.28 to the Company’s Form 10-K for the fiscal year ended 2008 (File No. 001-16831) filed with the SEC on March 2, 2009.	
 	 	 	 	 	
10.25*	 	First Amendment to the Ingersoll-Rand Company Supplemental Pension Plan, dated as of July 1, 2009.	 	Incorporated by reference to Exhibit 10.21 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on July 1, 2009.	
 	 	 	 	 	
10.26*	 	Ingersoll-Rand Company Elected Officers Supplemental Plan (Effective January 1, 2005 and Amended and Restated effective October 1, 2012).	 	Incorporated by reference to exhibit 10.32 to the Company's Form 10-K for the fiscal year ended 2012 (File No. 001-34400) filed with the SEC on February 14, 2013.	
 	 	 	 	 	
10.27*	 	Ingersoll-Rand Company Key Management Supplemental Program (Effective January 1, 2005 and Amended and Restated effective October 1, 2012).	 	Incorporated by reference to exhibit 10.27 to the Company’s Form 10-K for the fiscal year ended 2018 (File No. 001-34400) filed with the SEC on February 12, 2019.

10.28*	 	First Amendment to the Ingersoll Rand Company Key Management Supplemental Program, dated as of June 15, 2015.	 	Incorporated by reference to exhibit 10.28 to the Company’s Form 10-K for the fiscal year ended 2018 (File No. 001-34400) filed with the SEC on February 12, 2019.

10.29*	 	Description of Annual Incentive Matrix Program.	 	Incorporated by reference to Exhibit 10.30 to the Company’s Form 10-K (File No. 001-34400) filed with the SEC on February 12, 2018.	
 	 	 	 	 	
10.30*	 	Form of Tier 1 Change in Control Agreement (Officers before May 19, 2009).
	 	Incorporated by reference to Exhibit 99.1 to the Company's Form 8-K (File No. 001-16831) filed with the SEC on December 4, 2006.	
 	 	 	 	 	
10.31*	 	Form of Tier 2 Change in Control Agreement (Officers before May 19, 2009).	 	Incorporated by reference to Exhibit 99.2 to the Company’s Form 8-K (File No. 001-16831) filed with the SEC on December 4, 2006.	
 	 	 	 	 	
10.32*	 	Form of Tier 1 Change in Control Agreement (New Officers on or after May 19, 2009).	 	Incorporated by reference to Exhibit 10.32 to the Company’s Form 10-Q for the period ended June 30, 2009 (File No. 001-34400) filed with the SEC on August 6, 2009.	
 	 	 	 	 	
10.33*	 	Form of Tier 2 Change in Control Agreement (New Officers on or after May 19, 2009).	 	Incorporated by reference to Exhibit 10.33 to the Company’s Form 10-Q for the period ended June 30, 2009 (File No. 001-34400) filed with the SEC on August 6, 2009.	
 	 	 	 	 	
10.34*	 	Amended and Restated Major Restructuring Severance Plan (as amended and restated effective April 18, 2019).	 	Incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q for the period ended June 30, 2019 (File No. 001-34400) filed with the SEC on August 5, 2019.	
 	 	 	 	 	
10.35*	 	Michael W. Lamach Letter, dated December 24, 2003.	  	Incorporated by reference to Exhibit 10.35 to the Company’s Form 10-K for the fiscal year ended 2003 (File No. 001-16831) filed with the SEC on February 27, 2004.	

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Exhibit No.	 	Description	  	Method of Filing	
10.36*	 	Michael W. Lamach Letter, dated June 4, 2008.	 	Incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K (File No. 001-16831) filed with the SEC on June 10, 2008.	
 	 	 	 	 	
10.37*	 	Michael W. Lamach Letter, dated February 4, 2009.	 	Incorporated by reference to Exhibit 10.43 to the Company’s Form 10-K for the fiscal year ended 2008 (File No. 001-16831) filed with the SEC on March 2, 2009.	
 	 	 	 	 	
10.38*	 	Michael W. Lamach Letter, dated February 3, 2010.	 	Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on February 5, 2010.	
 	 	 	 	 	
10.39*	 	Michael W. Lamach Letter, dated December 23, 2012.	 	Incorporated by reference to exhibit 10.48 to the Company's Form 10-K for the fiscal year ended 2012 (File No. 001-34400) filed with the SEC on February 14, 2013.	
 	 	 	 	 	
10.40*	 	Marcia J. Avedon Letter, dated January 8, 2007.	 	Incorporated by reference to Exhibit 10.45 to the Company's Form 10-K for the fiscal year ended December 31, 2006 (File No. 001-16831) filed with the SEC on March 1, 2007.	
 	 	 	 	 	
10.41*	 	Marcia J. Avedon Letter, dated December 20, 2012.	 	Incorporated by reference to exhibit 10.53 to the Company's Form 10-K for the fiscal year ended 2012 (File No. 001-34400) filed with the SEC on February 14, 2013.	
 	 	 	 	 	
10.43*	 	Susan K. Carter Letter, dated as of August 19, 2013.	 	Incorporated by reference to Exhibit 10.1 to the Company's Form 8-K (File No. 001-34400) filed with the SEC on October 2, 2013.	
 	 	 	 	 	
10.44*	 	David S. Regnery Letter, dated as of September 1, 2017.	 	Incorporated by reference to Exhibit 10.44 to the Company’s Form 10-K for the year ended December 31, 2018 (File No. 001-34400) filed with the SEC on February 12, 2019.

10.45*	 	David S. Regnery Letter, dated as of December 9, 2019.	 	Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on December 11, 2019.	
 	 	 	 	 	
10.46*	 	Christopher J. Kuehn Letter, dated as of December 10, 2019.	 	Incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K (File No. 001-34400) filed with the SEC on December 10, 2019.	
 	 	 	 	 	
10.47*	 	Employee Matters Agreement between Ingersoll-Rand plc and Allegion plc, dated November 30, 2013.	 	Incorporated by reference to Exhibit 10.1 to the Company's Form 8-K (File No. 001-34400) filed with the SEC on December 2, 2013.	
 	 	 	 	 	
21	 	List of Subsidiaries of Ingersoll-Rand plc.	 	Filed herewith.	
 	 	 	 	 	
23.1	 	Consent of Independent Registered Public Accounting Firm.	 	Filed herewith.	
 	 	 	 	 	
31.1	 	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	  	Filed herewith.	
 	 	 	 	 	
31.2	 	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	  	Filed herewith.	
 	 	 	 	 	
32	 	Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	  	Furnished herewith.	

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Exhibit No.	 	Description	  	Method of Filing	
 	 	 	 	 	
101	 	The following materials from the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, formatted in Inline XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Comprehensive Income, (ii) the Consolidated Balance Sheets, (iii) the Consolidated Statements of Equity, (iv) the Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements.	  	Furnished herewith.	
* Management contract or compensatory plan or arrangement.

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Item 16. FORM 10-K SUMMARY
Not applicable.

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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
INGERSOLL-RAND PLC
(Registrant)

	
			
By:	 	/s/ Michael W. Lamach	
 	 	Michael W. Lamach	
 	 	Chairman of the Board and Chief Executive Officer	
Date:	 	February 18, 2020	

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Pursuant to the requirement of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	
					
Signature	  	Title	 	Date	
 	 	 	 	 	
/s/ Michael W. Lamach	  	Chairman of the Board and Chief Executive Officer (Principal Executive Officer)	 	February 18, 2020	
(Michael W. Lamach)	 		 	 	
 	 	 	 	 	
/s/ Susan K. Carter	  	Senior Vice President and Chief Financial Officer (Principal Financial Officer)	 	February 18, 2020	
(Susan K. Carter)	 		 	 	
 	 	 	 	 	
/s/ Christopher J. Kuehn	  	Vice President and Chief Accounting Officer (Principal Accounting Officer)	 	February 18, 2020	
(Christopher J. Kuehn)	 		 	 	
 	 	 	 	 	
/s/ Kirk E. Arnold	  	Director	 	February 18, 2020	
(Kirk E. Arnold)	 		 	 	
 	 	 	 	 	
/s/ Ann C. Berzin	  	Director	 	February 18, 2020	
(Ann C. Berzin)	 		 	 	
 	 	 	 	 	
/s/ John Bruton	  	Director	 	February 18, 2020	
(John Bruton)	 		 	 	
 	 	 	 	 	
/s/ Jared L. Cohon	  	Director	 	February 18, 2020	
(Jared L. Cohon)	 		 	 	
 	 	 	 	 	
/s/ Gary D. Forsee	  	Director	 	February 18, 2020	
(Gary D. Forsee)	 		 	 	
 	 	 	 	 	
/s/ Linda P. Hudson	  	Director	 	February 18, 2020	
(Linda P. Hudson)	 		 	 	
 	 	 	 	 	
/s/ Myles P. Lee	  	Director	 	February 18, 2020	
(Myles P. Lee)	 		 	 	
 	 	 	 	 	
/s/ Karen B. Peetz	 	Director	 	February 18, 2020	
(Karen B. Peetz)	 		 	 	
 	 	 	 	 	
/s/ John P. Surma	 	Director	 	February 18, 2020	
 (John P. Surma)	 		 	 	
 	 	 	 	 	
/s/ Richard J. Swift	  	Director	 	February 18, 2020	
(Richard J. Swift)	 		 	 	
 	 	 	 	 	
/s/ Tony L. White	  	Director	 	February 18, 2020	
(Tony L. White)	 		 	 	

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INGERSOLL-RAND PLC
Index to Consolidated Financial Statements

	
		
Report of Independent Registered Public Accounting Firm	F-2	
 	 	
Consolidated Statements of Comprehensive Income	F-5	
 	 	
Consolidated Balance Sheets	F-7	
 	 	
Consolidated Statements of Equity	F-8	
 	 	
Consolidated Statements of Cash Flows	F-9	
 	 	
Notes to Consolidated Financial Statements	F-10	
 	 	
Schedule II – Valuation and Qualifying Accounts	F-57	

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Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Ingersoll-Rand plc
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Ingersoll-Rand plc and its subsidiaries (the “Company”) as of December 31, 2019 and 2018, and the related consolidated statements of comprehensive income, of equity and of cash flows for each of the three years in the period ended December 31, 2019, including the related notes and schedule of valuation and qualifying accounts for each of the three years in the period ended December 31, 2019 listed in the accompanying index (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2019, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Change in Accounting Principle
As discussed in Note 3 to the consolidated financial statements, the Company changed the manner in which it accounts for leases in 2019.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
As described in Management’s Report on Internal Control over Financial Reporting, management has excluded Precision Flow Systems (PFS) from its assessment of internal control over financial reporting as of December 31, 2019 because it was acquired by the Company in a purchase business combination during 2019. We have also excluded PFS from our 2019 audit of internal control over financial reporting. PFS is a wholly-owned subsidiary whose total assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting represent approximately 2% and approximately 1% respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2019.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial

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statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Liability for Asbestos-Related Matters
As described in Notes 3 and 22 to the consolidated financial statements, certain of the Company’s wholly-owned subsidiaries and former companies are named as defendants in asbestos-related lawsuits in state and federal courts for which management recorded asbestos-related liabilities of $547 million as of December 31, 2019. Management engaged an outside expert to perform a detailed analysis and project an estimated range of the Company’s total liability for pending and unasserted future asbestos-related claims. Management’s key assumptions underlying the estimated asbestos-related liabilities included the number of people likely to have been occupationally exposed to asbestos and likely to develop asbestos-related diseases such as mesothelioma and lung cancer, the number of people likely to file an asbestos-related personal injury claim against the Company, the average settlement and resolution value of claims, and the percentage of claims resolved with no payment.
The principal considerations for our determination that performing procedures relating to the liability for asbestos-related matters is a critical audit matter are (i) there was significant judgment by management in developing the estimate for asbestos-related liabilities, which in turn led to a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to management’s estimate and the aforementioned assumptions underlying the estimated asbestos-related liabilities, and (ii) the audit effort involved the use of professionals with specialized skill and knowledge to assist in performing these procedures and evaluating the audit evidence obtained from these procedures.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s estimate for asbestos-related matters, including controls over development of the aforementioned assumptions underlying the estimated asbestos-related liabilities. These procedures also included, among others, testing management’s process for developing the estimate for asbestos-related matters. This included evaluating the appropriateness of the estimate and the reasonableness of the aforementioned assumptions underlying the asbestos-related liabilities. Professionals with specialized skill and knowledge were used to assist in (i) evaluating whether the forecast of new claims that may be filed against the Company was reasonable considering recent Company experience and industry data, which represents the estimated number of individuals likely to have been occupationally exposed to asbestos and expected to develop asbestos-related diseases such as mesothelioma and lung cancer, (ii) evaluating whether the assumed number of people likely to file an asbestos-related personal injury claim against the Company was reasonable, considering the Company’s historical experience, (iii) evaluating whether the estimated average settlement and resolution value of claims was reasonable considering the Company’s historical experience, and (iv) evaluating whether the percentage of claims resolved with no payment was reasonable considering the Company’s historical experience. Procedures were also performed to test the accuracy of data provided by management, including the historical claims filed against the Company, and the cost of resolution for those historical claims.
Acquisition of Precision Flow Systems - Valuation of Customer Relationships
As described in Note 19 to the consolidated financial statements, on May 15, 2019 the Company acquired all the outstanding capital stock of Precision Flow Systems (PFS) for approximately $1.46 billion, of which approximately $458 million was allocated to the customer relationships intangible asset. The fair values of the customer relationship intangible assets were determined using the multi-period excess earnings method based on discounted projected net cash flows. Management’s key assumptions used in estimating future cash flows included projected revenue growth rates and customer attrition rates.
The principal considerations for our determination that performing procedures relating to the acquisition of PFS - valuation of customer relationships is a critical audit matter are (i) there was significant judgment by management in determining the fair value estimate using the multi-period excess earnings method, which in turn led to a high degree of auditor judgment, subjectivity, and

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effort in performing procedures and evaluating audit evidence related to management’s fair value estimate and significant assumptions, including the revenue growth rates and the customer attrition rates used in the cash flow projections and the discount rate used to estimate present value of the projected future cash flows, and (ii) the audit effort involved the use of professionals with specialized skill and knowledge to assist in performing these procedures and evaluating the audit evidence obtained from these procedures.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the acquisition accounting, including controls over management’s valuation of acquired customer relationships and controls over development of the assumptions related to the valuation of the customer relationships, including the revenue growth rates, customer attrition rates, and the discount rate. These procedures also included, among others, (i) reading the purchase agreement, (ii) testing management’s process for developing the fair value estimate of the acquired customer relationships, (iii) testing management’s cash flow projections used to estimate the fair value of the customer relationships, and (iv) evaluating the reasonableness of significant assumptions used by management in estimating the fair value of the customer relationships, including the revenue growth rates, customer attrition rates, and the discount rate. Evaluating the reasonableness of the revenue growth rates and customer attrition rates involved considering the past performance of the acquired businesses, as well as economic and industry forecasts. Evaluating the reasonableness of the discount rate involved considering the cost of capital of comparable businesses, other industry factors, and the implied rate of return on the overall transaction. Professionals with specialized skill and knowledge were used to assist in the evaluation of the Company’s multi-period excess earnings method used to determine the fair value estimate of the acquired customer relationships and certain assumptions, including customer attrition rates and the discount rate.
/s/ PricewaterhouseCoopers LLP
Charlotte, North Carolina    
February 18, 2020
We have served as the Company’s auditor since at least 1906. We have not been able to determine the specific year we began serving as auditor of the Company.

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Ingersoll-Rand plc
Consolidated Statements of Comprehensive Income
In millions, except per share amounts	
													
For the years ended December 31,	 	2019	 	2018	 	2017	
Net revenues	 	$	16,598.9		 	$	15,668.2		 	$	14,197.6		
Cost of goods sold	 	(11,451.5	)	 	(10,847.6	)	 	(9,811.6	)	
Selling and administrative expenses	 	(3,129.8	)	 	(2,903.2	)	 	(2,720.7	)	
Operating income	 	2,017.6		 	1,917.4		 	1,665.3		
Interest expense	 	(243.0	)	 	(220.7	)	 	(215.8	)	
Other income/(expense), net	 	(33.0	)	 	(36.4	)	 	(31.6	)	
Earnings before income taxes	 	1,741.6		 	1,660.3		 	1,417.9		
Provision for income taxes	 	(353.7	)	 	(281.3	)	 	(80.2	)	
Earnings from continuing operations	 	1,387.9		 	1,379.0		 	1,337.7		
Discontinued operations, net of tax	 	40.6		 	(21.5	)	 	(25.4	)	
Net earnings	 	1,428.5		 	1,357.5		 	1,312.3		
Less: Net earnings attributable to noncontrolling interests	 	(17.6	)	 	(19.9	)	 	(9.7	)	
Net earnings attributable to Ingersoll-Rand plc	 	$	1,410.9		 	$	1,337.6		 	$	1,302.6		
Amounts attributable to Ingersoll-Rand plc ordinary shareholders:	 	 	 	 	 	 	
Continuing operations	 	$	1,370.3		 	$	1,359.1		 	$	1,328.0		
Discontinued operations	 	40.6		 	(21.5	)	 	(25.4	)	
Net earnings	 	$	1,410.9		 	$	1,337.6		 	$	1,302.6		
Earnings (loss) per share attributable to Ingersoll-Rand plc ordinary shareholders:	 	 	 	 	 	 	
Basic:	 	 	 	 	 	 	
Continuing operations	 	$	5.67		 	$	5.50		 	$	5.21		
Discontinued operations	 	0.17		 	(0.09	)	 	(0.10	)	
Net earnings	 	$	5.84		 	$	5.41		 	$	5.11		
Diluted:	 		 		 	 	
Continuing operations	 	$	5.61		 	$	5.43		 	$	5.14		
Discontinued operations	 	0.16		 	(0.08	)	 	(0.09	)	
Net earnings	 	$	5.77		 	$	5.35		 	$	5.05		

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Ingersoll-Rand plc
Consolidated Statements of Comprehensive Income (continued)
In millions, except per share amounts	
													
For the years ended December 31,	 	2019	 	2018	 	2017	
Net earnings	 	$	1,428.5		 	$	1,357.5		 	$	1,312.3		
Other comprehensive income (loss):	 	 	 	 	 	 	
Currency translation	 	(37.1	)	 	(230.6	)	 	450.3		
Cash flow hedges	 	 	 	 	 	 	
Unrealized net gains (losses) arising during period	 	(2.7	)	 	1.2		 	(1.8	)	
Net gains (losses) reclassified into earnings	 	0.7		 	0.9		 	3.6		
Tax (expense) benefit	 	0.9		 	(0.1	)	 	—		
Total cash flow hedges, net of tax	 	(1.1	)	 	2.0		 	1.8		
Pension and OPEB adjustments:	 	 	 	 	 	 	
Prior service costs for the period	 	(5.7	)	 	(16.0	)	 	(3.8	)	
Net actuarial gains (losses) for the period	 	(41.9	)	 	12.8		 	39.6		
Amortization reclassified into earnings	 	48.1		 	50.7		 	52.1		
Settlements/curtailments reclassified to earnings	 	2.2		 	2.5		 	7.7		
Currency translation and other	 	(1.4	)	 	7.5		 	(15.4	)	
Tax (expense) benefit	 	(4.7	)	 	(17.2	)	 	(20.1	)	
Total pension and OPEB adjustments, net of tax	 	(3.4	)	 	40.3		 	60.1		
Other comprehensive income (loss), net of tax	 	(41.6	)	 	(188.3	)	 	512.2		
Comprehensive income, net of tax	 	$	1,386.9		 	$	1,169.2		 	$	1,824.5		
Less: Comprehensive income attributable to noncontrolling interests	 	(18.5	)	 	(16.9	)	 	(10.2	)	
Comprehensive income attributable to Ingersoll-Rand plc	 	$	1,368.4		 	$	1,152.3		 	$	1,814.3		
See accompanying notes to Consolidated Financial Statements.

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Ingersoll-Rand plc
Consolidated Balance Sheets
In millions, except share amounts

	
									
December 31,	 	2019	 	2018	
ASSETS	 	 	 	 	
Current assets:	 	 	 	 	
Cash and cash equivalents	 	$	1,303.6		 	$	903.4		
Accounts and notes receivable, net	 	2,798.1		 	2,679.2		
Inventories	 	1,712.2		 	1,677.8		
Other current assets	 	403.3		 	471.6		
Total current assets	 	6,217.2		 	5,732.0		
Property, plant and equipment, net	 	1,806.2		 	1,730.8		
Goodwill	 	6,783.1		 	5,959.5		
Intangible assets, net	 	4,148.8		 	3,634.7		
Other noncurrent assets	 	1,537.0		 	857.9		
Total assets	 	$	20,492.3		 	$	17,914.9		
LIABILITIES AND EQUITY	 	 	 	 	
Current liabilities:	 	 	 	 	
Accounts payable	 	$	1,809.2		 	$	1,705.3		
Accrued compensation and benefits	 	549.2		 	531.6		
Accrued expenses and other current liabilities	 	1,853.0		 	1,728.2		
Short-term borrowings and current maturities of long-term debt	 	650.5		 	350.6		
Total current liabilities	 	4,861.9		 	4,315.7		
Long-term debt	 	4,922.9		 	3,740.7		
Postemployment and other benefit liabilities	 	1,221.9		 	1,192.9		
Deferred and noncurrent income taxes	 	682.0		 	538.4		
Other noncurrent liabilities	 	1,491.2		 	1,062.4		
Total liabilities	 	13,179.9		 	10,850.1		
Equity:	 	 	 	 	
Ingersoll-Rand plc shareholders’ equity	 	 	 	 	
Ordinary shares, $1 par value (262,804,939 and 266,405,347 shares issued at December 31, 2019 and 2018, respectively)	 	262.8		 	266.4		
Ordinary shares held in treasury, at cost (24,499,897 and 24,500,054 shares at December 31, 2019 and 2018, respectively)	 	(1,719.4	)	 	(1,719.4	)	
Retained earnings	 	9,730.8		 	9,439.8		
Accumulated other comprehensive loss	 	(1,006.6	)	 	(964.1	)	
Total Ingersoll-Rand plc shareholders’ equity	 	7,267.6		 	7,022.7		
Noncontrolling interest	 	44.8		 	42.1		
Total equity	 	7,312.4		 	7,064.8		
Total liabilities and equity	 	$	20,492.3		 	$	17,914.9		
See accompanying notes to Consolidated Financial Statements.

F-7

Ingersoll-Rand plc
Consolidated Statements of Equity

																																
 	 	 	 	Ingersoll-Rand plc shareholders’ equity	 	 	
In millions, except per share amounts	 	Total
equity	 	Ordinary shares	 	Ordinary shares held in treasury, at cost	 	Capital in
excess of
par value	 	Retained
earnings	 	Accumulated  other
comprehensive
income (loss)	 	Noncontrolling Interest	
	 		 	Amount	 	Shares	 		 		 		 		 		
Balance at December 31, 2016	 	$	6,718.3		 	$	271.7		 	271.7		 	$	(702.7	)	 	$	346.5		 	$	8,018.8		 	$	(1,290.5	)	 	$	74.5		
Net earnings	 	1,312.3		 	—		 	—		 	—		 	—		 	1,302.6		 	—		 	9.7		
Other comprehensive income (loss)	 	512.2		 	—		 	—		 	—		 	—		 	—		 	511.7		 	0.5		
Shares issued under incentive stock plans	 	51.2		 	2.3		 	2.3		 	—		 	48.9		 	—		 	—		 	—		
Repurchase of ordinary shares	 	(1,016.9	)	 	—		 	—		 	(1,016.9	)	 	—		 	—		 	—		 	—		
Share-based compensation	 	67.9		 	—		 	—		 	—		 	70.8		 	(2.9	)	 	—		 	—		
Dividends declared to noncontrolling interest	 	(15.8	)	 	—		 	—		 	—		 	—		 	—		 	—		 	(15.8	)	
Adoption of ASU 2016-09 (Stock Compensation)	 	15.1		 	—		 	—		 	—		 	—		 	15.1		 	—		 	—		
Acquisition/divestiture of noncontrolling interest	 	(7.3	)	 	—		 	—		 	—		 	(5.0	)	 	—		 	—		 	(2.3	)	
Cash dividends declared ($1.70 per share)	 	(430.2	)	 	—		 	—		 	—		 	—		 	(430.2	)	 	—		 	—		
Other	 	0.1		 	—		 	—		 	0.2		 	0.1		 	(0.2	)	 	—		 	—		
Balance at December 31, 2017	 	$	7,206.9		 	$	274.0		 	274.0		 	$	(1,719.4	)	 	$	461.3		 	$	8,903.2		 	$	(778.8	)	 	$	66.6		
Net earnings	 	1,357.5		 	—		 	—		 	—		 	—		 	1,337.6		 	—		 	19.9		
Other comprehensive income (loss)	 	(188.3	)	 	—		 	—		 	—		 	—		 	—		 	(185.3	)	 	(3.0	)	
Shares issued under incentive stock plans	 	43.1		 	2.1		 	2.1		 	—		 	41.0		 	—		 	—		 	—		
Repurchase of ordinary shares	 	(900.2	)	 	(9.7	)	 	(9.7	)	 	—		 	(581.2	)	 	(309.3	)	 	—		 	—		
Share-based compensation	 	74.7		 	—		 	—		 	—		 	78.8		 	(4.1	)	 	—		 	—		
Dividends declared to noncontrolling interest	 	(41.4	)	 	—		 	—		 	—		 	—		 	—		 	—		 	(41.4	)	
Adoption of ASU 2014-09 (Revenue Recognition)	 	2.4		 	—		 	—		 	—		 	—		 	2.4		 	—		 	—		
Adoption of ASU 2016-16 (Intra-Entity Transfers)	 	(9.1	)	 	—		 	—		 	—		 	—		 	(9.1	)	 	—		 	—		
Cash dividends declared ($1.96 per share)	 	(480.8	)	 	—		 	—		 	—		 	—		 	(480.8	)	 	—		 	—		
Other	 	—		 	—		 	—		 	—		 	0.1		 	(0.1	)	 	—		 	—		
Balance at December 31, 2018	 	$	7,064.8		 	$	266.4		 	266.4		 	$	(1,719.4	)	 	$	—		 	$	9,439.8		 	$	(964.1	)	 	$	42.1		
Net earnings	 	1,428.5		 	—		 	—		 	—		 	—		 	1,410.9		 	—		 	17.6		
Other comprehensive income (loss)	 	(41.6	)	 	—		 	—		 	—		 	—		 	—		 	(42.5	)	 	0.9		
Shares issued under incentive stock plans	 	72.5		 	2.8		 	2.8		 	—		 	69.7		 	—		 	—		 	—		
Repurchase of ordinary shares	 	(750.1	)	 	(6.4	)	 	(6.4	)	 			 	(136.1	)	 	(607.6	)	 	—		 	—		
Share-based compensation	 	63.5		 	—		 	—		 	—		 	66.4		 	(2.9	)	 	—		 	—		
Dividends declared to noncontrolling interest	 	(15.8	)	 	—		 	—		 	—		 	—		 	—		 	—		 	(15.8	)	
Cash dividends declared ($2.12 per share)	 	(509.5	)	 	—		 	—		 	—		 	—		 	(509.5	)	 	—		 	—		
Other	 	0.1		 	—		 	—		 	—		 	—		 	0.1		 	—		 	—		
Balance at December 31, 2019	 	$	7,312.4		 	$	262.8		 	262.8		 	$	(1,719.4	)	 	$	—		 	$	9,730.8		 	$	(1,006.6	)	 	$	44.8		
See accompanying notes to Consolidated Financial Statements.

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Ingersoll-Rand plc
Consolidated Statements of Cash Flows
In millions

	
													
For the years ended December 31,	 	2019	 	2018	 	2017	
Cash flows from operating activities:	 	 	 	 	 	 	
Net earnings	 	$	1,428.5		 	$	1,357.5		 	$	1,312.3		
Discontinued operations, net of tax	 	(40.6	)	 	21.5		 	25.4		
Adjustments for non-cash transactions:	 	 	 	 	 	 	
Depreciation and amortization	 	397.4		 	361.5		 	353.3		
Pension and other postretirement benefits	 	110.2		 	104.2		 	113.0		
Stock settled share-based compensation	 	66.4		 	78.8		 	70.8		
Other non-cash items, net	 	54.0		 	(129.2	)	 	(121.9	)	
Changes in other assets and liabilities, net of the effects of acquisitions:	 	 	 	 	 	 	
Accounts and notes receivable	 	(53.2	)	 	(236.0	)	 	(156.7	)	
Inventories	 	18.4		 	(169.9	)	 	(112.4	)	
Other current and noncurrent assets	 	(229.5	)	 	35.3		 	(206.8	)	
Accounts payable	 	80.6		 	120.7		 	167.2		
Other current and noncurrent liabilities	 	124.1		 	(69.9	)	 	117.4		
Net cash provided by (used in) continuing operating activities	 	1,956.3		 	1,474.5		 	1,561.6		
Net cash provided by (used in) discontinued operating activities	 	(36.8	)	 	(66.7	)	 	(38.1	)	
Net cash provided by (used in) operating activities	 	1,919.5		 	1,407.8		 	1,523.5		
Cash flows from investing activities:	 	 	 	 	 	 	
Capital expenditures	 	(254.1	)	 	(365.6	)	 	(221.3	)	
Acquisitions and equity method investments, net of cash acquired	 	(1,539.7	)	 	(285.2	)	 	(157.6	)	
Proceeds from sale of property, plant and equipment	 	3.8		 	22.1		 	1.5		
Other investing activities, net	 	10.0		 	(0.7	)	 	2.7		
Net cash provided by (used in) investing activities	 	(1,780.0	)	 	(629.4	)	 	(374.7	)	
Cash flows from financing activities:	 	 	 	 	 	 	
Short-term borrowings (payments), net	 	—		 	(6.4	)	 	(4.0	)	
Proceeds from long-term debt	 	1,497.9		 	1,147.0		 	—		
Payments of long-term debt	 	(7.5	)	 	(1,123.0	)	 	(7.7	)	
Net proceeds from (payments of) debt	 	1,490.4		 	17.6		 	(11.7	)	
Debt issuance costs	 	(13.1	)	 	(12.0	)	 	(0.2	)	
Dividends paid to ordinary shareholders	 	(510.1	)	 	(479.5	)	 	(430.1	)	
Dividends paid to noncontrolling interests	 	(15.8	)	 	(41.4	)	 	(15.8	)	
Acquisition of noncontrolling interest	 	—		 	—		 	(6.8	)	
Proceeds from shares issued under incentive plans	 	116.8		 	68.9		 	76.7		
Repurchase of ordinary shares	 	(750.1	)	 	(900.2	)	 	(1,016.9	)	
Other financing activities, net	 	(47.6	)	 	(32.2	)	 	(27.7	)	
Net cash provided by (used in) financing activities	 	270.5		 	(1,378.8	)	 	(1,432.5	)	
Effect of exchange rate changes on cash and cash equivalents	 	(9.8	)	 	(45.6	)	 	118.4		
Net increase (decrease) in cash and cash equivalents	 	400.2		 	(646.0	)	 	(165.3	)	
Cash and cash equivalents – beginning of period	 	903.4		 	1,549.4		 	1,714.7		
Cash and cash equivalents – end of period	 	$	1,303.6		 	$	903.4		 	$	1,549.4		
Cash paid during the year for:	 	 	 	 	 	 	
Interest	 	$	220.9		 	$	200.6		 	$	210.0		
Income taxes, net of refunds	 	$	425.3		 	$	375.4		 	$	286.7		

See accompanying notes to Consolidated Financial Statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. DESCRIPTION OF COMPANY
Ingersoll-Rand plc (Plc or Parent Company), a public limited company incorporated in Ireland in 2009, and its consolidated subsidiaries (collectively, we, our, the Company) is a diversified, global company that provides products, services and solutions to enhance the quality, energy efficiency and comfort of air in homes and buildings, transport and protect food and perishables and increase industrial productivity and efficiency. The Company's business segments consist of Climate and Industrial, both with strong brands and highly differentiated products within their respective markets. The Company generates revenue and cash primarily through the design, manufacture, sale and service of a diverse portfolio of industrial and commercial products that include well-recognized, premium brand names such as American Standard®, ARO®, Club Car®, Ingersoll-Rand®, Thermo King® and Trane®.
NOTE 2. PROPOSED REVERSE MORRIS TRUST TRANSACTION
In April 2019, the Company and Gardner Denver Holdings, Inc. (GDI) announced that they entered into definitive agreements pursuant to which the Company will separate its Industrial segment businesses (IR Industrial) by way of spin-off to the Company’s shareholders and then combine with GDI to create a new company focused on flow creation and industrial technologies. This business is expected to be renamed Ingersoll-Rand Inc. The Company’s remaining HVAC and transport refrigeration businesses, reported under the Climate segment, will focus on climate control solutions for buildings, homes and transportation. The Company will rename its remaining business Trane Technologies plc at the time the transaction closes. The transaction is expected to close by early 2020, subject to approval by GDI’s shareholders, regulatory approvals and customary closing conditions.
The transaction will be effected through a Reverse Morris Trust transaction, pursuant to which IR Industrial is expected to be spun-off to the Company’s shareholders and simultaneously merged with and surviving as a wholly-owned subsidiary of GDI. At the time of close, Trane Technologies plc will receive $1.9 billion in cash from IR Industrial, funded by newly-issued debt expected to be deemed issued under an existing credit agreement of GDI upon consummation of the merger. Upon close of the transaction, existing shareholders of the Company will receive 50.1% of the shares of Ingersoll-Rand Inc. on a fully diluted basis. Existing GDI shareholders will own 49.9% of the shares of Ingersoll-Rand Inc. on a fully diluted basis. The transaction is expected to be tax-free to the Company’s respective shareholders for U.S. federal income tax purposes.
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A summary of significant accounting policies used in the preparation of the accompanying Consolidated Financial Statements follows:
Basis of Presentation:  The accompanying Consolidated Financial Statements reflect the consolidated operations of the Company and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP) as defined by the Financial Accounting Standards Board (FASB) within the FASB Accounting Standards Codification (ASC). Intercompany accounts and transactions have been eliminated. The assets, liabilities, results of operations and cash flows of all discontinued operations have been separately reported as discontinued operations for all periods presented. Certain reclassifications of amounts reported in prior periods have been made to conform with the current period presentation.
The Consolidated Financial Statements include all majority-owned subsidiaries of the Company. A noncontrolling interest in a subsidiary is considered an ownership interest in a majority-owned subsidiary that is not attributable to the parent. The Company includes Noncontrolling interest as a component of Total equity in the Consolidated Balance Sheet and the Net earnings attributable to noncontrolling interests are presented as an adjustment from Net earnings used to arrive at Net earnings attributable to Ingersoll-Rand plc in the Consolidated Statement of Comprehensive Income. Partially-owned equity affiliates represent 20-50% ownership interests in investments where the Company demonstrates significant influence, but does not have a controlling financial interest. Partially-owned equity affiliates are accounted for under the equity method.
Use of Estimates:  The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic conditions and trends, and the assessment of the probable future outcome. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the statement of operations in the period that they are determined.
Currency Translation:  Assets and liabilities of non-U.S. subsidiaries, where the functional currency is not the U.S. dollar, have been translated at year-end exchange rates, and income and expense accounts have been translated using average exchange rates throughout the year. Adjustments resulting from the process of translating an entity’s financial statements into the U.S. dollar have been recorded in the equity section of the Consolidated Balance Sheet within Accumulated other comprehensive income (loss).

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Transactions that are denominated in a currency other than an entity’s functional currency are subject to changes in exchange rates with the resulting gains and losses recorded within Net earnings.
Cash and Cash Equivalents:  Cash and cash equivalents include cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less. The Company maintains amounts on deposit at various financial institutions, which may at times exceed federally insured limits. However, management periodically evaluates the credit-worthiness of those institutions and has not experienced any losses on such deposits.
Allowance for Doubtful Accounts:  The Company maintains an allowance for doubtful accounts receivable which represents the best estimate of probable loss inherent in the Company's accounts receivable portfolio. This estimate is based upon a two-step policy that results in the total recorded allowance for doubtful accounts. The first step is to record a portfolio reserve based on the aging of the outstanding accounts receivable portfolio and the Company's historical experience with the Company's end markets, customer base and products. The second step is to create a specific reserve for significant accounts as to which the customer's ability to satisfy their financial obligation to the Company is in doubt due to circumstances such as bankruptcy, deteriorating operating results or financial position. In these circumstances, management uses its judgment to record an allowance based on the best estimate of probable loss, factoring in such considerations as the market value of collateral, if applicable. Actual results could differ from those estimates. These estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statement of Comprehensive Income in the period that they are determined. The Company reserved $42.2 million and $32.7 million for doubtful accounts as of December 31, 2019 and 2018, respectively.
Inventories:  Depending on the business, U.S. inventories are stated at the lower of cost or market using the last-in, first-out (LIFO) method or the lower of cost or market using the first-in, first-out (FIFO) method. Non-U.S. inventories are primarily stated at the lower of cost or market using the FIFO method. At December 31, 2019 and 2018, approximately 54% and 56%, respectively, of all inventory utilized the LIFO method.
Property, Plant and Equipment:  Property, plant and equipment are stated at cost, less accumulated depreciation. Assets placed in service are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset except for leasehold improvements, which are depreciated over the shorter of their economic useful life or their lease term. The range of useful lives used to depreciate property, plant and equipment is as follows:

					
Buildings	10	to	50	years	
Machinery and equipment	2	to	12	years	
Software	2	to	7	years	

Major expenditures for replacements and significant improvements that increase asset values and extend useful lives are also capitalized. Capitalized costs are amortized over their estimated useful lives using the straight-line method. Repairs and maintenance expenditures that do not extend the useful life of the asset are charged to expense as incurred. The carrying amounts of assets that are sold or retired and the related accumulated depreciation are removed from the accounts in the year of disposal, and any resulting gain or loss is reflected within current earnings.
Per ASC 360, "Property, Plant, and Equipment" (ASC 360), the Company assesses the recoverability of the carrying value of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. Recoverability is measured by a comparison of the carrying amount of an asset group to the future net undiscounted cash flows expected to be generated by the asset group. If the undiscounted cash flows are less than the carrying amount of the asset group, an impairment loss is recognized for the amount by which the carrying value of the asset group exceeds the fair value of the asset group.
Goodwill and Intangible Assets:  The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired in a business combination. In accordance with ASC 350, "Intangibles-Goodwill and Other" (ASC 350), goodwill and other indefinite-lived intangible assets are tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the asset is more likely than not less than the carrying amount of the asset.
Impairment of goodwill is assessed at the reporting unit level and begins with an optional qualitative assessment to determine if it is more likely than not that the fair value of each reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment test under ASC 350. For those reporting units that bypass or fail the qualitative assessment, the test compares the carrying amount of the reporting unit to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, an impairment loss will be recognized for the amount by which the reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit.

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Intangible assets such as patents, customer-related intangible assets and other intangible assets with finite useful lives are amortized on a straight-line basis over their estimated economic lives. The weighted-average useful lives approximate the following:

			
Customer relationships	17	years	
Patents	10	years	
Other	10	years	

The Company assesses the recoverability of the carrying value of its intangible assets with finite useful lives whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. Recoverability is measured by a comparison of the carrying amount of an asset group to the future net undiscounted cash flows expected to be generated by the asset group. If the undiscounted cash flows are less than the carrying amount of the asset group, an impairment loss is recognized for the amount by which the carrying value of the asset group exceeds the fair value of the asset group.
Business Combinations: In accordance with ASC 805, "Business Combinations" (ASC 805), acquisitions are recorded using the acquisition method of accounting. The Company includes the operating results of acquired entities from their respective dates of acquisition. The Company recognizes and measures the identifiable assets acquired, liabilities assumed, and any non-controlling interest as of the acquisition date fair value. The excess, if any, of total consideration transferred in a business combination over the fair value of identifiable assets acquired, liabilities assumed , and any non-controlling interest is recognized as goodwill. Costs incurred as a result of a business combination other than costs related to the issuance of debt or equity securities are recorded in the period the costs are incurred.
Employee Benefit Plans: The Company provides a range of benefits, including pensions, postretirement and postemployment benefits to eligible current and former employees. Determining the cost associated with such benefits is dependent on various actuarial assumptions, including discount rates, expected return on plan assets, compensation increases, mortality, turnover rates, and healthcare cost trend rates. Actuaries perform the required calculations to determine expense in accordance with GAAP. Actual results may differ from the actuarial assumptions and are generally accumulated into Accumulated other comprehensive income (loss) and amortized into Net earnings over future periods. The Company reviews its actuarial assumptions at each measurement date and makes modifications to the assumptions based on current rates and trends, if appropriate.
Loss Contingencies:  Liabilities are recorded for various contingencies arising in the normal course of business. The Company has recorded reserves in the financial statements related to these matters, which are developed using input derived from actuarial estimates and historical and anticipated experience data depending on the nature of the reserve, and in certain instances with consultation of legal counsel, internal and external consultants and engineers. Subject to the uncertainties inherent in estimating future costs for these types of liabilities, the Company believes its estimated reserves are reasonable and does not believe the final determination of the liabilities with respect to these matters would have a material effect on the financial condition, results of operations, liquidity or cash flows of the Company for any year.
Environmental Costs:  The Company is subject to laws and regulations relating to protecting the environment. Environmental expenditures relating to current operations are expensed or capitalized as appropriate. Expenditures relating to existing conditions caused by past operations, which do not contribute to current or future revenues, are expensed. Liabilities for remediation costs are recorded when they are probable and can be reasonably estimated, generally no later than the completion of feasibility studies or the Company’s commitment to a plan of action. The assessment of this liability, which is calculated based on existing remediation technology, does not reflect any offset for possible recoveries from insurance companies, and is not discounted.
Asbestos Matters:  Certain of the Company's wholly-owned subsidiaries and former companies are named as defendants in asbestos-related lawsuits in state and federal courts. The Company records a liability for actual and anticipated future claims as well as an asset for anticipated insurance settlements. Asbestos-related defense costs are excluded from the asbestos claims liability and are recorded separately as services are incurred. None of the Company's existing or previously-owned businesses were a producer or manufacturer of asbestos. The Company records certain income and expenses associated with asbestos liabilities and corresponding insurance recoveries within discontinued operations, net of tax, as they relate to previously divested businesses, except for amounts associated with Trane U.S. Inc.’s asbestos liabilities and corresponding insurance recoveries which are recorded within continuing operations.
Product Warranties:  Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available. The Company's extended warranty liability represents the deferred revenue associated with its extended warranty contracts and is amortized into Revenue on a straight-line basis over the life of the contract, unless another method is more representative of the costs incurred. The Company assesses the adequacy of its liability by evaluating the expected costs under its existing contracts to ensure these expected costs do not exceed the extended warranty liability.

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Income Taxes:  Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. The Company recognizes future tax benefits, such as net operating losses and tax credits, to the extent that realizing these benefits is considered in its judgment to be more likely than not. The Company regularly reviews the recoverability of its deferred tax assets considering its historic profitability, projected future taxable income, timing of the reversals of existing temporary differences and the feasibility of its tax planning strategies. Where appropriate, the Company records a valuation allowance with respect to a future tax benefit.
Revenue Recognition:  Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. A majority of the Company's revenues are recognized at a point-in-time as control is transferred at a distinct point in time per the terms of a contract. However, a portion of the Company's revenues are recognized over time as the customer simultaneously receives control as the Company performs work under a contract. For these arrangements, the cost-to-cost input method is used as it best depicts the transfer of control to the customer that occurs as the Company incurs costs. See Note 13 to the Consolidated Financial Statements for additional information regarding revenue recognition.
Research and Development Costs: The Company conducts research and development activities for the purpose of developing and improving new products and services. These expenditures are expensed when incurred. For the years ended December 31, 2019, 2018 and 2017, these expenditures amounted to $237.0 million, $228.7 million and $210.8 million, respectively.
Recent Accounting Pronouncements
The FASB ASC is the sole source of authoritative GAAP other than the Securities and Exchange Commission (SEC) issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update (ASU) to communicate changes to the codification. The Company considers the applicability and impact of all ASU's. ASU's not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the consolidated financial statements.
Recently Adopted Accounting Pronouncements
In February 2016, the FASB issued ASU 2016-02, “Leases” (ASC 842), which requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. The Company adopted this standard using a modified-retrospective approach as of January 1, 2019. Under this approach, the Company recognized and recorded a right-of-use (ROU) asset and related lease liability on the Consolidated Balance Sheet of $521 million with no impact to Retained earnings. Reporting periods prior to January 1, 2019 continue to be presented in accordance with previous lease accounting guidance under GAAP. As part of the adoption, the Company elected the package of practical expedients permitted under the transition guidance which includes the ability to carry forward historical lease classification. Refer to Note 11, “Leases,” for a further discussion on the adoption of ASC 842.
In August 2017, the FASB issued ASU 2017-12, "Derivatives and hedging (Topic 815): Targeted improvements to accounting for hedging activities" (ASU 2017-12). This standard more closely aligns the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. This standard also addresses specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. Additionally, by aligning the timing of recognition of hedge results with the earnings effect of the hedged item for cash flow and net investment hedges, and by including the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is presented, the results of an entity’s hedging program and the cost of executing that program will be more visible to users of financial statements. ASU 2017-12 is effective for annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company adopted this standard on October 1, 2018 with no material impact to the financial statements.
In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” (ASU 2016-16) which removed the prohibition in Topic 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. As a result, the income tax consequences of an intra-entity transfer of assets other than inventory will be recognized in the current period income statement rather than being deferred until the assets leave the consolidated group. The Company applied ASU 2016-16 on a modified retrospective basis through a cumulative-effect adjustment which reduced Retained earnings by $9.1 million as of January 1, 2018.
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (ASC 606), which created a comprehensive, five-step model for revenue recognition that requires a company to recognize revenue to depict the transfer of promised goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. Under ASC 606, a company will be required to use more judgment and make more estimates when considering contract terms as well as relevant facts and circumstances when identifying performance obligations, estimating the amount of

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variable consideration in the transaction price and allocating the transaction price to each separate performance obligation. The Company adopted this standard on January 1, 2018 using the modified retrospective approach and recorded a cumulative effect adjustment to increase Retained earnings by $2.4 million with related amounts not materially impacting the Balance Sheet. Refer to Note 13, “Revenue,” for a further discussion on the adoption of ASC 606.
In March 2016, the FASB issued ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" (ASU 2016-09), which simplifies several aspects of the accounting for employee share-based payment transactions. The standard makes several modifications to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. In addition, ASU 2016-09 clarifies the statement of cash flows presentation for certain components of share-based awards. The Company adopted this standard on January 1, 2017 and prospectively presented any excess tax benefits or deficiencies in the income statement as a component of Provision for income taxes rather than in the Equity section of the Balance Sheet. As part of the adoption, the Company reclassified $15.1 million of excess tax benefits previously unrecognized on a modified retrospective basis through a cumulative-effect adjustment to increase Retained earnings as of January 1, 2017.
Recently Issued Accounting Pronouncements
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes" (ASU 2019-12), which simplifies certain aspects of income tax accounting guidance in ASC 740, reducing the complexity of its application. Certain exceptions to ASC 740 presented within the ASU include: intraperiod tax allocation, deferred tax liabilities related to outside basis differences, year-to-date loss in interim periods, among others. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020 including interim periods therein with early adoption permitted. The Company is currently assessing the impact of the ASU on its financial statements.
In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract" (ASU 2018-15), which aligns the requirements for capitalizing implementation costs in a cloud-computing arrangement service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. In addition, the guidance also clarifies the presentation requirements for reporting such costs in the financial statements. ASU 2018-15 is effective for annual reporting periods beginning after December 15, 2019 with early adoption permitted. Upon adoption, this ASU will be applied on a prospective basis and is not expected to have a material impact on the financial statements.
In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses” (ASU 2016-13), which changes the impairment model for most financial assets and certain other instruments from an incurred loss model to an expected loss model.  In addition, the guidance also requires incremental disclosures regarding allowances and credit quality indicators. ASU 2016-13 is required to be adopted using the modified-retrospective approach and will be effective in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Upon adoption, this ASU is not expected to have a material impact on the financial statements.
NOTE 4. INVENTORIES
Depending on the business, U.S. inventories are stated at the lower of cost or market using the LIFO method or the lower of cost or market using the FIFO method. Non-U.S. inventories are primarily stated at the lower of cost or market using the FIFO method.
At December 31, the major classes of inventory were as follows:

									
In millions	 	2019	 	2018	
Raw materials	 	$	613.1		 	$	550.5		
Work-in-process	 	209.2		 	182.0		
Finished goods	 	975.5		 	1,028.8		
 	 	1,797.8		 	1,761.3		
LIFO reserve	 	(85.6	)	 	(83.5	)	
Total	 	$	1,712.2		 	$	1,677.8		

The Company performs periodic assessments to determine the existence of obsolete, slow-moving and non-saleable inventories and records necessary provisions to reduce such inventories to net realizable value. Reserve balances, primarily related to obsolete and slow-moving inventories, were $126.4 million and $119.9 million at December 31, 2019 and December 31, 2018, respectively.

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NOTE 5. PROPERTY, PLANT AND EQUIPMENT
At December 31, the major classes of property, plant and equipment were as follows:

									
In millions	 	2019	 	2018	
Land	 	$	60.6		 	$	53.2		
Buildings	 	921.2		 	870.7		
Machinery and equipment	 	2,210.0		 	2,079.9		
Software	 	847.9		 	831.4		
 	 	4,039.7		 	3,835.2		
Accumulated depreciation	 	(2,233.5	)	 	(2,104.4	)	
Total	 	$	1,806.2		 	$	1,730.8		

Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $221.2 million, $217.4 million and $217.3 million, which include amounts for software amortization of $25.3 million, $25.7 million and $28.6 million, respectively.
NOTE 6. GOODWILL
The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired in a business combination. Measurement period adjustments may be recorded once a final valuation has been performed. Goodwill is tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the reporting unit may be less than its carrying value.
The changes in the carrying amount of Goodwill are as follows: 

													
In millions	 	Climate	 	Industrial	 	Total	
Net balance as of December 31, 2017	 	$	5,065.1		 	$	870.6		 	$	5,935.7		
Acquisitions (1)	 	118.1		 	1.8		 	119.9		
Currency translation	 	(84.0	)	 	(12.1	)	 	(96.1	)	
Net balance as of December 31, 2018	 	5,099.2		 	860.3		 	5,959.5		
Acquisitions (1)	 	45.3		 	801.3		 	846.6		
Currency translation	 	(18.8	)	 	(4.2	)	 	(23.0	)	
Net balance as of December 31, 2019	 	$	5,125.7		 	$	1,657.4		 	$	6,783.1		

(1) Refer to Note 19, "Acquisitions and Divestitures" for more information regarding acquisitions.
The net goodwill balances at December 31, 2019, 2018 and 2017 include $2,496.0 million of accumulated impairment. The accumulated impairment relates entirely to a charge in 2008 associated with the Climate segment.
NOTE 7. INTANGIBLE ASSETS
Indefinite-lived intangible assets are tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate that the fair value of the asset may be less than the carrying amount of the asset. All other intangible assets with finite useful lives are being amortized on a straight-line basis over their estimated useful lives.

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The following table sets forth the gross amount and related accumulated amortization of the Company’s intangible assets at December 31:

																									
 	 	2019	 	2018	
In millions	 	Gross carrying amount	 	Accumulated amortization	 	Net carrying amount	 	Gross carrying amount	 	Accumulated amortization	 	Net carrying amount	
Customer relationships	 	$	2,562.1		 	$	(1,321.8	)	 	$	1,240.3		 	$	2,086.8		 	$	(1,176.3	)	 	$	910.5		
Patents	 	207.6		 	(187.6	)	 	20.0		 	206.6		 	(182.0	)	 	24.6		
Other	 	124.5		 	(73.1	)	 	51.4		 	84.5		 	(54.4	)	 	30.1		
Total finite-lived intangible assets	 	$	2,894.2		 	$	(1,582.5	)	 	$	1,311.7		 	$	2,377.9		 	$	(1,412.7	)	 	$	965.2		
Trademarks (indefinite-lived)	 	2,837.1		 	—		 	2,837.1		 	2,669.5		 	—		 	2,669.5		
Total	 	$	5,731.3		 	$	(1,582.5	)	 	$	4,148.8		 	$	5,047.4		 	$	(1,412.7	)	 	$	3,634.7		

Intangible asset amortization expense for 2019, 2018 and 2017 was $171.3 million, $139.3 million and $132.0 million, respectively. Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $177 million for 2020, $174 million for 2021, $174 million for 2022, $173 million for 2023, and $169 million for 2024. As a result of acquisitions that occurred throughout 2019, the Company recorded $687.7 million of intangible assets based on their estimated fair value. Refer to Note 19, "Acquisitions and Divestitures" for more information regarding acquisitions.
NOTE 8. DEBT AND CREDIT FACILITIES
At December 31, Short-term borrowings and current maturities of long-term debt consisted of the following:

									
In millions	 	2019	 	2018	
Debentures with put feature	 	$	343.0		 	$	343.0		
2.625% Senior notes due 2020 (1)	 	299.8		 	—		
Other current maturities of long-term debt	 	7.7		 	7.6		
Total	 	$	650.5		 	$	350.6		

(1) The 2.625% Senior notes are due in May 2020.
The Company's short-term obligations primarily consist of current maturities of long-term debt. The weighted-average interest rate for Short-term borrowings and current maturities of long-term debt at December 31, 2019 and 2018 was 4.6% and 6.3%, respectively.
Commercial Paper Program
The Company uses borrowings under its commercial paper program for general corporate purposes. The maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, under the commercial paper program is $2.0 billion as of December 31, 2019. Under the commercial paper program, the Company may issue notes from time to time through Ingersoll-Rand Global Holding Company Limited or Ingersoll-Rand Luxembourg Finance S.A. Each of Ingersoll-Rand plc, Ingersoll-Rand Irish Holdings Unlimited Company, Ingersoll-Rand Lux International Holding Company S.à.r.l., Ingersoll-Rand Global Holding Company Limited and Ingersoll-Rand Company provided irrevocable and unconditional guarantees for any notes issued under the commercial paper program. The Company had no outstanding balance under its commercial paper program as of December 31, 2019 and December 31, 2018.
Debentures with Put Feature
At December 31, 2019 and December 31, 2018, the Company had $343.0 million of fixed rate debentures outstanding which 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 of the debentures plus accrued interest. If these options are not exercised, the final contractual maturity dates would range between 2027 and 2028. Holders of these debentures had the option to exercise the put feature on each of the outstanding debentures in 2019, subject to the notice requirement. No material exercises were made in 2019 or 2018.

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At December 31, long-term debt excluding current maturities consisted of:

									
In millions	 	2019	 	2018	
2.625% Senior notes due 2020 (1)	 	$	—		 	$	299.4		
2.900% Senior notes due 2021	 	299.1		 	298.3		
9.000% Debentures due 2021	 	124.9		 	124.9		
4.250% Senior notes due 2023	 	697.8		 	697.1		
7.200% Debentures due 2020-2025	 	37.3		 	44.8		
3.550% Senior notes due 2024	 	496.6		 	495.9		
6.480% Debentures due 2025	 	149.7		 	149.7		
3.500% Senior notes due 2026	 	396.8		 	—		
3.750% Senior notes due 2028	 	545.1		 	544.5		
3.800% Senior notes due 2029	 	743.6		 	—		
5.750% Senior notes due 2043	 	494.5		 	494.3		
4.650% Senior notes due 2044	 	295.9		 	295.8		
4.300% Senior notes due 2048	 	296.0		 	295.9		
4.500% Senior notes due 2049	 	345.5		 	—		
Other loans and notes	 	0.1		 	0.1		
Total	 	$	4,922.9		 	$	3,740.7		

(1) The 2.625% Senior notes are due in May 2020.
Scheduled maturities of long-term debt, including current maturities, as of December 31, 2019 are as follows:

				
In millions	  	
2020	$	650.5		
2021	431.6		
2022	7.5		
2023	705.3		
2024	504.1		
Thereafter	3,274.4		
Total	$	5,573.4		

Issuance of Senior Notes
In March 2019, the Company issued $1.5 billion principal amount of senior notes in three tranches through Ingersoll-Rand Luxembourg Finance S.A., an indirect, wholly-owned subsidiary. The tranches consist of $400 million aggregate principal amount of 3.500% senior notes due 2026, $750 million aggregate principal amount of 3.800% senior notes due 2029 and $350 million aggregate principal amount of 4.500% senior notes due 2049. The notes are fully and unconditionally guaranteed by each of Ingersoll Rand plc, Ingersoll-Rand Global Holding Company Limited, Ingersoll-Rand Lux International Holding Company S.à.r.l, Ingersoll-Rand Irish Holdings Unlimited Company, and Ingersoll-Rand Company. The Company has the option to redeem the notes in whole or in part at any time, prior to their stated maturity date at redemption prices set forth in the indenture agreement. The notes are subject to certain customary covenants, however, none of these covenants are considered restrictive to the Company’s operations. During the three months ended March 31, 2019, the Company capitalized $13.1 million of debt issuance costs which will be amortized over the remaining life of the debt. The Company used the net proceeds to finance the acquisition of Precision Flow Systems (PFS) and for general corporate purposes.
In February 2018, the Company issued $1.15 billion principal amount of senior notes in three tranches through an indirect, wholly-owned subsidiary. The tranches consist of $300 million aggregate principal amount of 2.900% senior notes due 2021, $550 million aggregate principal amount of 3.750% senior notes due 2028 and $300 million aggregate principal amount of 4.300% senior notes due 2048. The notes are fully and unconditionally guaranteed by each of Ingersoll Rand plc, Ingersoll-Rand Irish Holdings Unlimited Company, Ingersoll-Rand Lux International Holding Company S.à.r.l, Ingersoll-Rand Company and Ingersoll-Rand Luxembourg Finance S.A. The Company has the option to redeem the notes in whole or in part at any time, prior to their stated maturity date at redemption prices set forth in the indenture agreement. The notes are subject to certain customary covenants, however, none of these covenants are considered restrictive to the Company’s operations. In March 2018, the Company used the proceeds to fund the redemption of $750 million aggregate principal amount of 6.875% senior notes due 2018 and $350 million aggregate principal

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amount of 2.875% senior notes due 2019, with the remainder used for general corporate purposes. As a result of the early redemption, the Company recognized $15.4 million of premium expense and $1.2 million of unamortized costs in Interest expense in 2018.
Other Credit Facilities
The Company maintains two 5-year, $1.0 billion revolving credit facilities (the Facilities) through its wholly-owned subsidiaries, Ingersoll-Rand Global Holding Company Limited and Ingersoll-Rand Luxembourg Finance S.A. (collectively, the Borrowers). Each senior unsecured credit facility, one of which matures in March 2021 and the other in April 2023, provides support for the Company's commercial paper program and can be used for working capital and other general corporate purposes. Ingersoll-Rand plc, Ingersoll-Rand Irish Holdings Unlimited Company, Ingersoll-Rand Lux International Holding Company S.à.r.l. and Ingersoll-Rand Company each provide irrevocable and unconditional guarantees for these Facilities. In addition, each Borrower will guarantee the obligations under the Facilities of the other Borrower. Total commitments of $2.0 billion were unused at December 31, 2019 and December 31, 2018.
Fair Value of Debt
The carrying value of the Company's short-term borrowings is a reasonable estimate of fair value due to the short-term nature of the instruments. The fair value of the Company's debt instruments at December 31, 2019 and December 31, 2018 was $6.2 billion and $4.2 billion, respectively. The Company measures the fair value of its long-term debt instruments for disclosure purposes based upon observable market prices quoted on public exchanges for similar assets. These fair value inputs are considered Level 2 within the fair value hierarchy. The methodologies used by the Company to determine the fair value of its long-term debt instruments at December 31, 2019 are the same as those used at December 31, 2018.
Guarantees
Along with Ingersoll-Rand plc, certain of the Company's 100% directly or indirectly owned subsidiaries have fully and unconditionally guaranteed, on a joint and several basis, public debt issued by other 100% directly or indirectly owned subsidiaries. Refer to Note 23 for the Company's current guarantor structure.
NOTE 9. FINANCIAL INSTRUMENTS
In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. These fluctuations can increase the cost of financing, investing and operating the business. The Company may use various financial instruments, including derivative instruments, to manage the risks associated with interest rate, commodity price and foreign currency exposures. These financial instruments are not used for trading or speculative purposes. The Company recognizes all derivatives on the Consolidated Balance Sheet at their fair value as either assets or liabilities.
On the date a derivative contract is entered into, the Company designates the derivative instrument as a cash flow hedge of a forecasted transaction or as an undesignated derivative. The Company formally documents its hedge relationships, including identification of the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivative instruments that are designated as hedges to specific assets, liabilities or forecasted transactions.
The Company assesses at inception and at least quarterly thereafter, whether the derivatives used in cash flow hedging transactions are highly effective in offsetting the changes in the cash flows of the hedged item. To the extent the derivative is deemed to be a highly effective hedge, the fair market value changes of the instrument are recorded to Accumulated other comprehensive income (AOCI). 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.
The fair values of derivative instruments included within the Consolidated Balance Sheet as of December 31 were as follows:

																	
 	 	Derivative assets	 	Derivative liabilities	
In millions	 	2019	 	2018	 	2019	 	2018	
Derivatives designated as hedges:	 	 	 	 	 	 	 	 	
Currency derivatives	 	$	0.1		 	$	1.3		 	$	3.9		 	$	0.7		
Derivatives not designated as hedges:	 	 	 	 	 	 	 	 	
Currency derivatives	 	1.2		 	0.9		 	3.3		 	0.6		
Total derivatives	 	$	1.3		 	$	2.2		 	$	7.2		 	$	1.3		

Asset and liability derivatives included in the table above are recorded within Other current assets and Accrued expenses and other current liabilities, respectively.

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Currency Hedging Instruments
The notional amount of the Company’s currency derivatives was $0.5 billion and $0.6 billion at December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018, a net loss of $2.9 million and a net gain of $0.5 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 $1.6 million. The actual amounts that will be reclassified to Net earnings may vary from this amount as a result of changes in market conditions. Gains and losses associated with the Company’s currency derivatives not designated as hedges are recorded in Net earnings as changes in fair value occur. At December 31, 2019, the maximum term of the Company’s currency derivatives was approximately 12 months, except for currency derivatives in place related to a certain long-term contract.
Other Derivative Instruments
Prior to 2015, the Company utilized forward-starting interest rate swaps and interest rate locks to manage interest rate exposure in periods prior to the anticipated issuance of certain fixed-rate debt. These instruments were designated as cash flow hedges and had a notional amount of $1.3 billion. Consequently, when the contracts were settled upon the issuance of the underlying debt, any realized gains or losses in the fair values of the instruments were deferred into AOCI. These deferred gains or losses are subsequently recognized in Interest expense over the term of the related notes. The net unrecognized gain in AOCI was $6.0 million and $6.7 million at December 31, 2019 and at December 31, 2018. The deferred gain at December 31, 2019 will continue to be amortized over the term of notes with maturities ranging from 2023 to 2044. The amount expected to be amortized over the next twelve months is a net gain of $0.7 million. The Company has no forward-starting interest rate swaps or interest rate lock contracts outstanding at December 31, 2019 or 2018.
The following table represents the amounts associated with derivatives designated as hedges affecting Net earnings and AOCI for the years ended December 31:

																											
 	 	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	 	2019	 	2018	 	2017	 		 	2019	 	2018	 	2017	
Currency derivatives designated as hedges	 	$	(2.7	)	 	$	1.2		 	$	(1.8	)	 	Cost of goods sold	 	$	(1.4	)	 	$	(0.8	)	 	$	(3.1	)	
Interest rate swaps & locks	 	—		 	—		 	—		 	Interest expense	 	0.7		 	(0.1	)	 	(0.5	)	
Total	 	$	(2.7	)	 	$	1.2		 	$	(1.8	)	 	 	 	$	(0.7	)	 	$	(0.9	)	 	$	(3.6	)	

The following table represents the amounts associated with derivatives not designated as hedges affecting Other income(expense), net for the years ended December 31:

													
In millions	 	Amount of gain (loss) recognized in Net earnings	
		2019	 	2018	 	2017	
Currency derivatives not designated as hedges	 	$	(6.4	)	 	$	(29.6	)	 	$	58.0		
Total	 	$	(6.4	)	 	$	(29.6	)		$	58.0		

The gains and losses associated with the Company’s undesignated currency derivatives are materially offset in Other income/(expense), net by changes in the fair value of the underlying transactions.

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The following table presents the effects of the Company's designated financial instruments on the associated financial statement line item within the Consolidated Statement of Comprehensive Income where the financial instrument are recorded for the years ended December 31:

																	
 	 	Classification and amount of gain (loss) recognized in income on cash flow hedging relationships	
 	 	2019	 	2018	
In millions	 	Cost of goods sold	 	Interest expense	 	Cost of goods sold	 	Interest expense	
Total amounts presented in the Consolidated Statements of Comprehensive Income	 	$	(11,451.5	)	 	$	(243.0	)	 	$	(10,847.6	)	 	$	(220.7	)	
Gain (loss) on cash flow hedging relationships	 	 	 	 	 	 	 	 	
Currency derivatives:	 	 	 	 	 	 	 	 	
Amount of gain (loss) reclassified from AOCI and recognized into Net earnings	 	$	(1.4	)	 	$	—		 	$	(0.8	)	 	$	—		
Amount excluded from effectiveness testing recognized in net earnings based on changes in fair value and amortization	 	$	(3.0	)	 	$	—		 	$	(0.1	)	 	$	—		
Interest rate swaps & locks:	 	 	 	 	 	 	 	 	
Amount of gain (loss) reclassified from AOCI and recognized into Net earnings	 	$	—		 	$	0.7		 	$	—		 	$	(0.1	)	

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.
NOTE 10. FAIR VALUE MEASUREMENTS
ASC 820, "Fair Value Measurement," (ASC 820) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-level fair value hierarchy that prioritizes information used in developing assumptions when pricing an asset or liability as follows:

•	Level 1: Observable inputs such as quoted prices in active markets;	
		
•	Level 2: Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and	
		
•	Level 3: Unobservable inputs where there is little or no market data, which requires the reporting entity to develop its own assumptions.	
ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement.
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2019:

																
In Millions	Fair Value	 	Fair value measurements	
		 	Level 1	 	Level 2	 	Level 3	
Assets:	 	 	 	 	 	 	 	
Derivative instruments	$	1.3		 	$	—		 	$	1.3		 	$	—		
Liabilities:	 	 	 	 	 	 	 	
Derivative instruments	$	7.2		 	$	—		 	$	7.2		 	$	—		

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The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2018:

																
In Millions	Fair Value	 	Fair value measurements	
		 	Level 1	 	Level 2	 	Level 3	
Assets:	 	 	 	 	 	 	 	
Derivative instruments	$	2.2		 	$	—		 	$	2.2		 	$	—		
Liabilities:	 	 	 	 	 	 	 	
Derivative instruments	$	1.3		 	$	—		 	$	1.3		 	$	—		

Derivative instruments include forward foreign currency contracts and instruments related to non-functional currency balance sheet exposures. The fair value of the derivative instruments are determined based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily accessible and observable.
The carrying values of cash and cash equivalents, accounts receivable and accounts payable are a reasonable estimate of their fair value due to the short-term nature of these instruments. These methodologies used by the Company to determine the fair value of its financial assets and liabilities at December 31, 2019 are the same as those used at December 31, 2018. There have been no transfers between levels of the fair value hierarchy.
NOTE 11. LEASES
The Company’s lease portfolio includes various contracts for real estate, vehicles, information technology and other equipment. At contract inception, the Company determines a lease exists if the contract conveys the right to control an identified asset for a period of time in exchange for consideration. Control is considered to exist when the lessee has the right to obtain substantially all of the economic benefits from the use of an identified asset as well as the right to direct the use of that asset. If a contract is considered to be a lease, the Company recognizes a lease liability based on the present value of the future lease payments, with an offsetting entry to recognize a right-of-use asset. Options to extend or terminate a lease are included when it is reasonably certain an option will be exercised. As a majority of the Company’s leases do not provide an implicit rate within the lease, an incremental borrowing rate is used which is based on information available at the commencement date.
The following table includes a summary of the Company's lease portfolio and Balance Sheet classification:

										
In millions	Classification	 	December 31,
2019	 	January 1,
2019	
Assets	 	 	 	 	 	
Operating lease right-of-use assets (1)	Other noncurrent assets	 	$	560.0		 	$	517.1		
Liabilities	 	 	 	 	 	
Operating lease current	Other current liabilities	 	172.0		 	160.3		
Operating lease noncurrent	Other noncurrent liabilities	 	394.4		 	360.5		
(1) Per ASC 842, prepaid lease payments and lease incentives are recorded as part of the right-of-use asset. The net impact was $6.4 million and $3.7 million at December 31, 2019 and January 1, 2019, respectively.
The Company elected the practical expedient as an accounting policy election by class of underlying asset to account for each separate lease component of a contract and its associated non-lease component as a single lease component. This practical expedient was applied to all underlying asset classes. In addition, the Company elected the practical expedient to utilize a portfolio approach for the vehicle, information technology and equipment asset classes as the application of the lease model to the portfolio would not differ materially from the application of the lease model to the individual leases within the portfolio.

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The following table includes lease costs and related cash flow information for the year ended December 31:

				
In millions	2019	
Operating lease expense	$	206.1		
Variable lease expense	29.9		
Cash paid for amounts included in the measurement of lease liabilities:	 	
Operating cash flows from operating leases	204.2		
Right-of-use assets obtained in exchange for new operating lease liabilities	201.9		

Operating lease expense is recognized on a straight-line basis over the lease term. In addition, the Company has certain leases that contain variable lease payments which are based on an index, a rate referenced in the lease or on the actual usage of the leased asset. These payments are not included in the right-to-use asset or lease liability and are expensed as incurred as variable lease expense. The Company elected the practical expedient as an accounting policy election by class of underlying asset to not apply the balance sheet recognition criteria required in ASC 842 to leases with an initial lease term of twelve months or less. Payments for these leases are recognized on a straight-line basis over the lease term.
Maturities of lease obligations were as follows:

				
In millions	December 31,
2019	
Operating leases:	 	
2020	$	192.3		
2021	151.6		
2022	106.8		
2023	75.3		
2024	40.0		
After 2024	68.1		
Total lease payments	$	634.1		
Less: Interest	(67.7	)	
Present value of lease liabilities	$	566.4		

At December 31, 2019, the weighted average remaining lease term was 4.7 years with a weighted average discount rate of 3.9%.
Prior Period Disclosures
As a result of adopting ASC 842 on January 1, 2019, the Company is required to present future minimum lease commitments for operating leases having initial or noncancellable lease terms in excess of one year that were previously disclosed in our 2018 Annual Report on Form 10-K and accounted for under previous lease guidance. Commitments as of December 31, 2018 were as follows:

				
In millions	December 31,
2018	
Operating leases	 	
2019	$	197.1		
2020	152.0		
2021	107.4		
2022	68.4		
2023	42.2		
After 2023	42.7		
Total	$	609.8		

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NOTE 12. PENSIONS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The Company sponsors several U.S. defined benefit and defined contribution plans covering substantially all of the Company's 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 (OPEB) provide healthcare benefits, and in some instances, life insurance benefits for certain eligible employees.
Pension Plans
The noncontributory defined benefit pension plans covering non-collectively bargained U.S. employees provide benefits on a final average pay formula while plans for most collectively bargained U.S. employees provide benefits on a flat dollar benefit formula or a percentage of pay formula. The non-U.S. pension plans generally provide benefits based on earnings and years of service. The Company also maintains additional other supplemental plans for officers and other key or highly compensated employees.
The following table details information regarding the Company’s pension plans at December 31:

									
In millions	 	2019	 	2018	
Change in benefit obligations:	 	 	 	 	
Benefit obligation at beginning of year	 	$	3,465.3		 	$	3,742.2		
Service cost	 	73.6		 	75.0		
Interest cost	 	119.1		 	109.7		
Employee contributions	 	1.1		 	1.1		
Amendments	 	5.7		 	16.1		
Actuarial (gains) losses	 	422.8		 	(224.8	)	
Benefits paid	 	(225.3	)	 	(218.9	)	
Currency translation	 	9.0		 	(34.8	)	
Curtailments, settlements and special termination benefits	 	(3.1	)	 	(4.6	)	
Other, including expenses paid	 	(17.0	)	 	4.3		
Benefit obligation at end of year	 	$	3,851.2		 	$	3,465.3		
Change in plan assets:	 	 	 	 	
Fair value at beginning of year	 	$	2,766.9		 	$	3,063.1		
Actual return on assets	 	526.1		 	(125.9	)	
Company contributions	 	83.1		 	86.9		
Employee contributions	 	1.1		 	1.1		
Benefits paid	 	(225.3	)	 	(218.9	)	
Currency translation	 	12.0		 	(32.8	)	
Settlements	 	(5.3	)	 	(9.8	)	
Other, including expenses paid	 	(21.8	)	 	3.2		
Fair value of assets end of year	 	$	3,136.8		 	$	2,766.9		
Net unfunded liability	 	$	(714.4	)	 	$	(698.4	)	
Amounts included in the balance sheet:	 	 	 	 	
Other noncurrent assets	 	$	50.4		 	$	49.9		
Accrued compensation and benefits	 	(8.7	)	 	(25.9	)	
Postemployment and other benefit liabilities	 	(756.1	)	 	(722.4	)	
Net amount recognized	 	$	(714.4	)	 	$	(698.4	)	

It is the Company’s objective to contribute to the pension plans to ensure adequate funds, and no less than required by law, are available in the plans to make benefit payments to plan participants and beneficiaries when required. However, certain plans are not or cannot be funded due to either legal, accounting, or tax requirements in certain jurisdictions. As of December 31, 2019, approximately seven percent of the Company's projected benefit obligation relates to plans that cannot be funded.

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The pretax amounts recognized in Accumulated other comprehensive income (loss) are as follows:

													
In millions	 	Prior service benefit (cost)	 	Net actuarial gains (losses)	 	Total	
December 31, 2018	 	$	(31.2	)	 	$	(820.6	)	 	$	(851.8	)	
Current year changes recorded to AOCI	 	(5.7	)	 	(35.2	)	 	(40.9	)	
Amortization reclassified to earnings	 	5.0		 	54.3		 	59.3		
Settlements/curtailments reclassified to earnings	 	—		 	2.2		 	2.2		
Currency translation and other	 	(0.5	)	 	(0.9	)	 	(1.4	)	
December 31, 2019	 	$	(32.4	)	 	$	(800.2	)	 	$	(832.6	)	
Weighted-average assumptions used to determine the benefit obligation at December 31 are as follows:

							
 	 	2019	 	2018	
Discount rate:	 	 	 	 	
U.S. plans	 	3.22	%	 	4.21	%	
Non-U.S. plans	 	1.66	%	 	2.47	%	
Rate of compensation increase:	 	 	 	 	
U.S. plans	 	4.00	%	 	4.00	%	
Non-U.S. plans	 	3.75	%	 	4.00	%	

The accumulated benefit obligation for all defined benefit pension plans was $3,734.5 million and $3,364.6 million at December 31, 2019 and 2018, respectively. The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with accumulated benefit obligations more than plan assets were $3,405.7 million, $3,308.2 million and $2,645.1 million, respectively, as of December 31, 2019, and $3,075.2 million, $2,992.0 million and $2,330.4 million, respectively, as of December 31, 2018.
Pension benefit payments are expected to be paid as follows:

				
In millions	  	
2020	$	215.3		
2021	219.1		
2022	226.1		
2023	230.7		
2024	221.0		
2025-2029	1,136.7		

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The components of the Company’s net periodic pension benefit costs for the years ended December 31 include the following:

													
In millions	 	2019	 	2018	 	2017	
Service cost	 	$	73.6		 	$	75.0		 	$	70.8		
Interest cost	 	119.1		 	109.7		 	109.0		
Expected return on plan assets	 	(138.5	)	 	(146.6	)	 	(141.7	)	
Net amortization of:	 	 	 	 	 	 	
Prior service costs (benefits)	 	5.0		 	4.2		 	3.8		
Plan net actuarial (gains) losses	 	54.3		 	51.3		 	56.8		
Net periodic pension benefit cost	 	113.5		 	93.6		 	98.7		
Net curtailment, settlement, and special termination benefits (gains) losses	 	4.5		 	2.3		 	5.6		
Net periodic pension benefit cost after net curtailment and settlement (gains) losses	 	$	118.0		 	$	95.9		 	$	104.3		
Amounts recorded in continuing operations:	 	 	 	 	 	 	
   Operating income	 	$	69.8		 	$	72.7		 	$	68.2		
   Other income/(expense), net	 	36.1		 	14.6		 	25.4		
Amounts recorded in discontinued operations	 	12.1		 	8.6		 	10.7		
Total	 	$	118.0		 	$	95.9		 	$	104.3		

Net periodic pension benefit cost for 2020 is projected to be approximately $89 million. The amounts expected to be recognized in net periodic pension benefit cost during 2020 for prior service cost and plan net actuarial losses are approximately $5 million and $47 million, respectively.
Weighted-average assumptions used to determine net periodic pension cost for the years ended December 31 are as follows:

										
 	 	2019	 	2018	 	2017	
Discount rate:	 	 	 	 	 	 	
U.S. plans	 	 	 	 	 	 	
Service cost	 	4.24	%	 	3.70	%	 	4.18	%	
Interest cost	 	3.88	%	 	3.24	%	 	3.36	%	
Non-U.S. plans	 			 			 			
Service cost	 	2.81	%	 	2.52	%	 	2.66	%	
Interest cost	 	2.83	%	 	2.46	%	 	2.50	%	
Rate of compensation increase:	 	 	 	 	 	 	
U.S. plans	 	4.00	%	 	4.00	%	 	4.00	%	
Non-U.S. plans	 	4.00	%	 	4.00	%	 	4.00	%	
Expected return on plan assets:	 	 	 	 	 	 	
U.S. plans	 	5.75	%	 	5.50	%	 	5.50	%	
Non-U.S. plans	 	3.25	%	 	3.25	%	 	3.25	%	

The expected long-term rate of return on plan assets reflects the average rate of returns expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation. The expected long-term rate of return on plan assets is based on what is achievable given the plan’s investment policy, the types of assets held and target asset allocations. The expected long-term rate of return is determined as of the measurement date. The Company reviews each plan and its historical returns and target asset allocations to determine the appropriate expected long-term rate of return on plan assets to be used.
The Company's objective in managing its defined benefit plan assets is to ensure that all present and future benefit obligations are met as they come due. It seeks to achieve this goal while trying to mitigate volatility in plan funded status, contribution, and expense by better matching the characteristics of the plan assets to that of the plan liabilities. The Company utilizes a dynamic approach to asset allocation whereby a plan's allocation to fixed income assets increases as the plan's funded status improves. The Company monitors plan funded status and asset allocation regularly in addition to investment manager performance.

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The fair values of the Company’s pension plan assets at December 31, 2019 by asset category are as follows:

																					
 	 	Fair value measurements	 	Net asset value	 	Total
fair value	
In millions	 	Level 1	 	Level 2	 	Level 3	 		 		
Cash and cash equivalents	 	$	7.0		 	$	26.3		 	$	—		 	$	—		 	$	33.3		
Equity investments:	 	 	 	 	 	 	 	 	 	 	
Registered mutual funds – equity specialty	 	—		 	—		 	—		 	61.5		 	61.5		
Commingled funds – equity specialty	 	—		 	—		 	—		 	665.2		 	665.2		
 	 	—		 	—		 	—		 	726.7		 	726.7		
Fixed income investments:	 	 	 	 	 	 	 	 	 	 	
U.S. government and agency obligations	 	—		 	528.5		 	—		 	—		 	528.5		
Corporate and non-U.S. bonds(a)	 	—		 	1,393.0		 	0.4		 	—		 	1,393.4		
Asset-backed and mortgage-backed securities	 	—		 	70.9		 	—		 	—		 	70.9		
Registered mutual funds – fixed income specialty	 	—		 	—		 	—		 	103.3		 	103.3		
Commingled funds – fixed income specialty	 	—		 	—		 	—		 	127.6		 	127.6		
Other fixed income(b)	 	—		 	—		 	26.0		 	—		 	26.0		
 	 	—		 	1,992.4		 	26.4		 	230.9		 	2,249.7		
Derivatives	 	—		 	0.4		 	—		 	—		 	0.4		
Real estate(c)	 	—		 	—		 	3.4		 	—		 	3.4		
Other(d)	 	—		 	—		 	114.1		 	—		 	114.1		
Total assets at fair value	 	$	7.0		 	$	2,019.1		 	$	143.9		 	$	957.6		 	$	3,127.6		
Receivables and payables, net	 	 	 	 	 	 	 	 	 	9.2		
Net assets available for benefits	 	 	 	 	 	 	 	 	 	$	3,136.8		

The fair values of the Company’s pension plan assets at December 31, 2018 by asset category are as follows:

																					
 	 	Fair value measurements	 	Net asset value	 	Total
fair value	
In millions	 	Level 1	 	Level 2	 	Level 3	 				
Cash and cash equivalents	 	$	4.0		 	$	26.8		 	$	—		 	$	—		 	$	30.8		
Equity investments:	 	 	 	 	 	 	 	 	 	 	
Registered mutual funds – equity specialty	 	—		 	—		 	—		 	51.1		 	51.1		
Commingled funds – equity specialty	 	—		 	—		 	—		 	520.7		 	520.7		
 	 	—		 	—		 	—		 	571.8		 	571.8		
Fixed income investments:	 	 	 	 	 	 	 	 	 	 	
U.S. government and agency obligations	 	—		 	476.2		 	—		 	—		 	476.2		
Corporate and non-U.S. bonds(a)	 	—		 	1,225.8		 	—		 	—		 	1,225.8		
Asset-backed and mortgage-backed securities	 	—		 	67.3		 	—		 	—		 	67.3		
Registered mutual funds – fixed income specialty	 	—		 	—		 	—		 	135.1		 	135.1		
Commingled funds – fixed income specialty	 	—		 	—		 	—		 	117.7		 	117.7		
Other fixed income(b)	 	—		 	—		 	24.8		 	—		 	24.8		
 	 	—		 	1,769.3		 	24.8		 	252.8		 	2,046.9		
Derivatives	 	—		 	(0.4	)	 	—		 	—		 	(0.4	)	
Real estate(c)	 	—		 	—		 	4.1		 	—		 	4.1		
Other(d)	 	—		 	—		 	101.6		 	—		 	101.6		
Total assets at fair value	 	$	4.0		 	$	1,795.7		 	$	130.5		 	$	824.6		 	$	2,754.8		
Receivables and payables, net	 	 	 	 	 	 	 	 	 	12.1		
Net assets available for benefits	 	 	 	 	 	 	 	 	 	$	2,766.9		
		
(a)	This class includes state and municipal bonds.	
		
(b)	This class includes group annuity and guaranteed interest contracts.	
		
(c)	This class includes a private equity fund that invests in real estate.	
		
(d)	This investment comprises the Company's non-significant, non-US pension plan assets. It primarily includes insurance contracts.	

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Cash equivalents are valued using a market approach with inputs including quoted market prices for either identical or similar instruments. Fixed income securities are valued through a market approach with inputs including, but not limited to, benchmark yields, reported trades, broker quotes and issuer spreads. Commingled funds are valued at their daily net asset value (NAV) per share or the equivalent. NAV per share or the equivalent is used for fair value purposes as a practical expedient. NAVs are calculated by the investment manager or sponsor of the fund. Private real estate fund values are reported by the fund manager and are based on valuation or appraisal of the underlying investments. Refer to Note 10, "Fair Value Measurements" for additional information related to the fair value hierarchy defined by ASC 820. There have been no significant transfers between levels of the fair value hierarchy.
The Company made required and discretionary contributions to its pension plans of $83.1 million in 2019, $86.9 million in 2018, and $101.4 million in 2017 and currently projects that it will contribute approximately $90 million to its plans worldwide in 2020. The Company’s policy allows it to fund an amount, which could be in excess of or less than the pension cost expensed, subject to the limitations imposed by current tax regulations. However, the Company anticipates funding the plans in 2020 in accordance with contributions required by funding regulations or the laws of each jurisdiction.
Most of the Company’s U.S. employees are covered by defined contribution plans. Employer contributions are determined based on criteria specific to the individual plans and amounted to approximately $140.2 million, $131.9 million, and $118.7 million in 2019, 2018 and 2017, respectively. The Company’s contributions relating to non-U.S. defined contribution plans and other non-U.S. benefit plans were $56.7 million, $52.0 million and $47.7 million in 2019, 2018 and 2017, respectively.
Multiemployer Pension Plans
The Company also participates in a number of multiemployer defined benefit pension plans related to collectively bargained U.S. employees of Trane. The Company's contributions, and the administration of the fixed retirement payments, are determined by the terms of the related collective-bargaining agreements. These multiemployer plans pose different risks to the Company than single-employer plans, including:
		
1.	The Company's contributions to multiemployer plans may be used to provide benefits to all participating employees of the program, including employees of other employers.	
		
2.	In the event that another participating employer ceases contributions to a plan, the Company may be responsible for any unfunded obligations along with the remaining participating employers.	
		
3.	If the Company chooses to withdraw from any of the multiemployer plans, the Company may be required to pay a withdrawal liability, based on the underfunded status of the plan.	
As of December 31, 2019, the Company does not participate in any plans that are individually significant, nor is the Company an individually significant participant to any of these plans. Total contributions to multiemployer plans for the years ended December 31 were as follows:

													
In millions	 	2019	 	2018	 	2017	
Total contributions	 	$	10.4		 	$	9.8		 	$	9.0		

Contributions to these plans may increase in the event that any of these plans are underfunded.
Postretirement Benefits Other Than Pensions
The Company sponsors several postretirement plans that provide for healthcare benefits, and in some instances, life insurance benefits that cover certain eligible employees. These plans are unfunded and have no plan assets, but are instead funded by the Company on a pay-as-you-go basis in the form of direct benefit payments. Generally, postretirement health benefits are contributory with contributions adjusted annually. Life insurance plans for retirees are primarily noncontributory.

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The following table details changes in the Company’s postretirement plan benefit obligations for the years ended December 31:

									
In millions	 	2019	 	2018	
Benefit obligation at beginning of year	 	$	442.7		 	$	528.0		
Service cost	 	2.6		 	2.8		
Interest cost	 	14.8		 	14.4		
Plan participants’ contributions	 	7.7		 	9.1		
Actuarial (gains) losses	 	6.7		 	(60.4	)	
Benefits paid, net of Medicare Part D subsidy (1)	 	(45.6	)	 	(50.2	)	
Other	 	(0.1	)	 	(1.0	)	
Benefit obligations at end of year	 	$	428.8		 	$	442.7		
(1) Amounts are net of Medicare Part D subsidy of $0.8 million and $0.9 million in 2019 and 2018, respectively

The benefit plan obligations are reflected in the Consolidated Balance Sheets as follows: 

									
In millions	 	December 31, 2019	 	December 31, 2018	
Accrued compensation and benefits	 	$	(41.0	)	 	$	(45.1	)	
Postemployment and other benefit liabilities	 	(387.8	)	 	(397.6	)	
Total	 	$	(428.8	)	 	$	(442.7	)	

The pre-tax amounts recognized in Accumulated other comprehensive income (loss) were as follows:

													
In millions	 	Prior service benefit (cost)	 	Net actuarial gains (losses)	 	Total	
Balance at December 31, 2018	 	$	0.3		 	$	90.4		 	$	90.7		
Gain (loss) in current period	 	—		 	(6.7	)	 	(6.7	)	
Amortization reclassified to earnings	 	(0.3	)	 	(10.9	)	 	(11.2	)	
Balance at December 31, 2019	 	$	—		 	$	72.8		 	$	72.8		

The components of net periodic postretirement benefit (income) cost for the years ended December 31 were as follows:

													
In millions	 	2019	 	2018	 	2017	
Service cost	 	$	2.6		 	$	2.8		 	$	3.1		
Interest cost	 	14.8		 	14.4		 	15.7		
Net amortization of:	 	 	 	 	 	 	
Prior service costs (benefits)	 	(0.3	)	 	(3.8	)	 	(8.6	)	
Net actuarial (gains) losses	 	(10.9	)	 	(1.0	)	 	0.1		
Net periodic postretirement benefit cost	 	$	6.2		 	$	12.4		 	$	10.3		
Amounts recorded in continuing operations:	 			 			 			
   Operating income	 	$	2.6		 	$	2.8		 	$	3.1		
   Other income/(expense), net	 	3.2		 	7.3		 	5.6		
Amounts recorded in discontinued operations	 	0.4		 	2.3		 	1.6		
Total	 	$	6.2		 	$	12.4		 	$	10.3		

Postretirement cost for 2020 is projected to be approximately $8 million. The amount expected to be recognized in net periodic postretirement benefits cost in 2020 for net actuarial gains is approximately $5 million.

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Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31 are as follows: 

										
 	 	2019	 	2018	 	2017	
Discount rate:	 	 	 	 	 	 	
Benefit obligations at December 31	 	2.99	%	 	4.05	%	 	3.38	%	
Net periodic benefit cost	 	 	 	 	 	 	
Service cost	 	4.13	%	 	3.47	%	 	3.82	%	
Interest cost	 	3.67	%	 	2.94	%	 	2.99	%	
Assumed health-care cost trend rates at December 31:	 	 	 	 	 	 	
Current year medical inflation	 	6.75	%	 	6.45	%	 	6.85	%	
Ultimate inflation rate	 	4.75	%	 	5.00	%	 	5.00	%	
Year that the rate reaches the ultimate trend rate	 	2028		 	2023		 	2023		

A 1% change in the assumed medical trend rate would have the following effects as of and for the year ended December 31, 2019:

									
In millions	 	1%
Increase	 	1%
Decrease	
Effect on total of service and interest cost components of current year benefit cost	 	$	0.5		 	$	(0.4	)	
Effect on benefit obligation at year-end	 	11.8		 	(10.6	)	

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

				
In millions	  	
2020	$	41.9		
2021	41.5		
2022	39.5		
2023	37.1		
2024	35.0		
2025 — 2029	142.7		

NOTE 13. REVENUE
The Company recognizes revenue when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. A majority of the Company's revenues are recognized at a point-in-time as control is transferred at a distinct point in time per the terms of a contract. However, a portion of the Company's revenues are recognized over time as the customer simultaneously receives control as the Company performs work under a contract. For these arrangements, the cost-to-cost input method is used as it best depicts the transfer of control to the customer that occurs as the Company incurs costs.
Performance Obligations
A performance obligation is a distinct good, service or a bundle of goods and services promised in a contract. The Company identifies performance obligations at the inception of a contract and allocates the transaction price to individual performance obligations to faithfully depict the Company’s performance in transferring control of the promised goods or services to the customer.
The following are the primary performance obligations identified by the Company:
Equipment and parts. The Company principally generates revenue from the sale of equipment and parts to customers and recognizes revenue at a point in time when control transfers to the customer. Transfer of control is generally determined based on the shipping terms of the contract. However, certain transactions within the Industrial segment include contracts to design, deliver and build highly engineered or customized equipment which have no alternative use for the Company in the event the customer cancels the contract. In addition, the Company has the right to payment for performance completed to date. As a result, revenues related to these contracts are recognized over time with progress towards completion measured using an input method as the basis to recognize revenue and an estimated profit. To-date efforts for work performed corresponds with and faithfully depicts transfer of control to the customer.

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Contracting and Installation. The Company enters into various construction-type contracts to design, deliver and build integrated solutions to meet customer specifications. These transactions, primarily included within the Climate segment, provide services that range from the development and installation of new HVAC systems to the design and integration of critical building systems to optimize energy efficiency and overall performance. These contracts have a typical term of less than one year and are considered a single performance obligation as multiple combined goods and services promised in the contract represent a single output delivered to the customer. Revenues associated with contracting and installation contracts are recognized over time with progress towards completion measured using an input method as the basis to recognize revenue and an estimated profit. To-date efforts for work performed corresponds with and faithfully depicts transfer of control to the customer. 
Services and Maintenance. The Company provides various levels of preventative and/or repair and maintenance type service agreements for its customers. The typical length of a contract is 12 months but can be as long as 60 months. Revenues associated with these performance obligations are primarily recognized over time on a straight-line basis over the life of the contract as the customer simultaneously receives and consumes the benefit provided by the Company. However, if historical evidence indicates that the cost of providing these services on a straight-line basis is not appropriate, revenue is recognized over the contract period in proportion to the costs expected to be incurred while performing the service. Certain repair services do not meet the definition of over time revenue recognition as the Company does not transfer control to the customer until the service is completed. As a result, revenue related to these services is recognized at a point in time.
Extended warranties. The Company enters into various warranty contracts with customers related to its products. A standard warranty generally warrants that a product is free from defects in workmanship and materials under normal use and conditions for a certain period of time. The Company’s standard warranty is not considered a distinct performance obligation as it does not provide services to customers beyond assurance that the covered product is free of initial defects. An extended warranty provides a customer with additional time that the Company is liable for covered incidents associated with its products. Extended warranties are purchased separately and can last up to five years. As a result, they are considered separate performance obligations for the Company. Revenue associated with these performance obligations are primarily recognized over time on a straight-line basis over the life of the contract as the customer simultaneously receives and consumes the benefit provided by the Company. However, if historical evidence indicates that the cost of providing these services on a straight-line basis is not appropriate, revenue is recognized over the contract period in proportion to the costs expected to be incurred while performing the service. Refer to Note 22, "Commitments and Contingencies," for more information related to product warranties.
The transaction price allocated to performance obligations reflects the Company’s expectations about the consideration it will be entitled to receive from a customer. To determine the transaction price, variable and noncash consideration are assessed as well as whether a significant financing component exists. The Company includes variable consideration in the estimated transaction price when it is probable that significant reversal of revenue recognized would not occur when the uncertainty associated with variable consideration is subsequently resolved. The Company considers historical data in determining its best estimates of variable consideration, and the related accruals are recorded using the expected value method. The Company has performance guarantees related to energy savings contracts that are provided under the maintenance portion of contracting and installation agreements extending from 2020-2047. These performance guarantees represent variable consideration and are estimated as part of the overall transaction price. The Company has not recognized any significant adjustments to the transaction price due to variable consideration.
The Company enters into sales arrangements that contain multiple goods and services, such as equipment, installation and extended warranties. For these arrangements, each good or service is evaluated to determine whether it represents a distinct performance obligation and whether the sales price for each obligation is representative of standalone selling price. If available, the Company utilizes observable prices for goods or services sold separately to similar customers in similar circumstances to evaluate relative standalone selling price. List prices are used if they are determined to be representative of standalone selling prices. Where necessary, the Company ensures that the total transaction price is then allocated to the distinct performance obligations based on the determination of their relative standalone selling price at the inception of the arrangement.
The Company recognizes revenue for delivered goods or services when the delivered good or service is distinct, control of the good or service has transferred to the customer, and only customary refund or return rights related to the goods or services exist. The Company excludes from revenues taxes it collects from a customer that are assessed by a government authority.

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Disaggregated Revenue
A summary of Net revenues by destination for the year ended at December 31 is as follows:

								
In millions	2019	 	2018	
Climate	 	 	 	
     United States	$	9,143.5		 	$	8,285.4		
     Non-U.S.	3,932.4		 	4,058.4		
Total Climate	$	13,075.9		 	$	12,343.8		
Industrial	 	 	 	
     United States	$	1,811.4		 	$	1,763.6		
     Non-U.S.	1,711.6		 	1,560.8		
Total Industrial	$	3,523.0		 	$	3,324.4		
A summary of Net revenues by major type of good or service for the year ended at December 31 is as follows:

								
In millions	2019	 	2018	
Climate	 	 	 	
     Equipment	$	8,968.1		 	$	8,425.6		
     Services and parts	4,107.8		 	3,918.2		
Total Climate	$	13,075.9		 	$	12,343.8		
Industrial	 	 	 	
     Equipment	$	2,171.4		 	$	2,023.3		
     Services and parts	1,351.6		 	1,301.1		
Total Industrial	$	3,523.0		 	$	3,324.4		

Revenue from goods and services transferred to customers at a point in time accounted for approximately 85% and 84% of the Company's revenue for the years ended December 31, 2019 and 2018, respectively.
Contract Balances
The opening and closing balances of contract assets and contract liabilities arising from contracts with customers for the period ended December 31, 2019 and December 31, 2018 were as follows:

								
In millions	2019	 	2018	
Contract assets	$	190.2		 	$	210.9		
Contract liabilities	1,042.9		 	846.2		
The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets, and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. In general, the Company receives payments from customers based on a billing schedule established in its contracts. Contract assets relate to the conditional right to consideration for any completed performance under the contract when costs are incurred in excess of billings under the percentage-of-completion methodology. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities relate to payments received in advance of performance under the contract or when the Company has a right to consideration that is unconditional before it transfers a good or service to the customer. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract. During the years ended December 31, 2019 and 2018, changes in contract asset and liability balances were not materially impacted by any other factors.
Approximately 58% of the contract liability balance at December 31, 2018 was recognized as revenue during the year ended December 31, 2019. Additionally, approximately 32% of the contract liability balance at December 31, 2019 was classified as noncurrent and not expected to be recognized as revenue in the next 12 months.

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NOTE 14. EQUITY
The authorized share capital of Ingersoll Rand plc is 1,185,040,000 shares, consisting of (1) 1,175,000,000 ordinary shares, par value $1.00 per share, (2) 40,000 ordinary shares, par value EUR 1.00 and (3) 10,000,000 preference shares, par value $0.001 per share. There were no preference shares or Euro-denominated ordinary shares outstanding at December 31, 2019 or 2018.
The changes in ordinary shares and treasury shares for the year ended December 31, 2019 are as follows:

						
In millions	Ordinary shares issued	 	Ordinary shares held in treasury	
December 31, 2018	266.4		 	24.5		
Shares issued under incentive plans	2.8		 	—		
Repurchase of ordinary shares	(6.4	)	 	—		
December 31, 2019	262.8		 	24.5		

Share repurchases are made from time to time in accordance with management's capital allocation strategy, subject to market conditions and regulatory requirements. Shares acquired and canceled upon repurchase are accounted for as a reduction of Ordinary Shares and Capital in excess of par value, or Retained earnings to the extent Capital in excess of par value is exhausted. Shares acquired and held in treasury are presented separately on the balance sheet as a reduction to Equity and recognized at cost. In February 2017, the Company's Board of Directors authorized the repurchase of up to $1.5 billion of its ordinary shares under a share repurchase program (the 2017 Authorization) upon completion of the prior authorized share repurchase program. Repurchases under the 2017 Authorization began in May 2017 and ended in December 2018, completing the program. In October 2018, the Company's Board of Directors authorized the repurchase of up to $1.5 billion of its ordinary shares under a share repurchase program (2018 Authorization) upon completion of the 2017 Authorization. No material amounts were repurchased under this program in 2018. During the year ended December 31, 2019, the Company repurchased and canceled approximately $750 million of its ordinary shares leaving approximately $750 million remaining under the 2018 Authorization.
Other Comprehensive Income (Loss)
The changes in Accumulated other comprehensive income (loss) are as follows:

																	
In millions	 	Derivative Instruments	 	Pension and OPEB Items	 	Foreign Currency Translation	 	Total	
December 31, 2017	 	$	4.7		 	$	(494.3	)	 	$	(289.2	)	 	$	(778.8	)	
Other comprehensive income (loss) attributable to Ingersoll-Rand plc	 	2.0		 	40.3		 	(227.6	)	 	(185.3	)	
December 31, 2018	 	$	6.7		 	$	(454.0	)	 	$	(516.8	)	 	$	(964.1	)	
Other comprehensive income (loss) attributable to Ingersoll-Rand plc	 	(1.1	)	 	(3.4	)	 	(38.0	)	 	(42.5	)	
December 31, 2019	 	$	5.6		 	$	(457.4	)	 	$	(554.8	)	 	$	(1,006.6	)	

The amounts of Other comprehensive income (loss) attributable to noncontrolling interests for 2019, 2018 and 2017 were $0.9 million, $(3.0) million and $0.5 million, respectively, related to currency translation.
NOTE 15. SHARE-BASED COMPENSATION
The Company accounts for stock-based compensation plans in accordance with ASC 718, "Compensation - Stock Compensation" (ASC 718), which requires a fair-value based method for measuring the value of stock-based compensation. Fair value is measured once at the date of grant and is not adjusted for subsequent changes. The Company’s share-based compensation plans include programs for stock options, restricted stock units (RSUs), performance share units (PSUs), and deferred compensation. Under the Company's incentive stock plan, the total number of ordinary shares authorized by the shareholders is 23.0 million, of which 19.1 million remains available as of December 31, 2019 for future incentive awards.

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Compensation Expense
Share-based compensation expense related to continuing operations is included in Selling and administrative expenses. The following table summarizes the expenses recognized:

													
In millions	 	2019	 	2018	 	2017	
Stock options	 	$	20.2		 	$	23.5		 	$	19.5		
RSUs	 	26.5		 	30.4		 	26.4		
PSUs	 	17.9		 	23.0		 	23.0		
Deferred compensation	 	3.1		 	3.4		 	3.1		
Other	 	3.5		 	0.5		 	1.6		
Pre-tax expense	 	71.2		 	80.8		 	73.6		
Tax benefit	 	(17.3	)	 	(19.6	)	 	(28.2	)	
After-tax expense	 	$	53.9		 	$	61.2		 	$	45.4		

Grants issued during the year ended December 31 were as follows:

																					
 	2019	 	2018	 	2017	
 	Number Granted	 	Weighted-average fair value per award	 	Number Granted	 	Weighted-average fair value per award	 	Number Granted	 	Weighted-average fair value per award	
Stock options	1,286,857		 	$	17.17		 	1,541,025		 	$	15.51		 	1,518,335		 	$	13.46		
RSUs	268,465		 	$	102.98		 	327,411		 	$	90.07		 	372,443		 	$	81.09		
Performance shares (1)	312,362		 	$	111.12		 	363,342		 	$	106.31		 	419,404		 	$	93.68		
(1) The number of performance shares represents the maximum award level.
Stock Options / RSUs
Eligible participants may receive (i) stock options, (ii) RSUs or (iii) a combination of both stock options and RSUs. The fair value of each of the Company’s stock option and RSU awards is expensed on a straight-line basis over the required service period, which is generally the 3-year vesting period. However, for stock options and RSUs granted to retirement eligible employees, the Company recognizes expense for the fair value at the grant date.
The average fair value of the stock options granted is determined using the Black Scholes option pricing model. The following assumptions were used during the year ended December 31:

										
 	 	2019	 	2018	 	2017	
Dividend yield	 	2.06	%	 	2.00	%	 	2.00	%	
Volatility	 	21.46	%	 	21.64	%	 	22.46	%	
Risk-free rate of return	 	2.46	%	 	2.48	%	 	1.80	%	
Expected life in years	 	4.8		 	4.8		 	4.8		

A description of the significant assumptions used to estimate the fair value of the stock option awards is as follows:
		
•	Volatility - The expected volatility is based on a weighted average of the Company’s implied volatility and the most recent historical volatility of the Company’s stock commensurate with the expected life.	
		
•	Risk-free rate of return -The Company applies a yield curve of continuous risk-free rates based upon the published US Treasury spot rates on the grant date.	
		
•	Expected life - The expected life of the Company’s stock option awards represents the weighted-average of the actual period since the grant date for all exercised or canceled options and an expected period for all outstanding options.	
		
•	Dividend yield - The Company determines the dividend yield based upon the expected quarterly dividend payments as of the grant date and the current fair market value of the Company’s stock.	
		
•	Forfeiture Rate - The Company analyzes historical data of forfeited options to develop a reasonable expectation of the number of options to forfeit prior to vesting per year. This expected forfeiture rate is applied to the Company’s ongoing compensation expense; however, all expense is adjusted to reflect actual vestings and forfeitures.	

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Changes in options outstanding under the plans for the years 2019, 2018 and 2017 are as follows:

														
 	 	Shares
subject
to option	 	Weighted-
average
exercise price	 	Aggregate
intrinsic
value (millions)	 	Weighted-
average
remaining life (years)	
December 31, 2016	 	6,846,895		 	$	47.81		 	 	 	 	
Granted	 	1,518,335		 	80.27		 	 	 	 	
Exercised	 	(1,789,615	)	 	42.79		 	 	 	 	
Cancelled	 	(220,733	)	 	61.91		 	 	 	 	
December 31, 2017	 	6,354,882		 	56.49		 	 	 	 	
Granted	 	1,541,025		 	89.71		 	 	 	 	
Exercised	 	(1,515,955	)	 	45.44		 	 	 	 	
Cancelled	 	(94,601	)	 	79.53		 	 	 	 	
December 31, 2018	 	6,285,351		 	66.95		 	 	 	 	
Granted	 	1,286,857		 	101.42		 	 	 	 	
Exercised	 	(2,076,338	)	 	56.17		 	 	 	 	
Cancelled	 	(76,624	)	 	92.38		 	 	 	 	
Outstanding December 31, 2019	 	5,419,246		 	$	78.91		 	$	292.7		 	6.8	
Exercisable December 31, 2019	 	2,689,923		 	$	64.22		 	$	184.8		 	5.4	

The following table summarizes information concerning currently outstanding and exercisable options:

																											
  	 	 	 	 	 	Options outstanding	 	Options exercisable	
Range of
exercise price	 	Number
outstanding at
December 31,
2019	 	Weighted-
average
remaining
life (years)	 	Weighted-
average
exercise
price	 	Number
outstanding at
December 31,
2019	 	Weighted-
average
remaining
life (years)	 	Weighted-
average
exercise
price	
$	20.01		 	—	 	$	30.00		 	42,296		 	1.0	 	$	24.72		 	42,296		 	1.0	 	$	24.72		
30.01		 	—	 	40.00		 	140,778		 	1.7	 	34.07		 	140,778		 	1.7	 	34.07		
40.01		 	—	 	50.00		 	820,185		 	5.0	 	48.46		 	820,185		 	5.0	 	48.46		
50.01		 	—	 	60.00		 	291,706		 	3.9	 	59.41		 	291,706		 	3.9	 	59.41		
60.01		 	—	 	70.00		 	417,212		 	4.7	 	66.99		 	417,212		 	4.7	 	66.99		
70.01		 	—	 	80.00		 	14,031		 	7.0	 	75.67		 	—		 	0.0	 	—		
80.01		 	—	 	90.00		 	1,228,171		 	6.8	 	80.84		 	638,735		 	6.6	 	80.33		
90.01		 	—	 	100.00		 	1,242,338		 	7.8	 	90.12		 	334,982		 	7.8	 	90.07		
100.01		 	—	 	110.00		 	1,193,089		 	8.9	 	101.29		 	4,029		 	7.9	 	101.22		
110.01		 	—	 	125.00		 	29,440		 	9.5	 	122.34		 	—		 	0.0	 	—		
$	24.23		 	—	 	$	124.95		 	5,419,246		 	6.8	 	$	78.91		 	2,689,923		 	5.4	 	$	64.22		

At December 31, 2019, there was $12.1 million of total unrecognized compensation cost from stock option arrangements granted under the plan, which is primarily related to unvested shares of non-retirement eligible employees. The aggregate intrinsic value of options exercised during the year ended December 31, 2019 and 2018 was $124.5 million and $74.1 million, respectively. Generally, stock options expire ten years from their date of grant.

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The following table summarizes RSU activity for the years 2019, 2018 and 2017:

								
 	 	RSUs	 	Weighted-
average grant
date fair value	
Outstanding and unvested at December 31, 2016	 	835,749		 	$	56.95		
Granted	 	372,443		 	81.09		
Vested	 	(370,397	)	 	58.56		
Cancelled	 	(34,096	)	 	63.79		
Outstanding and unvested at December 31, 2017	 	803,699		 	$	67.09		
Granted	 	327,411		 	90.07		
Vested	 	(389,285	)	 	64.88		
Cancelled	 	(20,186	)	 	77.95		
Outstanding and unvested at December 31, 2018	 	721,639		 	$	78.40		
Granted	 	268,465		 	102.98		
Vested	 	(364,817	)	 	70.26		
Cancelled	 	(20,947	)	 	89.64		
Outstanding and unvested at December 31, 2019	 	604,340		 	$	93.56		

At December 31, 2019, there was $16.3 million of total unrecognized compensation cost from RSU arrangements granted under the plan, which is related to unvested shares of non-retirement eligible employees.
Performance Shares
The Company has a Performance Share Program (PSP) for key employees. The program provides awards in the form of PSUs based on performance against pre-established objectives. The annual target award level is expressed as a number of the Company's ordinary shares based on the fair market value of the Company's stock on the date of grant. All PSUs are settled in the form of ordinary shares.
Beginning with the 2018 grant year, PSU awards are earned based 50% upon a performance condition, measured by relative Cash Flow Return on Invested Capital (CROIC) to the industrial group of companies in the S&P 500 Index over a 3-year performance period, 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 a 3-year performance period. The fair value of the market condition is estimated using a Monte Carlo Simulation approach in a risk-neutral framework based upon historical volatility, risk-free rates and correlation matrix. Awards granted prior to 2018 were earned based 50% upon a performance condition, measured by relative earnings-per-share (EPS) growth to the industrial group of companies in the S&P 500 Index over a 3-year performance period, and 50% upon a market condition measured by the Company's relative TSR as compared to the TSR of the industrial group of companies in the S&P Index over a 3-year performance period.

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The following table summarizes PSU activity for the maximum number of shares that may be issued for the years 2019, 2018 and 2017:

								
 	 	PSUs	 	Weighted-average grant date fair value	
Outstanding and unvested at December 31, 2016	 	1,423,796		 	$	65.34		
Granted	 	419,404		 	93.68		
Vested	 	(353,834	)	 	65.35		
Forfeited	 	(124,830	)	 	73.40		
Outstanding and unvested at December 31, 2017	 	1,364,536		 	$	73.31		
Granted	 	363,342		 	106.31		
Vested	 	(309,306	)	 	76.00		
Forfeited	 	(172,408	)	 	90.89		
Outstanding and unvested at December 31, 2018	 	1,246,164		 	$	79.83		
Granted	 	312,362		 	111.12		
Vested	 	(539,402	)	 	53.76		
Forfeited	 	(34,194	)	 	106.14		
Outstanding and unvested at December 31, 2019	 	984,930		 	$	103.12		

At December 31, 2019, there was $17.6 million of total unrecognized compensation cost from PSU arrangements based on current performance, which is related to unvested shares. This compensation will be recognized over the required service period, which is generally the three-year vesting period.
Deferred Compensation
The Company allows key employees to defer a portion of their eligible compensation into a number of investment choices, including its ordinary share equivalents. Any amounts invested in ordinary share equivalents will be settled in ordinary shares of the Company at the time of distribution.
NOTE 16. RESTRUCTURING ACTIVITIES
The Company incurs costs associated with restructuring initiatives intended to result in improved operating performance, profitability and working capital levels. Actions associated with these initiatives include workforce reduction, improving manufacturing productivity, realignment of management structures and rationalizing certain assets. Restructuring charges recorded during the years ended December 31 were as follows:

													
In millions	 	2019	 	2018	 	2017	
Climate	 	$	50.8		 	$	34.1		 	$	42.3		
Industrial	 	37.5		 	49.9		 	14.5		
Corporate and Other	 	1.8		 	9.4		 	4.9		
Total	 	$	90.1		 	$	93.4		 	$	61.7		
 	 	 	 	 	 	 	
Cost of goods sold	 	$	72.7		 	$	72.3		 	$	46.8		
Selling and administrative expenses	 	17.4		 	21.1		 	14.9		
Total	 	$	90.1		 	$	93.4		 	$	61.7		

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The changes in the restructuring reserve were as follows:

																	
In millions	 	Climate	 	Industrial	 	Corporate
and Other	 	Total	
December 31, 2017	 	$	7.4		 	$	6.1		 	$	2.5		 	$	16.0		
Additions, net of reversals (1)	 	16.3		 	49.9		 	9.4		 	75.6		
Cash paid/Other	 	(4.8	)	 	(26.1	)	 	(9.3	)	 	(40.2	)	
December 31, 2018	 	18.9		 	29.9		 	2.6		 	51.4		
Additions, net of reversals (2)	 	48.1		 	20.7		 	1.8		 	70.6		
Cash paid/Other	 	(43.2	)	 	(39.1	)	 	(2.8	)	 	(85.1	)	
December 31, 2019	 	$	23.8		 	$	11.5		 	$	1.6		 	$	36.9		

(1) Excludes the non-cash costs of asset rationalizations ($12.3 million) and pension-related impacts ($5.5 million).
(2) Excludes the non-cash costs of asset rationalizations ($19.5 million).
Current restructuring actions include general workforce reductions as well as the closure and consolidation of certain manufacturing facilities in an effort to improve the Company's cost structure. During the year ended December 31, 2019, costs associated with announced restructuring actions primarily included the following:
		
•	the plan to close a U.S. manufacturing facility within the Industrial segment and relocate production to other U.S. and Non-U.S. facilities announced in 2019; and	
		
•	the plan to close two U.S. manufacturing facilities within the Climate segment and relocate production to another existing U.S. facility announced in 2018.	
Amounts recognized primarily relate to severance and exit costs. In addition, the Company also includes costs that are directly attributable to the restructuring activity but do not fall into the severance, exit or disposal categories. As of December 31, 2019, the Company had $36.9 million accrued for costs associated with its ongoing restructuring actions, of which a majority is expected to be paid within one year. These actions primarily relate to workforce reduction benefits.
NOTE 17. OTHER INCOME/(EXPENSE), NET
The components of Other income/(expense), net for the years ended December 31, 2019, 2018 and 2017 are as follows:

													
In millions	 	2019	 	2018	 	2017	
Interest income	 	$	3.1		 	$	6.4		 	$	9.4		
Foreign currency exchange gain (loss)	 	(12.3	)	 	(17.6	)	 	(8.8	)	
Other components of net periodic benefit cost	 	(39.3	)	 	(21.9	)	 	(31.0	)	
Other activity, net	 	15.5		 	(3.3	)	 	(1.2	)	
Other income/(expense), net	 	$	(33.0	)	 	$	(36.4	)	 	$	(31.6	)	

Other income /(expense), net includes the results from activities other than normal business operations such as interest income and foreign currency gains and losses on transactions that are denominated in a currency other than an entity’s functional currency. In addition, the Company includes the components of net periodic benefit cost for pension and post retirement obligations other than the service cost component. Other activity, net includes items associated with Trane U.S. Inc. for the settlement of asbestos-related claims, insurance settlements on asbestos-related matters and the revaluation of its liability for potential future claims and recoveries. Refer to Note 22, "Commitments and Contingencies," for more information regarding asbestos-related matters.
NOTE 18. INCOME TAXES
Current and deferred provision for income taxes
Earnings before income taxes for the years ended December 31 were taxed within the following jurisdictions:

												
In millions	2019	 	2018	 	2017	
United States (1)	$	960.6		 	$	971.6		 	$	(17.6	)	
Non-U.S.	781.0		 	688.7		 	1,435.5		
Total	$	1,741.6		 	$	1,660.3		 	$	1,417.9		

(1) Amount reported in 2017 includes the impact of a premium paid of approximately $520 million related to the early retirement of certain intercompany debt obligations

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The components of the Provision for income taxes for the years ended December 31 were as follows:

													
In millions	 	2019	 	2018	 	2017	
Current tax expense (benefit):	 	 	 	 	 	 	
United States	 	$	203.4		 	$	231.9		 	$	102.2		
Non-U.S.	 	133.5		 	193.2		 	95.4		
Total:	 	336.9		 	425.1		 	197.6		
Deferred tax expense (benefit):	 	 	 	 	 	 	
United States	 	35.7		 	(83.2	)	 	(234.7	)	
Non-U.S.	 	(18.9	)	 	(60.6	)	 	117.3		
Total:	 	16.8		 	(143.8	)	 	(117.4	)	
Total tax expense (benefit):	 	 	 	 	 	 	
United States	 	239.1		 	148.7		 	(132.5	)	
Non-U.S.	 	114.6		 	132.6		 	212.7		
Total	 	$	353.7		 	$	281.3		 	$	80.2		

The Provision for income taxes differs from the amount of income taxes determined by applying the applicable U.S. statutory income tax rate to pretax income, as a result of the following differences:

										
 	 	Percent of pretax income	
 	 	2019	 	2018	 	2017	
Statutory U.S. rate	 	21.0	 %	 	21.0	 %	 	35.0	 %	
Increase (decrease) in rates resulting from:	 	 	 	 	 	 	
Non-U.S. tax rate differential (a)	 	(1.9	)	 	(1.8	)	 	(28.8	)	
Tax on U.S. subsidiaries on non-U.S. earnings (b)	 	1.1		 	0.7		 	0.8		
State and local income taxes (c)	 	3.1		 	0.1		 	1.2		
Valuation allowances (d)	 	(2.4	)	 	0.7		 	2.8		
Change in permanent reinvestment assertion (b), (e)	 	—		 	(2.3	)	 	8.4		
Transition tax (e)	 	—		 	1.5		 	11.3		
Remeasurement of deferred tax balances (e)	 	—		 	0.3		 	(21.2	)	
Stock based compensation	 	(1.5	)	 	(0.9	)	 	(1.7	)	
Foreign derived intangible income	 	(0.7	)	 	(1.1	)	 	—		
Reserves for uncertain tax positions	 	(0.3	)	 	(0.8	)	 	(0.9	)	
Provision to return and other true-up adjustments	 	0.1		 	(0.7	)	 	(1.7	)	
Other adjustments	 	1.8		 	0.2		 	0.5		
Effective tax rate	 	20.3	 %	 	16.9	 %	 	5.7	 %	
		
(a)	Amount reported in 2017 includes the impact of a premium paid of approximately $520 million related to the early retirement of certain intercompany debt obligations	
		
(b)	Net of foreign tax credits	
		
(c)	Net of changes in state valuation allowances	
		
(d)	Primarily federal and non-U.S., excludes state valuation allowances	
		
(e)	Provisional amounts reported under SAB 118 were finalized in 2018	
Tax incentives, in the form of tax holidays, have been granted to the Company in certain jurisdictions to encourage industrial development. The expiration of these tax holidays varies by country. The tax holidays are conditional on the Company meeting certain employment and investment thresholds. The most significant tax holidays relate to the Company’s qualifying locations in China, Puerto Rico, Panama and Singapore. The benefit for the tax holidays for the years ended December 31, 2019, 2018 and 2017 was $33.1 million, $25.4 million and $19.7 million, respectively.

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Deferred tax assets and liabilities
A summary of the deferred tax accounts at December 31 are as follows:

									
In millions	 	2019	 	2018	
Deferred tax assets:	 	 	 	 	
Inventory and accounts receivable	 	$	17.7		 	$	20.3		
Fixed assets and intangibles	 	35.3		 	39.2		
Operating lease liabilities	 	140.2		 	—		
Postemployment and other benefit liabilities	 	392.5		 	386.1		
Product liability	 	70.0		 	95.1		
Other reserves and accruals	 	157.1		 	147.6		
Net operating losses and credit carryforwards	 	659.2		 	589.9		
Other	 	40.6		 	34.9		
Gross deferred tax assets	 	1,512.6		 	1,313.1		
Less: deferred tax valuation allowances	 	(373.7	)	 	(332.2	)	
Deferred tax assets net of valuation allowances	 	$	1,138.9		 	$	980.9		
Deferred tax liabilities:	 	 	 	 	
Inventory and accounts receivable	 	$	(20.0	)	 	$	(18.6	)	
Fixed assets and intangibles	 	(1,358.3	)	 	(1,220.9	)	
Operating lease right-of-use assets	 	(140.2	)	 	—		
Postemployment and other benefit liabilities	 	(11.0	)	 	(9.7	)	
Other reserves and accruals	 	(12.5	)	 	(11.8	)	
Product liability	 	—		 	(1.2	)	
Undistributed earnings of foreign subsidiaries	 	(39.3	)	 	(39.5	)	
Other	 	(22.2	)	 	(10.6	)	
Gross deferred tax liabilities	 	(1,603.5	)	 	(1,312.3	)	
Net deferred tax assets (liabilities)	 	$	(464.6	)	 	$	(331.4	)	

At December 31, 2019, no deferred taxes have been provided for earnings of certain of the Company’s subsidiaries, since these earnings have been, and under current plans will continue to be permanently reinvested in these subsidiaries. These earnings amount to approximately $4.4 billion which if distributed would result in additional taxes, which may be payable upon distribution, of approximately $400.0 million.
At December 31, 2019, the Company had the following operating loss, capital loss and tax credit carryforwards available to offset taxable income in prior and future years:

							
In millions	 	Amount	 	Expiration
Period	
U.S. Federal net operating loss carryforwards	 	$	766.2		 	2020-2038	
U.S. Federal credit carryforwards	 	140.6		 	2022-2028	
U.S. Capital loss carryforwards	 	36.3		 	Unlimited	
U.S. State net operating loss carryforwards	 	3,119.7		 	2020-Unlimited	
U.S. State credit carryforwards	 	35.2		 	2020-Unlimited	
Non-U.S. net operating loss carryforwards	 	865.8		 	2020-Unlimited	
Non-U.S. credit carryforwards	 	7.7		 	Unlimited	

The U.S. state net operating loss carryforwards were incurred in various jurisdictions. The non-U.S. net operating loss carryforwards were incurred in various jurisdictions, predominantly in Belgium, Brazil, China, India, Luxembourg, Spain, and the United Kingdom.

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Activity associated with the Company’s valuation allowance is as follows:

													
In millions	 	2019	 	2018	 	2017	
Beginning balance	 	$	332.2		 	$	344.6		 	$	184.5		
Increase to valuation allowance	 	46.0		 	54.9		 	176.5		
Decrease to valuation allowance	 	(56.8	)	 	(55.1	)	 	(19.1	)	
Write off against valuation allowance	 	—		 	(4.6	)	 	—		
Acquisition and purchase accounting	 	53.3		 	—		 	—		
Accumulated other comprehensive income (loss)	 	(1.0	)	 	(7.6	)	 	2.7		
Ending balance	 	$	373.7		 	$	332.2		 	$	344.6		

During 2019, the Company recorded a $50.5 million reduction in valuation allowance on deferred tax assets primarily related to non-U.S. net operating losses. In addition, the Company recorded a $19.3 million increase in a valuation allowance for certain state net deferred tax assets as a result of revised projections of future state taxable income during the carryforward period. In addition, the Company recorded a $53.3 million valuation allowance in acquisition accounting related to deferred tax assets acquired in the PFS acquisition, primarily related to foreign tax credits, capital loss carryforwards and non-U.S. net operating loss carryforwards.
During 2018, the Company recorded a net addition to the valuation allowance related to excess foreign tax credits in the amount of $17.3 million. In addition, the Company recorded a $35 million reduction in a valuation allowance for certain state net deferred tax assets primarily the result of revised projections of future state taxable income during the carryforward period.
During 2017, the Company recorded a valuation allowance of approximately $30 million on certain net deferred tax assets in Brazil that were no longer expected to be realized. In addition, the Company recorded a valuation allowance of approximately $100 million related to excess foreign tax credits generated as a result of the Tax Cuts and Jobs Act (the Act).
Unrecognized tax benefits
The Company has total unrecognized tax benefits of $78.2 million and $83.0 million as of December 31, 2019, and December 31, 2018, respectively. The amount of unrecognized tax benefits that, if recognized, would affect the continuing operations effective tax rate are $54.1 million as of December 31, 2019. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

													
In millions	 	2019	 	2018	 	2017	
Beginning balance	 	$	83.0		 	$	120.5		 	$	107.1		
Additions based on tax positions related to the current year	 	4.1		 	3.4		 	6.2		
Additions based on tax positions related to prior years	 	10.0		 	23.5		 	16.8		
Reductions based on tax positions related to prior years	 	(14.0	)	 	(47.2	)	 	(8.6	)	
Reductions related to settlements with tax authorities	 	(0.9	)	 	(14.2	)	 	(4.8	)	
Reductions related to lapses of statute of limitations	 	(2.9	)	 	(0.9	)	 	(1.3	)	
Translation (gain) loss	 	(1.1	)	 	(2.1	)	 	5.1		
Ending balance	 	$	78.2		 	$	83.0		 	$	120.5		

The Company records interest and penalties associated with the uncertain tax positions within its Provision for income taxes. The Company had reserves associated with interest and penalties, net of tax, of $16.9 million and $20.7 million at December 31, 2019 and December 31, 2018, respectively. For the year ended December 31, 2019 and December 31, 2018, the Company recognized a $1.0 million and a $13.4 million tax benefit, respectively, in interest and penalties, net of tax in continuing operations related to these uncertain tax positions.
The total amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing audits and/or the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits, excluding interest and penalties, could potentially be reduced by up to approximately $4.4 million during the next 12 months.
The provision for income taxes involves a significant amount of management judgment regarding interpretation of relevant facts and laws in the jurisdictions in which the Company operates. Future changes in applicable laws, projected levels of taxable income and tax planning could change the effective tax rate and tax balances recorded by the Company. In addition, tax authorities

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periodically review income tax returns filed by the Company and can raise issues regarding its filing positions, timing and amount of income or deductions, and the allocation of income among the jurisdictions in which the Company operates. A significant period of time may elapse between the filing of an income tax return and the ultimate resolution of an issue raised by a revenue authority with respect to that return. In the normal course of business the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Brazil, Canada, China, France, Germany, Ireland, Italy, Mexico, Spain, the Netherlands, the United Kingdom and the United States. These examinations on their own, or any subsequent litigation related to the examinations, may result in additional taxes or penalties against the Company. If the ultimate result of these audits differ from original or adjusted estimates, they could have a material impact on the Company’s tax provision. In general, the examination of the Company’s material tax returns are complete or effectively settled for the years prior to 2011, with certain matters prior to 2011 being resolved through appeals and litigation and also unilateral procedures as provided for under double tax treaties.
Tax Cuts and Job Act
In December 2017, the U.S. enacted the Act which made widespread changes to the Internal Revenue Code. The Act, among other things, reduced the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a transition tax on earnings of certain foreign subsidiaries that were previously not subject to U.S. tax and creates new income taxes on certain foreign sourced earnings. The SEC issued Staff Accounting Bulletin No. 118 (SAB 118) which provided guidance on accounting for the tax effects of the Act and allowed for adjustments to provisional amounts during a measurement period of up to one year.  In accordance with SAB 118, we made reasonable estimates related to (1) the remeasurement of U.S. deferred tax balances for the reduction in the tax rate (2) the liability for the transition tax and (3) the taxes accrued relating to the change in permanent reinvestment assertion for unremitted earnings of certain foreign subsidiaries. As a result, we recognized a net provisional income tax benefit of $21.0 million associated with these items in the fourth quarter of 2017. We completed the accounting for the income tax effects of the Act during 2018 and recorded $9.0 million of net measurement period adjustments as a component of Provision for income taxes during the year to increase the net provisional income tax benefit recorded as of December 31, 2017.
A reconciliation of the provisional amounts reported to the final tax effect of the Act is as follows:

												
In millions	2017
Provisional Amounts Reported	 	2018
Measurement Period Adjustments	 	Final Tax
Effects of
the Act	
Remeasurement of deferred tax balances	$	(300.6	)	 	$	4.8		 	$	(295.8	)	
Transition tax	160.7		 	24.6		 	185.3		
Change in permanent reinvestment assertion	118.9		 	(38.4	)	 	80.5		
Income tax benefit, net	$	(21.0	)	 	$	(9.0	)	 	$	(30.0	)	

NOTE 19. ACQUISITIONS AND DIVESTITURES
Acquisitions and Equity Method Investments
During 2019, the Company acquired several businesses that complement existing products and services. Primary activity during 2019 related to the acquisition of PFS, reported within the Industrial segment. On May 15, 2019, the Company acquired all the outstanding capital stock of PFS, a manufacturer of precision flow control equipment including precision dosing pumps and controls that serve the global water, oil and gas, agriculture, industrial and specialty market segments. Total cash paid, net of cash acquired, was approximately $1.46 billion. In addition, the Company acquired an independent dealer to support the ongoing strategy to expand our distribution network as well as other businesses that strengthen the Company's product portfolios, reported within the Climate segment.
The aggregate cash paid for all acquisitions in 2019, net of cash acquired, totaled $1.54 billion and was financed through a combination of the issuance of senior notes and cash on hand. Refer to Note 8, "Debt and Credit Facilities" for more information regarding financing. Acquisitions are recorded using the acquisition method of accounting in accordance with ASC 805, "Business Combinations" (ASC 805). As a result, the aggregate price has been allocated to assets acquired and liabilities assumed based on the estimate of fair market value of such assets and liabilities at the date of acquisition. Intangible assets associated with these acquisitions totaled $687.7 million and primarily relate to trademarks and customer relationships. The excess purchase price over the estimated fair value of net assets acquired was recognized as goodwill and totaled $846.6 million.

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The preliminary allocation of the purchase price and related measurement period adjustments related to the PFS acquisition were as follows:

												
In millions	Preliminary
May 15, 2019	 	Measurement Period Adjustments	 	As Adjusted
May 15, 2019	
Current assets	$	124.8		 	$	(0.9	)	 	$	123.9		
Intangibles	662.2		 	—		 	662.2		
Goodwill	888.0		 	(86.7	)	 	801.3		
Other noncurrent assets	48.4		 	(1.9	)	 	46.5		
Accounts payable, accrued expenses and other liabilities	(72.3	)	 	2.3		 	(70.0	)	
Noncurrent deferred tax liabilities	(195.9	)	 	88.3		 	(107.6	)	
Total purchase price, net of cash acquired	$	1,455.2		 	$	1.1		 	$	1,456.3		

Accounts receivable and current liabilities were stated at their historical carrying values, which approximates fair value given the short-term nature of these assets and liabilities. The estimate of fair value for inventory and property, plant and equipment are based on an assessment of the acquired assets condition as well as an evaluation of current market value of such assets. Measurement period adjustments primarily relate to changes in estimated deferred taxes as additional information was obtained during the measurement period, including assessment of realizability of certain acquired deferred tax assets and tax rates applicable to non-US intangible assets.
The Company recorded intangible assets based on their preliminary estimate of fair value, which consisted of the following:

						
In millions	Weighted-average useful life (in years)	 	May 15,
2019	
Customer relationships	14	 	$	457.6		
Trade names	Indefinite	 	168.2		
Other	7	 	36.4		
Total	 	 	$	662.2		

The valuation of intangible assets was determined using an income approach methodology. The fair values of the customer relationship intangible assets were determined using the multi-period excess earnings method based on discounted projected net cash flows associated with the net earnings attributable to the acquired customer relationships. These projected cash flows are estimated over the remaining economic life of the intangible asset and are considered from a market participant perspective. Key assumptions used in estimating future cash flows included projected revenue growth rates and customer attrition rates. The projected future cash flows are discounted to present value using an appropriate discount rate. The fair values of the trade name intangible assets were estimated utilizing the relief from royalty method which is a form of the income approach based on royalty rates determined from observed market royalties applied to projected revenue supporting the trade names and discounted to present value using an appropriate discount rate. Any excess of the purchase price over the estimated fair value of net assets was recognized as goodwill. The goodwill is attributed primarily to the fair value of the expected cost synergies and revenue growth from PFS businesses and is not expected to be deductible for tax purposes.
The results of PFS are reported within the Industrial segment from the date of acquisition. During 2019, the Company incurred $12.9 million of acquisition-related costs which are included in Selling and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income. The Company has not included pro forma financial information required under ASC 805 as the pro forma impact was deemed not material.
During 2018, the Company acquired several businesses and entered into a joint venture. The aggregate cash paid, net of cash acquired, totaled $285.2 million and was funded through cash on hand. Ownership interests in a joint venture are accounted for under the equity method when the Company does not have a controlling financial interest and reported within Other noncurrent assets on the Balance Sheet.
Primary activity during 2018 related to the acquisition of ICS Group Holdings Limited in January 2018. The business, reported within the Climate segment, specializes in the temporary rental of energy efficient chillers for commercial and industrial buildings across Europe. In addition, the Company acquired independent dealers to expand its distribution network. Intangible assets associated with these acquisitions totaled $45.2 million and primarily relate to trademarks and customer relationships. The excess purchase price over the estimated fair value of net assets acquired was recognized as goodwill and totaled $119.9 million.

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In addition, the Company completed its investment of a 50% ownership interest in a joint venture with Mitsubishi Electric Corporation (Mitsubishi) in May 2018. The joint venture, reported within the Climate segment, focuses on marketing, selling and supporting variable refrigerant flow (VRF) and ductless heating and air conditioning systems through Trane, American Standard and Mitsubishi channels in the U.S. and select Latin American countries. Ongoing results since the date of investment are accounted for under the equity method and are not considered material to the Company’s results of operations.
During 2017, the Company acquired several businesses, including channel acquisitions, that complement existing products and services. Acquisitions within the Climate segment primarily consisted of independent dealers which support the ongoing strategy to expand the Company's distribution network. Acquisitions within the Industrial segment primarily consisted of a telematics business which builds upon our growing portfolio of connected assets. The aggregate cash paid, net of cash acquired, totaled $157.6 million and was funded through cash on hand.
Divestitures
The Company has retained obligations from previously sold businesses, including amounts related to the 2013 spin-off of its commercial and residential security business, that primarily include ongoing expenses for postretirement benefits, product liability and legal costs. The components of Discontinued operations, net of tax for the years ended December 31 are as follows:

													
In millions	 	2019	 	2018	 	2017	
Pre-tax earnings (loss) from discontinued operations	 	$	54.8		 	$	(85.5	)	 	$	(34.0	)	
Tax benefit (expense)	 	(14.2	)	 	64.0		 	8.6		
Discontinued operations, net of tax	 	$	40.6		 	$	(21.5	)	 	$	(25.4	)	

Pre-tax earnings (loss) from discontinued operations includes costs associated with Ingersoll Rand Company for the settlement and defense of asbestos-related claims, insurance settlements on asbestos-related matters and the revaluation of its liability for potential future claims and recoveries. Refer to Note 22, "Commitments and Contingencies," for more information related to asbestos.
NOTE 20. EARNINGS PER SHARE (EPS)
Basic EPS is calculated by dividing Net earnings attributable to Ingersoll-Rand plc by the weighted-average number of ordinary shares outstanding for the applicable period. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potentially dilutive ordinary shares, which in the Company’s case, includes shares issuable under share-based compensation plans. The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations:

										
In millions	 	2019	 	2018	 	2017	
Weighted-average number of basic shares outstanding	 	241.6		 	247.2		 	254.9		
Shares issuable under incentive stock plans	 	2.8		 	2.9		 	3.2		
Weighted-average number of diluted shares outstanding	 	244.4		 	250.1		 	258.1		
Anti-dilutive shares	 	—		 	1.5		 	1.6		
 	 	 	 	 	 	 	
Dividends declared per ordinary share	 	2.12		 	1.96		 	1.70		

NOTE 21. BUSINESS SEGMENT INFORMATION
The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies except that the operating segments’ results are prepared on a management basis that is consistent with the manner in which the Company prepares financial information for internal review and decision making. The Company largely evaluates performance based on Segment operating income and Segment operating margins. Intercompany sales between segments are considered immaterial.
The Company's Climate segment delivers energy-efficient products and innovative energy services. It includes Trane® and American Standard® Heating & Air Conditioning which provide heating, ventilation and air conditioning (HVAC) systems, and commercial and residential building services, parts, support and controls; energy services and building automation through Trane Building AdvantageTM and NexiaTM; and Thermo King® transport temperature control solutions.
The Company's Industrial segment delivers products and services that enhance energy efficiency, productivity and operations. It includes compressed air and gas systems and services, power tools, material handling systems, fluid management systems, as well as Club Car ® golf, utility and rough terrain vehicles.

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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.
A summary of operations by reportable segments for the years ended December 31 were as follows: 

													
Dollar amounts in millions	 	2019	 	2018	 	2017	
Climate	 	 	 	 	 	 	
Net revenues	 	$	13,075.9		 	$	12,343.8		 	$	11,167.5		
Segment operating income	 	1,908.5		 	1,766.2		 	1,572.7		
Segment operating income as a percentage of net revenues	 	14.6	%	 	14.3	%	 	14.1	%	
Depreciation and amortization	 	258.0		 	252.0		 	247.6		
Capital expenditures	 	188.1		 	217.3		 	103.8		
Industrial	 	 	 	 	 	 	
Net revenues	 	3,523.0		 	3,324.4		 	3,030.1		
Segment operating income	 	455.0		 	405.3		 	357.6		
Segment operating income as a percentage of net revenues	 	12.9	%	 	12.2	%	 	11.8	%	
Depreciation and amortization	 	108.6		 	79.2		 	77.3		
Capital expenditures	 	48.7		 	80.9		 	57.4		
 	 	 	 	 	 	 	
Total net revenues	 	$	16,598.9		 	$	15,668.2		 	$	14,197.6		
 	 	 	 	 	 	 	
Reconciliation to Operating Income	 	 	 	 	 	 	
Segment operating income from reportable segments	 	$	2,363.5		 	$	2,171.5		 	$	1,930.3		
Unallocated corporate expense	 	(345.9	)	 	(254.1	)	 	(265.0	)	
Total operating income	 	$	2,017.6		 	$	1,917.4		 	$	1,665.3		
Total operating income as a percentage of revenues	 	12.2	%	 	12.2	%	 	11.7	%	
Depreciation and Amortization	 	 	 	 	 	 	
Depreciation and amortization from reportable segments	 	$	366.6		 	$	331.2		 	$	324.9		
Unallocated depreciation and amortization	 	30.8		 	30.3		 	28.4		
Total depreciation and amortization	 	$	397.4			$	361.5			$	353.3		
Capital Expenditures	 	 	 	 	 	 	
Capital expenditures from reportable segments	 	$	236.8		 	$	298.2		 	$	161.2		
Corporate capital expenditures	 	17.3		 	67.4		 	60.1		
Total capital expenditures	 	$	254.1		 	$	365.6		 	$	221.3		

At December 31, a summary of long-lived assets by geographic area were as follows:

									
In millions	 	2019		2018	
United States	 	$	2,327.3		 	$	1,914.7		
Non-U.S.	 	790.6		 	781.3		
Total	 	$	3,117.9		 	$	2,696.0		

NOTE 22. COMMITMENTS AND CONTINGENCIES
The Company is involved in various litigations, claims and administrative proceedings, including those related to environmental, asbestos, and product liability matters. In accordance with ASC 450, "Contingencies" (ASC 450), the Company records accruals for loss contingencies when it is both probable that a liability will be incurred and the amount of the loss can be reasonably estimated. 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

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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 environmental and sustainability programs to minimize the use of natural resources, and reduce the utilization and generation of hazardous materials from our manufacturing processes 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 the Company's 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.
Reserves for environmental matters are classified as Accrued expenses and other current liabilities or Other noncurrent liabilities based on their expected term. As of December 31, 2019 and 2018, the Company has recorded reserves for environmental matters of $42.6 million and $41.2 million, respectively. Of these amounts $37.5 million and $36.1 million, respectively, relate to remediation of sites previously disposed by the Company.
Asbestos-Related Matters
Certain wholly-owned subsidiaries and former companies of ours 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 or Trane U.S. Inc. (Trane) and generally allege injury caused by exposure to asbestos contained in certain historical products sold by Ingersoll-Rand Company or Trane, primarily pumps, boilers and railroad brake shoes. None of our existing or previously-owned businesses were a producer or manufacturer of asbestos.
The Company engages an outside expert to perform a detailed analysis and project an estimated range of the Company’s total liability for pending and unasserted future asbestos-related claims. In accordance with ASC 450, the Company records the liability at the low end of the range as it believes that no amount within the range is a better estimate than any other amount. Asbestos-related defense costs are excluded from the liability and are recorded separately as services are incurred. The methodology used to prepare estimates relies upon and includes the following factors, among others:
		
•	the outside expert’s interpretation of a widely accepted forecast of the population likely to have been occupationally exposed to asbestos;	
		
•	epidemiological studies estimating the number of people likely to develop asbestos-related diseases such as mesothelioma and lung cancer;	
		
•	the Company’s historical experience with the filing of non-malignancy claims and claims alleging other types of malignant diseases filed against the Company relative to the number of lung cancer claims filed against the Company;	
		
•	the outside expert’s analysis of the number of people likely to file an asbestos-related personal injury claim against the Company based on such epidemiological and historical data and the Company’s claims history;	
		
•	an analysis of the Company’s pending cases, by type of disease claimed and by year filed;	
		
•	an analysis of the Company’s 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 1.0% 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 (currently projected through 2053).	
At December 31, 2019, over 73 percent of the open and active claims against the Company are non-malignant or unspecified disease claims. In addition, the Company has a number of claims which have been placed on inactive or deferred dockets and expected to have little or no settlement value against the Company.

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The Company’s liability for asbestos-related matters and the asset for probable asbestos-related insurance recoveries are included in the following balance sheet accounts:

								
In millions	December 31,
2019	 	December 31,
2018	
Accrued expenses and other current liabilities	$	63.0		 	$	63.3		
Other noncurrent liabilities	484.4		 	548.3		
Total asbestos-related liabilities	$	547.4		 	$	611.6		
 	 	 	 	
Other current assets	$	66.2		 	$	69.2		
Other noncurrent assets	237.8		 	199.0		
Total asset for probable asbestos-related insurance recoveries	$	304.0		 	$	268.2		

The Company's asbestos insurance receivable related to Ingersoll-Rand Company and Trane was $188.7 million and $115.3 million at December 31, 2019, and $141.7 million and $126.5 million at December 31, 2018, respectively. These receivables attributable to Ingersoll-Rand Company and Trane for probable insurance recoveries as of December 31, 2019 are entirely supported by settlement agreements between Ingersoll-Rand Company and Trane and their respective insurance carriers. Most of these settlement agreements constitute “coverage-in-place” arrangements, in which the insurer signatories agree to reimburse Ingersoll-Rand Company or Trane, as applicable, for specified portions of their respective costs for asbestos bodily injury claims and Ingersoll-Rand Company or Trane, as applicable, agrees to certain claims-handling protocols and grants to the insurer signatories certain releases and indemnifications.
The costs associated with the settlement and defense of asbestos-related claims, insurance settlements on asbestos-related matters and the revaluation of the Company's liability for potential future claims and recoveries are included in the income statement within continuing operations or discontinued operations depending on the business to which they relate. Income and expenses associated with Ingersoll-Rand Company's asbestos-related matters are recorded within discontinued operations as they relate to previously divested businesses, primarily Ingersoll-Dresser Pump, which was sold by the Company in 2000. Income and expenses associated with Trane’s asbestos-related matters are recorded within continuing operations.
The net income (expense) associated with these transactions for the years ended December 31, were as follows:

													
In millions	 	2019	 	2018	 	2017	
Continuing operations	 	$	7.0		 	$	(10.4	)	 	$	(3.1	)	
Discontinued operations	 	68.2		 	(56.5	)	 	(11.9	)	
Total	 	$	75.2		 	$	(66.9	)	 	$	(15.0	)	

During the year ended December 31, 2019, the Company reached settlements with several insurance carriers associated with pending asbestos insurance coverage litigation (as discussed below). All but one of these settlements relate to Ingersoll-Rand Company and are recorded within discontinued operations. The settlement that relates to Trane is recorded within continuing operations. During the year ended December 31, 2018, the Company's valuation model was updated to address a change in potential future claims. The adjustment, which increased the asbestos-related liability for both Ingersoll-Rand Company and Trane, was partially offset by asbestos-related receivables from insurance carriers. During the year ended December 31, 2017, the Company recorded an adjustment to update its liability for potential future claims. This amount was partially offset by asbestos-related settlements reached with various insurance carriers.
In 2012 and 2013, Ingersoll-Rand Company filed actions 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 were several dozen solvent insurance companies, including companies that had been paying a portion of Ingersoll-Rand Company's asbestos claim defense and indemnity costs. The responding defendants generally challenged the Company's right to recovery, and raised various coverage defenses. As of December 31, 2019, Ingersoll-Rand Company has resolved both actions through settlements with all of the remaining solvent insurer defendants.
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 assumptions underlying the estimated asbestos-related liabilities include the number of people occupationally exposed and likely to develop asbestos-related diseases such as mesothelioma and lung cancer, the number of people likely to file an asbestos-related personal injury claim against the Company, the average settlement and resolution of each claim and the percentage of claims resolved with no payment. Furthermore, predictions with respect to estimates of the liability are subject to greater uncertainty as the projection period lengthens. Other factors that

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may affect the Company’s liability include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, reforms that may be made by state and federal courts, and the passage of state or federal tort reform legislation.
The aggregate amount of the stated limits in insurance policies available to the Company for asbestos-related claims acquired, over many years and from many different carriers, is substantial. However, limitations in that coverage, primarily due to the considerations described above, are expected to result in the projected total liability to claimants substantially exceeding the probable insurance recovery.
Warranty Liability
Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available.
The changes in the standard product warranty liability for the year ended December 31, were as follows:

								
In millions	2019	 	2018	
Balance at beginning of period	$	278.9		 	$	270.5		
Reductions for payments	(153.1	)	 	(159.0	)	
Accruals for warranties issued during the current period	155.9		 	158.2		
Changes to accruals related to preexisting warranties	3.8		 	11.5		
Translation	(0.8	)	 	(2.3	)	
Balance at end of period	$	284.7		 	$	278.9		

Standard product warranty liabilities are classified as Accrued expenses and other current liabilities, or Other noncurrent liabilities based on their expected term. The Company's total current standard product warranty reserve at December 31, 2019 and December 31, 2018 was $157.6 million and $149.5 million, respectively.
The Company's extended warranty liability represents the deferred revenue associated with its extended warranty contracts and is amortized into Net revenues on a straight-line basis over the life of the contract, unless another method is more representative of the costs incurred. The Company assesses the adequacy of its liability by evaluating the expected costs under its existing contracts to ensure these expected costs do not exceed the extended warranty liability.
The changes in the extended warranty liability for the year ended December 31, were as follows:

								
In millions	2019	 	2018	
Balance at beginning of period	$	292.2		 	$	293.0		
Amortization of deferred revenue for the period	(120.9	)	 	(115.0	)	
Additions for extended warranties issued during the period	133.2		 	116.1		
Changes to accruals related to preexisting warranties	(0.4	)	 	(0.5	)	
Translation	—		 	(1.4	)	
Balance at end of period	$	304.1		 	$	292.2		

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 Net revenues. The Company's total current extended warranty liability at December 31, 2019 and December 31, 2018 was $107.3 million and $103.1 million, respectively. For the years ended December 31, 2019 and 2018, the Company incurred costs of $63.7 million and $63.2 million, respectively, related to extended warranties.

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NOTE 23. GUARANTOR FINANCIAL INFORMATION
Ingersoll-Rand plc (Plc or Parent Company) and certain of its 100% directly or indirectly owned subsidiaries provide guarantees of public debt issued by other 100% directly or indirectly owned subsidiaries. The following condensed consolidating financial information is provided so that separate financial statements of these subsidiary issuer and guarantors are not required to be filed with the U.S. Securities and Exchange Commission.
The following table shows the Company’s guarantor relationships as of December 31, 2019:

			
Parent, issuer or guarantors	Notes issued	Notes guaranteed (1)	
Ingersoll-Rand plc (Plc)	None	All registered notes and debentures	
Ingersoll-Rand Irish Holdings Unlimited Company (Irish Holdings)	None	All notes issued by Global Holding and Lux Finance	
Ingersoll-Rand Lux International Holding Company S.a.r.l. (Lux International)	None	All notes issued by Global Holding and Lux Finance	
Ingersoll-Rand Global Holding Company Limited (Global Holding)	2.900% Senior notes due 2021
4.250% Senior notes due 2023
3.750% Senior notes due 2028
5.750% Senior notes due 2043
4.300% Senior notes due 2048	All notes issued by Lux Finance	
Ingersoll-Rand Company (New Jersey)	9.000% Debentures due 2021
7.200% Debentures due 2020-2025
6.480% Debentures due 2025
Puttable debentures due 2027-2028	All notes issued by Global Holding and Lux Finance	
Ingersoll-Rand Luxembourg Finance S.A. (Lux Finance)	2.625% Notes due 2020
3.550% Notes due 2024
3.500% Notes due 2026
3.800% Notes due 2029
4.650% Notes due 2044
4.500% Notes due 2049	All notes and debentures issued by Global Holding and New Jersey	
(1) All subsidiary issuers and guarantors provide irrevocable guarantees of borrowings, if any, made under revolving credit facilities
Each subsidiary debt issuer and guarantor is owned 100% directly or indirectly by the Parent Company. Each guarantee is full and unconditional, and provided on a joint and several basis. There are no significant restrictions of the Parent Company, or any guarantor, to obtain funds from its subsidiaries, such as provisions in debt agreements that prohibit dividend payments, loans or advances to the parent by a subsidiary.
Basis of presentation
The following Condensed Consolidating Financial Statements present the financial position, results of operations and cash flows of each issuer or guarantor on a legal entity basis. The financial information for all periods has been presented based on the Company’s legal entity ownerships and guarantees outstanding at December 31, 2019. Assets and liabilities are attributed to each issuer and guarantor generally based on legal entity ownership. Investments in subsidiaries of the Parent Company, subsidiary guarantors and issuers represent the proportionate share of their subsidiaries’ net assets. Certain adjustments are needed to consolidate the Parent Company and its subsidiaries, including the elimination of investments in subsidiaries and related activity that occurs between entities in different columns. These adjustments are presented in the Consolidating Adjustments column. This basis of presentation is intended to comply with the specific reporting requirements for subsidiary issuers and guarantors, and is not intended to present the Company’s financial position or results of operations or cash flows for any other purpose.
Transfers of businesses within a consolidated group should be reflected on a retrospective basis in the Condensed Consolidating Financial Statements for all periods presented. As a result, the Company updated its Condensed Consolidating Financial Statements to recast the presentation of certain subsidiaries between the New Jersey and Other Subsidiaries columns in connection with the proposed separation of the Industrial Segment businesses. These modifications relate to fourth quarter 2019 intercompany transactions that changed the ownership of certain IR Industrial businesses reported in the New Jersey column to a newly created entity reported within the Other Subsidiaries column. The updated presentation is shown in the following tables:

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Condensed Consolidating Statement of Comprehensive Income
For the year ended December 31, 2019

	
																																				
In millions	Plc	 	Irish Holdings	 	Lux International	 	Global
Holding	 	New
Jersey	 	Lux
Finance	 	Other
Subsidiaries	 	Consolidating
Adjustments	 	
Consolidated	
Net revenues	$	—		 	$	—		 	$	—		 	$	—		 	$	—		 	$	—		 	$	16,598.9		 	$	—		 	$	16,598.9		
Cost of goods sold	—		 	—		 	—		 	—		 	(18.3	)	 	—		 	(11,433.2	)	 	—		 	(11,451.5	)	
Selling and administrative expenses	(16.1	)	 	—		 	(0.8	)	 	(0.3	)	 	(245.3	)	 	(0.3	)	 	(2,867.0	)	 	—		 	(3,129.8	)	
Operating income (loss)	(16.1	)		—			(0.8	)		(0.3	)		(263.6	)		(0.3	)		2,298.7			—			2,017.6		
Equity earnings (loss) in subsidiaries, net of tax	1,544.1		 	1,542.8		 	1,237.3		 	1,189.9		 	1,274.2		 	209.9		 	—		 	(6,998.2	)	 	—		
Interest expense	—		 	—		 	—		 	(106.6	)	 	(46.2	)	 	(89.7	)	 	(0.5	)	 	—		 	(243.0	)	
Intercompany interest and fees	(125.0	)	 	—		 	74.7		 	(294.8	)	 	159.2		 	26.5		 	159.4		 	—		 	—		
Other income/(expense), net	(0.1	)	 	—		 	59.5		 	—		 	(12.0	)	 	4.7		 	(85.1	)	 	—		 	(33.0	)	
Earnings (loss) before income taxes	1,402.9			1,542.8			1,370.7			788.2			1,111.6			151.1			2,372.5			(6,998.2	)		1,741.6		
Benefit (provision) for income taxes	8.0		 	—		 	5.1		 	106.1		 	16.5		 	—		 	(489.4	)	 	—		 	(353.7	)	
Earnings (loss) from continuing operations	1,410.9			1,542.8			1,375.8			894.3			1,128.1			151.1			1,883.1			(6,998.2	)		1,387.9		
Discontinued operations, net of tax	—		 	—		 	—		 	—		 	36.2		 	—		 	4.4		 	—		 	40.6		
Net earnings (loss)	1,410.9			1,542.8			1,375.8			894.3			1,164.3			151.1			1,887.5			(6,998.2	)		1,428.5		
Less: Net earnings attributable to noncontrolling interests	—		 	—		 	—		 	—		 	—		 	—		 	(17.6	)	 	—		 	(17.6	)	
Net earnings attributable to Ingersoll-Rand plc	$	1,410.9			$	1,542.8			$	1,375.8			$	894.3			$	1,164.3			$	151.1			$	1,869.9			$	(6,998.2	)		$	1,410.9		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other comprehensive income (loss), net of tax	(42.5	)	 	(42.2	)	 	(30.7	)	 	(16.6	)	 	(16.0	)	 	(13.7	)	 	(71.6	)	 	190.8		 	(42.5	)	
Comprehensive income attributable to Ingersoll-Rand plc	$	1,368.4		 	$	1,500.6		 	$	1,345.1		 	$	877.7		 	$	1,148.3		 	$	137.4		 	$	1,798.3		 	$	(6,807.4	)	 	$	1,368.4		

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Condensed Consolidating Statement of Comprehensive Income
For the year ended December 31, 2018

	
																																				
In millions	Plc	 	Irish Holdings	 	Lux International	 	Global
Holding	 	New
Jersey	 	Lux
Finance	 	Other
Subsidiaries	 	Consolidating
Adjustments	 	
Consolidated	
Net revenues	$	—		 	$	—		 	$	—		 	$	—		 	$	—		 	$	—		 	$	15,668.2		 	$	—		 	$	15,668.2		
Cost of goods sold	—		 	—		 	—		 	—		 	(28.7	)	 	—		 	(10,818.9	)	 	—		 	(10,847.6	)	
Selling and administrative expenses	(39.6	)	 	—		 	(0.4	)	 	(0.3	)	 	(86.5	)	 	(0.3	)	 	(2,776.1	)	 	—		 	(2,903.2	)	
Operating income (loss)	(39.6	)		—			(0.4	)		(0.3	)		(115.2	)		(0.3	)		2,073.2			—			1,917.4		
Equity earnings (loss) in subsidiaries, net of tax	1,460.9		 	1,458.6		 	1,183.7		 	1,190.5		 	1,213.0		 	195.6		 	—		 	(6,702.3	)	 	—		
Interest expense	—		 	—		 	0.4		 	(130.3	)	 	(46.8	)	 	(43.0	)	 	(1.0	)	 	—		 	(220.7	)	
Intercompany interest and fees	(92.7	)	 	—		 	41.1		 	(196.5	)	 	25.1		 	(11.2	)	 	234.2		 	—		 	—		
Other income/(expense), net	—		 	—		 	(48.8	)	 	0.7		 	(10.5	)	 	0.1		 	22.1		 	—		 	(36.4	)	
Earnings (loss) before income taxes	1,328.6			1,458.6			1,176.0			864.1			1,065.6			141.2			2,328.5			(6,702.3	)		1,660.3		
Benefit (provision) for income taxes	9.0		 	—		 	—		 	86.2		 	145.0		 	—		 	(521.5	)	 	—		 	(281.3	)	
Earnings (loss) from continuing operations	1,337.6			1,458.6			1,176.0			950.3			1,210.6			141.2			1,807.0			(6,702.3	)		1,379.0		
Discontinued operations, net of tax	—		 	—		 	—		 	—		 	(20.1	)	 	—		 	(1.4	)	 	—		 	(21.5	)	
Net earnings (loss)	1,337.6			1,458.6			1,176.0			950.3			1,190.5			141.2			1,805.6			(6,702.3	)		1,357.5		
Less: Net earnings attributable to noncontrolling interests	—		 	—		 	—		 	—		 	—		 	—		 	(19.9	)	 	—		 	(19.9	)	
Net earnings attributable to Ingersoll-Rand plc	$	1,337.6			$	1,458.6			$	1,176.0			$	950.3			$	1,190.5			$	141.2			$	1,785.7			$	(6,702.3	)		$	1,337.6		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other comprehensive income (loss), net of tax	(185.3	)	 	(184.7	)	 	(174.2	)	 	(86.2	)	 	(86.2	)	 	(83.5	)	 	(256.2	)	 	871.0		 	(185.3	)	
Comprehensive income attributable to Ingersoll-Rand plc	$	1,152.3		 	$	1,273.9		 	$	1,001.8		 	$	864.1		 	$	1,104.3		 	$	57.7		 	$	1,529.5		 	$	(5,831.3	)	 	$	1,152.3		

F-50

Table of Contents

Condensed Consolidating Statement of Comprehensive Income
For the year ended December 31, 2017

	
																																				
In millions	Plc	 	Irish Holdings	 	Lux International	 	Global
Holding	 	New
Jersey	 	Lux
Finance	 	Other
Subsidiaries	 	Consolidating
Adjustments	 	
Consolidated	
Net revenues	$	—		 	$	—		 	$	—		 	$	—		 	$	—		 	$	—		 	$	14,197.6		 	$	—		 	$	14,197.6		
Cost of goods sold	—		 	—		 	—		 	—		 	(25.2	)	 	—		 	(9,786.4	)	 	—		 	(9,811.6	)	
Selling and administrative expenses	(15.6	)	 	—		 	(0.1	)	 	(1.2	)	 	(102.9	)	 	(0.2	)	 	(2,600.7	)	 	—		 	(2,720.7	)	
Operating income (loss)	(15.6	)		—			(0.1	)		(1.2	)		(128.1	)		(0.2	)		1,810.5			—			1,665.3		
Equity earnings (loss) in subsidiaries, net of tax	1,349.2		 	1,334.7		 	982.3		 	565.4		 	1,271.7		 	107.9		 	—		 	(5,611.2	)	 	—		
Interest expense	—		 	—		 	—		 	(127.0	)	 	(47.2	)	 	(41.0	)	 	(0.6	)	 	—		 	(215.8	)	
Intercompany interest and fees	(33.1	)	 	—		 	253.0		 	(493.9	)	 	(514.3	)	 	(8.2	)	 	796.5		 	—		 	—		
Other income/(expense), net	—		 	—		 	0.1		 	—		 	(4.8	)	 	—		 	(26.9	)	 	—		 	(31.6	)	
Earnings (loss) before income taxes	1,300.5			1,334.7			1,235.3			(56.7	)		577.3			58.5			2,579.5			(5,611.2	)		1,417.9		
Benefit (provision) for income taxes	2.1		 	—		 	—		 	247.2		 	15.9		 	—		 	(345.4	)	 	—		 	(80.2	)	
Earnings (loss) from continuing operations	1,302.6			1,334.7			1,235.3			190.5			593.2			58.5			2,234.1			(5,611.2	)		1,337.7		
Discontinued operations, net of tax	—		 	—		 	—		 	—		 	(27.9	)	 	—		 	2.5		 	—		 	(25.4	)	
Net earnings (loss)	1,302.6			1,334.7			1,235.3			190.5			565.3			58.5			2,236.6			(5,611.2	)		1,312.3		
Less: Net earnings attributable to noncontrolling interests	—		 	—		 	—		 	—		 	—		 	—		 	(9.7	)	 	—		 	(9.7	)	
Net earnings attributable to Ingersoll-Rand plc	$	1,302.6			$	1,334.7			$	1,235.3			$	190.5			$	565.3			$	58.5			$	2,226.9			$	(5,611.2	)		$	1,302.6		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other comprehensive income (loss), net of tax	511.7		 	510.3		 	471.1		 	367.8		 	367.3		 	102.1		 	499.0		 	(2,317.6	)	 	511.7		
Comprehensive income attributable to Ingersoll-Rand plc	$	1,814.3			$	1,845.0			$	1,706.4			$	558.3			$	932.6			$	160.6			$	2,725.9			$	(7,928.8	)		$	1,814.3		

F-51

Table of Contents

Condensed Consolidating Balance Sheet
December 31, 2019

	
																																				
In millions	Plc	 	Irish Holdings	 	Lux International	 	Global
Holding	 	New
Jersey	 	Lux
Finance	 	Other
Subsidiaries	 	Consolidating
Adjustments	 	
Consolidated	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	$	—		 	$	—		 	$	0.1		 	$	—		 	$	313.1		 	$	0.5		 	$	989.9		 	$	—		 	$	1,303.6		
Accounts and notes receivable, net	—		 	—		 	0.2		 	—		 	0.7		 	—		 	2,797.2		 	—		 	2,798.1		
Inventories	—		 	—		 	—		 	—		 	—		 	—		 	1,712.2		 	—		 	1,712.2		
Other current assets	0.3		 	—		 	2.4		 	39.2		 	82.2		 	—		 	279.2		 	—		 	403.3		
Intercompany receivables	40.0		 	—		 	89.7		 	—		 	4,644.9		 	1,473.7		 	4,967.0		 	(11,215.3	)	 	—		
Total current assets	40.3		 	—		 	92.4		 	39.2		 	5,040.9		 	1,474.2		 	10,745.5		 	(11,215.3	)	 	6,217.2		
Property, plant and equipment, net	—		 	—		 	—		 	—		 	156.9		 	—		 	1,649.3		 	—		 	1,806.2		
Goodwill and other intangible assets, net	—		 	—		 	—		 	—		 	2.7		 	—		 	10,929.2		 	—		 	10,931.9		
Other noncurrent assets	—		 	—		 	13.3		 	198.4		 	746.3		 	—		 	990.2		 	(411.2	)	 	1,537.0		
Investments in consolidated subsidiaries	10,506.2		 	10,488.7		 	4,943.5		 	14,328.0		 	10,140.5		 	1,464.5		 	—		 	(51,871.4	)	 	—		
Intercompany notes receivable	—		 	—		 	2,781.9		 	—		 	—		 	—		 	2,249.7		 	(5,031.6	)	 	—		
Total assets	$	10,546.5		 	$	10,488.7		 	$	7,831.1		 	$	14,565.6		 	$	16,087.3		 	$	2,938.7		 	$	26,563.9		 	$	(68,529.5	)	 	$	20,492.3		
LIABILITIES AND EQUITY		 		 		 		 		 		 		 		 		
Current liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable and accrued expenses	$	10.1		 	$	—		 	$	—		 	$	17.8		 	$	438.7		 	$	23.3		 	$	3,721.5		 	$	—		 	$	4,211.4		
Short-term borrowings and current maturities of long-term debt	—		 	—		 	—		 	—		 	350.4		 	299.8		 	0.3		 	—		 	650.5		
Intercompany payables	3,268.8		 	—		 	2,917.4		 	3,920.5		 	1,058.9		 	29.4		 	20.3		 	(11,215.3	)	 	—		
Total current liabilities	3,278.9		 	—		 	2,917.4		 	3,938.3		 	1,848.0		 	352.5		 	3,742.1		 	(11,215.3	)	 	4,861.9		
Long-term debt	—		 	—		 	—		 	2,332.4		 	312.1		 	2,278.3		 	0.1		 	—		 	4,922.9		
Other noncurrent liabilities	—		 	—		 	—		 	0.3		 	1,107.7		 	—		 	2,698.3		 	(411.2	)	 	3,395.1		
Intercompany notes payable	—		 	—		 	—		 	3,699.7		 	—		 	—		 	1,331.9		 	(5,031.6	)	 	—		
Total liabilities	3,278.9		 	—		 	2,917.4		 	9,970.7		 	3,267.8		 	2,630.8		 	7,772.4		 	(16,658.1	)	 	13,179.9		
Equity:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	7,267.6		 	10,488.7		 	4,913.7		 	4,594.9		 	12,819.5		 	307.9		 	18,791.5		 	(51,871.4	)	 	7,312.4		
Total liabilities and equity	$	10,546.5		 	$	10,488.7		 	$	7,831.1		 	$	14,565.6		 	$	16,087.3		 	$	2,938.7		 	$	26,563.9		 	$	(68,529.5	)	 	$	20,492.3		

F-52

Table of Contents

Condensed Consolidating Balance Sheet
December 31, 2018

	
																																				
In millions	Plc	 	Irish Holdings	 	Lux International	 	Global
Holding	 	New
Jersey	 	Lux
Finance	 	Other
Subsidiaries	 	Consolidating
Adjustments	 	
Consolidated	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	$	—		 	$	0.1		 	$	0.2		 	$	—		 	$	357.7		 	$	—		 	$	545.4		 	$	—		 	$	903.4		
Accounts and notes receivable, net	—		 	—		 	0.1		 	—		 	1.5		 	—		 	2,677.6		 	—		 	2,679.2		
Inventories	—		 	—		 	—		 	—		 	—		 	—		 	1,677.8		 	—		 	1,677.8		
Other current assets	0.2		 	—		 	7.8		 	—		 	86.9		 	—		 	377.5		 	(0.8	)	 	471.6		
Intercompany receivables	59.5		 	—		 	3.9		 	—		 	3,831.0		 	0.1		 	3,970.9		 	(7,865.4	)	 	—		
Total current assets	59.7		 	0.1		 	12.0		 	—		 	4,277.1		 	0.1		 	9,249.2		 	(7,866.2	)	 	5,732.0		
Property, plant and equipment, net	—		 	—		 	0.1		 	—		 	163.6		 	—		 	1,567.1		 	—		 	1,730.8		
Goodwill and other intangible assets, net	—		 	—		 	—		 	—		 	6.8		 	—		 	9,587.4		 	—		 	9,594.2		
Other noncurrent assets	—		 	—		 	8.0		 	180.0		 	508.4		 	—		 	613.2		 	(451.7	)	 	857.9		
Investments in consolidated subsidiaries	9,308.9		 	9,267.8		 	3,935.4		 	11,742.6		 	10,778.8		 	1,264.2		 	—		 	(46,297.7	)	 	—		
Intercompany notes receivable	—		 	—		 	—		 	—		 	—		 	—		 	2,249.7		 	(2,249.7	)	 	—		
Total assets	$	9,368.6		 	$	9,267.9		 	$	3,955.5		 	$	11,922.6		 	$	15,734.7		 	$	1,264.3		 	$	23,266.6		 	$	(56,865.3	)	 	$	17,914.9		
LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable and accrued expenses	$	11.3		 	$	—		 	$	0.1		 	$	41.7		 	$	347.0		 	$	6.9		 	$	3,558.9		 	$	(0.8	)	 	$	3,965.1		
Short-term borrowings and current maturities of long-term debt	—		 	—		 	—		 	—		 	350.4		 	—		 	0.2		 	—		 	350.6		
Intercompany payables	2,334.6		 	—		 	132.9		 	3,518.7		 	1,879.0		 	0.2		 	—		 	(7,865.4	)	 	—		
Total current liabilities	2,345.9		 	—		 	133.0		 	3,560.4		 	2,576.4		 	7.1		 	3,559.1		 	(7,866.2	)	 	4,315.7		
Long-term debt	—		 	—		 	—		 	2,330.0		 	319.5		 	1,091.0		 	0.2		 	—		 	3,740.7		
Other noncurrent liabilities	—		 	—		 	—		 	5.5		 	1,096.1		 	—		 	2,143.8		 	(451.7	)	 	2,793.7		
Intercompany notes payable	—		 	—		 	—		 	2,249.7		 	—		 	—		 	—		 	(2,249.7	)	 	—		
Total liabilities	2,345.9		 	—		 	133.0		 	8,145.6		 	3,992.0		 	1,098.1		 	5,703.1		 	(10,567.6	)	 	10,850.1		
Equity:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	7,022.7		 	9,267.9		 	3,822.5		 	3,777.0		 	11,742.7		 	166.2		 	17,563.5		 	(46,297.7	)	 	7,064.8		
Total liabilities and equity	$	9,368.6		 	$	9,267.9		 	$	3,955.5		 	$	11,922.6		 	$	15,734.7		 	$	1,264.3		 	$	23,266.6		 	$	(56,865.3	)	 	$	17,914.9		

F-53

Table of Contents

Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2019

	
																																				
In millions	Plc	 	Irish Holdings	 	Lux International	 	Global
Holding	 	New
Jersey	 	Lux
Finance	 	Other
Subsidiaries	 	Consolidating
Adjustments	 	
Consolidated	
CASH FLOWS FROM OPERATING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by (used in) continuing operating activities	$	191.7		 	$	—		 	$	134.8		 	$	(332.7	)	 	$	1,522.6		 	$	(66.1	)	 	$	506.0		 	$	—		 	$	1,956.3		
Net cash provided by (used in) discontinued operating activities	—		 	—		 	—		 	—		 	(41.3	)	 	—		 	4.5		 	—		 	(36.8	)	
Net cash provided by (used in) operating activities	191.7			—			134.8			(332.7	)		1,481.3			(66.1	)		510.5			—			1,919.5		
CASH FLOWS FROM INVESTING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Capital expenditures	—		 	—		 	—		 	—		 	(12.7	)	 	—		 	(241.4	)	 	—		 	(254.1	)	
Acquisitions and equity method investments, net of cash acquired	—		 	—		 	(58.0	)	 	(1,446.3	)	 	—		 	—		 	(35.4	)	 	—		 	(1,539.7	)	
Proceeds from sale of property, plant and equipment	—		 	—		 	—		 	—		 	—		 	—		 	3.8		 	—		 	3.8		
Other investing activities, net	—		 	—		 	—		 	—		 	4.3		 	—		 	5.7		 	—		 	10.0		
Intercompany investing activities, net	150.4		 	149.8		 	(1,454.0	)	 	—		 	889.2		 	(1,449.9	)	 	2,040.1		 	(325.6	)	 	—		
Net cash provided by (used in) investing activities	150.4			149.8			(1,512.0	)		(1,446.3	)		880.8			(1,449.9	)		1,772.8			(325.6	)		(1,780.0	)	
CASH FLOWS FROM FINANCING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net proceeds from (payments of) debt	—		 	—		 	—		 	—		 	(7.5	)	 	1,497.9		 	—		 	—		 	1,490.4		
Debt issuance costs	—		 	—		 	—		 	—		 	(0.2	)	 	(12.9	)	 	—		 	—		 	(13.1	)	
Dividends paid to ordinary shareholders	(510.1	)	 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	(510.1	)	
Dividends paid to noncontrolling interests	—		 	—		 	—		 	—		 	—		 	—		 	(15.8	)	 	—		 	(15.8	)	
Proceeds from shares issued under incentive plans	116.8		 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	116.8		
Repurchase of ordinary shares	(750.1	)	 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	(750.1	)	
Other financing activities, net	(44.3	)	 	—		 	—		 	—		 	—		 	—		 	(3.3	)	 	—		 	(47.6	)	
Intercompany financing activities, net	845.6		 	(149.9	)	 	1,377.1		 	1,779.0		 	(2,399.0	)	 	31.5		 	(1,809.9	)	 	325.6		 	—		
Net cash provided by (used in) financing activities	(342.1	)		(149.9	)		1,377.1			1,779.0			(2,406.7	)		1,516.5			(1,829.0	)		325.6			270.5		
Effect of exchange rate changes on cash and cash equivalents	—		 	—		 	—		 	—		 	—		 	—		 	(9.8	)	 	—		 	(9.8	)	
Net increase (decrease) in cash and cash equivalents	—			(0.1	)		(0.1	)		—			(44.6	)		0.5			444.5			—			400.2		
Cash and cash equivalents - beginning of period	—		 	0.1		 	0.2		 	—		 	357.7		 	—		 	545.4		 	—		 	903.4		
Cash and cash equivalents - end of period	$	—			$	—			$	0.1			$	—			$	313.1			$	0.5			$	989.9			$	—			$	1,303.6		

F-54

Table of Contents

Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2018

	
																																				
In millions	Plc	 	Irish Holdings	 	Lux International	 	Global
Holding	 	New
Jersey	 	Lux
Finance	 	Other
Subsidiaries	 	Consolidating
Adjustments	 	
Consolidated	
CASH FLOWS FROM OPERATING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by (used in) continuing operating activities	$	78.8		 	$	(2.7	)	 	$	31.5		 	$	(217.6	)	 	$	1,321.4		 	$	(52.0	)	 	$	315.1		 	$	—		 	$	1,474.5		
Net cash provided by (used in) discontinued operating activities	—		 	—		 	—		 	—		 	(65.3	)	 	—		 	(1.4	)	 	—		 	(66.7	)	
Net cash provided by (used in) operating activities	78.8			(2.7	)		31.5			(217.6	)		1,256.1			(52.0	)		313.7			—			1,407.8		
CASH FLOWS FROM INVESTING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Capital expenditures	—		 	—		 	—		 	—		 	(62.0	)	 	—		 	(303.6	)	 	—		 	(365.6	)	
Acquisitions and equity method investments, net of cash acquired	—		 	—		 	—		 	—		 	—		 	—		 	(285.2	)	 	—		 	(285.2	)	
Proceeds from sale of property, plant and equipment	—		 	—		 	—		 	—		 	9.0		 	—		 	13.1		 	—		 	22.1		
Other investing activities, net	—		 	—		 	(7.9	)	 	—		 	3.0		 	—		 	4.2		 	—		 	(0.7	)	
Intercompany investing activities, net	1,058.7		 	(481.2	)	 	545.4		 	9.5		 	307.1		 	—		 	2,463.0		 	(3,902.5	)	 	—		
Net cash provided by (used in) investing activities	1,058.7			(481.2	)		537.5			9.5			257.1			—			1,891.5			(3,902.5	)		(629.4	)	
CASH FLOWS FROM FINANCING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net proceeds from (payments of) debt	—		 	—		 	—		 	31.6		 	(7.5	)	 	—		 	(6.5	)	 	—		 	17.6		
Debt issuance costs	—		 	—		 	—		 	(12.0	)	 	—		 	—		 	—		 	—		 	(12.0	)	
Dividends paid to ordinary shareholders	(479.5	)	 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	(479.5	)	
Dividends paid to noncontrolling interests	—		 	—		 	—		 	—		 	—		 	—		 	(41.4	)	 	—		 	(41.4	)	
Proceeds from shares issued under incentive plans	68.9		 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	68.9		
Repurchase of ordinary shares	(900.2	)	 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	(900.2	)	
Other financing activities, net	(25.8	)	 	—		 	—		 	—		 	—		 	—		 	(6.4	)	 	—		 	(32.2	)	
Intercompany financing activities, net	199.1		 	484.0		 	(569.4	)	 	188.5		 	(1,499.1	)	 	52.0		 	(2,757.6	)	 	3,902.5		 	—		
Net cash provided by (used in) financing activities	(1,137.5	)		484.0			(569.4	)		208.1			(1,506.6	)		52.0			(2,811.9	)		3,902.5			(1,378.8	)	
Effect of exchange rate changes on cash and cash equivalents	—		 	—		 	—		 	—		 	—		 	—		 	(45.6	)	 	—		 	(45.6	)	
Net increase (decrease) in cash and cash equivalents	—			0.1			(0.4	)		—			6.6			—			(652.3	)		—			(646.0	)	
Cash and cash equivalents – beginning of period	—		 	—		 	0.6		 	—		 	351.1		 	—		 	1,197.7		 	—		 	1,549.4		
Cash and cash equivalents – end of period	$	—			$	0.1			$	0.2			$	—			$	357.7			$	—			$	545.4			$	—			$	903.4		

F-55

Table of Contents

Condensed Consolidating Statement of Cash Flows
For the year ended December 31, 2017

	
																																				
In millions	Plc	 	Irish Holdings	 	Lux International	 	Global
Holding	 	New
Jersey	 	Lux
Finance	 	Other
Subsidiaries	 	Consolidating
Adjustments	 	
Consolidated	
CASH FLOWS FROM OPERATING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net cash provided by (used in) continuing operating activities	$	83.8		 	$	—		 	$	(42.8	)	 	$	(284.9	)	 	$	305.9		 	$	(48.0	)	 	$	1,547.6		 	$	—		 	$	1,561.6		
Net cash provided by (used in) discontinued operating activities	—		 	—		 	—		 	—		 	(36.9	)	 	—		 	(1.2	)	 	—		 	(38.1	)	
Net cash provided by (used in) operating activities	83.8			—			(42.8	)		(284.9	)		269.0			(48.0	)		1,546.4			—			1,523.5		
CASH FLOWS FROM INVESTING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Capital expenditures	—		 	—		 	—		 	—		 	(56.4	)	 	—		 	(164.9	)	 	—		 	(221.3	)	
Acquisitions and equity method investments, net of cash acquired	—		 	—		 	—		 	—		 	(2.7	)	 	—		 	(154.9	)	 	—		 	(157.6	)	
Proceeds from sale of property, plant and equipment	—		 	—		 	—		 	—		 	—		 	—		 	1.5		 	—		 	1.5		
Other investing activities, net	—		 	—		 	—		 	—		 	—		 	—		 	2.7		 	—		 	2.7		
Intercompany investing activities, net	285.1		 	285.2		 	2,050.2		 	270.1		 	4,933.4		 	11.7		 	6,713.1		 	(14,548.8	)	 	—		
Net cash provided by (used in) investing activities	285.1			285.2			2,050.2			270.1			4,874.3			11.7			6,397.5			(14,548.8	)		(374.7	)	
CASH FLOWS FROM FINANCING ACTIVITIES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net proceeds from (payments of) debt	—		 	—		 	—		 	—		 	(7.5	)	 	—		 	(4.2	)	 	—		 	(11.7	)	
Debt issuance costs	—		 	—		 	—		 	(0.2	)	 	—		 	—		 	—		 	—		 	(0.2	)	
Dividends paid to ordinary shareholders	(430.1	)	 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	(430.1	)	
Dividends paid to noncontrolling interests	—		 	—		 	—		 	—		 	—		 	—		 	(15.8	)	 	—		 	(15.8	)	
Acquisition of noncontrolling interest	—		 	—		 	—		 	—		 	—		 	—		 	(6.8	)	 	—		 	(6.8	)	
Proceeds from shares issued under incentive plans	76.7		 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	76.7		
Repurchase of ordinary shares	(1,016.9	)	 	—		 	—		 	—		 	—		 	—		 	—		 	—		 	(1,016.9	)	
Other financing activities, net	(25.4	)	 	—		 	—		 	—		 	—		 	—		 	(2.3	)	 	—		 	(27.7	)	
Intercompany financing activities, net	1,026.8		 	(285.2	)	 	(2,006.8	)	 	15.0		 	(5,414.8	)	 	36.3		 	(7,920.1	)	 	14,548.8		 	—		
Net cash provided by (used in) financing activities	(368.9	)		(285.2	)		(2,006.8	)		14.8			(5,422.3	)		36.3			(7,949.2	)		14,548.8			(1,432.5	)	
Effect of exchange rate changes on cash and cash equivalents	—		 	—		 	—		 	—		 	—		 	—		 	118.4		 	—		 	118.4		
Net increase (decrease) in cash and cash equivalents	—			—			0.6			—			(279.0	)		—			113.1			—			(165.3	)	
Cash and cash equivalents – beginning of period	—		 	—		 	—		 	—		 	630.1		 	—		 	1,084.6		 	—		 	1,714.7		
Cash and cash equivalents – end of period	$	—			$	—			$	0.6			$	—			$	351.1			$	—			$	1,197.7			$	—			$	1,549.4		

F-56

Table of Contents

SCHEDULE II
INGERSOLL-RAND PLC
VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31 2019, 2018 AND 2017
(Amounts in millions)

	
				
Allowances for Doubtful Accounts:	 	
 	 	
Balance December 31, 2016	$	26.0		
Additions charged to costs and expenses	9.7		
Deductions (a)	(9.7	)	
Currency translation	1.3		
Other	(0.4	)	
 	 	
Balance December 31, 2017	26.9		
Additions charged to costs and expenses	15.3		
Deductions (a)	(9.1	)	
Business acquisitions and divestitures, net	0.5		
Currency translation	(0.9	)	
 	 	
Balance December 31, 2018	32.7		
Additions charged to costs and expenses	15.2		
Deductions (a)	(7.1	)	
Business acquisitions and divestitures, net	1.5		
Currency translation	(0.1	)	
Balance December 31, 2019	$	42.2		

	
		
(a)	“Deductions” include accounts and advances written off, less recoveries.	

 

F-57

Exhibit 4.24

DESCRIPTION OF INGERSOLL-RAND SHARE CAPITAL REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT
The following description of the share capital of Ingersoll-Rand plc (“IR plc”) is a summary. This summary is not complete and is subject to the complete text of IR plc’s memorandum and articles of association previously filed with the Commission and to the Irish Companies Act 2014 (the “Irish Companies Act”). We encourage you to read those documents and laws carefully.
Capital Structure
Authorized Share Capital. The authorized share capital of IR plc is €40,000 and US$1,175,010,000 divided into 40,000 ordinary shares with a nominal value of €1 per share, 1,175,000,000 ordinary shares with a nominal value of US$1.00 per share and 10,000,000 preferred shares with a nominal value of US$0.001 per share.
IR plc may issue shares subject to the maximum prescribed by its authorized share capital contained in its memorandum of association and subject to the maximum authorized by shareholders from time to time.
As a matter of Irish company law, the directors of a company may issue new ordinary or preferred shares without shareholder approval once authorized to do so by the articles of association of the company or by an ordinary resolution adopted by the shareholders at a general meeting. An ordinary resolution requires over 50% of the votes of a company’s shareholders cast at a general meeting. The authority conferred can be granted for a maximum period of five years, at which point it must be renewed by the shareholders of the company by an ordinary resolution. The shareholders of IR plc adopted an ordinary resolution at the 2019 annual general meeting of the Company on June 6, 2019 authorizing the directors of IR plc to issue up to an aggregate nominal amount of $87,655,777 (87,655,777 shares) (being equivalent to approximately 33% of the aggregate nominal value of the issued ordinary share capital of the Company as of April 8, 2019), for a period of 18 months from June 6, 2019.
The authorized share capital may be increased or reduced by way of an ordinary resolution of IR plc’s shareholders. The shares comprising the authorized share capital of IR plc may be divided into shares of such par value as the resolution shall prescribe.
The rights and restrictions to which the ordinary shares are subject are prescribed in IR plc’s articles of association. IR plc’s articles of association entitle the board of directors, without shareholder approval, to determine the terms of the preferred shares issued by IR plc. The IR plc board of directors is authorized, without obtaining any vote or consent of the holders of any class or series of shares (other than the authority to allot shares referred to above) unless expressly provided by the terms of that class or series or shares, to provide from time to time for the issuance of other classes or series of preferred shares and to establish the characteristics of each class or series, including the number of shares, designations, relative voting rights, dividend rights, liquidation and other rights, redemption, repurchase or exchange rights and any other preferences and relative, participating, optional or other rights and limitations not inconsistent with applicable law.
Irish law does not recognize fractional shares held of record; accordingly, IR plc’s articles of association do not provide for the issuance of fractional shares of IR plc, and the official Irish register of IR plc will not reflect any fractional shares.
Pre-emption Rights, Share Warrants and Share Options
Certain statutory pre-emption rights apply automatically in favor of IR plc’s shareholders where shares in IR plc are to be issued for cash. However, IR plc initially opted out of these pre-emption rights on its incorporation in its articles of association as permitted under Irish company law. Because Irish law requires this opt-out to be renewed every five years by a special resolution of the shareholders, IR plc’s articles of association provide that this opt-out must be so renewed. A special resolution requires not less than 75% of the votes of IR plc’s shareholders cast at a

general meeting. If the opt-out is not renewed, shares issued for cash must be offered to pre-existing shareholders of IR plc pro rata to their existing shareholding before the shares can be issued to any new shareholders. The statutory pre-emption rights do not apply where shares are issued for non-cash consideration and do not apply to the issue of non-equity shares (that is, shares that have the right to participate only up to a specified amount in any income or capital distribution). Shareholders of IR plc passed a special resolution at the 2019 annual general meeting of the Company on June 6, 2019 authorizing the directors of IR plc to opt out of pre-emption rights with respect to equity securities with up to an aggregate nominal value of $13,281,178 (13,281,178 shares) (being equivalent to approximately 5% of the aggregate nominal value of the issued ordinary share capital of the Company as of April 8, 2019), for a period of 18 months from June 6, 2019.
The articles of association of IR plc provide that, subject to any shareholder approval requirement under any laws, regulations or the rules of any stock exchange to which IR plc is subject, the board is authorized, from time to time, in its discretion, to grant such persons, for such periods and upon such terms as the board deems advisable, options to purchase such number of shares of any class or classes or of any series of any class as the board may deem advisable, and to cause warrants or other appropriate instruments evidencing such options to be issued. The Irish Companies Act provides that directors may issue share warrants or options without shareholder approval once authorized to do so by the articles of association or an ordinary resolution of shareholders. The board may issue shares upon exercise of warrants or options without shareholder approval or authorization.
IR plc is subject to the rules of the NYSE that require shareholder approval of certain share issuances.
Dividends
Under Irish law, dividends and distributions may only be made from distributable reserves. Distributable reserves, broadly, means the accumulated realized profits of IR plc less accumulated realized losses of IR plc. In addition, no distribution or dividend may be made unless the net assets of IR plc are equal to, or in excess of, the aggregate of IR plc’s called up share capital plus undistributable reserves and the distribution does not reduce IR plc’s net assets below such aggregate. Undistributable reserves include the share premium account, the capital redemption reserve fund, the revaluation reserve, and the amount by which IR plc’s accumulated unrealized profits, so far as not previously utilized by any capitalization, exceed IR plc’s accumulated unrealized losses, so far as not previously written off in a reduction or reorganization of capital.
The determination as to whether or not IR plc has sufficient distributable reserves to fund a dividend must be made by reference to “relevant financial statements” of IR plc. The “relevant financial statements” will be either the last set of unconsolidated annual audited financial statements or unaudited financial statements prepared in accordance with the Irish Companies Act, which gives a “true and fair view” of IR plc’s unconsolidated financial position and accord with accepted accounting practice. The relevant financial statements must be filed in the Companies Registration Office (the official public registry for companies in Ireland).
The mechanism as to who declares a dividend and when a dividend shall become payable is governed by the articles of association of IR plc. IR plc’s articles of association authorize the directors to declare such dividends as appear justified from the profits of IR plc without the approval of the shareholders at a general meeting. The board of directors may also recommend a dividend to be approved and declared by the shareholders at a general meeting. Although the shareholders may direct that the payment be made by distribution of assets, shares or cash, no dividend issued may exceed the amount recommended by the directors. The dividends can be declared and paid in the form of cash or non-cash assets.
The directors of IR plc may deduct from any dividend payable to any member all sums of money (if any) payable by such member to IR plc in relation to the shares of IR plc.
 
The directors of IR plc are also entitled to issue shares with preferred rights to participate in dividends declared by IR plc. The holders of such preferred shares may, depending on their terms, be entitled to claim arrears of a declared dividend out of subsequently declared dividends in priority to ordinary shareholders.

For information about the Irish tax issues relating to dividend payments, please see “Certain Tax Considerations—Irish Tax Considerations” below.

Share Repurchases, Redemptions and Conversions
Overview
Article 3(d) of IR plc’s articles of association provides that any ordinary share which IR plc has acquired or agreed to acquire shall be deemed to be a redeemable share. Accordingly, for Irish company law purposes, the repurchase of ordinary shares by IR plc will technically be effected as a redemption of those shares as described below under “—Repurchases and Redemptions by IR plc.” If the articles of association of IR plc did not contain Article 3(d), repurchases by IR plc would be subject to many of the same rules that apply to purchases of IR plc shares by subsidiaries described below under “—Purchases by Subsidiaries of IR plc,” including the shareholder approval requirements described below and the requirement that any on-market purchases be effected on a “recognized stock exchange.” Except where otherwise noted, when we refer elsewhere in this prospectus to repurchasing or buying back ordinary shares of IR plc, we are referring to the redemption of ordinary shares by IR plc pursuant to Article 3(d) of the articles of association or the purchase of ordinary shares of IR plc by a subsidiary of IR plc, in each case in accordance with the IR plc articles of association and Irish company law as described below.
Repurchases and Redemptions by IR plc
Under Irish law, a company can issue redeemable shares and redeem them out of distributable reserves (which are described above under “—Dividends”) or the proceeds of a new issue of shares for that purpose. IR plc currently has distributable reserves which are calculated by reference to the relevant financial statements of IR plc. Please see “—Dividends.” All redeemable shares must be fully paid and the terms of redemption of the shares must provide for payment on redemption. Redeemable shares may, upon redemption, be cancelled or held in treasury. Shareholder approval will not be required to redeem IR plc shares.
The board of directors of IR plc will also be entitled to issue preferred shares which may be redeemed at the option of either IR plc or the shareholder, depending on the terms of such preferred shares. Please see “—Capital Structure—Authorized Share Capital” above for additional information on redeemable shares.
Repurchased and redeemed shares may be cancelled or held as treasury shares. The nominal value of treasury shares held by IR plc at any time must not exceed 10% of the nominal value of the issued share capital of IR plc. While IR plc holds shares as treasury shares, it cannot exercise any voting rights in respect of those shares. Treasury shares may be cancelled by IR plc or re-issued subject to certain conditions.
Purchases by Subsidiaries of IR plc
Under Irish law, it may be permissible for an Irish or non-Irish subsidiary to purchase shares of IR plc either on-market or off-market. A general authority of the shareholders of IR plc is required to allow a subsidiary of IR plc to make on-market purchases of IR plc shares; however, as long as this general authority has been granted, no specific shareholder authority for a particular on-market purchase by a subsidiary of IR plc shares is required. IR plc does not currently seek such authority from its shareholders but may seek such general authority from shareholders in the future. In order for a subsidiary of IR plc to make an on-market purchase of IR plc’s shares, such shares must be purchased on a “recognized stock exchange.” The NYSE, on which the shares of IR plc are listed, became a “recognized stock exchange” for this purpose on March 12, 2010, as a result of the coming into effect of the Irish Companies (Recognised Stock Exchanges) Regulations 2010. For an off-market purchase by a subsidiary of IR plc, the proposed purchase contract must be authorized by special resolution of the shareholders of IR plc before the contract is entered into. The person whose shares are to be bought back cannot vote in favor of the special resolution and, for at least 21 days prior

to the special resolution, the purchase contract must be on display or must be available for inspection by shareholders at the registered office of IR plc.
The number of shares held by the subsidiaries of IR plc at any time will count as treasury shares and will be included in any calculation of the permitted treasury share threshold of 10% of the nominal value of the issued share capital of IR plc. While a subsidiary holds shares of IR plc, it cannot exercise any voting rights in respect of those shares. The acquisition of the shares of IR plc by a subsidiary must be funded out of distributable reserves of the subsidiary.
Existing Share Repurchase Program
The board of directors of IR plc has authorized a program to repurchase up to $1.5 billion of its ordinary shares. Based on market conditions, share repurchases will be made from time to time in the open market and in privately negotiated transactions at the discretion of management. The repurchase program does not have a prescribed expiration date.
As noted above, because repurchases of IR plc shares by IR plc will technically be effected as a redemption of those shares pursuant to Article 3(d) of the articles of association, shareholder approval for such repurchases will not be required.
Bonus Shares
Under IR plc’s articles of association, the board may resolve to capitalize any amount credited to any reserve or fund available for distribution or the share premium account of IR plc for issuance and distribution to shareholders as fully paid up bonus shares on the same basis of entitlement as would apply in respect of a dividend distribution.
Consolidation and Division; Subdivision
Under its articles of association, IR plc may by ordinary resolution consolidate and divide all or any of its share capital into shares of larger par value than its existing shares or subdivide its shares into smaller amounts than is fixed by its articles of association.
Reduction of Share Capital
IR plc may, by ordinary resolution, reduce its authorized share capital in any way. IR plc also may, by special resolution and subject to confirmation by the Irish High Court, reduce or cancel its issued share capital in any way.
General Meetings of Shareholders
IR plc is required to hold annual general meetings at intervals of no more than fifteen months, provided that an annual general meeting is held in each calendar year, no more than nine months after IR plc’s fiscal year-end. IR plc has held all of its annual general meetings in Ireland. However, any annual general meeting may be held outside Ireland if a resolution so authorizing is passed at the preceding annual general meeting. Because of the fifteen-month requirement described in this paragraph, IR plc’s articles of association include a provision reflecting this requirement of Irish law. At any annual general meeting, only such business shall be conducted as shall have been brought before the meeting (a) by or at the direction of the board or (b) by any member entitled to vote at such meeting who complies with the procedures set forth in the articles of association.
Extraordinary general meetings of IR plc may be convened by (i) the chairman of the board of directors, (ii) the board of directors, (iii) on requisition of the shareholders holding not less than 10% of the paid up share capital of IR plc carrying voting rights or (iv) on requisition of IR plc’s auditors. Extraordinary general meetings are generally held for the purposes of approving shareholder resolutions of IR plc as may be required from time to time. At any extraordinary general meeting only such business shall be conducted as is set forth in the notice thereof.

Notice of a general meeting must be given to all shareholders of IR plc and to the auditors of IR plc. The articles of association of IR plc provide that the maximum notice period is 60 days. The minimum notice periods are 21 days’ notice in writing for an annual general meeting or an extraordinary general meeting to approve a special resolution and 14 days’ notice in writing for any other extraordinary general meeting. Because of the 21-day and 14-day requirements described in this paragraph, IR plc’s articles of association include provisions reflecting these requirements of Irish law.
In the case of an extraordinary general meeting convened by shareholders of IR plc, the proposed purpose of the meeting must be set out in the requisition notice. The requisition notice can contain any resolution. Upon receipt of this requisition notice, the board of directors has 21 days to convene a meeting of IR plc’s shareholders to vote on the matters set out in the requisition notice. This meeting must be held within two months of the receipt of the requisition notice. If the board of directors does not convene the meeting within such 21-day period, the requisitioning shareholders, or any of them representing more than one half of the total voting rights of all of them, may themselves convene a meeting, which meeting must be held within three months of the receipt of the requisition notice.
The only matters which must, as a matter of Irish company law, be transacted at an annual general meeting are the presentation of the annual financial statements, reports of the directors and auditors, the review by the members of the company’s affairs, the appointment of auditors and the approval of the auditor’s remuneration (or delegation of same), the declaration of dividends and the election of directors. If no resolution is made in respect of the reappointment of an auditor at an annual general meeting, the previous auditor will be deemed to have continued in office.
Directors are elected by the affirmative vote of a majority of the votes cast by shareholders at an annual general meeting and serve for one year terms. Where there is a contested election and the number of nominees exceeds the number of directors to be elected, then a plurality voting standard shall apply and only those nominees receiving the most votes for the available seats will be elected. However, because Irish law requires a minimum of two directors at all times, in the event that an election results in no director being elected, each of the two nominees receiving the greatest number of votes in favor of his or her election shall hold office until his or her successor shall be elected. In the event that an election results in only one director being elected, that director shall be elected and shall serve for a one year term, and the nominee receiving the greatest number of votes in favor of their election shall hold office until his or her successor shall be elected.
If the directors become aware that the net assets of IR plc are half or less of the amount of IR plc’s called-up share capital, the directors of IR plc must convene an extraordinary general meeting of IR plc’s shareholders not later than 28 days from the date that they learn of this fact. This meeting must be convened for the purposes of considering whether any, and if so what, measures should be taken to address the situation.
Voting
At a general meeting a resolution put to the vote is decided by a poll whereby every shareholder shall have one vote for each ordinary share that he or she holds as of the record date for the meeting. Voting rights may be exercised by shareholders registered in IR plc’s share register as of the record date for the meeting or by a duly appointed proxy of such a registered shareholder, which proxy need not be a shareholder. Where interests in shares are held by a nominee trust company, this company may exercise the rights of the beneficial holders on their behalf as their proxy. All proxies must be appointed in the manner prescribed by IR plc’s articles of association, by such time as is prescribed in the notice of the meeting, and if no time is specified, by no later than 48 hours before the commencement of the meeting. The articles of association of IR plc permit the appointment of proxies by the shareholders to be notified to IR plc electronically.
In accordance with the articles of association of IR plc, the directors of IR plc may from time to time cause IR plc to issue preferred shares. These preferred shares may have such voting rights as may be specified in the terms of such preferred shares (e.g., they may carry more votes per share than ordinary shares or may entitle their holders to a class vote on such matters as may be specified in the terms of the preferred shares).
Treasury shares will not be entitled to vote at general meetings of shareholders.

Irish company law requires “special resolutions” of the shareholders at a general meeting to approve certain matters. A special resolution requires not less than 75% of the votes cast of IR plc’s shareholders at a general meeting. This may be contrasted with “ordinary resolutions,” which require a simple majority of the votes of IR plc’s shareholders cast at a general meeting. Examples of matters requiring special resolutions include:
 
     •         Amending the objects of IR plc;
 
     •         Amending the articles of association of IR plc;
 
     •         Approving the change of name of IR plc;

 	•         Authorizing the entering into of a guarantee or provision of security in connection with a loan, quasi-loan or credit transaction to a director or connected person;	
 
     •         Opting out of pre-emption rights on the issuance of new shares;
 
     •         Re-registration of IR plc from a public limited company as a private company;
 
     •         Variation of class rights attaching to classes of shares;
 
     •         Purchase of own shares off-market;
 
     •         The reduction of share capital;
 
     •         Resolving that IR plc be wound up by the Irish courts;
 
     •         Resolving in favor of a shareholders’ voluntary winding-up;
 
     •         Re-designation of shares into different share classes; and
 
     •         Setting the re-issue price of treasury shares.
A scheme of arrangement with shareholders requires a court order from the Irish High Court and the approval of: (1) 75% of the voting shareholders by value; and (2) 50% in number of the voting shareholders, at a meeting called to approve the scheme.
Variation of Rights Attaching to a Class or Series of Shares
Variation of all or any special rights attached to any class or series of shares of IR plc is addressed in the articles of association of IR plc as well as the Irish Companies Act. Any variation of class rights attaching to the issued shares of IR plc must be approved by a special resolution of the shareholders of the class or series affected.
 
Quorum for General Meetings
The presence, in person or by proxy, of the holders of a majority of the IR plc ordinary shares outstanding constitutes a quorum for the conduct of business. No business may take place at a general meeting of IR plc if a quorum is not present in person or by proxy. The board of directors has no authority to waive quorum requirements stipulated in the articles of association of IR plc. Abstentions and broker non-votes will be counted as present for purposes of determining whether there is a quorum in respect of the proposals.
Inspection of Books and Records
Under Irish law, shareholders have the right to: (i) receive a copy of the memorandum and articles of association of IR plc and any act of the Irish government which alters the memorandum of association of IR plc; (ii) inspect and obtain copies of the minutes of general meetings and resolutions of IR plc; (iii) inspect and receive a copy of the register of shareholders, register of directors and secretaries, register of directors’ interests and other statutory registers maintained by IR plc; (iv) receive copies of balance sheets and directors’ and auditors’ reports which have previously been sent to shareholders prior to an annual general meeting; and (v) receive balance sheets of a subsidiary company of IR plc which have previously been sent to shareholders prior to an annual general meeting for the preceding ten years. The auditors of IR plc will also have the right to inspect all books, records and vouchers of IR plc. The auditors’

report must be circulated to the shareholders with audited consolidated annual financial statements of IR plc prepared in accordance with applicable accounting standards 21 days before the annual general meeting and must be read to the shareholders at IR plc’s annual general meeting.
Acquisitions
There are a number of mechanisms for acquiring an Irish public limited company, including:

 	(a)    a court-approved scheme of arrangement under the Irish Companies Act. A scheme of arrangement with shareholders requires a court order from the Irish High Court and the approval of: (1) 75% of the voting shareholders by value; and (2) 50% in number of the voting shareholders, at a meeting called to approve the scheme;	

 	(b)    through a tender offer by a third party for all of the shares of IR plc. Where the holders of 80% or more of IR plc’s shares have accepted an offer for their shares in IR plc, the remaining shareholders may be statutorily required to also transfer their shares. If the bidder does not exercise its “squeeze out” right, then the non-accepting shareholders also have a statutory right to require the bidder to acquire their shares on the same terms. If shares of IR plc were listed on the Irish Stock Exchange or another regulated stock exchange in the European Union (the “EU”), this threshold would be increased to 90%;	

 	(c)    it is possible for IR plc to be acquired by way of a merger with an EU-incorporated public company under the EU Cross Border Merger Directive 2005/56. Such a merger must be approved by a special resolution. If IR plc is being merged with another EU public company under the EU Cross Border Merger Directive 2005/56 and the consideration payable to IR plc’s shareholders is not all in the form of cash, IR plc’s shareholders may be entitled to require their shares to be acquired at fair value; and	

(d)	it is also possible for IR to be acquired by way of a merger with an Irish incorporated company under the Irish Companies Act. Such a merger must be implemented by a court order from the Irish High Court and be approved by a special resolution of IR plc’s shareholders.	
Under Irish law, there is no requirement for a company’s shareholders to approve a sale, lease or exchange of all or substantially all of a company’s property and assets. However, IR plc’s articles of association provide that the affirmative vote of the holders of a majority of the outstanding voting shares on the relevant record date is required to approve a sale, lease or exchange of all or substantially all of its property or assets.
 
Appraisal Rights
Generally, under Irish law, shareholders of an Irish company do not have appraisal rights. Under the EC (Cross-Border Mergers) Regulations 2008 (as amended by the European Communities (Mergers and Divisions of Companies) (Amendment) Regulations 2011) and Part 17 of the Irish Companies Act governing the merger of an Irish public limited company and a company incorporated in the European Economic Area, a shareholder (a) who voted against the special resolution approving the merger or (b) of a company in which 90% of the shares is held by the other company the party to the merger of the transferor company has the right to request that the company acquire its shares for cash.
Disclosure of Interests in Shares
Under the Irish Companies Act, there is a notification requirement for shareholders who acquire or cease to be interested in 3% of the shares of an Irish public limited company. A shareholder of IR plc must therefore make such a notification to IR plc if as a result of a transaction the shareholder will be interested in 3% or more of the shares of IR plc; or if as a result of a transaction a shareholder who was interested in more than 3% of the shares of IR plc ceases to be so interested. Where a shareholder is interested in more than 3% of the shares of IR plc, any alteration of his or her interest that brings his or her total holding through the nearest whole percentage number, whether an increase or a reduction, must be notified to IR plc. The relevant percentage figure is calculated by reference to the aggregate par value of the shares in which the shareholder is interested as a proportion of the entire par value of IR plc’s share capital. Where the percentage level of the shareholder’s interest does not amount to a whole percentage this figure may be rounded down to the next whole number. All such disclosures should be notified to IR plc within 5 business days of

the transaction or alteration of the shareholder’s interests that gave rise to the requirement to notify. Where a person fails to comply with the notification requirements described above no right or interest of any kind whatsoever in respect of any shares in IR plc concerned, held by such person, shall be enforceable by such person, whether directly or indirectly, by action or legal proceeding. However, such person may apply to the court to have the rights attaching to the shares concerned reinstated.
In addition to the above disclosure requirement, IR plc, under the Irish Companies Act, may by notice in writing require a person whom IR plc knows or has reasonable cause to believe to be, or at any time during the three years immediately preceding the date on which such notice is issued, to have been interested in shares comprised in IR plc’s relevant share capital to: (a) indicate whether or not it is the case, and (b) where such person holds or has during that time held an interest in the shares of IR plc, to give such further information as may be required by IR plc including particulars of such person’s own past or present interests in shares of IR plc. Any information given in response to the notice is required to be given in writing within such reasonable time as may be specified in the notice.
Where such a notice is served by IR plc on a person who is or was interested in shares of IR plc and that person fails to give IR plc any information required within the reasonable time specified, IR plc may apply to court for an order directing that the affected shares be subject to certain restrictions. Under the Irish Companies Act, the restrictions that may be placed on the shares by the court are as follows:

 	(a)    any transfer of those shares, or in the case of unissued shares any transfer of the right to be issued with shares and any issue of shares, shall be void;	
 
     (b)    no voting rights shall be exercisable in respect of those shares;

 	(c)    no further shares shall be issued in right of those shares or in pursuance of any offer made to the holder of those shares; and	

 	(d)    no payment shall be made of any sums due from IR plc on those shares, whether in respect of capital or otherwise.	
 
Where the shares in IR plc are subject to these restrictions, the court may order the shares to be sold and may also direct that the shares shall cease to be subject to these restrictions.
Anti-Takeover Provisions
Business Combinations with Interested Shareholders
As provided in IR plc’s articles of association, the affirmative vote of the holders of 80% of the shares then in issue of all classes of shares entitled to vote considered for purposes of this provision as one class, is required for IR plc to engage in any “business combination” with any interested shareholder (generally, a 10% or greater shareholder), provided that the above vote requirement does not apply to:

 	•         any business combination with an interested shareholder that has been approved by the board of directors; or	

 	•         any agreement for the amalgamation, merger or consolidation of any of IR plc’s subsidiaries with IR plc or with another of IR plc’s subsidiaries if (1) the relevant provisions of IR plc’s articles of association will not be changed or otherwise affected by or by virtue of the amalgamation, merger or consolidation and (2) the holders of greater than 50% of the voting power of IR plc or the subsidiary, as appropriate, immediately prior to the amalgamation, merger or consolidation continue to hold greater than 50% of the voting power of the amalgamated company immediately following the amalgamation, merger or consolidation.	
IR plc’s articles of association provide that “business combination” means:

 	•         any amalgamation, merger or consolidation of IR plc or one of IR plc’s subsidiaries with an interested shareholder or with any person that is, or would be after such amalgamation, merger or consolidation, an affiliate or associate of an interested shareholder;	

		
 	•         any transfer or other disposition to or with an interested shareholder or any affiliate or associate of an interested shareholder of all or any material part of the assets of IR plc or one of IR plc’s subsidiaries; and	

 	•         any issuance or transfer of IR plc’s shares upon conversion of or in exchange for the securities or assets of any interested shareholder, or with any company that is, or would be after such merger or consolidation, an affiliate or associate of an interested shareholder.	

Irish Takeover Rules and Substantial Acquisition Rules
A transaction by virtue of which a third party is seeking to acquire 30% or more of the voting rights of IR plc will be governed by the Irish Takeover Panel Act 1997 and the Irish Takeover Rules made thereunder and will be regulated by the Irish Takeover Panel. The “General Principles” of the Irish Takeover Rules and certain important aspects of the Irish Takeover Rules are described below.
General Principles
The Irish Takeover Rules are built on the following General Principles which will apply to any transaction regulated by the Irish Takeover Panel:

	•         in the event of an offer, all classes of shareholders of the target company should be afforded equivalent treatment and, if a person acquires control of a company, the other holders of securities must be protected;	

 	•         the holders of securities in the target company must have sufficient time to allow them to make an informed decision regarding the offer;	

  	•         the board of a company must act in the interests of the company as a whole. If the board of the target company advises the holders of securities as regards the offer it must advise on the effects of the implementation of the offer on employment, employment conditions and the locations of the target company’s place of business;	

 	•         false markets in the securities of the target company or any other company concerned by the offer must not be created;	

 	•         a bidder can only announce an offer after ensuring that he or she can fulfill in full the consideration offered;	

 	•         a target company may not be hindered longer than is reasonable by an offer for its securities. This is a recognition that an offer will disrupt the day-to-day running of a target company particularly if the offer is hostile and the board of the target company must divert its attention to resist the offer; and	

 	•         a “substantial acquisition” of securities (whether such acquisition is to be effected by one transaction or a series of transactions) will only be allowed to take place at an acceptable speed and shall be subject to adequate and timely disclosure.	
Mandatory Bid
If an acquisition of shares were to increase the aggregate holding of an acquirer and its concert parties to shares carrying 30% or more of the voting rights in IR plc, the acquirer and, depending on the circumstances, its concert parties would be required (except with the consent of the Irish Takeover Panel) to make a cash offer for the outstanding shares at a price not less than the highest price paid for the shares by the acquirer or its concert parties during the previous 12 months. This requirement would also be triggered by an acquisition of shares by a person holding (together with its concert parties) shares carrying between 30% and 50% of the voting rights in IR plc if the effect of such acquisition were to increase the percentage of the voting rights held by that person (together with its concert parties) by 0.05% within a twelve-month period. A single holder (that is, a holder excluding any parties acting in concert with the holder) holding more than 50% of the voting rights of a company is not subject to this rule.

Voluntary Bid; Requirements to Make a Cash Offer and Minimum Price Requirements
A voluntary offer is an offer that is not a mandatory offer. If a bidder or any of its concert parties acquire ordinary shares of IR plc within the period of three months prior to the commencement of the offer period, the offer price must be not less than the highest price paid for IR plc ordinary shares by the bidder or its concert parties during that period. The Irish Takeover Panel has the power to extend the “look back” period to 12 months if the Irish Takeover Panel, having regard to the General Principles, believes it is appropriate to do so.
If the bidder or any of its concert parties has acquired ordinary shares of IR plc (i) during the period of 12 months prior to the commencement of the offer period which represent more than 10% of the total ordinary shares of IR plc or (ii) at any time after the commencement of the offer period, the offer shall be in cash (or accompanied by a full cash alternative) and the price per IR plc ordinary share shall be not less than the highest price paid by the bidder or its concert parties during, in the case of (i), the period of 12 months prior to the commencement of the offer period and, in the case of (ii), the offer period. The Irish Takeover Panel may apply this rule to a bidder who, together with its concert parties, has acquired less than 10% of the total ordinary shares of IR plc in the 12 month period prior to the commencement of the offer period if the Panel, having regard to the General Principles, considers it just and proper to do so.
An offer period will generally commence from the date of the first announcement of the offer or proposed offer.
 
Substantial Acquisition Rules
The Irish Takeover Rules also contain rules governing substantial acquisitions of shares which restrict the speed at which a person may increase his or her holding of shares and rights over shares to an aggregate of between 15% and 30% of the voting rights of IR plc. Except in certain circumstances, an acquisition or series of acquisitions of shares or rights over shares representing 10% or more of the voting rights of IR plc is prohibited, if such acquisition(s), when aggregated with shares or rights already held, would result in the acquirer holding 15% or more but less than 30% of the voting rights of IR plc and such acquisitions are made within a period of seven days. These rules also require accelerated disclosure of acquisitions of shares or rights over shares relating to such holdings.
Frustrating Action
Under the Irish Takeover Rules, the board of directors of IR plc is not permitted to take any action which might frustrate an offer for the shares of IR plc once the board of directors has received an approach which may lead to an offer or has reason to believe an offer is imminent except as noted below. Potentially frustrating actions such as (i) the issue of shares, options or convertible securities, (ii) material disposals, (iii) entering into contracts other than in the ordinary course of business or (iv) any action, other than seeking alternative offers, which may result in frustration of an offer, are prohibited during the course of an offer or at any time during which the board has reason to believe an offer is imminent. Exceptions to this prohibition are available where:
 
     (a)    the action is approved by IR plc’s shareholders at a general meeting; or
 
     (b)    with the consent of the Irish Takeover Panel where:
 
     (i)    the Irish Takeover Panel is satisfied the action would not constitute a frustrating action;
 
     (ii)    the holders of 50% of the voting rights state in writing that they approve the proposed action and would vote in favor of it at a general meeting;
 
     (iii)    in accordance with a contract entered into prior to the announcement of the offer; or
 
     (iv)    the decision to take such action was made before the announcement of the offer and either has been at least partially implemented or is in the ordinary course of business.
For other provisions that could be considered to have an anti-takeover effect, please see above at “—Pre-emption Rights, Share Warrants and Share Options” and “—Disclosure of Interests in Shares,” in addition to “—Corporate Governance” below.

Corporate Governance
The articles of association of IR plc allocate authority over the management of IR plc to the board of directors. The board of directors may then delegate management of IR plc to committees of the board, executives or to a management team, but regardless, the directors will remain responsible, as a matter of Irish law, for the proper management of the affairs of IR plc. IR plc currently has an Audit Committee, a Compensation Committee, a Corporate Governance and Nominating Committee, a Finance Committee, a Technology and Innovation Committee and an Executive Committee. IR plc has also adopted Corporate Governance Guidelines that provide the corporate governance framework for IR plc.
Legal Name; Formation; Fiscal Year; Registered Office
The legal and commercial name of IR plc, an Irish company, is Ingersoll-Rand plc. IR plc was incorporated in Ireland, as a public limited company on April 1, 2009 with company registration number 469272. IR plc’s fiscal year ends on December 31 and IR plc’s registered address is 170/175 Lakeview Dr., Airside Business Park, Swords, Co. Dublin, Ireland.
 
Duration; Dissolution; Rights upon Liquidation
IR plc’s duration will be unlimited. IR plc may be dissolved at any time by way of either a shareholders’ voluntary winding up or a creditors’ voluntary winding up. In the case of a shareholders’ voluntary winding up, the consent of not less than 75% of the shareholders of IR plc is required. IR plc may also be dissolved by way of court order on the application of a creditor, or by the Companies Registration Office as an enforcement measure where IR plc has failed to file certain returns.
The rights of the shareholders to a return of IR plc’s assets on dissolution or winding up, following the settlement of all claims of creditors, may be prescribed in IR plc’s articles of association or the terms of any preferred shares issued by the directors of IR plc from time to time. The holders of preferred shares in particular may have the right to priority in a dissolution or winding up of IR plc. If the articles of association contain no specific provisions in respect of a dissolution or winding up then, subject to the priorities or any creditors, the assets will be distributed to shareholders in proportion to the paid-up par value of the shares held. IR plc’s articles of association provide that the ordinary shareholders of IR plc are entitled to participate pro rata in a winding up, but their right to do so may be subject to the rights of any preferred shareholders to participate under the terms of any series or class of preferred shares.
Uncertificated Shares
Holders of ordinary shares of IR plc will not have the right to require IR plc to issue certificates for their shares. IR plc will only issue uncertificated ordinary shares.
Stock Exchange Listing
The IR plc ordinary shares are listed on the NYSE under the symbol “IR.”
No Sinking Fund
The ordinary shares have no sinking fund provisions.
No Liability for Further Calls or Assessments
All of our issued ordinary shares are duly and validly issued and fully paid.
Transfer and Registration of Shares
IR plc’s share register will be maintained by its transfer agent. Registration in this share register will be determinative of membership in IR plc. A shareholder of IR plc who holds shares beneficially will not be the holder of

record of such shares. Instead, the depository (for example, Cede & Co., as nominee for DTC) or other nominee will be the holder of record of such shares. Accordingly, a transfer of shares from a person who holds such shares beneficially to a person who also holds such shares beneficially through a depository or other nominee will not be registered in IR plc’s official share register, as the depository or other nominee will remain the record holder of such shares.
A written instrument of transfer is required under Irish law in order to register on IR plc’s official share register any transfer of shares (i) from a person who holds such shares directly to any other person, (ii) from a person who holds such shares beneficially to a person who holds such shares directly, or (iii) from a person who holds such shares beneficially to another person who holds such shares beneficially where the transfer involves a change in the depository or other nominee that is the record owner of the transferred shares. An instrument of transfer also is required for a shareholder who directly holds shares to transfer those shares into his or her own broker account (or vice versa). Such instruments of transfer may give rise to Irish stamp duty, which must be paid prior to registration of the transfer on IR plc’s official Irish share register.
 
We currently intend to pay (or cause one of our affiliates to pay) stamp duty in connection with share transfers made in the ordinary course of trading by a seller who holds shares directly to a buyer who holds the acquired shares beneficially. In other cases IR plc may, in its absolute discretion, pay (or cause one of its affiliates to pay) any stamp duty. IR plc’s articles of association provide that, in the event of any such payment, IR plc (i) may seek reimbursement from the transferor or transferee (at our discretion), (ii) may set-off the amount of the stamp duty against future dividends payable to the transferor or transferee (at our discretion), and (iii) will have a lien against the IR plc shares on which we have paid stamp duty. Parties to a share transfer may assume that any stamp duty arising in respect of a transaction in IR plc shares has been paid unless one or both of such parties is otherwise notified by us.
IR plc’s articles of association delegate to IR plc’s secretary or an assistant secretary the authority to execute an instrument of transfer on behalf of a transferring party. In order to help ensure that the official share register is regularly updated to reflect trading of IR plc shares occurring through normal electronic systems, we intend to regularly produce any required instruments of transfer in connection with any transactions for which we pay stamp duty (subject to the reimbursement and set-off rights described above). In the event that we notify one or both of the parties to a share transfer that we believe stamp duty is required to be paid in connection with such transfer and that we will not pay such stamp duty, such parties may either themselves arrange for the execution of the required instrument of transfer (and may request a form of instrument of transfer from IR plc for this purpose) or request that IR plc execute an instrument of transfer on behalf of the transferring party in a form determined by IR plc. In either event, if the parties to the share transfer have the instrument of transfer duly stamped (to the extent required) and then provide it to IR plc’s transfer agent, the transferee will be registered as the legal owner of the relevant shares on IR plc’s official Irish share register (subject to the matters described below).
The directors of IR plc have general discretion to decline to register an instrument of transfer unless the transfer is in respect of one class of share only.
The registration of transfers may be suspended by the directors at such times and for such period, not exceeding in the whole 30 days in each year, as the directors may from time to time determine.

Exhibit 21

			
 	 	 	
LIST OF SUBSIDIARIES OF INGERSOLL-RAND PLC	 	 	
As of December 31, 2019	 	 	
 	 	 	
Name of Subsidiary	Jurisdiction of Formation	Percent of Ownership	
200 PARK, INC.	SOUTH CAROLINA	100%	
 	 	 	
ACCUDYNE INDUSTRIES ACQUISITION S.À R.L	LUXEMBOURG	100%	
 	 	 	
ACCUDYNE INDUSTRIES ASIA PTE. LTD.	SINGAPORE	100%	
 	 	 	
ACCUDYNE INDUSTRIES BORROWER S.C.A.	LUXEMBOURG	100%	
 	 	 	
ACCUDYNE INDUSTRIES CANADA INC	CANADA	100%	
 	 	 	
ACCUDYNE INDUSTRIES INDIA PRIVATE LIMITED	INDIA	100%	
 	 	 	
ACCUDYNE INDUSTRIES MIDDLE EAST FZE	UNITED ARAB EMIRATES	100%	
 	 	 	
ACCUDYNE INDUSTRIES S.À R.L	LUXEMBOURG	100%	
 	 	 	
ACCUDYNE INDUSTRIES SERVICES LIMITED	UNITED KINGDOM	100%	
 	 	 	
ACCUDYNE INDUSTRIES, LLC	DELAWARE	100%	
 	 	 	
AIRCO LIMITED	THAILAND	48%	
 	 	 	
AIRTEC LIMITED	UNITED KINGDOM	100%	
 	 	 	
ALLIANCE COMPRESSORS LLC	DELAWARE	25%	
 	 	 	
AMAIR LIMITED	THAILAND	97%	
 	 	 	
ARCTIC COOL CHILLERS LIMITED	CANADA	100%	
 	 	 	
ARO DE VENEZUELA, C.A.	VENEZUELA	100%	
 	 	 	
BEST MATIC INTERNATIONAL LIMITED	UNITED KINGDOM	100%	
 	 	 	
BEST MATIC VERMOGENSVERWALTUNGS GMBH	GERMANY	100%	
 	 	 	
CALMAC CORP.	NEW YORK	100%	
 	 	 	
CLIMATE ETC TECHNOLOGY SERVICES PRIVATE LIMITED
	INDIA	100%	
 	 	 	
CLUB CAR LIMITED
	NEW ZEALAND	100%	
 	 	 	
CLUB CAR, LLC	DELAWARE	100%	

	
			
COMERCIAL INGERSOLL-RAND (CHILE) LIMITADA	CHILE	100%	
 	 	 	
COMINGERSOLL-COMERCIO E INDUSTRIA DE EQUIPAMENTOS S.A. (PORTUGAL)	PORTUGAL	22%	
 	 	 	
COMPAGNIE INGERSOLL-RAND SAS	FRANCE	100%	
 	 	 	
COOL ENERGY LIMITED	UNITED KINGDOM	100%	
 	 	 	
DALLAH TRANE FOR MANUFACTURING AIR-CONDITIONERS	SAUDI ARABIA	49%	
 	 	 	
DIASORIN INTERNATIONAL B.V.	NETHERLANDS	100%	
 	 	 	
DOSATRON INTERNATIONAL S.A.S.	FRANCE	100%	
 	 	 	
DRADNATS INC.	DELAWARE	100%	
 	 	 	
EBB HOLDINGS LIMITED	BARBADOS	100%	
 	 	 	
FILAIRCO INC.	PHILIPPINES	100%	
 	 	 	
FILAIRCO TECHNICAL SERVICES CO., INC.	PHILIPPINES	25%	
 	 	 	
FLEXENERGY HOLDINGS, LLC	DELAWARE	8%	
 	 	 	
FLOWCOOL LIMITED	UNITED KINGDOM	100%	
 	 	 	
FRIGOBLOCK GMBH	GERMANY	100%	
 	 	 	
FRIGOBLOCK UK LIMITED	UNITED KINGDOM	100%	
 	 	 	
GHH-RAND SCHRAUBENKOMPRESSOREN GMBH	GERMANY	100%	
 	 	 	
GOLF ACADEMIES LIMITED	UNITED KINGDOM	100%	
 	 	 	
GPS INDUSTRIES, LLC	DELAWARE	100%	
 	 	 	
GPSI HOLDINGS, LLC	DELAWARE	100%	
 	 	 	
GPSI LEASING II - ACCORD, LLC	DELAWARE	100%	
 	 	 	
GPSI LEASING, LLC	DELAWARE	100%	
 	 	 	
GPSI TELEMATICS LLC	DELAWARE	100%	
 	 	 	
HASKEL EUROPE LTD.	UNITED KINGDOM	100%	
 	 	 	
HASKEL FRANCE S.A.S.	FRANCE	100%	
 	 	 	
HASKEL HOLDINGS UK, LIMITED	UNITED KINGDOM	100%	

	
			
HASKEL INTERNATIONAL, LLC	CALIFORNIA	100%	
 	 	 	
HASKEL SISTEMAS DE FLUIDOS ESPAÑA, S.R.L.	SPAIN	100%	
 	 	 	
HERMANN TRANE HARRISBURG INC.	DELAWARE	100%	
 	 	 	
HIBON INC.	CANADA	100%	
 	 	 	
ICS COOL ENERGY (SAS)	FRANCE	100%	
 	 	 	
ICS COOL ENERGY AG	SWITZERLAND	100%	
 	 	 	
ICS COOL ENERGY B.V.	NETHERLANDS	100%	
 	 	 	
ICS COOL ENERGY GMBH	GERMANY	100%	
 	 	 	
ICS COOL ENERGY INVESTMENTS LIMITED	UNITED KINGDOM	100%	
 	 	 	
ICS COOL ENERGY LIMITED	UNITED KINGDOM	100%	
 	 	 	
ICS GROUP HOLDINGS LIMITED	UNITED KINGDOM	100%	
 	 	 	
ICS HEAT PUMPS LIMITED	UNITED KINGDOM	100%	
 	 	 	
ICS RENEWABLE ENERGY LIMITED	UNITED KINGDOM	100%	
 	 	 	
ICS SERVICING LIMITED	UNITED KINGDOM	100%	
 	 	 	
INDUSTRIAL CHILL SERVICING PRIVATE LTD.	MAURITIUS	100%	
 	 	 	
INGERSOLL RAND ITS JAPAN LTD.	JAPAN	100%	
 	 	 	
INGERSOLL RAND MAROC S.À R.L	MOROCCO	100%	
 	 	 	
INGERSOLL RAND SERVICE DO BRASIL LTDA.	BRAZIL	100%	
 	 	 	
INGERSOLL RAND, S.A. DE C.V.	MEXICO	100%	
 	 	 	
INGERSOLL RAND-TRANE ENERGY-SAVING SERVICES (SHANGHAI) CO., LTD.	CHINA	100%	
 	 	 	
INGERSOLL-RAND (AUSTRALIA) LTD.	AUSTRALIA	100%	
 	 	 	
INGERSOLL-RAND (CHANG ZHOU) TOOLS CO., LTD.	CHINA	100%	
 	 	 	
INGERSOLL-RAND (CHINA) INDUSTRIAL EQUIPMENT MANUFACTURING CO., LTD.	CHINA	100%	
 	 	 	
INGERSOLL-RAND (CHINA) INVESTMENT COMPANY LIMITED	CHINA	100%	

	
			
INGERSOLL-RAND (GUILIN) TOOLS COMPANY LIMITED	CHINA	100%	
 	 	 	
INGERSOLL-RAND (HONG KONG) HOLDING COMPANY LIMITED	HONG KONG	100%	
 	 	 	
INGERSOLL-RAND (INDIA) LIMITED	INDIA	74%	
 	 	 	
INGERSOLL-RAND (SHANGHAI) TRADING CO., LTD.	CHINA	100%	
 	 	 	
INGERSOLL-RAND AB	SWEDEN	100%	
 	 	 	
INGERSOLL-RAND AIR SOLUTIONS HIBON SARL	FRANCE	100%	
 	 	 	
INGERSOLL-RAND BEST-MATIC AB	SWEDEN	100%	
 	 	 	
INGERSOLL-RAND BETEILIGUNGS UND GRUNDSTUCKSVERWALTUNGS GMBH	GERMANY	100%	
 	 	 	
INGERSOLL-RAND BUFORD LLC	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND CHARITABLE FOUNDATION	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND CHINA, LLC	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND CLIMATE SOLUTIONS PRIVATE LIMITED	INDIA	100%	
 	 	 	
INGERSOLL-RAND CLUB CAR S.A.S.

	FRANCE

	100%

 	 	 	
INGERSOLL-RAND COLOMBIA S.A.S.	COLOMBIA	100%	
 	 	 	
INGERSOLL-RAND COMÉRCIO E SERVIÇOS DE MÁQUINAS E EQUIPAMENTOS INDUSTRIAIS LTDA.	BRAZIL	100%	
 	 	 	
INGERSOLL-RAND COMPANY	NEW JERSEY	100%	
 	 	 	
INGERSOLL-RAND COMPANY LIMITED (UK)	UNITED KINGDOM	100%	
 	 	 	
INGERSOLL-RAND COMPANY OF PERU S.A.C.	PERU	100%	
 	 	 	
INGERSOLL-RAND COMPANY SOUTH AFRICA (PTY) LIMITED	SOUTH AFRICA	100%	
 	 	 	
INGERSOLL-RAND COSTA RICA S.A.	COSTA RICA	100%	
 	 	 	
INGERSOLL-RAND CROATIA D.O.O. ZA TRGOVINU	CROATIA	100%	
 	 	 	
INGERSOLL-RAND CZ S.R.O.	CZECH REPUBLIC	100%	
 	 	 	
INGERSOLL-RAND DE MEXICO, SOCIEDAD DE RESPONSABILIDAD LIMITADA DE CAPITAL VARIABLE	MEXICO	100%	

	
			
INGERSOLL-RAND DE PUERTO RICO, INC.	PUERTO RICO	100%	
 	 	 	
INGERSOLL-RAND EQUIPEMENTS DE PRODUCTION S.A.S.	FRANCE	100%	
 	 	 	
INGERSOLL-RAND EUROPEAN HOLDING COMPANY B.V.	NETHERLANDS	100%	
 	 	 	
INGERSOLL-RAND FINANCIAL SERVICES CORPORATION	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND FINANCING LIMITED	IRELAND	100%	
 	 	 	
INGERSOLL-RAND FINLAND OY	FINLAND	100%	
 	 	 	
INGERSOLL-RAND FUNDING LTD.	BERMUDA	100%	
 	 	 	
INGERSOLL-RAND GLOBAL HOLDING COMPANY LIMITED	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND GMBH	GERMANY	100%	
 	 	 	
INGERSOLL-RAND HOLDINGS B.V.	NETHERLANDS	100%	
 	 	 	
INGERSOLL-RAND HOLDINGS LIMITED	UNITED KINGDOM	100%	
 	 	 	
INGERSOLL-RAND INDUSTRIA, COMERCIO E SERVICOS DE AR CONDICIONADO, AR COMPRIMIDO E REFRIGERACAO LTDA.	BRAZIL	100%	
 	 	 	
INGERSOLL-RAND INDUSTRIAL COMPANY B.V.	NETHERLANDS	100%	
 	 	 	
INGERSOLL-RAND INDUSTRIAL SP. Z O.O.	POLAND	100%	
 	 	 	
INGERSOLL-RAND INDUSTRIAL U.S., INC.	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND INTERNATIONAL (INDIA) PRIVATE LIMITED	INDIA	100%	
 	 	 	
INGERSOLL-RAND INTERNATIONAL FINANCE LIMITED	IRELAND	100%	
 	 	 	
INGERSOLL-RAND INTERNATIONAL HOLDING LLC	NEW JERSEY	100%	
 	 	 	
INGERSOLL-RAND INTERNATIONAL LIMITED	IRELAND	100%	
 	 	 	
INGERSOLL-RAND IRISH HOLDINGS UNLIMITED COMPANY	IRELAND	100%	
 	 	 	
INGERSOLL-RAND ITALIA S.R.L.	ITALY	100%	
 	 	 	
INGERSOLL-RAND ITALIANA S.P.A.	ITALY	100%	
 	 	 	
INGERSOLL-RAND JAPAN, LTD.	JAPAN	100%	
 	 	 	
INGERSOLL-RAND KOREA HOLDING LLC	DELAWARE	100%	

	

INGERSOLL-RAND KOREA LIMITED	KOREA, REPUBLIC OF	100%	
 	 	 	
INGERSOLL-RAND LATIN AMERICA B.V.	NETHERLANDS	100%	
 	 	 	
INGERSOLL-RAND LATIN AMERICA, S. DE R.L. DE C.V.	MEXICO	100%	
 	 	 	
INGERSOLL-RAND LUX EURO III FINANCING S.À R.L.	LUXEMBOURG	100%	
 	 	 	
INGERSOLL-RAND LUX HOLDINGS II COMPANY S.À R.L.	LUXEMBOURG	100%	
 	 	 	
INGERSOLL-RAND LUX INTERNATIONAL HOLDING COMPANY S.À R.L.	LUXEMBOURG	100%	
 	 	 	
INGERSOLL-RAND LUX INVESTMENTS S.À R.L.	LUXEMBOURG	100%	
 	 	 	
INGERSOLL-RAND LUXEMBOURG FINANCE S.A.	LUXEMBOURG	100%	
 	 	 	
INGERSOLL-RAND LUXEMBOURG INDUSTRIAL COMPANY S.À R.L.	LUXEMBOURG	100%	
 	 	 	
INGERSOLL-RAND LUXEMBOURG UNITED S.À R.L.	LUXEMBOURG	100%	
 	 	 	
INGERSOLL-RAND MACHINERY (SHANGHAI) COMPANY LIMITED	CHINA	100%	
 	 	 	
INGERSOLL-RAND MALAYSIA CO. SDN. BHD.	MALAYSIA	100%	
 	 	 	
INGERSOLL-RAND MANUFACTURA, S. DE R.L DE C.V.	MEXICO	100%	
 	 	 	
INGERSOLL-RAND MANUFACTURING S.R.O.	CZECH REPUBLIC	100%	
 	 	 	
INGERSOLL-RAND NETHERLANDS B.V.	NETHERLANDS	100%	
 	 	 	
INGERSOLL-RAND NEXIA INTELLIGENCE LLC	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND NY, INC.	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND PHILIPPINES, INC.	PHILIPPINES	100%	
 	 	 	
INGERSOLL-RAND POLSKA SP. Z.O.O.	POLAND	100%	
 	 	 	
INGERSOLL-RAND PORTUGAL - SOCIEDADE, UNIPESSOAL, LDA.	PORTUGAL	100%	
 	 	 	
INGERSOLL-RAND RUS LLC	RUSSIAN FEDERATION	100%	
 	 	 	
INGERSOLL-RAND S.A.	SWITZERLAND	100%	
 	 	 	
INGERSOLL-RAND SALES COMPANY, LLC	DELAWARE	100%	

	

INGERSOLL-RAND SERVICES AND TRADING LIMITED LIABILITY COMPANY	RUSSIAN FEDERATION	100%	
 	 	 	
INGERSOLL-RAND SERVICES COMPANY	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND SERVICES LIMITED	UNITED KINGDOM	100%	
 	 	 	
INGERSOLL-RAND SINGAPORE ENTERPRISES PTE. LTD.	SINGAPORE	100%	
 	 	 	
INGERSOLL-RAND SOUTH EAST ASIA (PTE.) LTD.	SINGAPORE	100%	
 	 	 	
INGERSOLL-RAND SPAIN, S.A.	SPAIN	100%	
 	 	 	
INGERSOLL-RAND SUPERAY HOLDINGS LIMITED	HONG KONG	100%	
 	 	 	
INGERSOLL-RAND SVENSKA AB	SWEDEN	100%	
 	 	 	
INGERSOLL-RAND TECHNICAL AND SERVICES LIMITED	IRELAND	100%	
 	 	 	
INGERSOLL-RAND TECHNICAL AND SERVICES S.Á.R.L.	SWITZERLAND	100%	
 	 	 	
INGERSOLL-RAND TECHNOLOGIES AND SERVICES PRIVATE LIMITED	INDIA	100%	
 	 	 	
INGERSOLL-RAND TECHNOLOGIES S.R.O.	CZECH REPUBLIC	100%	
 	 	 	
INGERSOLL-RAND TOOL HOLDINGS LIMITED	HONG KONG	100%	
 	 	 	
INGERSOLL-RAND TRADING GMBH	GERMANY	100%	
 	 	 	
INGERSOLL-RAND U.S. HOLDCO, INC.	DELAWARE	100%	
 	 	 	
INGERSOLL-RAND UK LIMITED	UNITED KINGDOM	100%	
 	 	 	
INGERSOLL-RAND UKRAINE LIMITED LIABILITY COMPANY	UKRAINE	100%	
 	 	 	
INGERSOLL-RAND VIETNAM COMPANY LIMITED	VIETNAM	100%	
 	 	 	
INGERSOLL-RAND WORLDWIDE CAPITAL S.À R.L.	LUXEMBOURG	100%	
 	 	 	
INGERSOLL-RAND ZIMBABWE (PRIVATE) LIMITED	ZIMBABWE	100%	
 	 	 	
IR CANADA HOLDINGS ULC	CANADA	100%	
 	 	 	
IR CANADA SALES & SERVICE ULC	CANADA	100%	
 	 	 	
IR FRANCE SAS	FRANCE	100%	
 	 	 	
MB AIR SYSTEMS LIMITED	UNITED KINGDOM	100%	

	

MILTON ROY (HONG KONG) LIMITED	HONG KONG	100%	
 	 	 	
MILTON ROY (UK) LIMITED	UNITED KINGDOM	100%	
 	 	 	
MILTON ROY EUROPA B.V.	NETHERLANDS	100%	
 	 	 	
MILTON ROY EUROPE SAS	FRANCE	100%	
 	 	 	
MILTON ROY INDUSTRIAL (SHANGHAI) CO., LTD.	CHINA	100%	
 	 	 	
MILTON ROY US PURCHASER, INC.	DELAWARE	100%	
 	 	 	
MILTON ROY, LLC	PENNSYLVANIA	100%	
 	 	 	
MITSUBISHI ELECTRIC TRANE HVAC US LLC	DELAWARE	50%	
 	 	 	
OFFICINA MECCANICHE INDUSTRIALI SRL	ITALY	100%	
 	 	 	
PERFECT PITCH, L.P.	DELAWARE	68%	
 	 	 	
PLURIFILTER D.O.O.	SLOVENIA	100%	
 	 	 	
PRIME AIR LIMITED	THAILAND	100%	
 	 	 	
PT INGERSOLL-RAND INDONESIA	INDONESIA	100%	
 	 	 	
PT TRANE INDONESIA	INDONESIA	100%	
 	 	 	
R&O IMMOBILIEN GMBH	GERMANY	100%	
 	 	 	
REFTRANS, S.A.	SPAIN	85%	
 	 	 	
SHANGHAI INGERSOLL-RAND COMPRESSOR LIMITED	CHINA	100%	
 	 	 	
SOCIETE TRANE SAS	FRANCE	100%	
 	 	 	
SPANASHVIEW UNLIMITED COMPANY	IRELAND	100%	
 	 	 	
STANDARD CENTENNIAL PROPERTY, LLC	DELAWARE	100%	
 	 	 	
STANDARD COMPRESSORS INC.	DELAWARE	100%	
 	 	 	
STANDARD INDUSTRIAL MINERAL PRODUCTS CORP.	PHILIPPINES	40%	
 	 	 	
STANDARD RESOURCES AND DEVELOPMENT CORPORATION	PHILIPPINES	40%	
 	 	 	
STANDARD TRANE INSURANCE COMPANY	NORTH CAROLINA	100%	

	
			
STANDARD TRANE INSURANCE IRELAND DESIGNATED ACTIVITY COMPANY	IRELAND	100%	
 	 	 	
STANDARD TRANE WARRANTY COMPANY	SOUTH CAROLINA	100%	
 	 	 	
T.I. SOLUTIONS (ISRAEL) LTD.	ISRAEL	100%	
 	 	 	
TAST LIMITED	THAILAND	48%	
 	 	 	
THE TRANE COMPANY	NEVADA	100%	
 	 	 	
THERMO KING (HONG KONG) COMPANY LIMITED	HONG KONG	100%	
 	 	 	
THERMO KING (SHANGHAI) CO., LTD.	CHINA	100%	
 	 	 	
THERMO KING CONTAINER TEMPERATURE CONTROL (SUZHOU) CORPORATION LTD.	CHINA	82%	
 	 	 	
THERMO KING CONTAINER-DENMARK A/S	DENMARK	100%	
 	 	 	
THERMO KING CORPORATION	DELAWARE	100%	
 	 	 	
THERMO KING DE PUERTO RICO, INC.	DELAWARE	100%	
 	 	 	
THERMO KING EUROPEAN MANUFACTURING LIMITED	IRELAND	100%	
 	 	 	
THERMO KING INDIA PRIVATE LIMITED	INDIA	100%	
 	 	 	
THERMO KING IRELAND LIMITED	IRELAND	100%	
 	 	 	
THERMO KING PUERTO RICO MANUFACTURA, INC.	PUERTO RICO	100%	
 	 	 	
THERMO KING RODAMIENTOS, S.L.	SPAIN	100%	
 	 	 	
THERMO KING SERVICES LIMITED	IRELAND	100%	
 	 	 	
THERMO KING SOUTH AFRICA (PTY) LTD.	SOUTH AFRICA	100%	
 	 	 	
THERMO KING SVC, INC.	DELAWARE	100%	
 	 	 	
THERMO KING TRADING COMPANY	DELAWARE	100%	
 	 	 	
THERMO KING TRANSPORTKOELING B.V.	NETHERLANDS	100%	
 	 	 	
TK PUERTO RICO AIRE, INC.	PUERTO RICO	100%	
 	 	 	
TK PUERTO RICO COMERCIAL, INC.	PUERTO RICO	100%	
 	 	 	
TK PUERTO RICO ENSAMBLAJE, INC.	PUERTO RICO	100%	

	
			
TK PUERTO RICO FABRICACION, INC.	PUERTO RICO	100%	
 	 	 	
TK PUERTO RICO LOGISTICA, INC.	PUERTO RICO	100%	
 	 	 	
TK PUERTO RICO OPERACIONES INDUSTRIALES, INC.	PUERTO RICO	100%	
 	 	 	
TK PUERTO RICO PRODUCCION, INC.	PUERTO RICO	100%	
 	 	 	
TK PUERTO RICO SOLUCIONES CLIMATICAS, INC.	PUERTO RICO	100%	
 	 	 	
TK PUERTO RICO TECNOLOGIAS, INC.	PUERTO RICO	100%	
 	 	 	
TM AIR CONDITIONING SDN. BHD.	MALAYSIA	100%	
 	 	 	
TRANE (EUROPE) LIMITED	UNITED KINGDOM	100%	
 	 	 	
TRANE (IRELAND) LIMITED	IRELAND	100%	
 	 	 	
TRANE (SCHWEIZ) GMBH / TRANE (SUISSE) S.A.R.L.	SWITZERLAND	100%	
 	 	 	
TRANE (THAILAND) LIMITED	THAILAND	100%	
 	 	 	
TRANE AIR CONDITIONING PRODUCTS LIMITED	CAYMAN ISLANDS	100%	
 	 	 	
TRANE AIR CONDITIONING SYSTEMS (CHINA) CO. LTD.	CHINA	100%	
 	 	 	
TRANE AIR CONDITIONING SYSTEMS AND SERVICE CO., LIMITED	HONG KONG	100%	
 	 	 	
TRANE AIRCONDITIONING PTE. LTD.	SINGAPORE	100%	
 	 	 	
TRANE AIRE ACONDICIONADO S.L.	SPAIN	100%	
 	 	 	
TRANE BERMUDA LTD.	BERMUDA	100%	
 	 	 	
TRANE BRANDS, INC.	DELAWARE	100%	
 	 	 	
TRANE BVBA	BELGIUM	100%	
 	 	 	
TRANE CANADA LP	CANADA	100%	
 	 	 	
TRANE CANADA ULC	CANADA	100%	
 	 	 	
TRANE CENTRAL AMERICA, INC.	DELAWARE	100%	
 	 	 	
TRANE CHINA HOLDINGS LIMITED	CAYMAN ISLANDS	100%	
 	 	 	
TRANE CLIMATE MANUFACTURING S.R.L.	ITALY	100%	
 	 	 	
TRANE CR SPOL SRO.	CZECH REPUBLIC	100%	

	

TRANE DE ARGENTINA S.A.	ARGENTINA	100%	
 	 	 	
TRANE DE CHILE S.A.	CHILE	100%	
 	 	 	
TRANE DE COLOMBIA S.A.	COLOMBIA	100%	
 	 	 	
TRANE DEUTSCHLAND GMBH	GERMANY	100%	
 	 	 	
TRANE DISTRIBUTION PTE LTD	SINGAPORE	100%	
 	 	 	
TRANE DO BRASIL INDÚSTRIA E COMÉRCIO DE PRODUCTOS PARA CONDICIONAMENTO DE AR LTDA.	BRAZIL	100%	
 	 	 	
TRANE DOMINICANA, S.R.L.	DOMINICAN REPUBLIC	100%	
 	 	 	
TRANE EGYPT LLC	EGYPT	99%	
 	 	 	
TRANE ENERGY CHOICE, LLC	KENTUCKY	100%	
 	 	 	
TRANE ENERGY SERVICES LLC	KENTUCKY	100%	
 	 	 	
TRANE EUROPE HOLDINGS B.V.	NETHERLANDS	100%	
 	 	 	
TRANE EXPORT LLC	DELAWARE	100%	
 	 	 	
TRANE FINANCE SPRL	BELGIUM	100%	
 	 	 	
TRANE FOUNDATION OF NEW YORK	NEW YORK	100%	
 	 	 	
TRANE FRANCE SAS	FRANCE	100%	
 	 	 	
TRANE GMBH	AUSTRIA	100%	
 	 	 	
TRANE GP INC.	CANADA	100%	
 	 	 	
TRANE GRID SERVICES LLC	KENTUCKY	100%	
 	 	 	
TRANE HELLAS S.A.	GREECE	100%	
 	 	 	
TRANE HOLDING CO.	CANADA	100%	
 	 	 	
TRANE HOLDING LIMITED	DELAWARE	100%	
 	 	 	
TRANE HOLDINGS COMPANY YK	JAPAN	100%	
 	 	 	
TRANE HUNGARY KFT	HUNGARY	100%	
 	 	 	
TRANE INC.	DELAWARE	100%	

	
			
TRANE INC. OF DELAWARE	DELAWARE	100%	
 	 	 	
TRANE INDIA LTD.	DELAWARE	100%	
 	 	 	
TRANE INTERNATIONAL INC.	DELAWARE	100%	
 	 	 	
TRANE IP INC.	DELAWARE	100%	
 	 	 	
TRANE ITALIA S.R.L	ITALY	100%	
 	 	 	
TRANE JAPAN, LTD.	JAPAN	100%	
 	 	 	
TRANE KLIMA TICARET AS	TURKEY	100%	
 	 	 	
TRANE KOREA, INC.	KOREA, REPUBLIC OF	100%	
 	 	 	
TRANE KUWAIT AIRCONDITIONING CO WLL	KUWAIT	49%	
 	 	 	
TRANE MALAYSIA SALES & SERVICES SDN. BHD.	MALAYSIA	100%	
 	 	 	
TRANE PUERTO RICO LLC	DELAWARE	100%	
 	 	 	
TRANE QATAR LLC	QATAR	49%	
 	 	 	
TRANE ROMANIA S.R.L.	ROMANIA	100%	
 	 	 	
TRANE S.A.	SWITZERLAND	100%	
 	 	 	
TRANE S.A.E.	EGYPT	100%	
 	 	 	
TRANE SERVICEFIRST, C.A.	VENEZUELA	100%	
 	 	 	
TRANE SERVICES LIMITED	UNITED KINGDOM	100%	
 	 	 	
TRANE SINGAPORE ENTERPRISES PTE. LTD.	SINGAPORE	100%	
 	 	 	
TRANE SISTEMAS INTEGRALES, S. DE R.L. DE C.V.	MEXICO	100%	
 	 	 	
TRANE SUPPORT SAS	FRANCE	100%	
 	 	 	
TRANE SWEDEN AB	SWEDEN	100%	
 	 	 	
TRANE SYSTEMS SOLUTIONS OF PANAMA, INC.	PANAMA	100%	
 	 	 	
TRANE TAIWAN DISTRIBUTION LTD.	TAIWAN PROVINCE OF CHINA	100%	
 	 	 	
TRANE THERMO KING (SHANGHAI) ENTERPRISE MANAGEMENT CO., LTD.	CHINA	100%	

	
			
TRANE THERMO KING PTY LTD	AUSTRALIA	100%	
 	 	 	
TRANE U.S. INC.	DELAWARE	100%	
 	 	 	
TRANE VIDALIA LLC	GEORGIA	100%	
 	 	 	
TRANE VIETNAM SERVICES COMPANY LIMITED	VIETNAM	100%	
 	 	 	
TRANE, S.A. DE C.V.	MEXICO	100%	
 	 	 	
TRICOOL THERMAL LIMITED	UNITED KINGDOM	100%	
 	 	 	
TSI ANSTALT LTD.	LIECHTENSTEIN	100%	
 	 	 	
TWENTYTHREEC, LLC	DELAWARE	100%	
 	 	 	
TYS LIMITED	HONG KONG	50%	
 	 	 	
WORLD STANDARD LTD.	DELAWARE	100%	
 	 	 	
ZEKS COMPRESSED AIR SOLUTIONS LLC	DELAWARE	100%	

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S‑3 (No. 333-221265) and Form S‑8 (Nos. 333-225575, 333-206494, 333-201353, 333-189446, 333-185429, 333-185428, 333-151607-99, 333-149537-99, 333-149396-99, 333-143716-99, 333-130047-99, 333-42133-99, 333-19445-99, 333-67257-99 and 333-235749) of Ingersoll-Rand plc of our report dated February 18, 2020 relating to the financial statements and financial statement schedule and the effectiveness of internal control over financial reporting, which appears in this Form 10‑K.  

/s/ PricewaterhouseCoopers LLP
Charlotte, North Carolina
February 18, 2020

Exhibit 31.1
CERTIFICATION
I, Michael W. Lamach, certify that:

1.	I have reviewed the Annual Report on Form 10-K of Ingersoll-Rand plc for the year ended December 31, 2019;	

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;	

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;	

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:	

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;	

b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;	

c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and	

d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and	

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):	

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and	

b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.	

	
				
Date:	February 18, 2020	 	/s/ Michael W. Lamach	
 	 	 	Michael W. Lamach	
 	 	 	Principal Executive Officer	

Exhibit 31.2
CERTIFICATION
I, Susan K. Carter, certify that:

1.	I have reviewed the Annual Report on Form 10-K of Ingersoll-Rand plc for the year ended December 31, 2019;	

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;	

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;	

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:	

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;	

b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;	

c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and	

d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and	

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):	

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and	

b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.	

	
				
Date:	February 18, 2020	 	/s/ Susan K. Carter	
 	 	 	Susan K. Carter	
 	 	 	Principal Financial Officer	

Exhibit 32

Section 1350 Certifications
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), each of the undersigned officers of Ingersoll-Rand plc (the Company), does hereby certify that to our knowledge:

The Annual Report on Form 10-K for the year ended December 31, 2019 (the Form 10-K) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Company.

	

/s/ Michael W. Lamach	
Michael W. Lamach	
Principal Executive Officer	
February 18, 2020	
 	
/s/ Susan K. Carter	
Susan K. Carter	
Principal Financial Officer	
February 18, 2020