Guarantor Financial Information | 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 September 30, 2018 : 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.à .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 2019-2025 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 4.650% Notes due 2044 All notes and debentures issued by Global Holding and New Jersey (1) All subsidiary issuers and all 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 September 30, 2018 . 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. In millions Plc Irish Lux International Global New Lux Other Consolidating Net revenues $ — $ — $ — $ — $ 345.7 $ — $ 3,785.3 $ (100.1 ) $ 4,030.9 Cost of goods sold — — — — (252.0 ) — (2,566.4 ) 100.1 (2,718.3 ) Selling and administrative expenses (1.2 ) — (0.2 ) (0.1 ) (120.5 ) (0.3 ) (603.3 ) — (725.6 ) Operating income (loss) (1.2 ) — (0.2 ) (0.1 ) (26.8 ) (0.3 ) 615.6 — 587.0 Equity earnings (loss) in subsidiaries, net of tax 528.0 527.3 435.1 427.4 404.8 67.5 — (2,390.1 ) — Interest expense — — 0.1 (26.7 ) (11.5 ) (10.3 ) (0.1 ) — (48.5 ) Intercompany interest and fees (11.9 ) — 11.6 (58.8 ) 8.8 (3.8 ) 54.1 — — Other income/(expense), net — — 0.1 — (3.5 ) — (5.1 ) — (8.5 ) Earnings (loss) before income taxes 514.9 527.3 446.7 341.8 371.8 53.1 664.5 (2,390.1 ) 530.0 Benefit (provision) for income taxes 0.2 — — 19.6 67.8 — (86.5 ) — 1.1 Earnings (loss) from continuing operations 515.1 527.3 446.7 361.4 439.6 53.1 578.0 (2,390.1 ) 531.1 Discontinued operations, net of tax — — — — (12.2 ) — 0.5 — (11.7 ) Net earnings (loss) 515.1 527.3 446.7 361.4 427.4 53.1 578.5 (2,390.1 ) 519.4 Less: Net earnings attributable to noncontrolling interests — — — — — — (4.3 ) — (4.3 ) Net earnings (loss) attributable to Ingersoll-Rand plc $ 515.1 $ 527.3 $ 446.7 $ 361.4 $ 427.4 $ 53.1 $ 574.2 $ (2,390.1 ) $ 515.1 Other comprehensive income (loss), net of tax (15.2 ) (15.2 ) 12.3 6.3 6.5 6.9 (20.6 ) 3.8 (15.2 ) Comprehensive income (loss) attributable to Ingersoll-Rand plc $ 499.9 $ 512.1 $ 459.0 $ 367.7 $ 433.9 $ 60.0 $ 553.6 $ (2,386.3 ) $ 499.9 Condensed Consolidating Statement of Comprehensive Income For the nine months ended September 30, 2018 In millions Plc Irish Lux International Global New Lux Other Consolidating Net revenues $ — $ — $ — $ — $ 1,038.4 $ — $ 11,037.4 $ (302.7 ) $ 11,773.1 Cost of goods sold — — — — (758.0 ) — (7,647.3 ) 302.7 (8,102.6 ) Selling and administrative expenses (7.4 ) — (0.3 ) (0.2 ) (383.1 ) (0.2 ) (1,808.6 ) — (2,199.8 ) Operating income (loss) (7.4 ) — (0.3 ) (0.2 ) (102.7 ) (0.2 ) 1,581.5 — 1,470.7 Equity earnings (loss) in subsidiaries, net of tax 1,113.0 1,111.8 914.1 918.4 969.5 156.1 — (5,182.9 ) — Interest expense — — 0.1 (103.7 ) (35.1 ) (32.7 ) (0.3 ) — (171.7 ) Intercompany interest and fees (21.4 ) — 30.0 (137.1 ) 24.1 (7.4 ) 111.8 — — Other income/(expense), net — — (0.1 ) 0.7 (11.6 ) 0.1 (5.1 ) — (16.0 ) Earnings (loss) before income taxes 1,084.2 1,111.8 943.8 678.1 844.2 115.9 1,687.9 (5,182.9 ) 1,283.0 Benefit (provision) for income taxes (0.6 ) — — 55.1 103.0 — (317.4 ) — (159.9 ) Earnings (loss) from continuing operations 1,083.6 1,111.8 943.8 733.2 947.2 115.9 1,370.5 (5,182.9 ) 1,123.1 Discontinued operations, net of tax — — — — (29.0 ) — 2.0 — (27.0 ) Net earnings (loss) 1,083.6 1,111.8 943.8 733.2 918.2 115.9 1,372.5 (5,182.9 ) 1,096.1 Less: Net earnings attributable to noncontrolling interests — — — — — — (12.5 ) — (12.5 ) Net earnings (loss) attributable to Ingersoll-Rand plc $ 1,083.6 $ 1,111.8 $ 943.8 $ 733.2 $ 918.2 $ 115.9 $ 1,360.0 $ (5,182.9 ) $ 1,083.6 Other comprehensive income (loss), net of tax (141.0 ) (140.6 ) (109.8 ) (59.7 ) (59.9 ) (46.4 ) (158.2 ) 574.6 (141.0 ) Comprehensive income (loss) attributable to Ingersoll-Rand plc $ 942.6 $ 971.2 $ 834.0 $ 673.5 $ 858.3 $ 69.5 $ 1,201.8 $ (4,608.3 ) $ 942.6 In millions Plc Irish Lux International Global New Lux Other Consolidating Net revenues $ — $ — $ — $ — $ 325.5 $ — $ 3,436.3 $ (91.3 ) $ 3,670.5 Cost of goods sold — — — — (231.6 ) — (2,349.6 ) 91.3 (2,489.9 ) Selling and administrative expenses (3.8 ) — — — (86.2 ) (0.1 ) (584.4 ) — (674.5 ) Operating income (loss) (3.8 ) — — — 7.7 (0.1 ) 502.3 — 506.1 Equity earnings (loss) in subsidiaries, net of tax 380.2 377.6 363.6 255.5 316.6 26.1 — (1,719.6 ) — Interest expense — — — (31.7 ) (11.8 ) (10.2 ) (0.2 ) — (53.9 ) Intercompany interest and fees (9.4 ) — (9.7 ) (44.9 ) (80.5 ) (2.1 ) 146.6 — — Other income/(expense), net — — 0.1 — (4.2 ) — (3.5 ) — (7.6 ) Earnings (loss) before income taxes 367.0 377.6 354.0 178.9 227.8 13.7 645.2 (1,719.6 ) 444.6 Benefit (provision) for income taxes — — — 28.0 24.3 — (128.7 ) — (76.4 ) Earnings (loss) from continuing operations 367.0 377.6 354.0 206.9 252.1 13.7 516.5 (1,719.6 ) 368.2 Discontinued operations, net of tax — — — — 3.5 — 0.2 — 3.7 Net earnings (loss) 367.0 377.6 354.0 206.9 255.6 13.7 516.7 (1,719.6 ) 371.9 Less: Net earnings attributable to noncontrolling interests — — — — — — (4.9 ) — (4.9 ) Net earnings (loss) attributable to Ingersoll-Rand plc $ 367.0 $ 377.6 $ 354.0 $ 206.9 $ 255.6 $ 13.7 $ 511.8 $ (1,719.6 ) $ 367.0 Other comprehensive income (loss), net of tax 116.8 116.6 107.4 48.6 48.6 60.5 112.5 (494.2 ) 116.8 Comprehensive income (loss) attributable to Ingersoll-Rand plc $ 483.8 $ 494.2 $ 461.4 $ 255.5 $ 304.2 $ 74.2 $ 624.3 $ (2,213.8 ) $ 483.8 Condensed Consolidating Statement of Comprehensive Income For the nine months ended September 30, 2017 in millions Plc Irish Lux International Global New Lux Other Consolidating Net revenues $ — $ — $ — $ — $ 968.3 $ — $ 9,883.6 $ (272.4 ) $ 10,579.5 Cost of goods sold — — — — (695.3 ) — (6,846.2 ) 272.4 (7,269.1 ) Selling and administrative expenses (12.0 ) — (0.1 ) (0.9 ) (308.6 ) (0.3 ) (1,709.8 ) — (2,031.7 ) Operating income (loss) (12.0 ) — (0.1 ) (0.9 ) (35.6 ) (0.3 ) 1,327.6 — 1,278.7 Equity earnings (loss) in subsidiaries, net of tax 876.3 864.6 806.0 555.6 759.1 53.3 — (3,914.9 ) — Interest expense — — — (95.2 ) (35.6 ) (30.6 ) (0.6 ) — (162.0 ) Intercompany interest and fees (22.5 ) — (33.2 ) (131.3 ) (231.8 ) (5.9 ) 424.7 — — Other income/(expense), net — — 0.1 — (6.5 ) — (17.4 ) — (23.8 ) Earnings (loss) before income taxes 841.8 864.6 772.8 328.2 449.6 16.5 1,734.3 (3,914.9 ) 1,092.9 Benefit (provision) for income taxes 0.9 — — 82.9 102.0 — (429.0 ) — (243.2 ) Earnings (loss) from continuing operations 842.7 864.6 772.8 411.1 551.6 16.5 1,305.3 (3,914.9 ) 849.7 Discontinued operations, net of tax — — — — 3.9 — 1.6 — 5.5 Net earnings (loss) 842.7 864.6 772.8 411.1 555.5 16.5 1,306.9 (3,914.9 ) 855.2 Less: Net earnings attributable to noncontrolling interests — — — — — — (12.5 ) — (12.5 ) Net earnings (loss) attributable to Ingersoll-Rand plc $ 842.7 $ 864.6 $ 772.8 $ 411.1 $ 555.5 $ 16.5 $ 1,294.4 $ (3,914.9 ) $ 842.7 Other comprehensive income (loss), net of tax 413.6 412.7 383.3 262.9 262.6 120.7 409.0 (1,851.2 ) 413.6 Comprehensive income (loss) attributable to Ingersoll-Rand plc $ 1,256.3 $ 1,277.3 $ 1,156.1 $ 674.0 $ 818.1 $ 137.2 $ 1,703.4 $ (5,766.1 ) $ 1,256.3 Condensed Consolidating Balance Sheet September 30, 2018 In millions Plc Irish Lux International Global New Lux Other Consolidating ASSETS Current assets: Cash and cash equivalents $ — $ — $ 40.3 $ — $ 254.5 $ — $ 727.7 $ — $ 1,022.5 Accounts and notes receivable, net — — 0.2 — 170.7 — 2,581.2 — 2,752.1 Inventories, net — — — — 168.6 — 1,652.8 — 1,821.4 Other current assets 0.4 — 7.8 11.5 107.0 — 359.9 — 486.6 Intercompany receivables 10.8 — 574.9 — 3,083.2 — 6,183.2 (9,852.1 ) — Total current assets 11.2 — 623.2 11.5 3,784.0 — 11,504.8 (9,852.1 ) 6,082.6 Property, plant and equipment, net — — 0.1 — 319.2 — 1,354.1 — 1,673.4 Goodwill and other intangible assets, net — — — — 430.1 — 9,238.6 — 9,668.7 Other noncurrent assets — — 4.1 282.6 506.1 — 626.1 (539.1 ) 879.8 Investments in consolidated subsidiaries 9,158.2 9,115.9 3,545.9 11,320.5 11,536.2 1,256.9 — (45,933.6 ) — Intercompany notes receivable — — 1,000.0 — — — 1,249.7 (2,249.7 ) — Total assets $ 9,169.4 $ 9,115.9 $ 5,173.3 $ 11,614.6 $ 16,575.6 $ 1,256.9 $ 23,973.3 $ (58,574.5 ) $ 18,304.5 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $ 10.8 $ — $ 0.2 $ 22.6 $ 584.8 $ 16.7 $ 3,338.3 $ — $ 3,973.4 Short-term borrowings and current maturities of long-term debt — — — — 350.4 — 0.2 — 350.6 Intercompany payables 1,850.5 — 1,102.3 3,437.7 2,848.5 552.7 60.4 (9,852.1 ) — Total current liabilities 1,861.3 — 1,102.5 3,460.3 3,783.7 569.4 3,398.9 (9,852.1 ) 4,324.0 Long-term debt — — — 2,329.4 319.4 1,090.7 0.3 — 3,739.8 Other noncurrent liabilities — — — 72.1 1,162.0 — 2,202.5 (539.1 ) 2,897.5 Intercompany notes payable — — — 2,249.7 — — — (2,249.7 ) — Total liabilities 1,861.3 — 1,102.5 8,111.5 5,265.1 1,660.1 5,601.7 (12,640.9 ) 10,961.3 Equity: Total equity 7,308.1 9,115.9 4,070.8 3,503.1 11,310.5 (403.2 ) 18,371.6 (45,933.6 ) 7,343.2 Total liabilities and equity $ 9,169.4 $ 9,115.9 $ 5,173.3 $ 11,614.6 $ 16,575.6 $ 1,256.9 $ 23,973.3 $ (58,574.5 ) $ 18,304.5 Condensed Consolidating Balance Sheet December 31, 2017 In millions Plc Irish Lux International Global New Lux Other Consolidating ASSETS Current assets: Cash and cash equivalents $ — $ — $ 0.6 $ — $ 359.3 $ — $ 1,189.5 $ — $ 1,549.4 Accounts and notes receivable, net — — — — 166.5 — 2,310.9 — 2,477.4 Inventories, net — — — — 168.5 — 1,386.9 — 1,555.4 Other current assets 0.2 — 5.7 112.6 76.2 — 342.2 — 536.9 Intercompany receivables 1,819.1 9,912.2 2,036.8 — 1,849.9 — 5,014.8 (20,632.8 ) — Total current assets 1,819.3 9,912.2 2,043.1 112.6 2,620.4 — 10,244.3 (20,632.8 ) 6,119.1 Property, plant and equipment, net — — — — 310.6 — 1,240.7 — 1,551.3 Goodwill and other intangible assets, net — — — — 436.0 — 9,242.6 — 9,678.6 Other noncurrent assets — — — 185.4 471.1 — 550.8 (383.0 ) 824.3 Investments in consolidated subsidiaries 7,318.1 1,684.2 2,953.9 10,480.3 10,923.7 1,150.9 — (34,511.1 ) — Total assets $ 9,137.4 $ 11,596.4 $ 4,997.0 $ 10,778.3 $ 14,761.8 $ 1,150.9 $ 21,278.4 $ (55,526.9 ) $ 18,173.3 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $ 8.5 $ — $ 0.2 $ 27.3 $ 572.3 $ 6.9 $ 3,105.8 $ — $ 3,721.0 Short-term borrowings and current maturities of long-term debt — — — 749.6 350.4 — 7.0 — 1,107.0 Intercompany payables 1,988.3 — 9,316.7 5,481.1 1,790.0 523.3 1,533.4 (20,632.8 ) — Total current liabilities 1,996.8 — 9,316.9 6,258.0 2,712.7 530.2 4,646.2 (20,632.8 ) 4,828.0 Long-term debt — — — 1,539.9 326.8 1,089.7 0.6 — 2,957.0 Other noncurrent liabilities 0.3 — — 92.4 1,251.8 — 2,219.9 (383.0 ) 3,181.4 Total liabilities 1,997.1 — 9,316.9 7,890.3 4,291.3 1,619.9 6,866.7 (21,015.8 ) 10,966.4 Equity: Total equity 7,140.3 11,596.4 (4,319.9 ) 2,888.0 10,470.5 (469.0 ) 14,411.7 (34,511.1 ) 7,206.9 Total liabilities and equity $ 9,137.4 $ 11,596.4 $ 4,997.0 $ 10,778.3 $ 14,761.8 $ 1,150.9 $ 21,278.4 $ (55,526.9 ) $ 18,173.3 Condensed Consolidating Statement of Cash Flows For the nine months ended September 30, 2018 in millions Plc Irish Lux International Global New Lux Other Consolidating CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by (used in) continuing operating activities $ 97.2 $ (2.7 ) $ 17.5 $ (116.4 ) $ 791.7 $ (24.7 ) $ 183.8 $ — $ 946.4 Net cash provided by (used in) discontinued operating activities — — — — (51.0 ) — 2.0 — (49.0 ) Net cash provided by (used in) operating activities 97.2 (2.7 ) 17.5 (116.4 ) 740.7 (24.7 ) 185.8 — 897.4 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — — — (69.0 ) — (182.2 ) — (251.2 ) Acquisitions and equity method investments, net of cash acquired — — — — — — (281.5 ) — (281.5 ) Other investing activities, net — — (4.0 ) — 3.0 — 13.1 — 12.1 Intercompany investing activities, net 889.7 (648.3 ) 501.0 — (1,205.7 ) — 636.4 (173.1 ) — Net cash provided by (used in) continuing investing activities 889.7 (648.3 ) 497.0 — (1,271.7 ) — 185.8 (173.1 ) (520.6 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds (repayments) from debt — — — 31.6 (7.5 ) — (6.4 ) — 17.7 Debt issuance costs — — — (12.0 ) — — — — (12.0 ) Dividends paid to ordinary shareholders (351.2 ) — — — — — — — (351.2 ) Dividends paid to noncontrolling interests — — — — — — (41.1 ) — (41.1 ) Repurchase of ordinary shares (514.1 ) — — — — — — — (514.1 ) Other financing activities, net 36.3 — — — (1.2 ) — (3.3 ) — 31.8 Intercompany financing activities, net (157.9 ) 651.0 (474.8 ) 96.8 434.9 24.7 (747.8 ) 173.1 — Net cash provided by (used in) continuing financing activities (986.9 ) 651.0 (474.8 ) 116.4 426.2 24.7 (798.6 ) 173.1 (868.9 ) Effect of exchange rate changes on cash and cash equivalents — — — — — — (34.8 ) — (34.8 ) Net increase (decrease) in cash and cash equivalents — — 39.7 — (104.8 ) — (461.8 ) — (526.9 ) Cash and cash equivalents - beginning of period — — 0.6 — 359.3 — 1,189.5 — 1,549.4 Cash and cash equivalents - end of period $ — $ — $ 40.3 $ — $ 254.5 $ — $ 727.7 $ — $ 1,022.5 Condensed Consolidating Statement of Cash Flows For the nine months ended September 30, 2017 in millions Plc Irish Lux International Global New Lux Other Consolidating CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by (used in) continuing operating activities $ 82.7 $ — $ (17.5 ) $ (214.2 ) $ 228.1 $ (23.9 ) $ 835.6 $ — $ 890.8 Net cash provided by (used in) discontinued operating activities — — — — (15.5 ) — (2.1 ) — (17.6 ) Net cash provided by (used in) operating activities 82.7 — (17.5 ) (214.2 ) 212.6 (23.9 ) 833.5 — 873.2 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures — — — — (59.8 ) — (90.1 ) — (149.9 ) Acquisitions and equity method investments, net of cash acquired — — — — (2.7 ) — (57.6 ) — (60.3 ) Other investing activities, net — — — — — — 3.8 — 3.8 Intercompany investing activities, net — — 1,170.9 270.1 (347.0 ) 11.7 56.2 (1,161.9 ) — Net cash provided by (used in) continuing investing activities — — 1,170.9 270.1 (409.5 ) 11.7 (87.7 ) (1,161.9 ) (206.4 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds (repayments) from debt — — — — (7.5 ) — (4.1 ) — (11.6 ) Debt issuance costs — — — (0.2 ) — — — — (0.2 ) Dividends paid to ordinary shareholders (318.0 ) — — — — — — — (318.0 ) Dividends paid to noncontrolling interests — — — — — — (15.5 ) — (15.5 ) Acquisition of noncontrolling interest — — — — — — (6.8 ) — (6.8 ) Repurchase of ordinary shares (911.1 ) — — — — — — — (911.1 ) Other financing activities, net 41.9 — — — (1.2 ) — — — 40.7 Intercompany financing activities, net 1,104.5 — (1,153.4 ) (55.5 ) 35.8 12.2 (1,105.5 ) 1,161.9 — Net cash provided by (used in) continuing financing activities (82.7 ) — (1,153.4 ) (55.7 ) 27.1 12.2 (1,131.9 ) 1,161.9 (1,222.5 ) Effect of exchange rate changes on cash and cash equivalents — — — — — — 100.0 — 100.0 Net increase (decrease) in cash and cash equivalents — — — 0.2 (169.8 ) — (286.1 ) — (455.7 ) Cash and cash equivalents - beginning of period — — — — 634.6 — 1,080.1 — 1,714.7 Cash and cash equivalents - end of period $ — $ — $ — $ 0.2 $ 464.8 $ — $ 794.0 $ — $ 1,259.0 |