Trane Technologies (TT) 10-K 26 Feb 10 2009 FY Annual report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net revenues	13195.3	13227.4	8763.1
Cost of goods sold	-9645.1	-9748.1	(6,272)
Selling and administrative expenses	-2708.6	-2343.1	-1433.3
Asset impairment	0	(3,710)	0
Operating income (loss)	841.6	-2573.8	1057.8
Interest expense	-302.2	-245.4	-136.2
Other, net	19.7	63.2	30.2
Earnings (loss) before income taxes	559.1	(2,756)	951.8
Benefit (provision) for income taxes	-71.3	208.6	-204.4
Earnings (loss) from continuing operations	487.8	-2547.4	747.4
Discontinued operations, net of tax	-11.6	-57.4	3242.6
Net earnings (loss)	476.2	-2604.8	3,990
Less: Net earnings attributable to noncontrolling interests	-24.9	(20)	-23.3
Net earnings (loss) attributable to Ingersoll-Rand plc	451.3	-2624.8	3966.7
Amounts attributable to Ingersoll-Rand plc ordinary shareholders:
Continuing operations	462.9	-2567.4	733.1
Discontinued operations	-11.6	-57.4	3233.6
Net earnings (loss) attributable to Ingersoll-Rand plc	451.3	-2624.8	3966.7
Basic:
Continuing operations	1.45	-8.54	2.52
Discontinued operations	-0.04	-0.19	11.12
Net earnings (loss)	1.41	-8.73	13.64
Diluted:
Continuing operations	1.41	-8.54	2.48
Discontinued operations	-0.04	-0.19	10.95
Net earnings (loss)	1.37	-8.73	13.43

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	876.7	550.2
Accounts and notes receivable, net	2120.2	2512.1
Inventories	1193.2	1615.1
Other current assets	637.2	722.3
Total current assets	4827.3	5399.7
Property, plant and equipment, net	1912.8	1968.5
Goodwill	6,606	6620.1
Intangible assets, net	5042.8	5214.1
Other noncurrent assets	1602.1	1722.1
Total assets	19,991	20924.5
Current liabilities:
Accounts payable	1,079	1046.5
Accrued compensation and benefits	492.8	508.8
Accrued expenses and other current liabilities	1529.7	1605.7
Short-term borrowings and current maturities of long-term debt	876.7	2350.4
Total current liabilities	3978.2	5511.4
Long-term debt	3219.9	2773.7
Postemployment and other benefit liabilities	1954.2	1865.5
Deferred and noncurrent income taxes	1933.3	2184.8
Other noncurrent liabilities	1699.7	1,827
Total liabilities	12785.3	14162.4
Ingersoll-Rand plc shareholders' equity
Common shares, $1 par value (320,616,056 and 370,813,037 shares issued at December 31, 2009 and 2008, respectively, and net of 26,074 and 52,020,439 shares owned by subsidiary at December 31, 2009 and 2008, respectively)	320.6	318.8
Capital in excess of par value	2377.6	2,246
Retained earnings	4837.9	4547.4
Accumulated other comprehensive income (loss)	-434.3	-450.8
Total Ingersoll-Rand plc shareholders' equity	7101.8	6661.4
Noncontrolling interests	103.9	100.7
Total shareholders' equity	7205.7	6762.1
Total liabilities and shareholders' equity	$19,991	20924.5

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
	Dec. 31, 2009	Dec. 31, 2008
Common shares, par value	$1	$1
Common shares, shares issued	320,616,056	370,813,037
Common shares, shares owned by subsidiary	26,074	52,020,439

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income (USD $)
In Millions	Common stock	Capital in excess of par value	Retained earnings	Accumulated other comprehensive income (loss)	Noncontrolling Interest	Total
Beginning Balance (in shares) at Dec. 31, 2006	306.8
Beginning Balance at Dec. 31, 2006	306.8	$0	5456.1	-358.1	73.6	5478.4
Adoption of FIN 48			-145.6			-145.6
Net earnings (loss)			3966.7		23.3	3,990
Currency translation				411.9	6.3	418.2
Change in value of marketable securities and cash flow hedges, net of tax of $0.8 in 2009, $2.7 in 2008 and $1.7 in 2007				-2.2		-2.2
Pension and OPEB adjustments, net of tax of ($4.6) in 2009, $254.8 in 2008 and $130.0 in 2007				194.9		194.9
Effects of measurement date change pursuant to FASB Statement No. 158
Shares issued under incentive stock plans	5.5	191.1				196.6
Shares issued under incentive stock plans (in shares)	5.5
Repurchase of common shares by subsidiary	-39.7	-281.6	-1678.6			-1999.9
Repurchase of common shares by subsidiary (in shares)	-39.7
Share-based compensation		90.5				90.5
Acquisition (divestiture) of noncontrolling interests					-0.3	-0.3
Dividends to noncontrolling interests					-5.4	-5.4
Cash dividends, declared and paid ($0.50 in 2009, $0.72 in 2008 and $0.72 in 2007 per share)			-209.8			-209.8
Ending Balance at Dec. 31, 2007	272.6	0	7388.8	246.5	97.5	8005.4
Ending Balance (in shares) at Dec. 31, 2007	272.6
Net earnings (loss)			-2624.8		20	-2604.8
Currency translation				-238.8	(7)	-245.8
Change in value of marketable securities and cash flow hedges, net of tax of $0.8 in 2009, $2.7 in 2008 and $1.7 in 2007				3.5		3.5
Pension and OPEB adjustments, net of tax of ($4.6) in 2009, $254.8 in 2008 and $130.0 in 2007				-463.3		-463.3
Effects of measurement date change pursuant to FASB Statement No. 158
Service cost, interest cost and expected return on plan assets for December 1 - December 31, 2007, net of tax of $1.4			-2.4			-2.4
Amortization of net transition obligation, prior service cost and net actuarial losses for December 1 - December 31, 2007, net of tax of $1.4			-1.3	1.3		0
Shares issued under incentive stock plans	0.8	31.2				32
Shares issued under incentive stock plans (in shares)	0.8
Repurchase of common shares by subsidiary		(2)				(2)
Treasury shares issued as Trane merger consideration	45.4	1989.7				2035.1
Treasury shares issued as Trane merger consideration (in shares)	45.4
Conversion of Trane options to IR options		184				184
Share-based compensation		43.1				43.1
Acquisition (divestiture) of noncontrolling interests					7.7	7.7
Dividends to noncontrolling interests					-17.5	-17.5
Cash dividends, declared and paid ($0.50 in 2009, $0.72 in 2008 and $0.72 in 2007 per share)			-212.9			-212.9
Ending Balance at Dec. 31, 2008	318.8	2,246	4547.4	-450.8	100.7	6762.1
Ending Balance (in shares) at Dec. 31, 2008	318.8
Net earnings (loss)			451.3		24.9	476.2
Currency translation				67.3		67.3
Change in value of marketable securities and cash flow hedges, net of tax of $0.8 in 2009, $2.7 in 2008 and $1.7 in 2007				-0.8		-0.8
Pension and OPEB adjustments, net of tax of ($4.6) in 2009, $254.8 in 2008 and $130.0 in 2007				(50)		(50)
Effects of measurement date change pursuant to FASB Statement No. 158
Shares issued under incentive stock plans	1.8	26.1				27.9
Shares issued under incentive stock plans (in shares)	1.8
Issuance of exchangeable notes		38.7				38.7
Share-based compensation		68.2				68.2
Acquisition (divestiture) of noncontrolling interests		-0.1			-1.4	-1.5
Dividends to noncontrolling interests					-20.2	-20.2
Cash dividends, declared and paid ($0.50 in 2009, $0.72 in 2008 and $0.72 in 2007 per share)			-160.8			-160.8
Other		-1.3			-0.1	-1.4
Ending Balance at Dec. 31, 2009	320.6	2377.6	4837.9	-434.3	103.9	7205.7
Ending Balance (in shares) at Dec. 31, 2009	320.6

2_Statement Of Shareholders Equ

Statement Of Shareholders Equity And Other Comprehensive Income (Parenthetical) (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Change in value of marketable securities and cash flow hedges, tax	0.8	2.7	1.7
Pension and OPEB adjustments, tax	-4.6	254.8	130
Service cost, interest cost and expected return on plan assets for December 1 - December 31, 2007, tax		1.4
Amortization of net transition obligation, prior service cost and net actuarial losses for December 1 - December 31, 2007, tax		1.4
Cash dividends, declared and paid, per share	0.5	0.72	0.72

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash flows from operating activities:
Net earnings (loss)	476.2	-2604.8	$3,990
Loss (income) from discontinued operations, net of tax	11.6	57.4	-3242.6
Adjustments to arrive at net cash provided by (used in) operating activities:
Asset impairment charge	0	3,710	0
Depreciation and amortization	424.9	453.1	138.8
(Gain)/loss on sale of property, plant and equipment	2.5	-0.1	-0.7
Equity earnings, net of dividends	3.2	9.9	(1)
Stock settled share based compensation	68.3	42.3	31
Deferred income taxes	(32)	(334)	146.6
Other items	169.5	-35.8	30.6
(Increase) decrease in:
Accounts and notes receivable	427.2	245.3	46.2
Inventories	430.8	120.7	75.4
Other current and noncurrent assets	271.7	119.9	-32.3
Increase (decrease) in:
Accounts payable	28.1	-208.5	-88.1
Other current and noncurrent liabilities	-530.5	-1201.1	-267.6
Net cash (used in) provided by continuing operating activities	1751.5	374.3	826.3
Net cash (used in) provided by discontinued operating activities	-16.9	-25.9	75.2
Cash flows from investing activities:
Capital expenditures	-204.2	(306)	-119.7
Proceeds from sale of property, plant and equipment	22.2	77.4	14.2
Acquisitions, net of cash acquired	0	-7107.3	-25.7
Proceeds from business dispositions, net of cash	0	52.9	6154.3
Proceeds from sales and maturities of marketable securities	0	7.8	0.7
Other	-0.7	-31.2	28.6
Net cash (used in) provided by continuing investing activities	-182.7	-7306.4	6052.4
Net cash (used in) provided by discontinued investing activities	0	0	-57.7
Cash flows from financing activities:
Proceeds from bridge loan	196	2,950	0
Payments of bridge loan	(950)	(2,196)	0
Commercial paper program (net)	-998.7	998.7	(378)
Other short-term borrowings (net)	-57.6	5.8	-31.9
Proceeds from long-term debt	1010.3	1610.4	2
Payments of long-term debt	-210.5	-384.5	-141.8
Net proceeds (repayments) in debt	-1010.5	2984.4	-549.7
Settlement of cross currency swap	-26.9	0	0
Debt issue costs	-16.1	(23)	0
Proceeds from exercise of stock options	27.2	18.5	160.2
Excess tax benefit from share based compensation	0.7	13.1	36.1
Dividends paid to noncontrolling interests	-20.2	-17.5	-5.4
Dividends paid to ordinary shareholders	-160.8	-212.9	-209.8
Acquisition of noncontrolling interest	-1.5	0	0
Repurchase of common shares by subsidiary	0	(2)	-1999.9
Net cash (used in) provided by continuing financing activities	-1208.1	2760.6	-2568.5
Net cash (used in) provided by discontinued financing activities	0	0	0
Effect of exchange rate changes on cash and cash equivalents	-17.3	12.3	51.8
Net increase (decrease) in cash and cash equivalents	326.5	-4185.1	4379.5
Cash and cash equivalents - beginning of period	550.2	4735.3	355.8
Cash and cash equivalents - end of period	876.7	550.2	4735.3
Cash paid during the year for:
Interest, net of amounts capitalized	209.8	81.7	95.3
Income taxes, net of refunds	71.5	$1,058	470.1

DESCRIPTION OF COMPANY

DESCRIPTION OF COMPANY
	12 Months Ended Dec. 31, 2009 USD / shares
DESCRIPTION OF COMPANY	NOTE 1 DESCRIPTION OF COMPANY Ingersoll-Rand plc (IR-Ireland), an Irish public limited company, and its consolidated subsidiaries (the Company) is a diversified, global company that provides products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties, and increase industrial productivity and efficiency. The Companys business segments consist of Climate Solutions, Residential Solutions, Industrial Technologies and Security Technologies, each with strong brands and leading positions 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 Club Car, Hussmann, Ingersoll-Rand, Schlage, Thermo King and Trane. On July1, 2009, Ingersoll-Rand Company Limited (IR-Limited), a Bermuda company, completed a reorganization to change the jurisdiction of incorporation of the parent company of Ingersoll Rand from Bermuda to Ireland. As a result, IR-Ireland replaced IR-Limited as the ultimate parent company effective July1, 2009. All references related to the Company prior to July1, 2009 relate to IR-Limited.

THE REORGANIZATION

THE REORGANIZATION
	12 Months Ended Dec. 31, 2009 USD / shares
THE REORGANIZATION	NOTE 2 THE REORGANIZATION On March5, 2009, the Companys board of directors approved a reorganization that would change the jurisdiction of incorporation of the parent company from Bermuda to Ireland (the Ireland Reorganization). The first step in the Ireland Reorganization was the establishment of IR-Limiteds tax residency in Ireland, which occurred in March 2009. Subsequently, IR-Ireland replaced IR-Limited as the ultimate parent company pursuant to a scheme of arrangement under Bermuda law (the Scheme of Arrangement). Major milestones to complete the Scheme of Arrangement were as follows: On April1, 2009, IR-Limited formed IR-Ireland as a direct subsidiary. On April20, 2009, IR-Limited petitioned the Supreme Court of Bermuda to order the calling of a meeting of the ClassA common shareholders of IR-Limited to approve the Scheme of Arrangement. On April23, 2009, the Supreme Court of Bermuda ordered IR-Limited to seek the approval of its ClassA common shareholders on the Scheme of Arrangement. On June3, 2009, IR-Limited received the requisite approval from its ClassA common shareholders. On June11, 2009, the Supreme Court of Bermuda issued an order (the Sanction Order) approving the Scheme of Arrangement. On June30, 2009, IR-Limited filed the Sanction Order with the Bermuda Registrar of Companies and, at 12:01 a.m. on July1, 2009 (the Transaction Time) the following steps occurred simultaneously: All fractional shares of IR-Limited held of record were cancelled and IR-Limited paid to each holder of fractional shares that were cancelled an amount based on the average of the high and low trading prices of the IR-Limited ClassA common shares on the New York Stock Exchange on June29, 2009. All previously outstanding whole ClassA common shares of IR-Limited were cancelled. IR-Limited issued to IR-Ireland 319,166,220 ClassA common shares. IR-Ireland issued 319,166,220 ordinary shares to holders of whole IR-Limited ClassA common shares that were cancelled as a part of the Scheme of Arrangement. All previously outstanding ordinary shares of IR-Ireland held by IR-Limited and its nominees were acquired by IR-Ireland and cancelled for no consideration. As a result of the Ireland Reorganization, IR-Limited became a wholly-owned subsidiary of IR-Ireland and the ClassA common shareholders of IR-Limited became ordinary shareholders of IR-Ireland. All references related to the Company prior to July1, 2009 relate to IR-Limited. The Ireland Reorganization did not have a material impact on the Companys financial results. Ingersoll-Rand plc will continue to be subject to United States Securities and Exchange Commission reporting requirements and prepare financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Shares of Ingersoll-Rand plc will continue to trade on the New York Stock Exchange under the symbol IR, the same symbol under which the Ingersoll-Rand Company Limited ClassA common shares previously traded. See Note 18 for a discussion of the modifications made to the Companys equity-based pl

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	12 Months Ended Dec. 31, 2009 USD / shares
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of significant accounting policies used in the preparation of the accompanying 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 GAAP as defined by the Financial Accounting Standards Board (FASB) within the FASB Accounting Standards Codification (FASB ASC). In the opinion of management, the accompanying consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to present fairly the consolidated results for the periods presented. The Company adopted the FASBs new standard for accounting for noncontrolling interests on January1, 2009. A noncontrolling interest in a subsidiary is considered an ownership interest that should now be reported as equity in the consolidated financial statements. As a result, the Company now includes noncontrolling interests as a component of Total shareholders equity in the Consolidated Balance Sheet and the earnings attributable to noncontrolling interests are now presented as an adjustment from Net earnings (loss) used to arrive at Net earnings (loss) attributable to Ingersoll-Rand plc in the Consolidated Statement of Income. Prior to the adoption of this new standard, earnings associated with noncontrolling interests were reported as a component of Other, net. As discussed in Note 4, the Company acquired Trane Inc. (Trane) at the close of business on June5, 2008 (the Acquisition Date). The results of operations of Trane have been included in the consolidated statements of income and cash flows for the year ended December31, 2009. The consolidated statements of income and cash flows for the year ended December31, 2008 includes the results of Trane since the Acquisition Date. Certain reclassifications of amounts reported in prior years have been made to conform to the 2009 classification. Reorganization:IR-Ireland is the successor to IR-Limited following a corporate reorganization that became effective on July1, 2009 (the Ireland Reorganization). IR-Limited is the successor to Ingersoll-Rand Company, a New Jersey corporation (IR-New Jersey), following a corporate reorganization that occurred on December31, 2001 (the Bermuda Reorganization). Both the Ireland Reorganization and the Bermuda Reorganization were accounted for as a reorganization of entities under common control and accordingly, did not result in any changes to the consolidated amounts of assets, liabilities and shareholders equity. Principles of Consolidation:The consolidated financial statements include all majority-owned subsidiaries of the Company. Partially-owned equity affiliates are accounted for under the equity method. The Company is also required to consolidate variable interest entities in which it bears a majority of the risk to the entities potential losses or stands to gain from a majority of the entities expected returns. Intercompany accounts and transactions have been eliminated. The assets, liabilities, results of operations and cash flows of all discontinued opera

ACQUISITION OF TRANE INC.

ACQUISITION OF TRANE INC.
	12 Months Ended Dec. 31, 2009 USD / shares
ACQUISITION OF TRANE INC.	NOTE 4 ACQUISITION OF TRANE INC. At the close of business on June5, 2008 (the Acquisition Date), the Company completed its acquisition of 100% of the outstanding common shares of Trane. Trane, formerly American Standard Companies Inc., provides systems and services that enhance the quality and comfort of the air in homes and buildings around the world. Tranes systems and services have leading positions in premium commercial, residential, institutional and industrial markets, a reputation for reliability, high quality and product innovation and a powerful distribution network. The Company paid a combination of (i)0.23 of an IR-Limited ClassA common share and (ii)$36.50 in cash, without interest, for each outstanding share of Trane common stock. The total cost of the acquisition was approximately $9.6 billion, including change in control payments and direct costs of the transaction. The Company financed the cash portion of the acquisition with a combination of cash on hand, commercial paper and a 364-day senior unsecured bridge loan facility. The components of the purchase price were as follows: In billions Cash consideration $ 7.3 Stock consideration (Issuance of 45.4million IR-Limited ClassA common shares) 2.0 Estimated fair value of Trane stock options converted to 7.4 million IR-Limited stock options 0.2 Transaction costs 0.1 Total $ 9.6 The Company allocated the purchase price of Trane to the estimated fair value of assets acquired and liabilities assumed upon acquisition in accordance with Statement of Financial Accounting Standard No.141, Business Combinations (SFAS 141). The following table summarizes the fair values of the Trane assets acquired and liabilities assumed at the Acquisition Date. In millions June5, 2008 Current assets: Cash and cash equivalents $ 317.5 Accounts and notes receivable 1,194.2 Inventories 970.5 Other current assets 467.2 Total current assets 2,949.4 Property, plant and equipment 1,035.4 Goodwill 5,525.8 Intangible assets 5,576.0 Other noncurrent assets 764.6 Total assets $ 15,851.2 Current liabilities: Accounts payable $ 562.9 Accrued compensation and benefits 225.7 Accrued expenses and other current liabilities 1,079.3 Short-term borrowings and current maturities of long-term debt 254.3 Total current liabilities 2,122.2 Long-term debt 476.3 Postemployment and other benefit liabilities 313.7 Deferred income taxes 2,308.3 Other noncurrent liabilities 1,012.7 Minority interests 7.7 Total liabilities and minority interests $ 6,240.9 Net assets acquired $ 9,610.3 Cash and cash equivalents, accounts and notes receivable, accounts payable and accrued compensation and benefits were stated at their historical carrying values, which approximate their fair value, given the short-term nature of these assets and liabilities. Inventories were recorded at fair value, based on computations which considered many factors, including

ASSET IMPAIRMENT

ASSET IMPAIRMENT
	12 Months Ended Dec. 31, 2009 USD / shares
ASSET IMPAIRMENT	NOTE 5 ASSET IMPAIRMENT The Company has significant goodwill and indefinite-lived intangible assets related to acquisitions. The Companys goodwill and other indefinite-lived intangible assets are tested and reviewed annually for impairment during the fourth quarter or when there is a significant change in events circumstances that indicate that the fair value of an asset may be less than the carrying amount of the asset. 2008 Impairment Test Due to the deterioration in the worldwide equity and credit markets and a tightening of industrial and retail end markets in the fourth quarter of 2008, the Companys market capitalization declined well below its book value. In addition, the weakening worldwide economic conditions resulted in the Companys projected 2009 financial performance to decline. As a result, the Company updated its impairment testing through December31, 2008. The following table summarizes by reportable segment, the asset impairment charges taken during 2008: In millions Goodwill Intangible Assets Marketable Securities Total Climate Solutions $ 840.0 $ 400.0 $ - $ 1,240.0 Residential Solutions 1,656.0 454.0 - 2,110.0 Security Technologies 344.0 6.0 10.0 360.0 Total $ 2,840.0 $ 860.0 $ 10.0 $ 3,710.0 Goodwill Recoverability of goodwill impairment is measured at the reporting unit level and determined using a two step process. The first step compares the carrying amount of the reporting unit to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, a second step is performed, wherein the reporting units carrying value of goodwill is compared to the implied fair value of goodwill. To the extent that the carrying value exceeds the implied fair value, impairment exists and must be recognized. The calculation of estimated fair value is based on two valuation techniques, a discounted cash flow model (income approach) and a market adjusted multiple of earnings and revenues (market approach), with each method being equally weighted in the calculation. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. The estimated fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit, as determined in the first step of the goodwill impairment test, was the price paid to acquire that reporting unit. Based on the estimated fair value and book value of our reporting units, the Company recorded an impairment charge to goodwill in the fourth quarter of 2008 of approximately $2,840.0 million. Indefinite-lived Intangible Assets Recoverability of other indefinite-lived intangible assets (i.e. Tra

RESTRUCTURING ACTIVITIES

RESTRUCTURING ACTIVITIES
	12 Months Ended Dec. 31, 2009 USD / shares
RESTRUCTURING ACTIVITIES	NOTE 6 RESTRUCTURING ACTIVITIES Restructuring charges recorded during the year ended December31, 2009, 2008 and 2007 were as follows: In millions 2009 2008 2007 Climate Solutions $ 37.7 $ 50.2 $ 22.4 Residential Solutions 8.9 11.9 - Industrial Technologies 27.1 9.6 1.0 Security Technologies 24.5 6.8 5.3 Corporate and Other 13.2 12.4 - Total $ 111.4 $ 90.9 $ 28.7 Cost of goods sold $ 58.3 $ 56.7 $ 24.8 Selling and administrative 53.1 34.2 3.9 Total $ 111.4 $ 90.9 $ 28.7 The changes in the restructuring reserve were as follows: In millions Climate Solutions Residential Solutions Industrial Technologies Security Technologies Corporate and Other Total December31, 2007 $ 20.8 $ - $ 0.7 $ 4.0 $ - $ 25.5 Additions 50.2 11.9 9.6 6.8 12.4 90.9 Purchase accounting 2.8 0.4 - - 11.6 14.8 Cash and non-cash uses (32.9 ) (4.3 ) (7.6 ) (4.2 ) (18.5 ) (67.5 ) Currency translation 0.6 - - 0.2 - 0.8 December31, 2008 41.5 8.0 2.7 6.8 5.5 64.5 Additions 37.7 10.9 27.1 26.3 13.2 115.2 Reversals - (2.0 ) - (1.8 ) - (3.8 ) Cash and non-cash uses (59.3 ) (9.1 ) (25.5 ) (13.4 ) (10.4 ) (117.7 ) Currency translation (3.6 ) - - 0.3 - (3.3 ) December31, 2009 $ 16.3 $ 7.8 $ 4.3 $ 18.2 $ 8.3 $ 54.9 During the first three quarters of 2008, the Company incurred costs of approximately $20 million associated with various restructuring activities as a part of an ongoing effort to increase efficiencies across multiple lines of business. In October 2008, the Company announced an enterprise-wide restructuring program necessitated by the severe economic downturn. This program included streamlining the footprint of manufacturing facilities and reducing the general and administrative cost base across all sectors of the company. Projected costs totaled $110 million when the program was announced, of which $71 million was incurred during the fourth quarter of 2008. During the year ended December31, 2009, the Company expanded the scope of the restructuring program. Since the beginning of the fourth quarter of 2008, the Company has incurred approximately $182.1 million associated with these restructuring actions. As of December31, 2009, the Company had $54.9 million accrued for workforce reductions and the consolidation of manufacturing facilities. Restructuring actions taken in the Climate Solutions sector include the closure of one manufacturing facility in Asia and workforce reductions in all regions. As of December31, 2009, the Climate Solutions sector had incurred approximately $87 million since the fourth quarter of 2008. Res

MARKETABLE SECURITIES

MARKETABLE SECURITIES
	12 Months Ended Dec. 31, 2009 USD / shares
MARKETABLE SECURITIES	NOTE 7 MARKETABLE SECURITIES At December31, marketable securities were as follows: 2009 2008 In millions Amortized cost or cost Unrealized gains Fair value Amortized cost or cost Unrealized losses Fair value Long-term marketable securities: Equity securities $ 6.7 $ 5.1 $ 11.8 $ 6.7 $ (0.2) $ 6.5 Total $ 6.7 $ 5.1 $ 11.8 $ 6.7 $ (0.2) $ 6.5 Long-term marketable securities are included within Other noncurrent assets in the Consolidated Balance Sheet. During 2008, the Companys long-term marketable securities experienced other than temporary declines in value as defined by GAAP. The Company recognized a loss of approximately $10 million related to investments within the Security Technologies segment in the fourth quarter of 2008. The loss is included in Asset impairment on the Consolidated Statement of Income. For a further discussion of impairment related matters, see Note 5 in the consolidated financial statements.

INVENTORIES

INVENTORIES
	12 Months Ended Dec. 31, 2009 USD / shares
INVENTORIES	NOTE 8 INVENTORIES At December31, the major classes of inventory were as follows: In millions 2009 2008 Raw materials $ 353.6 $ 446.9 Work-in-process 222.4 301.7 Finished goods 700.1 980.0 1,276.1 1,728.6 LIFO reserve (82.9 ) (113.5 ) Total $ 1,193.2 $ 1,615.1

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT
	12 Months Ended Dec. 31, 2009 USD / shares
PROPERTY, PLANT AND EQUIPMENT	NOTE 9 PROPERTY, PLANT AND EQUIPMENT At December31, the major classes of property, plant and equipment were as follows: In millions 2009 2008 Land $ 122.0 $ 111.3 Buildings 760.6 776.6 Machinery and equipment 1,875.8 1,787.1 Software 453.3 345.5 3,211.7 3,020.5 Accumulated depreciation (1,298.9 ) (1,052.0 ) Total $ 1,912.8 $ 1,968.5 Depreciation expense for the years ended December31, 2009, 2008 and 2007 was $262.1 million, $201.2 million and $112.3 million, which include amounts for software amortization of $47.3 million, $35.5 million and $17.5 million, respectively. During 2009, the Company purchased property, plant and equipment totaling approximately $39 million, with a corresponding increase in liabilities. This represents a non-cash investing activity and is therefore not included in the statement of cash flows until the property, plant and equipment is paid for in accordance with GAAP.

GOODWILL

GOODWILL
	12 Months Ended Dec. 31, 2009 USD / shares
GOODWILL	NOTE 10 GOODWILL The changes in the carrying amount of goodwill are as follows: In millions Climate Solutions Residential Solutions Industrial Technologies Security Technologies Total December31, 2007 $ 2,613.8 $ 74.9 $ 371.9 $ 932.7 $ 3,993.3 Acquisitions and adjustments * 3,275.8 2,255.2 5.4 20.6 5,557.0 Currency translation (37.9 ) - (7.5 ) (44.8 ) (90.2 ) Impairment (839.8 ) (1,656.2 ) - (344.0 ) (2,840.0 ) December31, 2008 5,011.9 673.9 369.8 564.5 6,620.1 Acquisitions and adjustments * (12.5 ) 8.4 - - (4.1 ) Currency translation (21.1 ) - 3.1 8.0 (10.0 ) December31, 2009 $ 4,978.3 $ 682.3 $ 372.9 $ 572.5 $ 6,606.0 * Includes adjustments related to final purchase price allocation adjustments. The Company records as goodwill the excess of the purchase price over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded. In June 2008, the Company acquired the Trane commercial HVAC business and the Trane residential HVAC businesses and recorded $5.5 billion of goodwill associated with the transaction. The results of the Trane commercial HVAC business are reported within the Climate Solutions segment and the Trane residential HVAC business is reported within the Residential Solutions segment. See Note 4 for a further discussion regarding goodwill associated with the acquisition of Trane. As a result of the annual impairment testing in the fourth quarter of 2008, the Company recognized a pre-tax, non-cash charge of $2,840.0 million related to the impairment of goodwill. The Company does not have any accumulated impairment losses subsequent to the adoption of SFAS No.142, Goodwill and Other Intangible Assets other than the amounts recorded in 2008. See Note 5 for a further discussion of impairment related matters. In the fourth quarter of 2009, the Company reduced its goodwill by approximately $37 million in the Climate Solutions and Residential Solutions segments related to the acquisition of Trane. These adjustments primarily relate to an overstatement of net deferred tax liabilities established during purchase accounting and represent accounting errors. The Company does not believe that the accounting errors are material to any of its previously issued financial statements and therefore, has not adjusted any prior period amounts.

INTANGIBLE ASSETS

INTANGIBLE ASSETS
	12 Months Ended Dec. 31, 2009 USD / shares
INTANGIBLE ASSETS	NOTE 11 INTANGIBLE ASSETS The following table sets forth the gross amount and accumulated amortization of the Companys intangible assets at December31: In millions 2009 2008 Customer relationships $ 2,358.4 $ 2,368.2 Completed technologies/patents 204.0 203.1 Other 188.1 189.6 Trademarks (finite-lived) 111.2 109.3 Total gross finite-lived intangible assets 2,861.7 2,870.2 Accumulated amortization (533.0 ) (378.5 ) Total net finite-lived intangible assets 2,328.7 2,491.7 Trademarks (indefinite-lived) 2,714.1 2,722.4 Total $ 5,042.8 $ 5,214.1 At December31, 2009, the Company had $5.0 billion of intangible assets. The Company amortizes intangible assets with finite useful lives on a straight-line basis over their estimated economic lives in accordance with GAAP. Indefinite-lived intangible assets are not subject to amortization, but instead, are tested for impairment at least annually (more frequently if certain indicators are present). Intangible asset amortization expense for 2009, 2008 and 2007 was $156.4 million, $226.3 million and $25.2 million, respectively. The increase in 2008 is attributable to the Companys acquisition of Trane on June5, 2008, which includes $125.0 million of non-recurring amortization expense related to the fair value allocation of purchase price to backlog and in-process research and development costs. The non-recurring amortization expense is included in Accumulated amortization and the associated gross asset is included in Other in the above table. See Note 4 for a further discussion on the acquisition of Trane. Estimated amortization expense on existing intangible assets is approximately $163 million for each of the next five fiscal years.

ACCOUNTS RECEIVABLE PURCHASE AG

ACCOUNTS RECEIVABLE PURCHASE AGREEMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
ACCOUNTS RECEIVABLE PURCHASE AGREEMENTS	NOTE 12 ACCOUNTS RECEIVABLE PURCHASE AGREEMENTS In connection with the acquisition of Trane, the Company acquired Tranes accounts receivable purchase agreement (the Trane Facility) in the U.S. As part of this Facility, Trane formed a special-purpose entity (SPE) for the sole purpose of buying and selling receivables generated by Trane. Trane irrevocably and without recourse, transferred all eligible accounts receivable to the SPE, which, in turn, sold undivided ownership interests in them to a conduit administered by the participating bank. The assets of the SPE were not available to pay the claims of Trane or any of its subsidiaries. The undivided interests in the receivables sold to the conduit as a part of the Trane Facility were removed from the balance sheet since they met the applicable criteria under GAAP. Tranes interests in the receivables retained by the Company were recorded at its allocated carrying amount, less an appropriate reserve for doubtful accounts, in the balance sheet as of December31, 2008. To the extent that the consideration received was less than the allocated carrying value of the receivables sold, losses were recognized at the time of sale. On March31, 2009, the Company entered into new accounts receivable purchase agreements (the Expanded IR Facility), to expand the existing accounts receivable purchase agreement. The Expanded IR Facility superseded the Trane Facility. As of December31, 2009, there are no interests in the receivables retained by the Company related to the Trane Facility. Under the Expanded IR Facility, the Company continuously sold, through certain consolidated special purpose vehicles, designated pools of eligible trade receivables to an affiliated master special purpose vehicle (MSPV) which, in turn, sold undivided ownership interests to three conduits administered by unaffiliated financial institutions. The maximum purchase limit of the three conduits was $325.0 million. The Company paid commitment fees on the aggregate amount of the liquidity commitments of the financial institutions under the facility (which was 102% of the maximum purchase limit) and an additional program fee on the aggregate amounts purchased under the facility by the conduits to the extent funded through the issuance of commercial paper or other securities. The MSPV was not designed to be a qualifying SPE since the MSPV transferred assets representing undivided ownership interests in the accounts receivables it held to the conduits. The Company concluded that the MSPV was a variable interest entity (VIE) whereby the Company was deemed the primary beneficiary and subsequently consolidated the MSPV. Accordingly, accounts receivable balances were not removed from the balance sheet until the undivided ownership interests were sold to the conduits. The remaining trade receivables transferred into the MSPV but not sold to the conduits remained in Accounts and notes receivable, net. The interests in the receivables retained by the Company were exposed to the first risk of loss for any uncollectible amounts in the receivables sold under the facility. The Company provided no other forms of continued financial support

DEBT AND CREDIT FACILITIES

DEBT AND CREDIT FACILITIES
	12 Months Ended Dec. 31, 2009 USD / shares
DEBT AND CREDIT FACILITIES	NOTE 13 DEBT AND CREDIT FACILITIES At December31, short-term borrowings and current maturities of long-term debt consisted of the following: In millions 2009 2008 Commercial paper program $ - $ 998.7 Senior unsecured bridge loan facility - 754.0 Debentures with put feature 343.6 345.7 Current maturities of long-term debt 526.5 200.4 Other short-term borrowings 6.6 51.6 Total $ 876.7 $ 2,350.4 The weighted-average interest rate for total short-term borrowings and current maturities of long-term debt at December31, 2009 and 2008 was 5.4% and 4.8%, respectively. At December 31, long-term debt excluding current maturities consisted of: In millions 2009 2008 Senior floating rate notes due 2010 $ - $ 250.0 7.625% Senior notes due 2010 - 261.2 4.50% Exchangeable senior notes due 2012 315.0 - 6.000% Senior notes due 2013 599.8 599.8 9.50% Senior notes due 2014 655.0 - 5.50% Senior notes due 2015 199.7 199.6 4.75% Senior notes due 2015 299.3 299.2 6.875% Senior notes due 2018 749.1 749.0 9.00% Debentures due 2021 125.0 125.0 7.20% Debentures due 2010-2025 112.5 120.0 6.48% Debentures due 2025 149.7 149.7 Other loans and notes, at end-of-year average interest rates of 5.85% in 2009 and 5.68% in 2008, maturing in various amounts to 2017 14.8 20.2 Total $ 3,219.9 $ 2,773.7 The fair value of the Companys debt at December31, 2009 and 2008 was $4,459.6 million and $4,927.4 million, respectively. The fair value of long-term debt was primarily based upon quoted market values. At December31, 2009, long-term debt retirements are as follows: In millions 2010 $ 870.1 2011 19.7 2012 324.2 2013 607.8 2014 661.8 Thereafter 1,606.4 Total $ 4,090.0 Commercial Paper Program The Company uses borrowings under our commercial paper program for general corporate purposes. As of December31, 2009, the Company had no outstanding commercial paper borrowings after paying down $998.7 million during 2009. The Company funded these payments primarily using cash generated from operations. Senior Unsecured Bridge Loan Facility In connection with the Trane acquisition, the Company entered into a $3.9 billion senior unsecured bridge loan facility, with a 364-day term. The Company drew down $2.95 billion against the bridge loan facility in June 2008. The proceeds, along with cash on hand and the issuance of $1.5 billion of commercial paper, were used to fund the cash component of the consideration paid for the acquisition as well as to pay related fees and expenses incurred in connection with the acquisition. In addition, the Company repaid $2.0 billion of the outstanding balance of the bridge loan facility during the third quarter of 2008. The Company used a combination of cash flows from operations and cash on hand, in addition to the $1.6 billion in proceeds received from the issuance of long-term de

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
FINANCIAL INSTRUMENTS	NOTE 14 FINANCIAL INSTRUMENTS In the normal course of business, the Company uses various financial instruments, including derivative instruments, to manage risks associated with interest rate, currency rate, commodity price and share-based compensation exposures. These financial instruments are not used for trading or speculative purposes. On the date a derivative contract is entered into, the Company designates the derivative instrument either as a cash flow hedge of a forecasted transaction, a cash flow hedge of a recognized asset or liability, or as an undesignated derivative. The Company formally documents its hedge relationships, including identification of the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivative instruments that are designated as hedges to specific assets, liabilities or forecasted transactions. The Company also assesses both at the 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. Any ineffective portion of a derivative instruments change in fair value is recorded in the income statement in the period of change. If the hedging relationship ceases to be highly effective, or it becomes probable that a forecasted transaction is no longer expected to occur, the hedging relationship will be undesignated and any future gains and losses on the derivative instrument would be recorded in the income statement. The fair market value of derivative instruments are determined through market-based valuations and may not be representative of the actual gains or losses that will be recorded when these instruments mature due to future fluctuations in the markets in which they are traded. Currency and Commodity Hedging Instruments The notional amounts of the Companys currency derivatives, excluding the cross currency swap described below, were $884.8 million and $920.4 million at December31, 2009 and 2008, respectively. At December31, 2009 and 2008, a loss of $1.5 million and a gain of $7.6 million, net of tax, respectively, was included in Accumulated other comprehensive income (AOCI) related to the fair value of the Companys currency derivatives designated as accounting hedges. The amount expected to be reclassified into earnings over the next twelve months is $1.5 million. The actual amounts that will be reclassified to earnings may vary from this amount as a result of changes in market conditions. Gains and losses associated with the Companys currency derivatives not designated as hedges are recorded in earnings as changes in fair value occur. At December31, 2009, the maximum term of the Companys currency derivatives was 12 months. As a result of the acquisition of Trane in June 2008, the Company assumed a cross currency swap that fixed in U.S. dollars, the currency cash flows on the 60.0million 8.25% senior notes. These notes matured on June1, 2009 along with the cross currency swap. The cross currency swap met the criteria to be accounted for as a

PENSIONS AND POSTRETIREMENT BEN

PENSIONS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
	12 Months Ended Dec. 31, 2009 USD / shares
PENSIONS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS	NOTE 15 PENSIONS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS Pension Plans The Company has noncontributory pension plans covering substantially all non-Trane U.S. employees and maintains a pension plan for non-collectively bargained U.S. employees of Trane, whereby eligible employees may elect to participate and receive a credit equal to 3% of eligible pay. Effective January1, 2010, non-collectively bargained U.S. employees of Trane began to participate in the Companys main pension plan for U.S. non-collectively bargained employees. In addition, the Company maintains pension plans for Trane U.S. collectively bargained employees. Certain non-U.S. employees in other countries, including Trane employees, are covered by pension plans. Most of the Companys pension plans for U.S. non-collectively bargained employees provided benefits on a final average pay formula. The Companys U.S. collectively bargained pension plans, including those covering employees of Trane, generally provide benefits based on a flat benefit formula. Generally, non-U.S. plans provide benefits based on earnings and years of service. The Company maintains additional other supplemental benefit plans for officers and other key employees. In 2008, the Company adopted the measurement date provision of ASC 715 which required the measurement of plan assets and benefit obligations as of the date of the year-end financial statements. The Company recorded a one-time after-tax pension charge of $1.2 million to Retained earnings ($1.8 million pre-tax) as a result of changing the measurement date from November30th to December31st. As a result of the acquisition of Trane in the second quarter of 2008, the Company assumed net obligations of $67.7 million, which consisted of noncurrent pension assets of $1.4 million and current and noncurrent pension benefit liabilities of $69.1 million. In connection with the sale of Compact Equipment and the Road Development business unit during 2007, the Company settled its obligation for pension benefits for all current and former employees related to these divestitures. In addition, certain of the Companys U.S. plans and the U.K. plan were remeasured as of the sale dates. The following table details information regarding the Companys pension plans at December31: In millions 2009 2008 Change in benefit obligations: Benefit obligation at beginning of year $ 3,217.3 $ 2,572.4 Service cost 65.4 58.5 Interest cost 197.2 182.8 Employee contributions 2.8 2.6 Acquisitions - 799.2 Amendments 9.2 12.0 Actuarial (gains) losses 290.1 (9.6 ) Benefits paid (227.9 ) (232.7 ) Currency translation 63.1 (200.7 ) Curtailments and settlements (21.6 ) (1.1 ) Adjustment due to adoption of ASC 715 measurement date provisions - 2.6 Other, including expenses paid 3.3 31.3 Benefit obligation at end of year $ 3,598.9 $ 3,217.3 Change in plan assets: Fair value at beginning of year $ 2,363.1 $ 2,500.9 Act

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS
	12 Months Ended Dec. 31, 2009 USD / shares
FAIR VALUE MEASUREMENTS	NOTE 16 FAIR VALUE MEASUREMENTS ASC 820 establishes a framework for measuring fair value that is based on the inputs market participants use to determine the fair value of an asset or liability and establishes a fair value hierarchy to prioritize those inputs. The Company adopted this provision of ASC 820 on January1, 2008. However, the Company has delayed its implementation of the provision of ASC 820 for the fair value of goodwill, indefinite-lived intangible assets and nonfinancial long-lived assets as allowed under GAAP. The fair value hierarchy outlined in ASC 820 is comprised of three levels that are described below: Level 1 Inputs based on quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than Level 1 quoted prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 Unobservable inputs based on little or no market activity and that are significant to the fair value of the assets and liabilities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability based on the best information available under the circumstances. A financial instruments categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Assets and liabilities measured at fair value on a recurring basis at December31, 2009 are as follows: Fairvaluemeasurements Total fairvalue In millions Level1 Level2 Level3 Assets: Cash and cash equivalents $ 876.7 $ - $ - $ 876.7 Marketable securities 11.8 - - 11.8 Derivative instruments - 7.3 - 7.3 Benefit trust assets 17.6 147.7 - 165.3 Total $ 906.1 $ 155.0 $ - $ 1,061.1 Liabilities: Derivative instruments $ - $ 7.9 $ - $ 7.9 Benefit liabilities 18.6 178.5 - 197.1 Total $ 18.6 $ 186.4 $ - $ 205.0 See Note 15 for disclosure of fair value measurements related to the Companys pension assets. ASC 820 defines fair value as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company determines the fair value of its financial assets and liabilities using the following methodologies: Cash and cash equivalents These amounts include cash on hand, demand deposits and all highly liquid investment

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY
	12 Months Ended Dec. 31, 2009 USD / shares
SHAREHOLDERS' EQUITY	NOTE 17 SHAREHOLDERS EQUITY Ingersoll-Rand Company Limited, a Bermuda Company (IR-Limited), was the successor to Ingersoll-Rand Company, a New Jersey Company (IR-New Jersey) following a corporate reorganization that became effective on December31, 2001 (the Bermuda Reorganization). Upon consummation, the shares of IR-New Jersey common stock were cancelled and all previous holders were issued IR-Limited ClassA common shares. The Bermuda Reorganization was accounted for as a reorganization of entities under common control and accordingly, did not result in any changes to the consolidated amounts of assets, liabilities and shareholders equity. Ingersoll-Rand plc, an Irish public limited company (IR-Ireland), is the successor to IR-Limited, following a corporate reorganization that became effective on July1, 2009 (the Ireland Reorganization). Upon consummation, the shares of IR-Limited ClassA common shares were cancelled and all previous holders were issued IR-Ireland ordinary shares. The Ireland Reorganization was accounted for as a reorganization of entities under common control and accordingly, did not result in any changes to the consolidated amounts of assets, liabilities and shareholders equity. See Note 2 for a further discussion of the Ireland Reorganization. Common Stock At December31, 2009, a reconciliation of common shares is as follows: In millions Total December31, 2008 318.8 Shares issued under incentive plans 1.8 December31, 2009 320.6 The authorized share capital of IR-Ireland is $1,175,010,000, consisting of (1)1,175,000,000 common shares, par value $1.00 per share, and (2)10,000,000 preference shares, par value $0.001 per share. No preference shares were outstanding at December31, 2009 or 2008. Treasury Stock The Company treats common shares of the parent owned by a subsidiary as treasury stock. These shares are recorded at cost and included in the Shareholders equity section. At December31, 2007, ClassA common shares of IR-Limited owned by the Company amounted to 97.4 million. As a result of the acquisition of Trane in June 2008, the Company issued 45.4million IR-Limited ClassA common shares to fund the equity portion of the consideration. In June 2009, IR-Limited cancelled the remaining 52.0million shares in anticipation of the Ireland Reorganization that became effective on July1, 2009. Accumulated Other Comprehensive Income (Loss) The components of Accumulated other comprehensive income (loss) are as follows: In millions 2009 2008 Foreign currency translation adjustment $ 504.3 $ 437.0 Change in fair value of derivatives qualifyingas cash flow hedges, net of tax (8.6 ) (2.4 ) Unrealized loss on marketable securities, net of tax (4.7 ) (10.1 ) Pension and postretirement obligation adjustments, net of tax (925.3 ) (875.3 ) Accumulated other comprehensive income (loss) $ (434.3 ) $ (450.8 )

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION
	12 Months Ended Dec. 31, 2009 USD / shares
SHARE-BASED COMPENSATION	NOTE 18 SHARE-BASED COMPENSATION The Company records share-based compensation awards using a fair value method and recognizes compensation expense for an amount equal to the fair value of the share-based payment issued in its consolidated financial statements. On June3, 2009, the shareholders of the Company approved the amendment and restatement of the Incentive Stock Plan of 2007, which authorizes the Company to issue stock options and other share-based incentives. As a result, the total number of shares authorized by the shareholders was increased to 27.0million, of which 15.0million remains available as of December31, 2009 for future incentive awards. Modifications Relating to the Reorganization In connection with the Ireland Reorganization discussed in Note 2, on July1, 2009, IR-Ireland assumed the existing obligations of IR-Limited under the equity incentive plans and other similar employee award plans of Ingersoll Rand (collectively, the Plans), including all awards issued thereunder. Furthermore, the Plans were amended by IR-Limited to provide (1)that ordinary shares of IR-Ireland will be issued, held available or used to measure benefits as appropriate under the Plans, in lieu of the ClassA common shares of IR-Limited, including upon exercise of any options or share appreciation rights or upon the vesting of restricted stock units or performance units issued under those Plans; and (2)for the appropriate substitution of IR-Ireland for IR-Limited in those Plans. Stock Options / Restricted Stock Units On February12, 2009, the Compensation Committee of the Companys Board of Directors approved a change to the Companys equity grant approach whereby options are no longer used as the predominant equity vehicle for eligible participants; instead a mix of options and restricted stock units (RSUs) are utilized. The RSUs vest ratably over three years and any accrued dividends will be paid in cash at the time of vesting. As a result of this change, eligible participants received (i)stock options, (ii)RSUs or (iii)a combination of both stock options and RSUs under the Companys Incentive Stock Plan of 2007. The average fair value of the stock options granted for the year ended December31, 2009 and 2008 was estimated to be $5.82 per share and $11.56 per share, respectively, using the Black-Scholes option-pricing model. The following assumptions were used: 2009 2008 Dividend yield 1.97 % 1.58 % Volatility 43.19 % 31.48 % Risk-free rate of return 1.76 % 2.95 % Expected life 5.10years 5.36years The fair value of each of the Companys stock option awards is expensed on a straight-line basis over the required service period, which is generally the three-year vesting period of the options. However, for options granted to retirement eligible employees, the Company recognizes expense for the fair value of the options at the grant date. Expected volatility is based on the historical volatility from traded options on the Companys stock. The risk-free rate of return is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturi

OTHER, NET

OTHER, NET
	12 Months Ended Dec. 31, 2009 USD / shares
OTHER, NET	NOTE 19 OTHER, NET At December31, the components of Other, net were as follows: In millions 2009 2008 2007 Interest income $ 13.3 $ 95.6 $ 36.2 Currency gain (loss) (36.1 ) (41.9 ) (2.8 ) Earnings from equity investments 8.1 3.4 1.0 Other 34.4 6.1 (4.2 ) Other, net $ 19.7 $ 63.2 $ 30.2 Included in currency exchange gains (losses) above is a $24 million charge recorded in the fourth quarter of 2009, associated with the recent devaluation in the Venezuelan Bolivar. At December31, 2009, the Company remeasured its foreign currency receivables and payables associated with the Venezuelan Bolivar at the parallel rate of 6.0 Bolivars for each U.S. dollar, based on the Companys inability to settle certain transactions through the official government channels in an expeditious manner. Previously, the Company remeasured all foreign currency transactions at the official rate of 2.15 Bolivars for each U.S. dollar. In addition, effective January1, 2010, Venezuela has been designated highly inflationary, as the blended Consumer Price Index/National Consumer Price Index reached cumulative three-year inflation in excess of 100% during the fourth quarter of 2009. As such, all future foreign currency fluctuations will be recorded in income. In the fourth quarter of 2009, the Company recorded income of approximately $25 million primarily related to a favorable settlement with an insurance carrier associated with a portion of the Companys asbestos obligation, which is included in other in the table above.

INCOME TAXES

INCOME TAXES
	12 Months Ended Dec. 31, 2009 USD / shares
INCOME TAXES	NOTE 20 INCOME TAXES Earnings (loss) before income taxes for the years ended December31 were taxed within the following jurisdictions: In millions 2009 2008 2007 United States $ (305.5 ) $ (3,564.5 ) $ (197.1 ) Non-U.S. 864.6 808.5 1,148.9 Total $ 559.1 $ (2,756.0 ) $ 951.8 The components of Provision (benefit) for income taxes for the years ended December31 were as follows: In millions 2009 2008 2007 Current tax expense (benefit): United States $ (24.2) $ (4.9) $ (83.6) Non U.S. 127.5 130.3 141.4 Total: 103.3 125.4 57.8 Deferred tax expense (benefit): United States 7.8 (312.4) 131.1 Non U.S. (39.8) (21.6) 15.5 Total: (32.0) (334.0) 146.6 Total tax expense (benefit): United States (16.4) (317.3) 47.5 Non U.S. 87.7 108.7 156.9 Total $ 71.3 $ (208.6) $ 204.4 The Provision (benefit) 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 2009 2008 2007 Statutory U.S. rate 35.0% 35.0% 35.0% Increase (decrease) in rates resulting from: Non-U.S. operations (21.4 ) 9.4 (21.0 ) State and local income taxes, net of U.S. tax 9.7 (0.3 ) (0.1 ) Non-deductible impairment charge - (35.1 ) - Tax reserves (including uncertain tax position reserves) (3.5 ) (2.5 ) 8.0 Provision to return and other true-up adjustments (6.4 ) 1.0 1.0 Other adjustments (0.6 ) - (1.1 ) Effective tax rate 12.8% 7.5% 21.8% Tax incentives, in the form of tax holidays, have been granted in certain jurisdictions to encourage industrial development. The expiration of these tax holidays varies by country. The most significant tax holiday relates to the Companys qualifying locations in Ireland, which were granted a 10% tax rate through 2010. The benefit for the tax holidays for the year ended December31, 2009 and 2008 was $1.4 million and $4.1 million, respectively. At December31, a summary of the deferred tax accounts were as follows: In millions 2009 2008 Deferred tax assets: Inventory and accounts receivable $ 40.1 $ 29.3 Fixed assets and intangibles 16.0 23.5 Postemployment and other benefit liabilities 928.4 833.8 Product liability 293.0 324.8 Other reserves and accruals 269.4 198.4 Net operating losses and credit carryforwards 954.7 750.2 Other 107.4 248.8 Gross deferred tax assets 2,609.0 2,408.8 Less: deferred tax valuation allowances (353.7 ) (247.8 ) Deferred tax assets net of valuation allowances $ 2,255.3 $ 2,161.0

DIVESTITURES AND DISCONTINUED O

DIVESTITURES AND DISCONTINUED OPERATIONS
	12 Months Ended Dec. 31, 2009 USD / shares
DIVESTITURES AND DISCONTINUED OPERATIONS	NOTE 21 DIVESTITURES AND DISCONTINUED OPERATIONS The components of discontinued operations for the years ended December31 are as follows: In millions 2009 2008 2007 Revenues $ - $ 15.3 $ 2,957.8 Pre-tax earnings (loss) from operations (60.5) (50.3) (82.5) Pre-tax gain (loss) on sale 1.6 (5.2) 4,391.6 Tax benefit (expense) 47.3 (1.9) (1,066.5) Discontinued operations, net $ (11.6) $ (57.4) $ 3,242.6 During 2009, the Company recorded a tax benefit of $28 million primarily associated with reducing its liability for unrecognized tax benefits, and a tax charge of $29 million associated with correcting immaterial accounting errors. See Note 20 for a further description of these tax matters. Pre-tax loss from operations in 2007 includes a non-cash charge of $449.0 million related to the Companys liability for all pending and estimated future asbestos claims through 2053 as discussed below in Other Discontinued Operations. Discontinued operations by business for the years ended December31 are as follows: In millions 2009 2008 2007 Compact Equipment, net of tax $ (30.6) $ (11.7) $ 2,927.1 Road Development, net of tax 9.0 (29.8) 681.5 Other discontinued operations, net of tax 10.0 (15.9) (366.0) Total discontinued operations, net of tax $ (11.6) $ (57.4) $ 3,242.6 Compact Equipment Divestiture On July29, 2007, the Company agreed to sell its Bobcat, Utility Equipment and Attachments businesses (collectively, Compact Equipment) to Doosan Infracore for gross proceeds of approximately $4.9 billion, subject to post-closing purchase price adjustments. The sale was completed on November30, 2007. We are currently in the process of resolving the final purchase price adjustments with Doosan Infracore. Compact Equipment manufactured and sold compact equipment, including skid-steer loaders, compact track loaders, mini-excavators and telescopic tool handlers; portable air compressors, generators and light towers; general-purpose light construction equipment; and attachments. The Company accounted for Compact Equipment as discontinued operations within the income statement. Net revenues and after-tax earnings of Compact Equipment for the years ended December31 were as follows: In millions 2009 2008 2007 Net revenues $ - $ 15.3 $ 2,705.9 After-tax earnings (loss) from operations $ 7.2 $ (0.6) $ 275.1 Gain (loss) on sale, net of tax (37.8) (11.1) 2,652.0 Total discontinued operations, net of tax $ (30.6) $ (11.7) $ 2,927.1 Road Development Divestiture On February27, 2007, the Company agreed to sell its Road Development business unit to AB Volvo (publ) for cash proceeds of approximately $1.3 billion. The sale was completed on April30, 2007. The Road Development business unit manufactured and sold asphalt paving equipment, compaction equipment, milling machines and construction-related material handling equipment. The Company accounted for the Roa

EARNINGS PER SHARE

EARNINGS PER SHARE (EPS)
	12 Months Ended Dec. 31, 2009 USD / shares
EARNINGS PER SHARE (EPS)	NOTE 22 EARNINGS PER SHARE (EPS) Basic EPS is calculated by dividing Net earnings (loss) attibutable to Ingersoll-Rand plc by the weighted-average number of common 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 common shares, which in the Companys case, includes shares issuable under share-based compensation plans and the effects of the Exchangeable Senior Notes issued in April 2009. The following table summarizes the weighted-average number of common shares outstanding for basic and diluted earnings per share calculations: In millions 2009 2008 2007 Weighted-average number of basic shares 321.1 300.6 290.7 Shares issuable under incentive stock plans 2.9 3.1 4.6 Exchangeable Senior Notes 5.1 - - Weighted-average number of diluted shares 329.1 303.7 295.3 Anti-dilutive shares 17.6 27.7 0.2 As the Company experienced a net loss in 2008, the Company did not included the impact of shares issuable under incentive stock plans in the calculation of diluted EPS as the result would have an antidilutive effect on EPS.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES
	12 Months Ended Dec. 31, 2009 USD / shares
COMMITMENTS AND CONTINGENCIES	NOTE 23 COMMITMENTS AND CONTINGENCIES The Company is involved in various litigations, claims and administrative proceedings, including those related to environmental and product liability matters. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for contingent liabilities, management believes that the liability which may result from these legal matters would not have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company. Environmental Matters The Company continues to be dedicated to an environmental program to reduce the utilization and generation of hazardous materials during the manufacturing process and to remediate identified environmental concerns. As to the latter, the Company is currently engaged in site investigations and remediation activities to address environmental cleanup from past operations at current and former manufacturing facilities. The Company is sometimes a party to environmental lawsuits and claims and has received notices of potential violations of environmental laws and regulations from the Environmental Protection Agency and similar state authorities. It has also been identified as a potentially responsible party (PRP) for cleanup costs associated with off-site waste disposal at federal Superfund and state remediation sites. For all such sites, there are other PRPs and, in most instances, the Companys 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 generally on the parties financial condition and probable contributions on a per site basis. Additional lawsuits and claims involving environmental matters are likely to arise from time to time in the future. During 2009, we spent $10.8 million for environmental remediation at sites presently or formerly owned or leased by us. As of December31, 2009 and 2008, the Company has recorded reserves for environmental matters of $93.3 million and $100.9 million, respectively. The Company believes that these expenditures and accrual levels will continue and may increase over time. Given the evolving nature of environmental laws, regulations and technology, the ultimate cost of future compliance is uncertain. Asbestos Matters Certain wholly-owned subsidiaries of the Company are named as defendants in asbestos-related lawsuits in state and federal courts. In virtually all of the suits, a large number of other companies have also been named as defendants. The vast majority of those claims has been filed against either Ingersoll-Rand Company (IR-New Jersey) or Trane and generally allege injury caused by exposure to asbestos contained in certain historical products sold by IR-New Jersey or Trane, primarily pumps, boilers and railroad brake shoes. Neither IR-New Jersey nor Trane was a pr

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
BUSINESS SEGMENT INFORMATION	NOTE 24 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 disaggregates financial information for internal review and decision making. The Company largely evaluates performance based on operating income and operating margins. Intercompany sales between segments are considered immaterial. The Company has divested various businesses over the past few years as it moves to being a leading global diversified industrial enterprise. During 2007, the Company sold its Bobcat, Utility Equipment and Attachments business units as well as its Road Development business unit. Segment information for all years has been revised to exclude the results of these divestitures. Each reportable segment is based primarily on the types of products it generates. The operating segments have been aggregated as required by GAAP. In the fourth quarter of 2009, the Company realigned its external reporting structure to more closely reflect our corporate and business strategies and to promote additional productivity and growth. The Companys segments are now as follows: Climate Solutions, Residential Solutions, Industrial Technologies and Security Technologies. As part of the change, the Company eliminated the Air Conditioning Systems and Services segment which represented the acquired Trane business and created two new reportable segments, the Climate Solutions segment and the Residential Solutions segment. A description of the Companys reportable segments is as follows: The Climate Solutions segment delivers energy-efficient refrigeration and Heating, Ventilation and Air Conditioning (HVAC) solutions throughout the world. Encompassing the transport and stationary refrigeration markets as well as the commercial HVAC markets, this segment offers customers a broad range of products, services and solutions to manage controlled temperature environments. This segment includes the market leading brands of Hussmann, Thermo King and Trane. The Residential Solutions segment provides safety, comfort and efficiency to homeowners throughout North America and parts of South America. It offers customers a broad range of products, services and solutions including mechanical and electronic locks, energy-efficient HVAC systems, indoor air quality solutions, advanced controls, portable security systems and remote home management. This segment is comprised of well-known brands like American Standard, Schlage and Trane. The Industrial Technologies segment provides products, services and solutions that enhance energy efficiency, productivity and operations. It offers our global customers a diverse and innovative range of products including compressed air systems, tools, pumps, fluid handling systems, golf and utility vehicles in addition to environmentally friendly micro turbines. This segment includes the Club Car and Ingersoll Rand market leading brands. The Security Technologies segment is a leading global provider of products and

GUARANTOR FINANCIAL INFORMATION

GUARANTOR FINANCIAL INFORMATION
	12 Months Ended Dec. 31, 2009 USD / shares
GUARANTOR FINANCIAL INFORMATION	NOTE 25 GUARANTOR FINANCIAL INFORMATION Ingersoll-Rand plc, an Irish public limited company (IR-Ireland), is the successor to Ingersoll-Rand Company Limited, a Bermuda company (IR-Limited), following a corporate reorganization that became effective on July1, 2009 (the Ireland Reorganization). IR-Limited is the successor to Ingersoll-Rand Company, a New Jersey corporation (IR-New Jersey), following a corporate reorganization that occurred on December31, 2001 (the Bermuda Reorganization). Both the Ireland Reorganization and the Bermuda Reorganization were accounted for as a reorganization of entities under common control and accordingly, did not result in any changes to the consolidated amounts of assets, liabilities and shareholders equity. As a part of the Bermuda Reorganization, IR-Limited issued non-voting, Class B common shares to IR-New Jersey and certain IR-New Jersey subsidiaries in exchange for a $3.6 billion note and shares of certain IR-New Jersey subsidiaries. The note, which is due in 2011, has a fixed rate of interest of 11%per annum payable semi-annually and imposes certain restrictive covenants upon IR-New Jersey. At December31, 2009, $1.0 billion of the original $3.6 billion note remains outstanding. In 2002, IR-Limited contributed the note to a wholly owned subsidiary, which subsequently transferred portions of the note to several other subsidiaries, all of which are included in the Other Subsidiaries below. Accordingly, the subsidiaries of IR-Limited remain creditors of IR-New Jersey. In addition, as part of the Bermuda Reorganization, IR-Limited fully and unconditionally guaranteed all of the issued public debt securities of IR-New Jersey. IR-New Jersey unconditionally guaranteed payment of the principal, premium, if any, and interest on IR-Limiteds 4.75% Senior Notes due in 2015 in the aggregate principal amount of $300 million. The guarantee is unsecured and provided on an unsubordinated basis. The guarantee ranks equally in right of payment with all of the existing and future unsecured and unsubordinated debt of IR-New Jersey. During 2008, the Company revised the guarantor financial statements for all periods presented in order to reflect Ingersoll-Rand Global Holding Company Limited (IR-Global) as a stand-alone subsidiary. IR-Global issued public debt that is guaranteed by IR-Limited. As part of the Ireland Reorganization, the guarantor financial statements were further revised to present IR-Ireland as the ultimate parent company and Ingersoll-Rand International Holding Limited (IR-International) as a stand-alone subsidiary. In addition, the guarantee structure was updated to reflect the newly created legal structure under which (i)IR-International assumed the obligations of IR-Limited as issuer or guarantor, as the case may be, and (ii)IR-Ireland and IR-Limited fully and unconditionally guaranteed the obligations under the various indentures covering the currently outstanding public debt of IR-International, IR-Global and IR-New Jersey. Neither IR-Ireland nor IR-Limited has issued or intends to issue guarantees in respect of any indebtedness incurred by Trane. Also as part of the Ireland Reorganization, IR

SCHEDULE II INGERSOLL-RAND PLC

SCHEDULE II INGERSOLL-RAND PLC VALUATION AND QUALIFYING ACCOUNTS
	12 Months Ended Dec. 31, 2009 USD / shares
SCHEDULE II INGERSOLL-RAND PLC VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II INGERSOLL-RAND PLC VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007 (Amounts in millions) Allowances for Doubtful Accounts: Balance December31, 2006 $ 8.3 Additions charged to costs and expenses 9.8 Deductions * (7.2 ) Business acquisitions and divestitures, net 0.4 Currency translation 0.9 Balance December31, 2007 12.2 Additions charged to costs and expenses 15.1 Deductions * (15.6 ) Business acquisitions and divestitures, net 43.6 Currency translation (4.1 ) Other 0.9 Balance December31, 2008 52.1 Additions charged to costs and expenses 25.4 Deductions * (23.8 ) Currency translation 1.8 Other 2.1 Balance December31, 2009 $ 57.6 (*) Deductions include accounts and advances written off, less recoveries. FOR THE YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007 (Amounts in millions) Reserve for LIFO: Balance December31, 2006 $ 95.4 Additions - Reductions (11.1 ) Balance December31, 2007 84.3 Additions 38.4 Reductions (9.2 ) Balance December31, 2008 113.5 Additions 2.1 Reductions (32.6 ) Balance December31, 2009 $ 83.0

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 USD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Feb. 18, 2010	Jun. 30, 2009
Trading Symbol	IR
Entity Registrant Name	Ingersoll-Rand plc
Entity Central Index Key	0001466258
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		321,072,029
Entity Public Float			$6,670,031,309