Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 23, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38095 | |
Entity Registrant Name | Ingersoll Rand Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-2393770 | |
Entity Address, Address Line One | 800-A Beaty Street | |
Entity Address, City or Town | Davidson | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 28036 | |
City Area Code | 704 | |
Local Phone Number | 655-4000 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value per share | |
Trading Symbol | IR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 420,154,805 | |
Entity Central Index Key | 0001699150 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,279.1 | $ 1,025.4 | $ 2,408.6 | $ 1,642.2 |
Cost of sales | 766.4 | 716.8 | 1,443.8 | 1,130.3 |
Gross Profit | 512.7 | 308.6 | 964.8 | 511.9 |
Selling and administrative expenses | 267.2 | 209.1 | 519.5 | 348.5 |
Amortization of intangible assets | 80.3 | 96.4 | 164.5 | 143.1 |
Other operating expense, net | 25.1 | 48.1 | 19.4 | 144.6 |
Operating Income (Loss) | 140.1 | (45) | 261.4 | (124.3) |
Interest expense | 22.7 | 30.8 | 45.8 | 57.9 |
Loss on extinguishment of debt | 0 | 0 | 0 | 2 |
Other income, net | (34.1) | (2.3) | (36.6) | (2.5) |
Income (Loss) from Continuing Operations Before Income Taxes | 151.5 | (73.5) | 252.2 | (181.7) |
Provision for income taxes | 12.5 | 78.4 | 23.1 | 11.5 |
Loss on equity method investments | (0.7) | 0 | (0.7) | 0 |
Income (Loss) from Continuing Operations | 138.3 | (151.9) | 228.4 | (193.2) |
Income (loss) from discontinued operations, net of tax | 96.3 | (24.6) | (83.9) | (20.2) |
Net Income (Loss) | 234.6 | (176.5) | 144.5 | (213.4) |
Less: Net income attributable to noncontrolling interests | 0.7 | 1.1 | 1 | 1 |
Net Income (Loss) Attributable to Ingersoll Rand Inc. | 233.9 | (177.6) | 143.5 | (214.4) |
Amounts attributable to Ingersoll Rand Inc. common stockholders: | ||||
Income (loss) from continuing operations, net of tax | 137.6 | (153) | 227.4 | (194.2) |
Income (loss) from discontinued operations, net of tax | 96.3 | (24.6) | (83.9) | (20.2) |
Net income (loss) attributable to Ingersoll Rand Inc. | $ 233.9 | $ (177.6) | $ 143.5 | $ (214.4) |
Basic earnings (loss) per share of common stock: | ||||
Earnings (loss) from continuing operations (in usd per share) | $ 0.33 | $ (0.37) | $ 0.54 | $ (0.56) |
Earnings (loss) from discontinued operations (in usd per share) | 0.23 | (0.06) | (0.20) | (0.06) |
Net earnings (loss) (in usd per share) | 0.56 | (0.43) | 0.34 | (0.62) |
Diluted earnings (loss) per share of common stock: | ||||
Earnings (loss) from continuing operations (in usd per share) | 0.32 | (0.37) | 0.53 | (0.56) |
Earnings (loss) from discontinued operations (in usd per share) | 0.23 | (0.06) | (0.20) | (0.06) |
Net earnings (loss) (in usd per share) | $ 0.55 | $ (0.43) | $ 0.34 | $ (0.62) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Comprehensive Income (Loss) Attributable to Ingersoll Rand Inc. | ||||
Net income (loss) attributable to Ingersoll Rand Inc. | $ 233.9 | $ (177.6) | $ 143.5 | $ (214.4) |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation adjustments, net | 49.1 | 44.9 | (50.7) | (47.3) |
Unrecognized gain on cash flow hedges, net | 0 | 5.5 | 0 | 6.7 |
Pension and other postretirement prior service cost and gain or (loss), net | 1.3 | 0.5 | 2.5 | 3.4 |
Total other comprehensive income (loss), net of tax | 50.4 | 50.9 | (48.2) | (37.2) |
Comprehensive income (loss) Attributable to Ingersoll Rand Inc. | 284.3 | (126.7) | 95.3 | (251.6) |
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | ||||
Net income attributable to noncontrolling interests | 0.7 | 1.1 | 1 | 1 |
Other comprehensive loss, net of tax | ||||
Foreign currency translation adjustments, net | (1.2) | (0.4) | (2.3) | (4.4) |
Total other comprehensive loss, net of tax | (1.2) | (0.4) | (2.3) | (4.4) |
Comprehensive income (loss) attributable to noncontrolling interests | (0.5) | 0.7 | (1.3) | (3.4) |
Total Comprehensive Income (Loss) | $ 283.8 | $ (126) | $ 94 | $ (255) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 3,669.9 | $ 1,750.9 |
Accounts receivable, net of allowance for credit losses of $49.3 and $50.9, respectively | 935.8 | 861.8 |
Inventories | 796.8 | 716.7 |
Other current assets | 236.2 | 195.3 |
Assets of discontinued operations - current | 73.7 | 337.4 |
Total current assets | 5,712.4 | 3,862.1 |
Property, plant and equipment, net of accumulated depreciation of $326.8 and $291.1, respectively | 607.2 | 609 |
Goodwill | 5,637 | 5,582.6 |
Other intangible assets, net | 3,725.5 | 3,797.2 |
Deferred tax assets | 21.2 | 15.6 |
Other assets | 473.4 | 329.3 |
Assets of discontinued operations - long-term | 0 | 1,862.8 |
Total assets | 16,176.7 | 16,058.6 |
Current liabilities: | ||
Short-term borrowings and current maturities of long-term debt | 40.7 | 40.4 |
Accounts payable | 660.8 | 536.4 |
Accrued liabilities | 1,053.6 | 708.9 |
Liabilities of discontinued operations - current | 67.9 | 212.9 |
Total current liabilities | 1,823 | 1,498.6 |
Long-term debt, less current maturities | 3,823.3 | 3,859.1 |
Pensions and other postretirement benefits | 255.7 | 272.5 |
Deferred income taxes | 624.5 | 702.4 |
Other liabilities | 303.8 | 343.7 |
Liabilities of discontinued operations - long-term | 0 | 192.8 |
Total liabilities | 6,830.3 | 6,869.1 |
Commitments and contingencies (Note 16) | 0 | 0 |
Stockholders’ equity | ||
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 421,545,797 and 420,123,978 shares issued as of June 30, 2021 and December 31, 2020, respectively | 4.2 | 4.2 |
Capital in excess of par value | 9,376 | 9,310.3 |
Accumulated deficit | (32.2) | (175.7) |
Accumulated other comprehensive income (loss) | (35.5) | 14.2 |
Treasury stock at cost; 1,479,039 and 1,496,169 shares as of June 30, 2021 and December 31, 2020, respectively | (34.6) | (33.3) |
Total Ingersoll Rand Inc. stockholders’ equity | 9,277.9 | 9,119.7 |
Noncontrolling interests | 68.5 | 69.8 |
Total stockholders’ equity | 9,346.4 | 9,189.5 |
Total liabilities and stockholders’ equity | $ 16,176.7 | $ 16,058.6 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 49.3 | $ 50.9 |
Accumulated depreciation on property, plant and equipment | $ 326.8 | $ 291.1 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock issued (in shares) | 421,545,797 | 420,123,978 |
Treasury stock (in shares) | 1,479,039 | 1,496,169 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Total Ingersoll Rand Inc. Stockholders' Equity | Total Ingersoll Rand Inc. Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock | Capital in Excess of Par Value | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interests |
Balance at beginning of period (in shares) at Dec. 31, 2019 | 206.8 | ||||||||||
Balance at beginning of period at Dec. 31, 2019 | $ 1,869.9 | $ (1) | $ 1,869.9 | $ (1) | $ 2.1 | $ 2,302 | $ (141.4) | $ (1) | $ (256) | $ (36.8) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (213.4) | (214.4) | (214.4) | 1 | |||||||
Acquisition of Ingersoll Rand Industrial (in shares) | 211 | ||||||||||
Acquisition of Ingersoll Rand Industrial | 7,009.3 | 6,937 | $ 2.1 | 6,934.9 | 72.3 | ||||||
Costs of issuing equity securities | (1) | (1) | (1) | ||||||||
Issuance of common stock for stock-based compensation plans (in shares) | 0.8 | ||||||||||
Issuance of common stock for stock-based compensation plans | 5.9 | 5.9 | 5.9 | ||||||||
Purchases of treasury stock | (1.3) | (1.3) | (1.3) | ||||||||
Issuance of treasury stock for stock-based compensation plans | 0.8 | 0.8 | (1.5) | 2.3 | |||||||
Stock-based compensation | 16.2 | 16.2 | 16.2 | ||||||||
Other comprehensive income (loss), net of tax | (41.6) | (37.2) | (37.2) | (4.4) | |||||||
Adjustments for shares tendered in open offer | 2 | 2 | |||||||||
Balance at end of period (in shares) at Jun. 30, 2020 | 418.6 | ||||||||||
Balance at end of period at Jun. 30, 2020 | 8,641.8 | 8,574.9 | $ 4.2 | 9,256.5 | (356.8) | (293.2) | (35.8) | 66.9 | |||
Balance at beginning of period (in shares) at Mar. 31, 2020 | 418.2 | ||||||||||
Balance at beginning of period at Mar. 31, 2020 | 8,755.5 | 8,686.2 | $ 4.2 | 9,241.5 | (179.2) | (344.1) | (36.2) | 69.3 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (176.5) | (177.6) | (177.6) | 1.1 | |||||||
Issuance of common stock for stock-based compensation plans (in shares) | 0.4 | ||||||||||
Issuance of common stock for stock-based compensation plans | 3.7 | 3.7 | 3.7 | ||||||||
Purchases of treasury stock | (0.5) | (0.5) | (0.5) | ||||||||
Issuance of treasury stock for stock-based compensation plans | 0.4 | 0.4 | (0.5) | 0.9 | |||||||
Stock-based compensation | 11.8 | 11.8 | 11.8 | ||||||||
Other comprehensive income (loss), net of tax | 49.4 | 50.9 | 50.9 | (1.5) | |||||||
Adjustments for shares tendered in open offer | 2 | 2 | |||||||||
Balance at end of period (in shares) at Jun. 30, 2020 | 418.6 | ||||||||||
Balance at end of period at Jun. 30, 2020 | 8,641.8 | 8,574.9 | $ 4.2 | 9,256.5 | (356.8) | (293.2) | (35.8) | 66.9 | |||
Balance at beginning of period (in shares) at Dec. 31, 2020 | 420.1 | ||||||||||
Balance at beginning of period at Dec. 31, 2020 | 9,189.5 | 9,119.7 | $ 4.2 | 9,310.3 | (175.7) | 14.2 | (33.3) | 69.8 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 144.5 | 143.5 | 143.5 | 1 | |||||||
Issuance of common stock for stock-based compensation plans (in shares) | 1.4 | ||||||||||
Issuance of common stock for stock-based compensation plans | 12.3 | 12.3 | 12.3 | ||||||||
Purchases of treasury stock | (3.2) | (3.2) | (3.2) | ||||||||
Issuance of treasury stock for stock-based compensation plans | 0.8 | 0.8 | (1.1) | 1.9 | |||||||
Stock-based compensation | 54.5 | 54.5 | 54.5 | ||||||||
Other comprehensive income (loss), net of tax | (50.5) | (48.2) | (48.2) | (2.3) | |||||||
Divestiture of foreign subsidiaries | (1.5) | (1.5) | (1.5) | ||||||||
Balance at end of period (in shares) at Jun. 30, 2021 | 421.5 | ||||||||||
Balance at end of period at Jun. 30, 2021 | 9,346.4 | 9,277.9 | $ 4.2 | 9,376 | (32.2) | (35.5) | (34.6) | 68.5 | |||
Balance at beginning of period (in shares) at Mar. 31, 2021 | 420.9 | ||||||||||
Balance at beginning of period at Mar. 31, 2021 | 9,025.7 | 8,956.7 | $ 4.2 | 9,337.8 | (266.1) | (84.4) | (34.8) | 69 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | 234.6 | 233.9 | 233.9 | 0.7 | |||||||
Issuance of common stock for stock-based compensation plans (in shares) | 0.6 | ||||||||||
Issuance of common stock for stock-based compensation plans | 7.6 | 7.6 | 7.6 | ||||||||
Purchases of treasury stock | (0.2) | (0.2) | (0.2) | ||||||||
Issuance of treasury stock for stock-based compensation plans | 0.4 | 0.4 | 0.4 | ||||||||
Stock-based compensation | 30.6 | 30.6 | 30.6 | ||||||||
Other comprehensive income (loss), net of tax | 49.2 | 50.4 | 50.4 | (1.2) | |||||||
Divestiture of foreign subsidiaries | (1.5) | (1.5) | (1.5) | ||||||||
Balance at end of period (in shares) at Jun. 30, 2021 | 421.5 | ||||||||||
Balance at end of period at Jun. 30, 2021 | $ 9,346.4 | $ 9,277.9 | $ 4.2 | $ 9,376 | $ (32.2) | $ (35.5) | $ (34.6) | $ 68.5 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities From Continuing Operations: | ||
Net income (loss) | $ 144.5 | $ (213.4) |
Loss from discontinued operations, net of tax | (83.9) | (20.2) |
Income (loss) from continuing operations | 228.4 | (193.2) |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities from continuing operations: | ||
Amortization of intangible assets | 164.5 | 143.1 |
Depreciation | 43.3 | 35.7 |
Stock-based compensation expense | 43.1 | 15.4 |
Foreign currency transaction losses (gains), net | (14.7) | 6.9 |
Deferred income taxes | (81.1) | 25.1 |
Non-cash adjustments to carrying value of LIFO inventories | 0 | 35.6 |
Other non-cash adjustments | (0.4) | 2 |
Changes in assets and liabilities: | ||
Receivables | (73) | 64.6 |
Inventories | (80.7) | (8.5) |
Accounts payable | 80.8 | 15.1 |
Accrued liabilities | 2.9 | 83.8 |
Other assets and liabilities, net | (78.3) | (29.3) |
Net cash provided by operating activities from continuing operations | 234.8 | 196.3 |
Cash Flows From (Used In) Investing Activities From Continuing Operations: | ||
Capital expenditures | (25.9) | (22.7) |
Net cash acquired (paid) in business combinations | (215.8) | |
Net cash acquired (paid) in business combinations | 41.3 | |
Disposals of property, plant and equipment | 9.5 | 1.4 |
Net cash provided by (used in) investing activities from continuing operations | (232.2) | 20 |
Cash Flows From (Used In) Financing Activities From Continuing Operations: | ||
Principal payments on long-term debt | (19.7) | (1,599.6) |
Proceeds from long-term debt | 0 | 1,980.1 |
Purchases of treasury stock | (3.2) | (1.3) |
Proceeds from stock option exercises | 12.8 | 6.8 |
Payments of contingent consideration | 0 | (0.7) |
Payments of debt issuance costs | 0 | (46.6) |
Payments of costs incurred to issue shares for Ingersoll Rand Industrial acquisition | 0 | (1) |
Other financing | 0 | (0.8) |
Net cash provided by (used in) financing activities from continuing operations | (10.1) | 336.9 |
Cash Flows From Discontinued Operations: | ||
Net cash provided by operating activities | 29.5 | 119.5 |
Net cash provided by (used in) investing activities | 1,903.8 | (2.7) |
Net cash provided by discontinued operations | 1,933.3 | 116.8 |
Effect of exchange rate changes on cash and cash equivalents | (6.8) | (1.9) |
Net increase in cash and cash equivalents | 1,919 | 668.1 |
Cash and cash equivalents, beginning of period | 1,750.9 | 505.5 |
Cash and cash equivalents, end of period | 3,669.9 | 1,173.6 |
Supplemental Cash Flow Information | ||
Cash paid for income taxes | 150.5 | 30.5 |
Cash paid for interest | $ 41.6 | $ 54.2 |
Basis of Presentation and Recen
Basis of Presentation and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Recent Accounting Pronouncements | Basis of Presentation and Recent Accounting Pronouncements Basis of Presentation Ingersoll Rand Inc. is a diversified, global manufacturer of highly engineered, application-critical flow control products and provider of related aftermarket parts and services. The accompanying condensed consolidated financial statements include the accounts of Ingersoll Rand Inc. and its majority-owned subsidiaries (collectively referred to herein as “Ingersoll Rand” or the “Company”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting, the instructions for Form 10-Q and Article 10 of the U.S. Securities and Exchange Commission (“SEC”) Regulation S-X. In the Company’s opinion, the condensed consolidated financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for the interim periods presented. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. We have reclassified certain prior year amounts, including the results of discontinued operations, to conform to the current year presentation. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations. See Note 2 “ Discontinued Operations ” for information on discontinued operations. The results of operations for the interim period ended June 30, 2021 are not necessarily indicative of future results. The ongoing novel Coronavirus (“COVID-19”) pandemic is a continuously evolving situation around the globe that has negatively impacted and could continue to negatively impact the global economy. The Company’s operating results will be subject to fluctuations based on general economic conditions, and the extent to which COVID-19 may ultimately impact its business will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the ultimate extent of the spread of the disease and the duration of the outbreak and business closures or business disruptions for the Company, suppliers and customers. Recently Adopted Accounting Standard Updates (“ASU”) In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which added an impairment model that is based on expected losses rather than incurred losses and is called the Current Expected Credit Losses (“CECL”) model. This impairment model is applicable to loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables as well as any other financial asset with the contractual right to receive cash. Under the new model, an allowance equal to the estimate of lifetime expected credit losses is recognized which will result in more timely loss recognition. The guidance is intended to reduce complexity by decreasing the number of credit impairment models. The Company adopted this guidance on January 1, 2020, using a modified retrospective transition method. The Company recorded a cumulative-effect adjustment on the adoption date increasing “Accumulated deficit” in the Condensed Consolidated Balance Sheets by $1.0 million and decreasing “Accounts receivable, net of allowance for credit losses” in the Condensed Consolidated Balance Sheets by $1.0 million. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and amending and clarifying existing guidance. The Company adopted this guidance on January 1, 2021. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for a limited time to ease the potential burden of accounting for reference rate reform on financial reporting. This guidance applies to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates. The guidance is effective beginning on March 12, 2020 through December 31, 2022. The Company has not utilized any of the optional expedients or exceptions available under this ASU. The Company will continue to assess whether this ASU is applicable throughout the effective period. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which explicitly clarifies which contracts, hedging relationships, and other transactions are within the scope of the optional expedients and exceptions allowed under Topic 848 . The Company has not utilized any of the optional expedients or exceptions available under Topic 848. The Company will continue to assess whether this ASU is applicable throughout the effective period, in conjunction with our assessment of ASU 2020-4. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Discontinued operations comprise two formerly-owned businesses, Specialty Vehicle Technologies (“SVT” or “Club Car”) and High Pressure Solutions (“HPS”). The results of operations, financial positions and cash flows of these businesses are reported as discontinued operations for all periods presented in these Condensed Consolidated financial statements. Specialty Vehicle Technologies On April 9, 2021, the Company entered into an agreement to sell Club Car to private equity firm Platinum Equity Advisors, LLC (“Platinum Equity”) for $1.68 billion in cash. The sale was substantially completed on June 1, 2021. The transfer of legal ownership of certain of SVT's non-U.S. subsidiaries has not yet occurred as of June 30, 2021 due to local regulatory and administrative requirements. Transfer of ownership of these entities is expected to be completed in the second half of 2021. SVT has been presented as a discontinued operation and its net assets are classified as held for sale and comparable prior periods are recast to reflect this change. The Company recognized a pre-tax gain on sale of $256.7 million in the second quarter of 2021. The sale proceeds and the related gain on sale are subject to further adjustment upon the finalization customary post-closing steps of the transaction. These steps are expected to be completed by the end of 2021. High Pressure Solutions On February 14, 2021, the Company entered into an agreement to sell its majority interest in High Pressure Solutions to private equity firm American Industrial Partners. In exchange for its majority interest of 55%, the Company received net cash proceeds of $278.3 million and retains a 45% common equity interest in the newly-formed entity comprising the HPS business. The Company expects to maintain its minority investment in HPS indefinitely and is unable to estimate when this interest may be disposed. This sale was substantially completed on April 1, 2021. The transfer of legal ownership of one of HPS's non-U.S. subsidiary has not yet occurred as of June 30, 2021 due to local regulatory and administrative requirements. Transfer of ownership of this entity is expected to be completed in the second half of 2021. HPS has been presented as a discontinued operation and its net assets are classified as held for sale and comparable prior periods are recast to reflect this change. The Company recognized a pre-tax loss on sale of $211.7 million in the six month period ended June 30, 2021. The sale proceeds and the related loss on sale are subject to further adjustment upon the finalization customary post-closing steps of the transaction. These steps are expected to be completed by the end of 2021. Financial information of discontinued operations The results of operations of SVT and HPS are presented as discontinued operations as summarized below: Specialty Vehicle Technologies High Pressure Solutions Total For the Three Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Revenues $ 184.0 $ 217.5 $ 3.0 $ 21.5 $ 187.0 $ 239.0 Cost of sales 137.9 166.4 3.9 21.2 141.8 187.6 Gross Profit 46.1 51.1 (0.9) 0.3 45.2 51.4 Selling and administrative expenses 16.9 18.2 0.6 20.4 17.5 38.6 Amortization of intangible assets 0.9 12.3 — 5.9 0.9 18.2 Loss (gain) on sale (256.7) — 8.4 — (248.3) — Other operating expense (income), net 9.2 (0.1) 7.4 1.9 16.6 1.8 Income (Loss) from Discontinued Operations Before Income Taxes 275.8 20.7 (17.3) (27.9) 258.5 (7.2) Provision (benefit) for income taxes 162.8 29.2 (0.6) (11.8) 162.2 17.4 Income (Loss) from Discontinued Operations, Net of Tax $ 113.0 $ (8.5) $ (16.7) $ (16.1) $ 96.3 $ (24.6) Specialty Vehicle Technologies High Pressure Solutions Total For the Six Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Revenues $ 424.3 $ 304.2 $ 65.4 $ 117.9 $ 489.7 $ 422.1 Cost of sales 314.9 238.7 54.4 90.8 369.3 329.5 Gross Profit 109.4 65.5 11.0 27.1 120.4 92.6 Selling and administrative expenses 35.3 26.0 4.9 28.6 40.2 54.6 Amortization of intangible assets 10.4 14.9 2.4 11.8 12.8 26.7 Loss (gain) on sale (256.7) — 211.7 — (45.0) — Other operating expense, net 16.2 0.7 15.5 5.3 31.7 6.0 Income (Loss) from Discontinued Operations Before Income Taxes 304.2 23.9 (223.5) (18.6) 80.7 5.3 Provision (benefit) for income taxes 169.7 30.0 (5.1) (4.5) 164.6 25.5 Income (Loss) from Discontinued Operations, Net of Tax $ 134.5 $ (6.1) $ (218.4) $ (14.1) $ (83.9) $ (20.2) The carrying amount of major classes of assets and liabilities classified that were included in discontinued operations at June 30, 2021 and December 31, 2020 related to SVT and HPS are shown in the table below. Long-term assets and liabilities as of June 30, 2021 have been reclassified as current in the Condensed Consolidated Balance Sheets. June 30, 2021 (1) December 31, 2020 (2) Assets Current assets: Accounts receivable, net $ 18.7 $ 104.8 Inventories 19.6 226.9 Other current assets 4.5 5.7 Total current assets 42.8 337.4 Property, plant and equipment, net 2.1 188.3 Goodwill 0.8 721.0 Other intangible assets, net 28.0 935.4 Deferred tax assets — 0.5 Other assets — 17.6 Total non-current assets 30.9 1,862.8 Total assets $ 73.7 $ 2,200.2 Liabilities Current liabilities: Accounts payable $ 32.3 $ 134.7 Accrued liabilities 31.8 78.2 Total current liabilities 64.1 212.9 Pensions and other postretirement benefits — 2.5 Deferred income taxes 3.8 173.3 Other liabilities — 17.0 Total non-current liabilities 3.8 192.8 Total liabilities $ 67.9 $ 405.7 (1) Primarily relates to non-U.S. subsidiaries for which legal ownership will transfer in the second half of 2021. (2) Total assets and total liabilities related to SVT were $1,512.7 million and $354.1 million, respectively, at December 31, 2020. The significant non-cash operating items and capital expenditures reflected in cash flows of discontinued operations for the six months periods ended June 30, 2021 and 2020 include the following: Specialty Vehicle Technologies High Pressure Solutions Total For the Six Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Loss (gain) on sale $ (256.7) $ — $ 211.7 $ — $ (45.0) $ — Depreciation and amortization 14.8 19.8 4.0 18.2 18.8 38.0 Stock-based compensation expense 8.2 0.4 2.7 0.4 10.9 0.8 Capital expenditures 1.6 1.3 0.3 1.4 1.9 2.7 |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Acquisitions in 2021 On January 31, 2021, the Company acquired the Vacuum and Blower Systems division of Tuthill Corporation for cash consideration of $184.4 million. The business operates under the tradenames M-D Pneumatics and Kinney Vacuum Pumps and is a leader in the design and manufacture of positive displacement blowers, mechanical vacuum pumps, vacuum boosters and engineered blower and vacuum systems. The results of this business are reported within the Industrial Technologies and Services segment from the date of acquisition. Due to the timing of the acquisition, the allocation of purchase price is preliminary and will be refined as additional information becomes available. The preliminary goodwill recognized of $80.0 million is attributable to the expected cost synergies, anticipated growth of new and existing customers, and the assembled workforce. The goodwill resulting from this acquisition is expected to be deductible for tax purposes. Also in the six months ended June 30, 2021, the Company acquired five sales and service businesses in the Industrial Technologies and Services segment and one pump technology business in the Precision Science and Technologies segment. The aggregate consideration for these acquisitions was $31.5 million. The following table summarizes the preliminary allocation of consideration to the fair values of identifiable assets acquired and liabilities assumed at the acquisition date. M-D Pneumatics and Kinney Vacuum Pumps All Others Accounts receivable $ 4.8 $ 2.5 Inventories 3.8 2.7 Other current assets 0.6 — Property, plant and equipment 16.2 2.5 Goodwill 80.0 3.5 Other intangible assets 82.5 23.9 Total current liabilities (3.5) (1.8) Total noncurrent liabilities — (1.8) Total consideration $ 184.4 $ 31.5 The revenue and operating income included in the financial statements for these acquisitions subsequent to their date of acquisition is $31.5 million and $4.0 million, respectively. Acquisition of Ingersoll Rand Industrial in 2020 On February 29, 2020, Ingersoll Rand (formerly Gardner Denver Holdings, Inc.) completed the acquisition of and merger with Ingersoll Rand Industrial in exchange for shares of the Company's common stock with a fair value of $6,937.0 million. Fair value of Ingersoll Rand common stock issued for Ingersoll Rand Industrial outstanding common stock $ 6,919.5 Fair value attributable to pre-merger service for replacement equity awards 8.6 Fair value attributable to pre-merger service for deferred compensation plan 8.9 Total purchase consideration $ 6,937.0 Ingersoll Rand Industrial was separated from Ingersoll Rand plc (subsequently renamed Trane Technologies Plc) through a distribution to shareholders of Trane Technologies and subsequently merged with Gardner Denver Holdings, Inc. This transaction was accounted for as a business combination. The assets and liabilities of Ingersoll Rand Industrial were measured at their fair values as of the date of the merger. The determination of fair values required the Company to make estimates about expected future cash flows, discount rates, royalty rates and other subjective assumptions and future events that are highly uncertain. These measurements were finalized within one year of the closing date of the transaction. The following table summarizes the allocation of consideration to the fair values of assets acquired and liabilities assumed of Ingersoll Rand Industrial as of February 29, 2020. Included in these amounts are assets and liabilities of SVT, which has been reported as a discontinued operation in these Condensed Consolidated financial statements. Refer to Note 2 for further information on the sale of SVT. Fair value Cash $ 38.8 Accounts receivable 585.8 Inventories 625.4 Other current assets 87.2 Property, plant and equipment 516.5 Goodwill 4,899.2 Other intangible assets 3,766.6 Other noncurrent assets 270.9 Total current liabilities, including current maturities of long-term debt of $19.0 million (753.0) Deferred tax liability (842.4) Long-term debt, net of debt issuance costs and an original issue discount (1,851.7) Other noncurrent liabilities (333.0) Noncontrolling interest (73.3) Total consideration $ 6,937.0 The Company incurred $87.3 million of acquisition-related costs, including $42.3 million during the three-month period ended March 31, 2020. The remainder was incurred in 2019. These costs are presented within “Other operating expenses, net” in the Condensed Consolidated Statements of Operations. For additional information, see Note 2 “ Business Combinations ” of the annual report on Form 10-K for the year ended December 31, 2020. Results of Ingersoll Rand Industrial Subsequent to the Acquisition The operating results of Ingersoll Rand Industrial have been included in the Company’s condensed consolidated financial statements since the date of acquisition. The results of Ingersoll Rand Industrial in the year of acquisition are shown below. These amounts include the effects of purchase accounting adjustments, primarily the amortization of intangible assets and the impacts on operating expenses of fair value adjustments to acquired inventory and property, plant and equipment. The amounts below exclude the operating results of SVT, which has been reported as a discontinued operation as a result of the transaction discussed in Note 2. For the Three Month Period Ended For the Six Month Period Ended Revenues $ 609.0 $ 815.7 Income (Loss) from Continuing Operations Before Income Taxes (82.1) (124.8) Unaudited Pro Forma Information The following unaudited pro forma financial information summarizes the combined results of operations for the Company and Ingersoll Rand Industrial as if the acquisition had been completed on January 1, 2019. The pro forma results have been prepared for comparative purposes only and do not necessarily represent what the revenue or results of operations would have been had the acquisition been completed on January 1, 2019. In addition, these results are not intended to be a projection of future operating results and do not reflect synergies that might be achieved. These amounts include revenue and net income attributable to SVT that are reported within Income (loss) from discontinued operations, net of tax on the Condensed Consolidated Statement of Operations. For the Three Month Period Ended For the Six Month Period Ended Revenues $ 1,271.6 $ 2,541.3 Net Income (Loss) 7.0 6.8 The unaudited pro forma information includes adjustments for the preliminary purchase price allocation (including, but not limited to, amortization and depreciation for intangible assets and property, plant and equipment acquired, adjustments to stock-based compensation expense, fair value adjustments to acquired inventories, the purchase accounting effect on deferred revenue, interest expense and amortization of debt issuance costs, transaction costs and related tax impacts) and the alignment of accounting policies. The table below reflects the impact of material and nonrecurring adjustments to the unaudited pro forma results for the three and six month periods ended June 30, 2020 that are directly attributable to the acquisition. For the Three Month Period Ended For the Six Month Period Ended Increase to revenue as a result of deferred revenue fair value adjustment, net of tax $ 5.6 $ 5.5 Decrease to expense as a result of inventory fair value adjustment, net of tax (58.5) (89.6) Decrease to expense as a result of transaction costs, net of tax — (38.1) Settlement of post-acquisition contingencies During the three months ended June 30, 2021, the Company and Trane Technologies concluded several post-closing steps of the Ingersoll Rand Industrial transaction. These steps included determining the final measurements of transferred working capital, indebtedness and retirement plan funding. Upon finalizing these measurements, Trane Technologies agreed to make a net payment of $49.5 million to Ingersoll Rand. This payment was made in July 2021. The Company realized a gain of $30.1 million during the second quarter to adjust its receivables for these items. This gain is reported within "Other income, net" on the Condensed Consolidated Statement of Operations. Other Acquisitions in 2020 On September 1, 2020, the Company acquired a manufacturer of electric peristaltic pumps for cash consideration, net of cash acquired, of $15.5 million and deferred consideration of $0.9 million. The results of this business are reported within the Precision and Science Technologies segment from the date of acquisition. Also in the third quarter, within the Industrial Technologies and Services segment, the Company acquired two sales and service businesses for cash consideration of $15.0 million and deferred consideration of $5.1 million. The revenue and operating income for the six months ended June 30, 2020 included in the financial statements for these acquisitions subsequent to their date of acquisition is $5.3 million and $2.0 million, respectively. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring Program 2020 to 2022 Subsequent to the acquisition of Ingersoll Rand Industrial, the Company announced a restructuring program (“2020 Plan”) to create efficiencies and synergies, reduce the number of facilities and optimize operating margin within the merged Company. The Company expects to incur total expenses of approximately $350.0 million related to workforce reductions, lease termination costs, other facility rationalization costs and other business related transformation costs from 2020 until 2022. The Company continues to evaluate operating efficiencies and anticipates incurring additional costs in the coming years in connection with these activities, but is unable to estimate those amounts at this time as such plans are not yet finalized. For the three month period ended June 30, 2021, expense of $6.8 million was recognized within “Other operating expense, net” in the Condensed Consolidated Statements of Operations ($2.5 million for Industrial Technologies and Services, $(0.2) million for Precision and Science Technologies and $4.5 million for Corporate). For the six month period ended June 30, 2021, expense of $9.2 million was recognized within “Other operating expense, net” in the Condensed Consolidated Statements of Operations ($4.2 million for Industrial Technologies and Services, $0.1 million for Precision and Science Technologies and $4.9 million for Corporate). Through June 30, 2021, we recognized expense related to the 2020 Plan of $74.5 million, $7.0 million and $10.9 million for Industrial Technologies and Services, Precision and Science Technologies and Corporate, respectively. The following table summarizes the activity associated with the Company’s restructuring programs for the six month period ended June 30, 2021. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Balance at beginning of period $ 11.9 $ 27.8 $ 17.5 $ 4.8 Charged to expense - termination benefits 6.2 29.7 8.6 64.9 Charged to expense - other 0.6 (0.3) 0.6 2.5 Payments (4.2) (26.3) (11.8) (41.3) Currency translation adjustment and other 0.2 (1.9) (0.2) (1.9) Balance at end of period $ 14.7 $ 29.0 $ 14.7 $ 29.0 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories as of June 30, 2021 and December 31, 2020 consisted of the following. June 30, 2021 December 31, 2020 Raw materials, including parts and subassemblies $ 490.4 $ 451.0 Work-in-process 87.0 62.2 Finished goods 210.6 194.7 788.0 707.9 Excess of LIFO costs over FIFO costs 8.8 8.8 Inventories $ 796.8 $ 716.7 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill attributable to each reportable segment for the six month period ended June 30, 2021 is presented in the table below. Industrial Technologies and Services Precision and Science Technologies Total Balance as of December 31, 2020 $ 4,151.2 $ 1,431.4 $ 5,582.6 Acquisitions 76.7 — 76.7 Foreign currency translation (18.4) (3.9) (22.3) Balance as of June 30, 2021 $ 4,209.5 $ 1,427.5 $ 5,637.0 As of June 30, 2021, goodwill included accumulated impairment losses of $220.6 million within the Industrial Technologies and Services segment. Other Intangible Assets, Net Other intangible assets as of June 30, 2021 and December 31, 2020 consisted of the following. June 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets Customer lists and relationships $ 2,857.7 $ (928.1) $ 1,929.6 $ 2,835.0 $ (841.3) $ 1,993.7 Technology 293.9 (56.4) 237.5 279.9 (38.1) 241.8 Tradenames 41.5 (17.8) 23.7 41.8 (15.6) 26.2 Other 107.2 (71.7) 35.5 102.8 (58.6) 44.2 Unamortized intangible assets Tradenames 1,499.2 — 1,499.2 1,491.3 — 1,491.3 Total other intangible assets $ 4,799.5 $ (1,074.0) $ 3,725.5 $ 4,750.8 $ (953.6) $ 3,797.2 Intangible Asset Impairment Considerations As of June 30, 2021, there were no indications that the carrying value of goodwill and other intangible assets may not be recoverable. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities as of June 30, 2021 and December 31, 2020 consisted of the following. June 30, 2021 December 31, 2020 Salaries, wages and related fringe benefits $ 191.5 $ 197.0 Contract liabilities 189.2 164.6 Product warranty 42.0 41.1 Operating lease liabilities 40.2 47.1 Restructuring 14.7 17.5 Taxes 439.3 116.1 Other 136.7 125.5 Total accrued liabilities $ 1,053.6 $ 708.9 A reconciliation of the changes in the accrued product warranty liability for the three and six month periods ended June 30, 2021 and 2020 are as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Balance at beginning of period $ 40.4 $ 37.6 $ 41.1 $ 19.1 Product warranty accruals 5.4 3.0 9.8 7.6 Acquired warranty — — 0.1 19.8 Settlements (4.1) (2.5) (8.9) (7.9) Charged to other accounts (1) 0.3 0.6 (0.1) 0.1 Balance at end of period $ 42.0 $ 38.7 $ 42.0 $ 38.7 (1) Primarily the effects of foreign currency translation adjustments |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Net Periodic Benefit Cost The following table summarizes the components of net periodic benefit cost for the Company’s defined benefit pension plans and other postretirement benefit plans recognized for the three and six month periods ended June 30, 2021 and 2020. Pension Benefits Other Postretirement Benefits U.S. Plans Non-U.S. Plans For the Three Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Service cost $ 1.7 $ 1.7 $ 1.1 $ 1.2 $ — $ — Interest cost 2.8 2.8 1.1 1.5 0.1 0.2 Expected return on plan assets (3.1) (3.9) (3.0) (2.7) — — Recognition of: Unrecognized prior service cost — — 0.1 0.1 (0.1) — Unrecognized net actuarial loss — — 1.2 0.7 — — $ 1.4 $ 0.6 $ 0.5 $ 0.8 $ — $ 0.2 Pension Benefits Other Postretirement Benefits U.S. Plans Non-U.S. Plans For the Six Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Service cost $ 3.4 $ 2.3 $ 2.2 $ 1.9 $ — $ — Interest cost 5.5 4.0 2.3 3.0 0.3 0.3 Expected return on plan assets (6.2) (5.5) (6.1) (5.4) — — Recognition of: Unrecognized prior service cost — — 0.1 0.1 (0.2) — Unrecognized net actuarial loss — — 2.5 1.4 — — $ 2.7 $ 0.8 $ 1.0 $ 1.0 $ 0.1 $ 0.3 The components of net periodic benefit cost other than the service cost component are included in “Other income, net” in the Condensed Consolidated Statements of Operations. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt as of June 30, 2021 and December 31, 2020 is summarized as follows. June 30, 2021 December 31, 2020 Short-term borrowings $ — $ — Long-term debt: Revolving credit facility, due 2025 $ — $ — Dollar Term Loan B, due 2027 (1) 1,874.3 1,883.7 Dollar Term Loan, due 2027 (2) 915.1 919.6 Euro Term Loan, due 2027 (3) 703.2 728.0 Dollar Term Loan Series A, due 2027 (4) 390.9 392.4 Finance leases and other long-term debt 17.9 17.2 Unamortized debt issuance costs (37.4) (41.4) Total long-term debt, net, including current maturities 3,864.0 3,899.5 Current maturities of long-term debt 40.7 40.4 Total long-term debt, net $ 3,823.3 $ 3,859.1 (1) As of June 30, 2021, this amount is presented net of unamortized discounts of $1.9 million. As of June 30, 2021, the applicable interest rate was approximately 1.84% and the weighted-average interest rate was 1.86% for the six month period ended June 30, 2021. (2) As of June 30, 2021, this amount is presented net of unamortized discounts of $0.9 million. As of June 30, 2021, the applicable interest rate was approximately 1.84% and the weighted average interest rate was 1.86% for the six month period ended June 30, 2021. (3) As of June 30, 2021, this amount is presented net of unamortized discounts of $0.7 million. As of June 30, 2021, the applicable interest rate was 2.00% and the weighted average interest rate was 2.00% for the six month period ended June 30, 2021. (4) As of June 30, 2021, this amount is presented net of unamortized discounts of $5.1 million. As of June 30, 2021, the applicable interest rate was approximately 2.84% and the weighted average interest rate was 2.86% for the six month period ended June 30, 2021. Senior Secured Credit Facilities The Senior Secured Credit Facilities provided senior secured financing consisting of (i) a senior secured term loan facility denominated in U.S. dollars (as refinanced and otherwise modified from time to time prior to February 28, 2020, the “Original Dollar Term Loan”), (ii) a senior secured term loan facility denominated in Euros (as refinanced and otherwise modified from time to time prior to February 28, 2020, the “Original Euro Term Loan”) and (iii) a senior secured revolving credit facility (as refinanced and otherwise modified from time to time the “Revolving Credit Facility”). The Revolving Credit Facility is available to be drawn in U.S. dollars (“USD”), Euros (“EUR”), Great British Pounds (“GBP”) and other reasonably accepted foreign currencies, subject to certain sublimits for the foreign currencies. See Note 10 “Debt” to the consolidated financial statements in the Company’s annual report on Form 10-K for the year ended December 31, 2020 for further information on the Senior Secured Credit Facilities. As of June 30, 2021, the aggregate amount of commitments under the Revolving Credit Facility was $1,100.0 million and the capacity under the Revolving Credit Facility to issue letters of credit was $400.0 million. As of June 30, 2021, the Company had no outstanding borrowings under the Revolving Credit Facility, outstanding letters of credit under the Revolving Credit Facility of $84.1 million and unused availability under the Revolving Credit Facility of $1,015.9 million. As of June 30, 2021, we were in compliance with all covenants of our Senior Secured Credit Facilities. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans The Company has outstanding stock-based compensation awards granted under the 2013 Stock Incentive Plan (“2013 Plan”) and the 2017 Omnibus Incentive Plan (“2017 Plan”) as described in Note 17, “Stock-Based Compensation Plans” to the consolidated financial statements in its annual report on Form 10-K for the year ended December 31, 2020. The Company’s stock-based compensation awards are typically granted in the first quarter of the year and primarily consist of stock options, restricted stock units and performance share units. Eligible employees were also granted restricted stock units, during the three months ended September 30, 2020, that vest ratably over two years, subject to the passage of time and the employee's continued employment during such period. In some instances, such as death, awards may vest concurrently with or following an employee's termination. Stock-Based Compensation Stock-based compensation expense for the six month periods ended June 30, 2021 and 2020 are included in “Cost of sales” and “Selling and administrative expenses” in the Condensed Consolidated Statements of Operations and are as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Stock-based compensation expense - continuing and discontinued operations $ 29.9 $ 12.7 $ 54.0 $ 16.2 Stock-based compensation expense recognized in discontinued operations 8.4 0.6 10.9 0.8 Stock-based compensation expense recognized in continuing operations $ 21.5 $ 12.1 $ 43.1 $ 15.4 Stock-Based Compensation - Continuing Operations In the six month period ended June 30, 2021, the $43.1 million of stock-based compensation expense included expense for equity awards granted under the 2013 and 2017 Plan of $42.9 million and an increase in the liability for stock appreciation rights (“SAR”) of $0.2 million. Of the $42.9 million of expense for equity awards granted under the 2013 Plan and 2017 Plan, $28.9 million related to the $150 million equity grant to nearly 16,000 employees worldwide made in the third quarter of 2020 (“All-Employee Equity Grant”). As of June 30, 2021, there was $132.4 million of total unrecognized compensation expense related to outstanding stock options, restricted stock unit awards and performance stock unit awards. Stock-Based Compensation - Discontinued Operations In the six month period ended June 30, 2021, the $10.9 million of stock-based compensation expense included expense for modifications of equity awards of $3.8 million and expense for equity awards granted under the 2013 and 2017 Plan of $7.1 million. The modifications allowed for the vesting of the first tranche of the All-Employee Equity Grant awarded to HPS and SVT employees despite their termination due to the divestitures. Of the $7.1 million of expense for equity awards granted under the 2013 Plan and 2017 Plan, $5.4 million related to the All-Employee Equity Grant. Stock Option Awards Stock options are granted to employees with an exercise price equal to the fair value of the Company’s per share common stock on the date of grant. Stock option awards typically vest over four A summary of the Company’s stock option (including SARs) activity for the six month period ended June 30, 2021 is presented in the following table (underlying shares in thousands). Shares Weighted-Average Exercise Price (per share) Stock options outstanding as of December 31, 2020 7,742 $ 18.47 Granted 758 45.58 Exercised or settled (800) 16.83 Forfeited (209) 30.57 Expired (5) 9.07 Stock options outstanding as of June 30, 2021 7,486 21.06 Vested as of June 30, 2021 5,041 15.69 The following assumptions were used to estimate the fair value of options granted during the six month periods ended June 30, 2021 and 2020 using the Black-Scholes option-pricing model. For the Six Month Period Ended June 30, Assumptions 2021 2020 Expected life of options (in years) 6.3 6.3 Risk-free interest rate 0.9% - 1.1% 0.4% - 1.5% Assumed volatility 39.1% - 39.4% 24.6% - 41.1% Expected dividend rate 0.0 % 0.0 % Restricted Stock Unit Awards Restricted stock units are granted to employees and non-employee directors based on the market price of the Company’s common stock on the grant date and recognized in compensation expense over the vesting period. A summary of the Company’s restricted stock unit activity for the six month period ended June 30, 2021 is presented in the following table (underlying shares in thousands). Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2020 5,546 $ 33.09 Granted 326 45.58 Vested (711) 30.30 Forfeited (532) 34.15 Non-vested as of June 30, 2021 4,629 34.28 Performance Share Unit Awards Performance share units are granted to employees and are subject to a three years performance period. The number of shares issued at the end of the performance period is determined by the Company’s total shareholder return percentile rank versus the S&P 500 index for the three year performance period. The grant date fair value of these awards is determined using a Monte Carlo simulation pricing model and compensation cost is recognized straight-line over a three year period. A summary of the Company’s performance stock unit activity for the six month period ended June 30, 2021 is presented in the following table (underlying shares in thousands). Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2020 255 $ 29.72 Granted 158 55.84 Forfeited (20) 36.36 Non-vested as of June 30, 2021 393 39.89 The following assumptions were used to estimate the fair value of performance share units granted during the six month periods ended June 30, 2021 and 2020 using the Monte Carlo simulation pricing model. For the Six Month Period Ended June 30, Assumptions 2021 2020 Expected term (in years) 2.9 2.8 Risk-free interest rate 0.2 % 0.5 % Assumed volatility 36.9 % 35.2 % Expected dividend rate — % — % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The Company’s other comprehensive income (loss) consists of (i) unrealized foreign currency net gains and losses on the translation of the assets and liabilities of its foreign operations; (ii) realized and unrealized foreign currency gains and losses on intercompany notes of a long-term nature and certain hedges of net investments in foreign operations, net of income taxes; (iii) unrealized gains and losses on cash flow hedges (consisting of interest rate swaps), net of income taxes; and (iv) pension and other postretirement prior service cost and actuarial gains or losses, net of income taxes. See Note 8 “ Benefit Plans ” and Note 12 “ Hedging Activities, Derivative Instruments and Fair Value Measurements .” The before tax income (loss) and related income tax effect are as follows. For the Three Month Period Ended June 30, 2021 For the Three Month Period Ended June 30, 2020 Before-Tax Amount Tax Benefit or (Expense) Net of Tax Amount Before-Tax Amount Tax Benefit or (Expense) Net of Tax Amount Foreign currency translation adjustments, net $ 51.0 $ (1.9) $ 49.1 $ 41.9 $ 3.0 $ 44.9 Unrecognized gains on cash flow hedges, net — — — 7.3 (1.8) 5.5 Pension and other postretirement benefit prior service cost and gain or loss, net 1.5 (0.2) 1.3 0.4 0.1 0.5 Other comprehensive income (loss) $ 52.5 $ (2.1) $ 50.4 $ 49.6 $ 1.3 $ 50.9 For the Six Month Period Ended June 30, 2021 For the Six Month Period Ended June 30, 2020 Before-Tax Amount Tax Benefit or (Expense) Net of Tax Amount Before-Tax Amount Tax Benefit or (Expense) Net of Tax Amount Foreign currency translation adjustments, net $ (56.2) $ 5.5 $ (50.7) $ (47.7) $ 0.4 $ (47.3) Unrecognized gains on cash flow hedges, net — — — 8.8 (2.1) 6.7 Pension and other postretirement benefit prior service cost and gain or loss, net 3.0 (0.5) 2.5 3.9 (0.5) 3.4 Other comprehensive income (loss) $ (53.2) $ 5.0 $ (48.2) $ (35.0) $ (2.2) $ (37.2) The tables above include only the other comprehensive income (loss), net of tax, attributable to Ingersoll Rand Inc. Other comprehensive loss, net, attributable to noncontrolling interest holders was $1.2 million and $0.4 million for the three month periods ended June 30, 2021 and 2020, respectively, and $2.3 million and $4.4 million for the six month periods ended June 30, 2021 and 2020, respectively, and related entirely to foreign currency translation adjustments. Changes in accumulated other comprehensive income (loss) by component for the six month periods ended June 30, 2021 and 2020 are presented in the following table (1) . Foreign Currency Translation Adjustments, Net Unrecognized Gains (Losses) on Cash Flow Hedges Pension and Other Postretirement Benefit Plans Total Balance as of December 31, 2020 $ 74.6 $ — $ (60.4) $ 14.2 Other comprehensive income (loss) before reclassifications (50.7) — 0.6 (50.1) Amounts reclassified from accumulated other comprehensive income (loss) — — 1.9 1.9 Other comprehensive income (loss) (50.7) — 2.5 (48.2) Divestiture of foreign subsidiaries (1.5) — — (1.5) Balance as of June 30, 2021 $ 22.4 $ — $ (57.9) $ (35.5) Foreign Currency Translation Adjustments, Net Unrecognized Gains (Losses) on Cash Flow Hedges Pension and Other Postretirement Benefit Plans Total Balance as of December 31, 2019 $ (193.6) $ (10.9) $ (51.5) $ (256.0) Other comprehensive income (loss) before reclassifications (47.3) (3.2) 2.3 (48.2) Amounts reclassified from accumulated other comprehensive income (loss) — 9.9 1.1 11.0 Other comprehensive income (loss) (47.3) 6.7 3.4 (37.2) Balance as of June 30, 2020 $ (240.9) $ (4.2) $ (48.1) $ (293.2) (1) All amounts are net of tax. Amounts in parentheses indicate debits. Reclassifications out of accumulated other comprehensive income (loss) for the six month periods ended June 30, 2021 and 2020 are presented in the following table. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details about Accumulated Other Comprehensive Income (Loss) Components For the Six Month Period Ended June 30, 2021 Affected Line(s) in the Statement Where Net Income is Presented 2021 2020 Loss on cash flow hedges (interest rate swaps) $ — $ 13.2 Interest expense Benefit for income taxes — (3.3) Benefit for income taxes Loss on cash flow hedges (interest rate swaps), net of tax $ — $ 9.9 Amortization of defined benefit pension and other postretirement benefit items (1) $ 2.6 $ 1.5 Cost of sales and Selling and administrative expenses Benefit for income taxes (0.7) (0.4) Benefit for income taxes Amortization of defined benefit pension and other postretirement benefit items, net of tax $ 1.9 $ 1.1 Total reclassifications for the period, net of tax $ 1.9 $ 11.0 (1) These components are included in the computation of net periodic benefit cost. See Note 8 “ Benefit Plans ” for additional details. |
Hedging Activities, Derivative
Hedging Activities, Derivative Instruments and Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Hedging Activities, Derivative Instruments and Fair Value Measurements | Hedging Activities, Derivative Instruments and Fair Value Measurements Hedging Activities The Company is exposed to certain market risks during the normal course of its business arising from adverse changes in interest rates and foreign currency exchange rates. The Company selectively uses derivative financial instruments (“derivatives”), including foreign currency forward contracts and interest rate swaps, to manage the risks from fluctuations in foreign currency exchange rates and interest rates, respectively. The Company does not purchase or hold derivatives for trading or speculative purposes. Fluctuations in interest rates and foreign currency exchange rates can be volatile, and the Company’s risk management activities do not totally eliminate these risks. Consequently, these fluctuations could have a significant effect on the Company’s financial results. The Company’s exposure to interest rate risk results primarily from its variable-rate borrowings. The Company manages its debt centrally, considering tax consequences and its overall financing strategies. The Company manages its exposure to interest rate risk by using pay-fixed interest rate swaps, from time to time, as cash flow hedges of variable rate debt in order to adjust the relative fixed and variable proportions. A substantial portion of the Company’s operations is conducted by its subsidiaries outside of the United States in currencies other than the USD. Almost all of the Company’s non-U.S. subsidiaries conduct their business primarily in their local currencies, which are also their functional currencies. Other than the USD, the EUR, GBP, Chinese Renminbi and Indian rupee are the principal currencies in which the Company and its subsidiaries enter into transactions. The Company is exposed to the impacts of changes in foreign currency exchange rates on the translation of its non-U.S. subsidiaries’ assets, liabilities and earnings into USD. The Company has certain U.S. subsidiaries borrow in currencies other than the USD. The Company and its subsidiaries are also subject to the risk that arises when they, from time to time, enter into transactions in currencies other than their functional currency. To mitigate this risk, the Company and its subsidiaries typically settle intercompany trading balances at least quarterly. The Company also selectively uses forward currency contracts to manage this risk. These contracts for the sale or purchase of European and other currencies generally mature within one year. Derivative Instruments The following table summarizes the notional amounts, fair values and classification of the Company’s outstanding derivatives by risk category and instrument type within the Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020. June 30, 2021 Derivative Classification Notional Amount (1) Fair Value (1) Other Current Assets Fair Value (1) Other Assets Fair Value (1) Accrued Liabilities Fair Value (1) Other Liabilities Derivatives Not Designated as Hedging Instruments Foreign currency forwards Fair Value $ 78.3 $ 0.4 $ — $ — $ — Foreign currency forwards Fair Value 100.6 — — 0.8 — December 31, 2020 Derivative Classification Notional Amount (1) Fair Value (1) Other Current Assets Fair Value (1) Other Assets Fair Value (1) Accrued Liabilities Fair Value (1) Other Liabilities Derivatives Not Designated as Hedging Instruments Foreign currency forwards Fair Value $ 230.5 $ 2.9 $ — $ — $ — Foreign currency forwards Fair Value 51.2 — — 0.7 — (1) Notional amounts represent the gross contract amounts of the outstanding derivatives excluding the total notional amount of positions that have been effectively closed through offsetting positions. The net gains and net losses associated with positions that have been effectively closed through offsetting positions but not yet settled are included in the asset and liability derivatives fair value columns, respectively. Losses on derivatives designated as cash flow hedges included in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six month periods ended June 30, 2021 and 2020 are as presented in the table below. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Interest rate swap contracts Loss recognized in AOCI on derivatives $ — $ (0.6) $ — $ (4.3) Loss reclassified from AOCI into income (effective portion) (1) — (7.9) — (13.2) (1) Losses on derivatives reclassified from accumulated other comprehensive income (“AOCI”) into income were included within “Interest expense” in the Condensed Consolidated Statements of Operations. As of June 30, 2021, the Company has no interest rate swap contracts. Our previous interest rate swap contracts expired during the third quarter of 2020 and the remaining amounts in AOCI were reclassified to Interest expense during the same period. The Company’s LIBOR-based variable rate borrowings outstanding as of June 30, 2021 were $3,188.2 million and €593.6 million. The Company had seven foreign currency forward contracts outstanding as of June 30, 2021 with notional amounts ranging from $10.8 million to $48.4 million. These contracts are used to hedge the change in fair value of recognized foreign currency denominated assets or liabilities caused by changes in currency exchange rates. The changes in the fair value of these contracts generally offset the changes in the fair value of a corresponding amount of the hedged items, both of which are included within “Other operating expense, net” in the Condensed Consolidated Statements of Operations. The Company’s foreign currency forward contracts are subject to master netting arrangements or agreements between the Company and each counterparty for the net settlement of all contracts through a single payment in a single currency in the event of default on or termination of any one contract with that certain counterparty. It is the Company’s practice to recognize the gross amounts in the Condensed Consolidated Balance Sheets. The amount available to be netted is not material. The Company’s gains (losses) on derivative instruments not designated as accounting hedges and total net foreign currency losses for the three and six month periods ended June 30, 2021 and 2020 were as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Foreign currency forward contracts gains (losses) $ 0.7 $ 0.5 $ (0.1) $ (2.1) Total foreign currency transaction gains (losses), net (3.4) (4.9) 14.7 (6.9) The Company has a significant investment in consolidated subsidiaries with functional currencies other than the USD, particularly the EUR. On August 17, 2017, the Company designated its €615.0 million Original Euro Term Loan as a hedge of the Company’s net investment in subsidiaries with EUR functional currencies until it was extinguished and replaced on February 28, 2020 b y a €601.2 million E uro Term Loan, further described in Note 9 “ Debt ”. As of June 30, 2021, the Euro Term Loan of €593.6 million remained designated. The Company’s gains (losses), net of income tax, associated with changes in the value of debt for the three and six month periods ended June 30, 2021 and 2020 were as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Gain, net of income tax, recorded through other comprehensive income $ (5.7) $ (9.1) $ 13.2 $ 0.9 The net balance of such gains (losses) included in accumulated other comprehensive income (loss) as of June 30, 2021 and 2020 was $43.9 million and $74.9 million, respectively. For the periods presented, all cash flows associated with derivatives are classified as operating cash flows in the Condensed Consolidated Statements of Cash Flows. Fair Value Measurements A financial instrument is defined as cash or cash equivalents, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from another party. The Company’s financial instruments consist primarily of cash and cash equivalents, trade accounts receivables, trade accounts payables, deferred compensation assets and obligations, derivatives and debt instruments. The carrying values of cash and cash equivalents, trade accounts receivables, trade accounts payables, and variable rate debt instruments are a reasonable estimate of their respective fair values. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or more advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value as follows. Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities as of the reporting date. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, 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 assets or liabilities as of the reporting date. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. June 30, 2021 Level 1 Level 2 Level 3 Total Financial Assets Foreign currency forwards (1) $ — $ 0.4 $ — $ 0.4 Trading securities held in deferred compensation plan (2) 11.2 — — 11.2 Total $ 11.2 $ 0.4 $ — $ 11.6 Financial Liabilities Foreign currency forwards (1) $ — $ 0.8 $ — $ 0.8 Deferred compensation plans (2) 25.1 — — 25.1 Total $ 25.1 $ 0.8 $ — $ 25.9 December 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets Foreign currency forwards (1) $ — $ 2.9 $ — $ 2.9 Trading securities held in deferred compensation plan (2) 9.1 — — 9.1 Total $ 9.1 $ 2.9 $ — $ 12.0 Financial Liabilities Foreign currency forwards (1) $ — $ 0.7 $ — $ 0.7 Deferred compensation plan (2) 25.7 — — 25.7 Total $ 25.7 $ 0.7 $ — $ 26.4 (1) Based on calculations that use readily observable market parameters at their basis, such as spot and forward rates. (2) Based on the quoted price of publicly traded mutual funds and other equity securities which are classified as trading securities and accounted for using the mark-to-market method. Goodwill and Other Intangible Assets Certain of our non-financial assets are subject to impairment analysis, including indefinite-lived intangible assets and goodwill. We review the carrying amounts of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable or at least annually. Any resulting impairment would require that the asset be recorded at its fair value. At December 31, 2020, we did not have any significant non-financial assets or liabilities that were required to be measured at fair value on a recurring or non-recurring basis. Refer to Note 6 “ Goodwill and Other Intangible Assets ” for further discussion pertaining to our annual and interim evaluation of goodwill and other intangible assets for impairment. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Overview The Company recognizes revenue when the Company has satisfied its obligation and control is transferred to the customer. The amount of revenue recognized includes adjustments for any variable consideration, such as rebates, sales discounts, liquidated damages, etc., which are included in the transaction price, and allocated to each performance obligation. The variable consideration is estimated throughout the course of the contract using the Company’s best estimates. The majority of the Company’s revenues are derived from short duration contracts and revenue is recognized at a single point in time when control is transferred to the customer, generally at shipment or when delivery has occurred or services have been rendered. The Company has certain long duration engineered to order (“ETO”) contracts that require highly engineered solutions designed to customer specific applications. For contracts where the contractual deliverables have no alternative use and the contract termination clauses provide for the recovery of cost plus a reasonable margin, revenue is recognized over time based on the Company’s progress in satisfying the contractual performance obligations, generally measured as the ratio of actual costs incurred to date to the estimated total costs to complete the contract. For contracts with termination provisions that do not provide for recovery of cost and a reasonable margin, revenue is recognized at a point in time, generally at shipment or delivery to the customer. Identification of performance obligations, determination of alternative use, assessment of contractual language regarding termination provisions, and estimation of total project costs are all significant judgments required in the application of ASC 606. Contractual specifications and requirements may be modified. The Company considers contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. In the event a contract modification is for goods or services that are not distinct in the contract, and therefore, form part of a single performance obligation that is partially satisfied as of the modification date, the effect of the contract modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates, is recognized on a cumulative catch-up basis. Taxes assessed by a government authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Sales commissions are generally due at either collection of payment from customers or recognition of revenue. Applying the practical expedient from ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. These costs are included in “Selling and administrative expenses” in the Condensed Consolidated Statements of Operations. Disaggregation of Revenue The following tables provide disaggregated revenue by reportable segment for the three month periods ended June 30, 2021 and 2020. For the Three Month Period Ended June 30, 2021 Industrial Technologies and Services Precision and Science Technologies Total Primary Geographic Markets United States $ 391.9 $ 103.1 $ 495.0 Other Americas 66.6 3.5 70.1 Total Americas 458.5 106.6 565.1 EMEIA 336.3 83.1 419.4 Asia Pacific 252.7 41.9 294.6 Total $ 1,047.5 $ 231.6 $ 1,279.1 Product Categories Original equipment $ 623.7 $ 198.5 $ 822.2 Aftermarket 423.8 33.1 456.9 Total $ 1,047.5 $ 231.6 $ 1,279.1 Pattern of Revenue Recognition Revenue recognized at point in time (1) $ 959.9 $ 231.0 $ 1,190.9 Revenue recognized over time (2) 87.6 0.6 88.2 Total $ 1,047.5 $ 231.6 $ 1,279.1 For the Three Month Period Ended June 30, 2020 Industrial Technologies and Services Precision and Science Technologies Total Primary Geographic Markets United States $ 289.8 $ 83.7 $ 373.5 Other Americas 70.5 9.9 80.4 Total Americas 360.3 93.6 453.9 EMEIA 247.1 63.7 310.8 Asia Pacific 222.2 38.5 260.7 Total $ 829.6 $ 195.8 $ 1,025.4 Product Categories Original equipment $ 502.0 $ 169.1 $ 671.1 Aftermarket 327.6 26.7 354.3 Total $ 829.6 $ 195.8 $ 1,025.4 Pattern of Revenue Recognition Revenue recognized at point in time (1) $ 750.1 $ 195.8 $ 945.9 Revenue recognized over time (2) 79.5 — 79.5 Total $ 829.6 $ 195.8 $ 1,025.4 (1) Revenues from short and long duration product and service contracts recognized at a point in time when control is transferred to the customer generally when product delivery has occurred and services have been rendered. (2) Revenues primarily from long duration ETO product contracts and certain contracts for delivery of a significant volume of substantially similar products recognized over time as contractual performance obligations are completed. The following tables provide disaggregated revenue by reportable segment for the six month periods ended June 30, 2021 and 2020. For the Six Month Period Ended June 30, 2021 Industrial Technologies and Services Precision and Science Technologies Total Primary Geographic Markets United States $ 745.0 $ 201.2 $ 946.2 Other Americas 126.8 7.0 133.8 Total Americas 871.8 208.2 1,080.0 EMEIA 655.7 163.2 818.9 Asia Pacific 433.8 75.9 509.7 Total $ 1,961.3 $ 447.3 $ 2,408.6 Product Categories Original equipment $ 1,152.4 $ 377.2 $ 1,529.6 Aftermarket 808.9 70.1 879.0 Total $ 1,961.3 $ 447.3 $ 2,408.6 Pattern of Revenue Recognition Revenue recognized at point in time (1) $ 1,807.8 $ 445.8 $ 2,253.6 Revenue recognized over time (2) 153.5 1.5 155.0 Total $ 1,961.3 $ 447.3 $ 2,408.6 For the Six Month Period Ended June 30, 2020 Industrial Technologies and Services Precision and Science Technologies Total Primary Geographic Markets United States $ 466.9 $ 133.0 $ 599.9 Other Americas 115.8 14.8 130.6 Total Americas 582.7 147.8 730.5 EMEIA 447.7 104.6 552.3 Asia Pacific 303.2 56.2 359.4 Total $ 1,333.6 $ 308.6 $ 1,642.2 Product Categories Original equipment $ 805.2 $ 268.1 $ 1,073.3 Aftermarket 528.4 40.5 568.9 Total $ 1,333.6 $ 308.6 $ 1,642.2 Pattern of Revenue Recognition Revenue recognized at point in time (1) $ 1,209.6 $ 308.6 $ 1,518.2 Revenue recognized over time (2) 124.0 — 124.0 Total $ 1,333.6 $ 308.6 $ 1,642.2 (1) Revenues from short and long duration product and service contracts recognized at a point in time when control is transferred to the customer generally when product delivery has occurred and services have been rendered. (2) Revenues primarily from long duration ETO product contracts and certain contracts for delivery of a significant volume of substantially similar products recognized over time as contractual performance obligations are completed. Performance Obligations The majority of the Company’s contracts have a single performance obligation as the promise to transfer goods and/or services. For contracts with multiple performance obligations, the Company utilizes observable prices to determine standalone selling price or cost plus margin if a standalone price is not available. The Company has elected to account for shipping and handling activities as fulfillment costs and not a separate performance obligation. If control transfers and related revenue is recognized for the related good before the shipping and handling activities occur, the related costs of those shipping and handling activities are accrued. The Company’s primary performance obligations include delivering standard or configured to order (“CTO”) goods to customers, designing and manufacturing a broad range of equipment customized to a customer’s specifications in ETO arrangements, rendering of services (maintenance and repair contracts), and certain extended or service type warranties. For incidental items that are immaterial in the context of the contract, costs are expensed as incurred or accrued at delivery. As of June 30, 2021, for contracts with an original duration greater than one year, the Company expects to recognize revenue in the future related to unsatisfied (or partially satisfied) performance obligations of $429.4 million in the next twelve months and $390.6 million in periods thereafter. The performance obligations that are unsatisfied (or partially satisfied) are primarily related to orders for goods or services that were placed prior to the end of the reporting period and have not been delivered to the customer, on-going work on ETO contracts where revenue is recognized over time and service contracts with an original duration greater than one year. Contract Balances The following table provides the contract balances as of June 30, 2021 and December 31, 2020 presented in the Condensed Consolidated Balance Sheets. June 30, 2021 December 31, 2020 Accounts receivable, net $ 935.8 $ 861.8 Contract assets 52.3 60.4 Contract liabilities 190.5 166.2 Accounts receivable, net – Amounts due where the Company’s right to receive cash is unconditional. Customer receivables are recorded at face amount less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for expected losses as a result of customers’ inability to make required payments. Management evaluates the aging of customer receivable balances, the financial condition of its customers, historical trends and the time outstanding of specific balances to estimate the amount of customer receivables that may not be collected in the future and records the appropriate provision. The allowance for credit losses for the three and six month periods ended June 30, 2021 consisted of the following. For the Three Month Period Ended June 30, 2021 For the Six Month Period Ended June 30, 2021 Balance at beginning of the period $ 49.2 $ 50.9 Provision charged to expense 1.3 1.6 Write-offs, net of recoveries (1.7) (2.7) Foreign currency translation and other 0.5 (0.5) Balance at end of the period $ 49.3 $ 49.3 Contract assets – The Company’s rights to consideration for the satisfaction of performance obligations subject to constraints apart from timing. Contract assets are transferred to receivables when the right to collect consideration becomes unconditional. Contract assets are presented net of progress billings and related advances from customers. Contract liabilities – Advance payments received from customers for contracts for which revenue is not yet recognized. Contract liability balances are generally recognized in revenue within twelve months. Contract assets and liabilities are reported in the Condensed Consolidated Balance Sheets on a contract-by-contract basis at the end of each reporting period. Contract assets and liabilities are presented net on a contract level, where required. Payments from customers are generally due 30-60 days after invoicing. Invoicing for sales of standard products generally coincides with shipment or delivery of goods. Invoicing for CTO and ETO contracts typically follows a schedule for billing at contractual milestones. Payment milestones normally include down payments upon the contract signing, completion of product design, completion of customer’s preliminary inspection, shipment or delivery, completion of installation, and customer’s on-site inspection. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities) on the Condensed Consolidated Balance Sheets. The Company has elected the practical expedient from ASC 606-10-32-18 and does not adjust the transaction price for the effects of a financing component if, at contract inception, the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table summarizes the Company’s provision for income taxes and effective income tax provision rate for the three and six month periods ended June 30, 2021 and 2020. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Income (loss) before income taxes $ 151.5 $ (73.5) $ 252.2 $ (181.7) Provision for income taxes $ 12.5 $ 78.4 $ 23.1 $ 11.5 Effective income tax provision rate 8.3 % (106.7 %) 9.2 % (6.3 %) The decrease in the provision for income taxes and increase in the effective income tax provision rate for the three month period ended June 30, 2021 when compared to the same three month period of 2020 is primarily due to the benefits in 2021 associated with the final settlement on the merger transaction and a restructuring benefit recognized during the second quarter. The increase in the provision for income taxes and increase in the effective income tax provision rate for the six month period ended June 30, 2021 when compared to the same six month period of 2020 is primarily due to an increase in the pretax book income in jurisdictions with higher effective tax rates combined with decreased earnings in jurisdictions with lower tax rates. This rate increase was mitigated by a reduction of unrecognized tax reserves as a result of the lapse of the limitation on statutes, a benefit associated with the final settlement on the merger transaction, and a restructuring benefit recognized during the second quarter. |
Other Operating Expense, Net
Other Operating Expense, Net | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense, Net | Other Operating Expense, Net The components of “Other operating expense, net” for the three and six month periods ended June 30, 2021 and 2020 were as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Other Operating Expense, Net Foreign currency transaction losses (gains), net $ 3.4 $ 4.9 $ (14.7) $ 6.9 Restructuring charges, net (1) 6.8 29.4 9.2 67.4 Acquisition and other transaction related expenses (2) 15.3 12.8 23.6 67.8 Other, net (0.4) 1.0 1.3 2.5 Total other operating expense, net $ 25.1 $ 48.1 $ 19.4 $ 144.6 (1) See Note 4 “ Restructuring .” (2) Represents costs associated with successful and/or abandoned acquisitions and divestitures, including third-party expenses and post-closure integration costs (including certain incentive and non-incentive cash compensation costs). |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesThe Company is a party to various legal proceedings, lawsuits and administrative actions, which are of an ordinary or routine nature for a company of its size and sector. The Company believes that such proceedings, lawsuits and administrative actions will not materially adversely affect its operations, financial condition, liquidity or competitive position. For further description of the Company’s contingencies, reference is made to Note 20, “Contingencies” in the notes to consolidated financial statements in the Company’s 2020 Form 10-K. Asbestos and Silica Related Litigation The Company believes that the pending and future asbestos and silica-related lawsuits are not likely to, in the aggregate, have a material adverse effect on its consolidated financial position, results of operations or liquidity. “Accrued liabilities” and “Other liabilities” of the Condensed Consolidated Balance Sheets include a total litigation reserve of $127.5 million and $131.4 million as of June 30, 2021 and December 31, 2020, respectively, with regards to potential liability arising from the Company’s asbestos-related litigation. Asbestos related defense costs are excluded from the asbestos claims liability and are recorded separately as services are incurred. In the event of unexpected future developments, it is possible that the ultimate resolution of these matters may be material to the Company’s consolidated financial position, results of operation or liquidity. The Company has entered into a series of agreements with certain of its or its predecessors’ legacy insurers and certain potential indemnitors to secure insurance coverage and/or reimbursement for the costs associated with the asbestos and silica-related lawsuits filed against the Company. The Company has an insurance recovery receivable for probable asbestos related recoveries of approximately $132.1 million and $132.1 million as of June 30, 2021 and December 31, 2020, respectively, which was included in “Other assets” in the Condensed Consolidated Balance Sheets. The amounts recorded by the Company for asbestos-related liabilities and insurance recoveries are based on currently available information and assumptions that the Company believes are reasonable based on an evaluation of relevant factors. The actual liabilities or insurance recoveries could be higher or lower than those recorded if actual results vary significantly from the assumptions. Environmental Matters The Company has been identified as a potentially responsible party (“PRP”) with respect to several sites designated for cleanup under U.S. federal “Superfund” or similar state laws that impose liability for cleanup of certain waste sites and for related natural resource damages. The Company has undiscounted accrued liabilities of $13.4 million and $13.7 million as of June 30, 2021 and December 31, 2020, respectively, on its Condensed Consolidated Balance Sheets to the extent costs are known or can be reasonably estimated for its remaining financial obligations in relation to environmental matters and does not anticipate that any of these matters will result in material additional costs beyond amounts accrued. Based upon consideration of currently available information, the Company does not anticipate any material adverse effect on its results of operations, financial condition, liquidity or competitive position as a result of compliance with federal, state, local or foreign environmental laws or regulations, or cleanup costs relating to these matters. |
Segment Results
Segment Results | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Results | Segment Results A description of the Company’s two reportable segments is presented below. During the first quarter of 2021, the Company agreed to sell a majority interest in the business comprising its High Pressure Solutions segment. This sale was substantially completed on April 1, 2021. During the second quarter of 2021, the Company agreed to sell the business comprising its Specialty Vehicle Technologies segment. This sale was substantially completed on June 1, 2021. The HPS and SVT businesses are presented as a discontinued operation in current and prior periods and has been excluded from the segment information below unless otherwise noted. Refer to Note 2 “ Discontinued Operations ” for further discussion of the sale of majority interest in the High Pressure Solutions business and of the Specialty Vehicle Technologies business. In the Industrial Technologies and Services segment, the Company designs, manufactures, markets and services a broad range of compression and vacuum equipment as well as fluid transfer equipment, loading systems, power tools and lifting equipment. The Company’s compression and vacuum products are used worldwide in industrial manufacturing, transportation, chemical processing, food and beverage production, energy, environmental and other applications. In addition to equipment sales, the Company offers a broad portfolio of service options tailored to customer needs and complete range of aftermarket parts, air treatment equipment, controls and other accessories. The Company’s engineered loading systems and fluid transfer equipment ensure the safe handling and transfer of crude oil, liquefied natural gas, compressed natural gas, chemicals, and bulk materials. The Company’s power tools and lifting equipment are used by customers in industrial manufacturing, vehicle maintenance, energy and other markets for precision fastening, bolt removal, grinding, sanding, drilling, demolition and the safe and efficient lifting, positioning and movement of loads. The Company sells its products primarily through independent distributors worldwide and also sells directly to the customer. In the Precision and Science Technologies segment, the Company designs, manufactures and markets a broad range of specialized positive displacement pumps, fluid management equipment and aftermarket parts for medical, laboratory, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture and other markets. The Company’s products are used for a diverse set of applications including precision dosing of chemicals and supplements, blood dialysis, oxygen therapy, food processing, fluid transfer and dispensing, spray finishing and coating, mixing, high-pressure air and gas management and others. The Company sells primarily through a broad global network of specialized and national distributors and original equipment manufacturers (“OEM”) who integrate the Company’s products into their devices and systems. The Chief Operating Decision Maker (“CODM”) evaluates the performance of the Company’s reportable segments based on, among other measures, Segment Adjusted EBITDA. Management closely monitors the Segment Adjusted EBITDA of each reportable segment to evaluate past performance and actions required to improve profitability. Inter-segment sales and transfers are not significant. Administrative expenses related to the Company’s corporate offices and shared service centers in the United States and Europe, which includes transaction processing, accounting and other business support functions, are allocated to the business segments. Certain administrative expenses, including senior management compensation, treasury, internal audit, tax compliance, certain information technology, and other corporate functions, are not allocated to the business segments. The following table provides summarized information about the Company’s operations by reportable segment and reconciles Segment Adjusted EBITDA to Income (Loss) from Continuing Operations Before Income Taxes for the three and six month periods ended June 30, 2021 and 2020. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Revenue Industrial Technologies and Services $ 1,047.5 $ 829.6 $ 1,961.3 $ 1,333.6 Precision and Science Technologies 231.6 195.8 447.3 308.6 Total Revenue $ 1,279.1 $ 1,025.4 $ 2,408.6 $ 1,642.2 Segment Adjusted EBITDA Industrial Technologies and Services $ 258.6 $ 183.8 $ 470.1 $ 278.6 Precision and Science Technologies 71.1 59.3 138.3 92.2 Total Segment Adjusted EBITDA $ 329.7 $ 243.1 $ 608.4 $ 370.8 Less items to reconcile Segment Adjusted EBITDA to Income (Loss) Before Income Taxes: Corporate expenses not allocated to segments $ 37.6 $ 25.6 $ 72.3 $ 41.1 Interest expense 22.7 30.8 45.8 57.9 Depreciation and amortization expense (a) 101.3 118.9 205.8 177.9 Restructuring and related business transformation costs (b) 6.7 31.0 9.4 69.6 Acquisition and other transaction related expenses and non-cash charges (c) 14.3 90.3 24.8 179.8 Stock-based compensation (d) 21.5 12.1 43.1 14.9 Foreign currency transaction losses (gains), net 3.4 4.9 (14.7) 6.9 Loss on extinguishment of debt (e) — — — 2.0 Gain on settlement of post-acquisition contingencies (f) (30.1) — (30.1) — Other adjustments (g) 0.8 3.0 (0.2) 2.4 Income (Loss) from Continuing Operations Before Income Taxes 151.5 (73.5) 252.2 (181.7) Provision for income taxes 12.5 78.4 23.1 11.5 Loss on equity method investments (0.7) — (0.7) — Income (Loss) from Continuing Operations 138.3 (151.9) 228.4 (193.2) Income (loss) from discontinued operations, net of tax 96.3 (24.6) (83.9) (20.2) Net Income (Loss) $ 234.6 $ (176.5) $ 144.5 $ (213.4) a) Depreciation and amortization expense excludes $1.0 million and $0.4 million of depreciation of rental equipment for the three month periods ended June 30, 2021 and 2020, respectively, and excludes $2.0 million and $0.9 million for the six month periods ended June 30, 2021 and 2020, respectively. b) Restructuring and related business transformation costs consist of the following. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Restructuring charges $ 6.8 $ 29.4 $ 9.2 $ 67.4 Facility reorganization, relocation and other costs — 0.1 — 0.5 Other, net (0.1) 1.5 0.2 1.7 Total restructuring and related business transformation costs $ 6.7 $ 31.0 $ 9.4 $ 69.6 c) Represents costs associated with successful and/or abandoned acquisitions and divestitures, including third-party expenses, post-closure integration costs (including certain incentive and non-incentive cash compensation costs) and non-cash charges and credits arising from fair value purchase accounting adjustments. d) Represents stock-based compensation expense recognized for the three and six month periods ended June 30, 2021 of $21.5 million and $43.1 million, respectively. Represents stock-based compensation expense recognized for the three and six month periods ended June 30, 2020 of $12.1 million and $15.4 million, respectively, and decreased by $0.5 million for the six month period ended June 30, 2020, due to costs associated with employer taxes. e) Represents a loss on extinguishment of a portion of the U.S. term loan and the amendment of the revolving credit facility. f) Represents a gain on settlement of post-acquisition contingencies outside of the measurement period related to adjustments to the transaction price for retirement plan funding and net working capital. g) Includes (i) effects of amortization of prior service costs and amortization of losses in pension and other postemployment (“OPEB”) expense, (ii) certain legal and compliance costs and (iii) other miscellaneous adjustments. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Affiliates of Kohlberg Kravis Roberts & Co. L.P. (“KKR”) own 29,788,635 shares of common stock, or approximately 7% of the total outstanding common stock based on the number of shares outstanding as of June 30, 2021. Affiliates of KKR participated as a lender in the Company’s Senior Secured Credit Facilities. As of June 30, 2021, KKR held a position in the Euro Term Loan of €38.2 million and a position in the Dollar Term Loan B of $39.5 million. The Company incurred and paid underwriting fees of $0.8 million and $7.5 million in the three and six month periods ended June 30, 2020, respectively, to KKR Capital Markets LLC, an affiliate of KKR, for services rendered in connection with the term loan transactions. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The number of weighted-average shares outstanding used in the computations of basic and diluted earnings (loss) per share are as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Average shares outstanding Basic 419.9 417.0 419.5 347.2 Diluted 426.8 417.0 426.4 347.2 For the three and six month periods ended June 30, 2021, 0.8 million and 0.7 million, respectively, of anti-dilutive shares were not included in the computation of diluted earnings per share. For the three and six month period ended June 30, 2020, 3.8 million and 3.9 million, respectively, of potentially dilutive stock-based awards were not included in the computation of diluted loss per share as we incurred a net loss during the period. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn July 30, 2021, the Company completed the acquisition of Maximus Solutions for cash consideration of approximately C$135.4 million Canadian dollars, subject to post-closing adjustments. Maximus Solutions is a provider of digital controls and Industrial Internet of Things (IIoT) production management systems for the agritech software and controls market. The initial accounting for the business combination, including the estimated fair value of assets and liabilities acquired, is incomplete as a result of the timing of the acquisition. The results of operations of the acquired business will be reported within the Precision and Science Technologies segment beginning in the third quarter of 2021. |
Basis of Presentation and Rec_2
Basis of Presentation and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Ingersoll Rand Inc. is a diversified, global manufacturer of highly engineered, application-critical flow control products and provider of related aftermarket parts and services. The accompanying condensed consolidated financial statements include the accounts of Ingersoll Rand Inc. and its majority-owned subsidiaries (collectively referred to herein as “Ingersoll Rand” or the “Company”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting, the instructions for Form 10-Q and Article 10 of the U.S. Securities and Exchange Commission (“SEC”) Regulation S-X. In the Company’s opinion, the condensed consolidated financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for the interim periods presented. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. We have reclassified certain prior year amounts, including the results of discontinued operations, to conform to the current year presentation. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations. See Note 2 “ Discontinued Operations ” for information on discontinued operations. The results of operations for the interim period ended June 30, 2021 are not necessarily indicative of future results. The ongoing novel Coronavirus (“COVID-19”) pandemic is a continuously evolving situation around the globe that has negatively impacted and could continue to negatively impact the global economy. The Company’s operating results will be subject to fluctuations based on general economic conditions, and the extent to which COVID-19 may ultimately impact its business will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the ultimate extent of the spread of the disease and the duration of the outbreak and business closures or business disruptions for the Company, suppliers and customers. |
Recently Adopted Accounting Standard Updates ("ASU") and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Standard Updates (“ASU”) In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which added an impairment model that is based on expected losses rather than incurred losses and is called the Current Expected Credit Losses (“CECL”) model. This impairment model is applicable to loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables as well as any other financial asset with the contractual right to receive cash. Under the new model, an allowance equal to the estimate of lifetime expected credit losses is recognized which will result in more timely loss recognition. The guidance is intended to reduce complexity by decreasing the number of credit impairment models. The Company adopted this guidance on January 1, 2020, using a modified retrospective transition method. The Company recorded a cumulative-effect adjustment on the adoption date increasing “Accumulated deficit” in the Condensed Consolidated Balance Sheets by $1.0 million and decreasing “Accounts receivable, net of allowance for credit losses” in the Condensed Consolidated Balance Sheets by $1.0 million. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update simplify the accounting for income taxes by removing certain exceptions and amending and clarifying existing guidance. The Company adopted this guidance on January 1, 2021. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for a limited time to ease the potential burden of accounting for reference rate reform on financial reporting. This guidance applies to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates. The guidance is effective beginning on March 12, 2020 through December 31, 2022. The Company has not utilized any of the optional expedients or exceptions available under this ASU. The Company will continue to assess whether this ASU is applicable throughout the effective period. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which explicitly clarifies which contracts, hedging relationships, and other transactions are within the scope of the optional expedients and exceptions allowed under Topic 848 . The Company has not utilized any of the optional expedients or exceptions available under Topic 848. The Company will continue to assess whether this ASU is applicable throughout the effective period, in conjunction with our assessment of ASU 2020-4. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The results of operations of SVT and HPS are presented as discontinued operations as summarized below: Specialty Vehicle Technologies High Pressure Solutions Total For the Three Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Revenues $ 184.0 $ 217.5 $ 3.0 $ 21.5 $ 187.0 $ 239.0 Cost of sales 137.9 166.4 3.9 21.2 141.8 187.6 Gross Profit 46.1 51.1 (0.9) 0.3 45.2 51.4 Selling and administrative expenses 16.9 18.2 0.6 20.4 17.5 38.6 Amortization of intangible assets 0.9 12.3 — 5.9 0.9 18.2 Loss (gain) on sale (256.7) — 8.4 — (248.3) — Other operating expense (income), net 9.2 (0.1) 7.4 1.9 16.6 1.8 Income (Loss) from Discontinued Operations Before Income Taxes 275.8 20.7 (17.3) (27.9) 258.5 (7.2) Provision (benefit) for income taxes 162.8 29.2 (0.6) (11.8) 162.2 17.4 Income (Loss) from Discontinued Operations, Net of Tax $ 113.0 $ (8.5) $ (16.7) $ (16.1) $ 96.3 $ (24.6) Specialty Vehicle Technologies High Pressure Solutions Total For the Six Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Revenues $ 424.3 $ 304.2 $ 65.4 $ 117.9 $ 489.7 $ 422.1 Cost of sales 314.9 238.7 54.4 90.8 369.3 329.5 Gross Profit 109.4 65.5 11.0 27.1 120.4 92.6 Selling and administrative expenses 35.3 26.0 4.9 28.6 40.2 54.6 Amortization of intangible assets 10.4 14.9 2.4 11.8 12.8 26.7 Loss (gain) on sale (256.7) — 211.7 — (45.0) — Other operating expense, net 16.2 0.7 15.5 5.3 31.7 6.0 Income (Loss) from Discontinued Operations Before Income Taxes 304.2 23.9 (223.5) (18.6) 80.7 5.3 Provision (benefit) for income taxes 169.7 30.0 (5.1) (4.5) 164.6 25.5 Income (Loss) from Discontinued Operations, Net of Tax $ 134.5 $ (6.1) $ (218.4) $ (14.1) $ (83.9) $ (20.2) The carrying amount of major classes of assets and liabilities classified that were included in discontinued operations at June 30, 2021 and December 31, 2020 related to SVT and HPS are shown in the table below. Long-term assets and liabilities as of June 30, 2021 have been reclassified as current in the Condensed Consolidated Balance Sheets. June 30, 2021 (1) December 31, 2020 (2) Assets Current assets: Accounts receivable, net $ 18.7 $ 104.8 Inventories 19.6 226.9 Other current assets 4.5 5.7 Total current assets 42.8 337.4 Property, plant and equipment, net 2.1 188.3 Goodwill 0.8 721.0 Other intangible assets, net 28.0 935.4 Deferred tax assets — 0.5 Other assets — 17.6 Total non-current assets 30.9 1,862.8 Total assets $ 73.7 $ 2,200.2 Liabilities Current liabilities: Accounts payable $ 32.3 $ 134.7 Accrued liabilities 31.8 78.2 Total current liabilities 64.1 212.9 Pensions and other postretirement benefits — 2.5 Deferred income taxes 3.8 173.3 Other liabilities — 17.0 Total non-current liabilities 3.8 192.8 Total liabilities $ 67.9 $ 405.7 (1) Primarily relates to non-U.S. subsidiaries for which legal ownership will transfer in the second half of 2021. (2) Total assets and total liabilities related to SVT were $1,512.7 million and $354.1 million, respectively, at December 31, 2020. The significant non-cash operating items and capital expenditures reflected in cash flows of discontinued operations for the six months periods ended June 30, 2021 and 2020 include the following: Specialty Vehicle Technologies High Pressure Solutions Total For the Six Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Loss (gain) on sale $ (256.7) $ — $ 211.7 $ — $ (45.0) $ — Depreciation and amortization 14.8 19.8 4.0 18.2 18.8 38.0 Stock-based compensation expense 8.2 0.4 2.7 0.4 10.9 0.8 Capital expenditures 1.6 1.3 0.3 1.4 1.9 2.7 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of consideration to the fair values of identifiable assets acquired and liabilities assumed at the acquisition date. M-D Pneumatics and Kinney Vacuum Pumps All Others Accounts receivable $ 4.8 $ 2.5 Inventories 3.8 2.7 Other current assets 0.6 — Property, plant and equipment 16.2 2.5 Goodwill 80.0 3.5 Other intangible assets 82.5 23.9 Total current liabilities (3.5) (1.8) Total noncurrent liabilities — (1.8) Total consideration $ 184.4 $ 31.5 The following table summarizes the allocation of consideration to the fair values of assets acquired and liabilities assumed of Ingersoll Rand Industrial as of February 29, 2020. Included in these amounts are assets and liabilities of SVT, which has been reported as a discontinued operation in these Condensed Consolidated financial statements. Refer to Note 2 for further information on the sale of SVT. Fair value Cash $ 38.8 Accounts receivable 585.8 Inventories 625.4 Other current assets 87.2 Property, plant and equipment 516.5 Goodwill 4,899.2 Other intangible assets 3,766.6 Other noncurrent assets 270.9 Total current liabilities, including current maturities of long-term debt of $19.0 million (753.0) Deferred tax liability (842.4) Long-term debt, net of debt issuance costs and an original issue discount (1,851.7) Other noncurrent liabilities (333.0) Noncontrolling interest (73.3) Total consideration $ 6,937.0 |
Schedule of Aggregate Purchase Consideration | Fair value of Ingersoll Rand common stock issued for Ingersoll Rand Industrial outstanding common stock $ 6,919.5 Fair value attributable to pre-merger service for replacement equity awards 8.6 Fair value attributable to pre-merger service for deferred compensation plan 8.9 Total purchase consideration $ 6,937.0 |
Schedule of Pro Forma Information | The operating results of Ingersoll Rand Industrial have been included in the Company’s condensed consolidated financial statements since the date of acquisition. The results of Ingersoll Rand Industrial in the year of acquisition are shown below. These amounts include the effects of purchase accounting adjustments, primarily the amortization of intangible assets and the impacts on operating expenses of fair value adjustments to acquired inventory and property, plant and equipment. The amounts below exclude the operating results of SVT, which has been reported as a discontinued operation as a result of the transaction discussed in Note 2. For the Three Month Period Ended For the Six Month Period Ended Revenues $ 609.0 $ 815.7 Income (Loss) from Continuing Operations Before Income Taxes (82.1) (124.8) that are reported within Income (loss) from discontinued operations, net of tax on the Condensed Consolidated Statement of Operations. For the Three Month Period Ended For the Six Month Period Ended Revenues $ 1,271.6 $ 2,541.3 Net Income (Loss) 7.0 6.8 The table below reflects the impact of material and nonrecurring adjustments to the unaudited pro forma results for the three and six month periods ended June 30, 2020 that are directly attributable to the acquisition. For the Three Month Period Ended For the Six Month Period Ended Increase to revenue as a result of deferred revenue fair value adjustment, net of tax $ 5.6 $ 5.5 Decrease to expense as a result of inventory fair value adjustment, net of tax (58.5) (89.6) Decrease to expense as a result of transaction costs, net of tax — (38.1) |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Activity in Restructuring Programs | The following table summarizes the activity associated with the Company’s restructuring programs for the six month period ended June 30, 2021. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Balance at beginning of period $ 11.9 $ 27.8 $ 17.5 $ 4.8 Charged to expense - termination benefits 6.2 29.7 8.6 64.9 Charged to expense - other 0.6 (0.3) 0.6 2.5 Payments (4.2) (26.3) (11.8) (41.3) Currency translation adjustment and other 0.2 (1.9) (0.2) (1.9) Balance at end of period $ 14.7 $ 29.0 $ 14.7 $ 29.0 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories as of June 30, 2021 and December 31, 2020 consisted of the following. June 30, 2021 December 31, 2020 Raw materials, including parts and subassemblies $ 490.4 $ 451.0 Work-in-process 87.0 62.2 Finished goods 210.6 194.7 788.0 707.9 Excess of LIFO costs over FIFO costs 8.8 8.8 Inventories $ 796.8 $ 716.7 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill attributable to each reportable segment for the six month period ended June 30, 2021 is presented in the table below. Industrial Technologies and Services Precision and Science Technologies Total Balance as of December 31, 2020 $ 4,151.2 $ 1,431.4 $ 5,582.6 Acquisitions 76.7 — 76.7 Foreign currency translation (18.4) (3.9) (22.3) Balance as of June 30, 2021 $ 4,209.5 $ 1,427.5 $ 5,637.0 |
Schedule of Other Intangible Assets | Other intangible assets as of June 30, 2021 and December 31, 2020 consisted of the following. June 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortized intangible assets Customer lists and relationships $ 2,857.7 $ (928.1) $ 1,929.6 $ 2,835.0 $ (841.3) $ 1,993.7 Technology 293.9 (56.4) 237.5 279.9 (38.1) 241.8 Tradenames 41.5 (17.8) 23.7 41.8 (15.6) 26.2 Other 107.2 (71.7) 35.5 102.8 (58.6) 44.2 Unamortized intangible assets Tradenames 1,499.2 — 1,499.2 1,491.3 — 1,491.3 Total other intangible assets $ 4,799.5 $ (1,074.0) $ 3,725.5 $ 4,750.8 $ (953.6) $ 3,797.2 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities as of June 30, 2021 and December 31, 2020 consisted of the following. June 30, 2021 December 31, 2020 Salaries, wages and related fringe benefits $ 191.5 $ 197.0 Contract liabilities 189.2 164.6 Product warranty 42.0 41.1 Operating lease liabilities 40.2 47.1 Restructuring 14.7 17.5 Taxes 439.3 116.1 Other 136.7 125.5 Total accrued liabilities $ 1,053.6 $ 708.9 |
Schedule of Product Warranty Liability | A reconciliation of the changes in the accrued product warranty liability for the three and six month periods ended June 30, 2021 and 2020 are as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Balance at beginning of period $ 40.4 $ 37.6 $ 41.1 $ 19.1 Product warranty accruals 5.4 3.0 9.8 7.6 Acquired warranty — — 0.1 19.8 Settlements (4.1) (2.5) (8.9) (7.9) Charged to other accounts (1) 0.3 0.6 (0.1) 0.1 Balance at end of period $ 42.0 $ 38.7 $ 42.0 $ 38.7 (1) Primarily the effects of foreign currency translation adjustments |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The following table summarizes the components of net periodic benefit cost for the Company’s defined benefit pension plans and other postretirement benefit plans recognized for the three and six month periods ended June 30, 2021 and 2020. Pension Benefits Other Postretirement Benefits U.S. Plans Non-U.S. Plans For the Three Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Service cost $ 1.7 $ 1.7 $ 1.1 $ 1.2 $ — $ — Interest cost 2.8 2.8 1.1 1.5 0.1 0.2 Expected return on plan assets (3.1) (3.9) (3.0) (2.7) — — Recognition of: Unrecognized prior service cost — — 0.1 0.1 (0.1) — Unrecognized net actuarial loss — — 1.2 0.7 — — $ 1.4 $ 0.6 $ 0.5 $ 0.8 $ — $ 0.2 Pension Benefits Other Postretirement Benefits U.S. Plans Non-U.S. Plans For the Six Month Period Ended June 30, 2021 2020 2021 2020 2021 2020 Service cost $ 3.4 $ 2.3 $ 2.2 $ 1.9 $ — $ — Interest cost 5.5 4.0 2.3 3.0 0.3 0.3 Expected return on plan assets (6.2) (5.5) (6.1) (5.4) — — Recognition of: Unrecognized prior service cost — — 0.1 0.1 (0.2) — Unrecognized net actuarial loss — — 2.5 1.4 — — $ 2.7 $ 0.8 $ 1.0 $ 1.0 $ 0.1 $ 0.3 The components of net periodic benefit cost other than the service cost component are included in “Other income, net” in the Condensed Consolidated Statements of Operations. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt as of June 30, 2021 and December 31, 2020 is summarized as follows. June 30, 2021 December 31, 2020 Short-term borrowings $ — $ — Long-term debt: Revolving credit facility, due 2025 $ — $ — Dollar Term Loan B, due 2027 (1) 1,874.3 1,883.7 Dollar Term Loan, due 2027 (2) 915.1 919.6 Euro Term Loan, due 2027 (3) 703.2 728.0 Dollar Term Loan Series A, due 2027 (4) 390.9 392.4 Finance leases and other long-term debt 17.9 17.2 Unamortized debt issuance costs (37.4) (41.4) Total long-term debt, net, including current maturities 3,864.0 3,899.5 Current maturities of long-term debt 40.7 40.4 Total long-term debt, net $ 3,823.3 $ 3,859.1 (1) As of June 30, 2021, this amount is presented net of unamortized discounts of $1.9 million. As of June 30, 2021, the applicable interest rate was approximately 1.84% and the weighted-average interest rate was 1.86% for the six month period ended June 30, 2021. (2) As of June 30, 2021, this amount is presented net of unamortized discounts of $0.9 million. As of June 30, 2021, the applicable interest rate was approximately 1.84% and the weighted average interest rate was 1.86% for the six month period ended June 30, 2021. (3) As of June 30, 2021, this amount is presented net of unamortized discounts of $0.7 million. As of June 30, 2021, the applicable interest rate was 2.00% and the weighted average interest rate was 2.00% for the six month period ended June 30, 2021. (4) As of June 30, 2021, this amount is presented net of unamortized discounts of $5.1 million. As of June 30, 2021, the applicable interest rate was approximately 2.84% and the weighted average interest rate was 2.86% for the six month period ended June 30, 2021. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expense | Stock-based compensation expense for the six month periods ended June 30, 2021 and 2020 are included in “Cost of sales” and “Selling and administrative expenses” in the Condensed Consolidated Statements of Operations and are as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Stock-based compensation expense - continuing and discontinued operations $ 29.9 $ 12.7 $ 54.0 $ 16.2 Stock-based compensation expense recognized in discontinued operations 8.4 0.6 10.9 0.8 Stock-based compensation expense recognized in continuing operations $ 21.5 $ 12.1 $ 43.1 $ 15.4 |
Schedule of Stock Option Activity | A summary of the Company’s stock option (including SARs) activity for the six month period ended June 30, 2021 is presented in the following table (underlying shares in thousands). Shares Weighted-Average Exercise Price (per share) Stock options outstanding as of December 31, 2020 7,742 $ 18.47 Granted 758 45.58 Exercised or settled (800) 16.83 Forfeited (209) 30.57 Expired (5) 9.07 Stock options outstanding as of June 30, 2021 7,486 21.06 Vested as of June 30, 2021 5,041 15.69 |
Schedule of Stock Option Fair Value Assumptions | The following assumptions were used to estimate the fair value of options granted during the six month periods ended June 30, 2021 and 2020 using the Black-Scholes option-pricing model. For the Six Month Period Ended June 30, Assumptions 2021 2020 Expected life of options (in years) 6.3 6.3 Risk-free interest rate 0.9% - 1.1% 0.4% - 1.5% Assumed volatility 39.1% - 39.4% 24.6% - 41.1% Expected dividend rate 0.0 % 0.0 % |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s restricted stock unit activity for the six month period ended June 30, 2021 is presented in the following table (underlying shares in thousands). Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2020 5,546 $ 33.09 Granted 326 45.58 Vested (711) 30.30 Forfeited (532) 34.15 Non-vested as of June 30, 2021 4,629 34.28 |
Schedule of Performance Stock Unit Activity | A summary of the Company’s performance stock unit activity for the six month period ended June 30, 2021 is presented in the following table (underlying shares in thousands). Shares Weighted-Average Grant-Date Fair Value Non-vested as of December 31, 2020 255 $ 29.72 Granted 158 55.84 Forfeited (20) 36.36 Non-vested as of June 30, 2021 393 39.89 |
Schedule of Performance Share Units Fair Value Assumptions | The following assumptions were used to estimate the fair value of performance share units granted during the six month periods ended June 30, 2021 and 2020 using the Monte Carlo simulation pricing model. For the Six Month Period Ended June 30, Assumptions 2021 2020 Expected term (in years) 2.9 2.8 Risk-free interest rate 0.2 % 0.5 % Assumed volatility 36.9 % 35.2 % Expected dividend rate — % — % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Before Tax Income (Loss) and Related Income Tax Effect | The before tax income (loss) and related income tax effect are as follows. For the Three Month Period Ended June 30, 2021 For the Three Month Period Ended June 30, 2020 Before-Tax Amount Tax Benefit or (Expense) Net of Tax Amount Before-Tax Amount Tax Benefit or (Expense) Net of Tax Amount Foreign currency translation adjustments, net $ 51.0 $ (1.9) $ 49.1 $ 41.9 $ 3.0 $ 44.9 Unrecognized gains on cash flow hedges, net — — — 7.3 (1.8) 5.5 Pension and other postretirement benefit prior service cost and gain or loss, net 1.5 (0.2) 1.3 0.4 0.1 0.5 Other comprehensive income (loss) $ 52.5 $ (2.1) $ 50.4 $ 49.6 $ 1.3 $ 50.9 For the Six Month Period Ended June 30, 2021 For the Six Month Period Ended June 30, 2020 Before-Tax Amount Tax Benefit or (Expense) Net of Tax Amount Before-Tax Amount Tax Benefit or (Expense) Net of Tax Amount Foreign currency translation adjustments, net $ (56.2) $ 5.5 $ (50.7) $ (47.7) $ 0.4 $ (47.3) Unrecognized gains on cash flow hedges, net — — — 8.8 (2.1) 6.7 Pension and other postretirement benefit prior service cost and gain or loss, net 3.0 (0.5) 2.5 3.9 (0.5) 3.4 Other comprehensive income (loss) $ (53.2) $ 5.0 $ (48.2) $ (35.0) $ (2.2) $ (37.2) |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) by component for the six month periods ended June 30, 2021 and 2020 are presented in the following table (1) . Foreign Currency Translation Adjustments, Net Unrecognized Gains (Losses) on Cash Flow Hedges Pension and Other Postretirement Benefit Plans Total Balance as of December 31, 2020 $ 74.6 $ — $ (60.4) $ 14.2 Other comprehensive income (loss) before reclassifications (50.7) — 0.6 (50.1) Amounts reclassified from accumulated other comprehensive income (loss) — — 1.9 1.9 Other comprehensive income (loss) (50.7) — 2.5 (48.2) Divestiture of foreign subsidiaries (1.5) — — (1.5) Balance as of June 30, 2021 $ 22.4 $ — $ (57.9) $ (35.5) Foreign Currency Translation Adjustments, Net Unrecognized Gains (Losses) on Cash Flow Hedges Pension and Other Postretirement Benefit Plans Total Balance as of December 31, 2019 $ (193.6) $ (10.9) $ (51.5) $ (256.0) Other comprehensive income (loss) before reclassifications (47.3) (3.2) 2.3 (48.2) Amounts reclassified from accumulated other comprehensive income (loss) — 9.9 1.1 11.0 Other comprehensive income (loss) (47.3) 6.7 3.4 (37.2) Balance as of June 30, 2020 $ (240.9) $ (4.2) $ (48.1) $ (293.2) (1) All amounts are net of tax. Amounts in parentheses indicate debits. |
Schedule of Reclassification out of Accumulated Other Comprehensive Income (Loss) | Reclassifications out of accumulated other comprehensive income (loss) for the six month periods ended June 30, 2021 and 2020 are presented in the following table. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details about Accumulated Other Comprehensive Income (Loss) Components For the Six Month Period Ended June 30, 2021 Affected Line(s) in the Statement Where Net Income is Presented 2021 2020 Loss on cash flow hedges (interest rate swaps) $ — $ 13.2 Interest expense Benefit for income taxes — (3.3) Benefit for income taxes Loss on cash flow hedges (interest rate swaps), net of tax $ — $ 9.9 Amortization of defined benefit pension and other postretirement benefit items (1) $ 2.6 $ 1.5 Cost of sales and Selling and administrative expenses Benefit for income taxes (0.7) (0.4) Benefit for income taxes Amortization of defined benefit pension and other postretirement benefit items, net of tax $ 1.9 $ 1.1 Total reclassifications for the period, net of tax $ 1.9 $ 11.0 (1) These components are included in the computation of net periodic benefit cost. See Note 8 “ Benefit Plans ” for additional details. |
Hedging Activities, Derivativ_2
Hedging Activities, Derivative Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table summarizes the notional amounts, fair values and classification of the Company’s outstanding derivatives by risk category and instrument type within the Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020. June 30, 2021 Derivative Classification Notional Amount (1) Fair Value (1) Other Current Assets Fair Value (1) Other Assets Fair Value (1) Accrued Liabilities Fair Value (1) Other Liabilities Derivatives Not Designated as Hedging Instruments Foreign currency forwards Fair Value $ 78.3 $ 0.4 $ — $ — $ — Foreign currency forwards Fair Value 100.6 — — 0.8 — December 31, 2020 Derivative Classification Notional Amount (1) Fair Value (1) Other Current Assets Fair Value (1) Other Assets Fair Value (1) Accrued Liabilities Fair Value (1) Other Liabilities Derivatives Not Designated as Hedging Instruments Foreign currency forwards Fair Value $ 230.5 $ 2.9 $ — $ — $ — Foreign currency forwards Fair Value 51.2 — — 0.7 — (1) Notional amounts represent the gross contract amounts of the outstanding derivatives excluding the total notional amount of positions that have been effectively closed through offsetting positions. The net gains and net losses associated with positions that have been effectively closed through offsetting positions but not yet settled are included in the asset and liability derivatives fair value columns, respectively. |
Schedule of Cash Flow Hedges included in Accumulated Other Comprehensive Income (Loss) | Losses on derivatives designated as cash flow hedges included in the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six month periods ended June 30, 2021 and 2020 are as presented in the table below. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Interest rate swap contracts Loss recognized in AOCI on derivatives $ — $ (0.6) $ — $ (4.3) Loss reclassified from AOCI into income (effective portion) (1) — (7.9) — (13.2) (1) Losses on derivatives reclassified from accumulated other comprehensive income (“AOCI”) into income were included within “Interest expense” in the Condensed Consolidated Statements of Operations. |
Schedule of Gains (Losses) on Derivative Instruments Not Designated as Accounting Hedges and Total Net Foreign Currency Losses | The Company’s gains (losses) on derivative instruments not designated as accounting hedges and total net foreign currency losses for the three and six month periods ended June 30, 2021 and 2020 were as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Foreign currency forward contracts gains (losses) $ 0.7 $ 0.5 $ (0.1) $ (2.1) Total foreign currency transaction gains (losses), net (3.4) (4.9) 14.7 (6.9) |
Schedule of Changes in Value of Debt and Designated Interest Rate Swaps | The Company’s gains (losses), net of income tax, associated with changes in the value of debt for the three and six month periods ended June 30, 2021 and 2020 were as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Gain, net of income tax, recorded through other comprehensive income $ (5.7) $ (9.1) $ 13.2 $ 0.9 |
Schedule of Assets and Liabilities Measured at Fair Value | The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. June 30, 2021 Level 1 Level 2 Level 3 Total Financial Assets Foreign currency forwards (1) $ — $ 0.4 $ — $ 0.4 Trading securities held in deferred compensation plan (2) 11.2 — — 11.2 Total $ 11.2 $ 0.4 $ — $ 11.6 Financial Liabilities Foreign currency forwards (1) $ — $ 0.8 $ — $ 0.8 Deferred compensation plans (2) 25.1 — — 25.1 Total $ 25.1 $ 0.8 $ — $ 25.9 December 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets Foreign currency forwards (1) $ — $ 2.9 $ — $ 2.9 Trading securities held in deferred compensation plan (2) 9.1 — — 9.1 Total $ 9.1 $ 2.9 $ — $ 12.0 Financial Liabilities Foreign currency forwards (1) $ — $ 0.7 $ — $ 0.7 Deferred compensation plan (2) 25.7 — — 25.7 Total $ 25.7 $ 0.7 $ — $ 26.4 (1) Based on calculations that use readily observable market parameters at their basis, such as spot and forward rates. (2) Based on the quoted price of publicly traded mutual funds and other equity securities which are classified as trading securities and accounted for using the mark-to-market method. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue by Segment | The following tables provide disaggregated revenue by reportable segment for the three month periods ended June 30, 2021 and 2020. For the Three Month Period Ended June 30, 2021 Industrial Technologies and Services Precision and Science Technologies Total Primary Geographic Markets United States $ 391.9 $ 103.1 $ 495.0 Other Americas 66.6 3.5 70.1 Total Americas 458.5 106.6 565.1 EMEIA 336.3 83.1 419.4 Asia Pacific 252.7 41.9 294.6 Total $ 1,047.5 $ 231.6 $ 1,279.1 Product Categories Original equipment $ 623.7 $ 198.5 $ 822.2 Aftermarket 423.8 33.1 456.9 Total $ 1,047.5 $ 231.6 $ 1,279.1 Pattern of Revenue Recognition Revenue recognized at point in time (1) $ 959.9 $ 231.0 $ 1,190.9 Revenue recognized over time (2) 87.6 0.6 88.2 Total $ 1,047.5 $ 231.6 $ 1,279.1 For the Three Month Period Ended June 30, 2020 Industrial Technologies and Services Precision and Science Technologies Total Primary Geographic Markets United States $ 289.8 $ 83.7 $ 373.5 Other Americas 70.5 9.9 80.4 Total Americas 360.3 93.6 453.9 EMEIA 247.1 63.7 310.8 Asia Pacific 222.2 38.5 260.7 Total $ 829.6 $ 195.8 $ 1,025.4 Product Categories Original equipment $ 502.0 $ 169.1 $ 671.1 Aftermarket 327.6 26.7 354.3 Total $ 829.6 $ 195.8 $ 1,025.4 Pattern of Revenue Recognition Revenue recognized at point in time (1) $ 750.1 $ 195.8 $ 945.9 Revenue recognized over time (2) 79.5 — 79.5 Total $ 829.6 $ 195.8 $ 1,025.4 (1) Revenues from short and long duration product and service contracts recognized at a point in time when control is transferred to the customer generally when product delivery has occurred and services have been rendered. (2) Revenues primarily from long duration ETO product contracts and certain contracts for delivery of a significant volume of substantially similar products recognized over time as contractual performance obligations are completed. The following tables provide disaggregated revenue by reportable segment for the six month periods ended June 30, 2021 and 2020. For the Six Month Period Ended June 30, 2021 Industrial Technologies and Services Precision and Science Technologies Total Primary Geographic Markets United States $ 745.0 $ 201.2 $ 946.2 Other Americas 126.8 7.0 133.8 Total Americas 871.8 208.2 1,080.0 EMEIA 655.7 163.2 818.9 Asia Pacific 433.8 75.9 509.7 Total $ 1,961.3 $ 447.3 $ 2,408.6 Product Categories Original equipment $ 1,152.4 $ 377.2 $ 1,529.6 Aftermarket 808.9 70.1 879.0 Total $ 1,961.3 $ 447.3 $ 2,408.6 Pattern of Revenue Recognition Revenue recognized at point in time (1) $ 1,807.8 $ 445.8 $ 2,253.6 Revenue recognized over time (2) 153.5 1.5 155.0 Total $ 1,961.3 $ 447.3 $ 2,408.6 For the Six Month Period Ended June 30, 2020 Industrial Technologies and Services Precision and Science Technologies Total Primary Geographic Markets United States $ 466.9 $ 133.0 $ 599.9 Other Americas 115.8 14.8 130.6 Total Americas 582.7 147.8 730.5 EMEIA 447.7 104.6 552.3 Asia Pacific 303.2 56.2 359.4 Total $ 1,333.6 $ 308.6 $ 1,642.2 Product Categories Original equipment $ 805.2 $ 268.1 $ 1,073.3 Aftermarket 528.4 40.5 568.9 Total $ 1,333.6 $ 308.6 $ 1,642.2 Pattern of Revenue Recognition Revenue recognized at point in time (1) $ 1,209.6 $ 308.6 $ 1,518.2 Revenue recognized over time (2) 124.0 — 124.0 Total $ 1,333.6 $ 308.6 $ 1,642.2 (1) Revenues from short and long duration product and service contracts recognized at a point in time when control is transferred to the customer generally when product delivery has occurred and services have been rendered. (2) Revenues primarily from long duration ETO product contracts and certain contracts for delivery of a significant volume of substantially similar products recognized over time as contractual performance obligations are completed. |
Schedule of Contract Balances | The following table provides the contract balances as of June 30, 2021 and December 31, 2020 presented in the Condensed Consolidated Balance Sheets. June 30, 2021 December 31, 2020 Accounts receivable, net $ 935.8 $ 861.8 Contract assets 52.3 60.4 Contract liabilities 190.5 166.2 |
Schedule of Allowance for Credit Losses | The allowance for credit losses for the three and six month periods ended June 30, 2021 consisted of the following. For the Three Month Period Ended June 30, 2021 For the Six Month Period Ended June 30, 2021 Balance at beginning of the period $ 49.2 $ 50.9 Provision charged to expense 1.3 1.6 Write-offs, net of recoveries (1.7) (2.7) Foreign currency translation and other 0.5 (0.5) Balance at end of the period $ 49.3 $ 49.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes and Effective Income Tax Rate | The following table summarizes the Company’s provision for income taxes and effective income tax provision rate for the three and six month periods ended June 30, 2021 and 2020. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Income (loss) before income taxes $ 151.5 $ (73.5) $ 252.2 $ (181.7) Provision for income taxes $ 12.5 $ 78.4 $ 23.1 $ 11.5 Effective income tax provision rate 8.3 % (106.7 %) 9.2 % (6.3 %) |
Other Operating Expense, Net (T
Other Operating Expense, Net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expense, Net | The components of “Other operating expense, net” for the three and six month periods ended June 30, 2021 and 2020 were as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Other Operating Expense, Net Foreign currency transaction losses (gains), net $ 3.4 $ 4.9 $ (14.7) $ 6.9 Restructuring charges, net (1) 6.8 29.4 9.2 67.4 Acquisition and other transaction related expenses (2) 15.3 12.8 23.6 67.8 Other, net (0.4) 1.0 1.3 2.5 Total other operating expense, net $ 25.1 $ 48.1 $ 19.4 $ 144.6 (1) See Note 4 “ Restructuring .” (2) Represents costs associated with successful and/or abandoned acquisitions and divestitures, including third-party expenses and post-closure integration costs (including certain incentive and non-incentive cash compensation costs). |
Segment Results (Tables)
Segment Results (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Results | The following table provides summarized information about the Company’s operations by reportable segment and reconciles Segment Adjusted EBITDA to Income (Loss) from Continuing Operations Before Income Taxes for the three and six month periods ended June 30, 2021 and 2020. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Revenue Industrial Technologies and Services $ 1,047.5 $ 829.6 $ 1,961.3 $ 1,333.6 Precision and Science Technologies 231.6 195.8 447.3 308.6 Total Revenue $ 1,279.1 $ 1,025.4 $ 2,408.6 $ 1,642.2 Segment Adjusted EBITDA Industrial Technologies and Services $ 258.6 $ 183.8 $ 470.1 $ 278.6 Precision and Science Technologies 71.1 59.3 138.3 92.2 Total Segment Adjusted EBITDA $ 329.7 $ 243.1 $ 608.4 $ 370.8 Less items to reconcile Segment Adjusted EBITDA to Income (Loss) Before Income Taxes: Corporate expenses not allocated to segments $ 37.6 $ 25.6 $ 72.3 $ 41.1 Interest expense 22.7 30.8 45.8 57.9 Depreciation and amortization expense (a) 101.3 118.9 205.8 177.9 Restructuring and related business transformation costs (b) 6.7 31.0 9.4 69.6 Acquisition and other transaction related expenses and non-cash charges (c) 14.3 90.3 24.8 179.8 Stock-based compensation (d) 21.5 12.1 43.1 14.9 Foreign currency transaction losses (gains), net 3.4 4.9 (14.7) 6.9 Loss on extinguishment of debt (e) — — — 2.0 Gain on settlement of post-acquisition contingencies (f) (30.1) — (30.1) — Other adjustments (g) 0.8 3.0 (0.2) 2.4 Income (Loss) from Continuing Operations Before Income Taxes 151.5 (73.5) 252.2 (181.7) Provision for income taxes 12.5 78.4 23.1 11.5 Loss on equity method investments (0.7) — (0.7) — Income (Loss) from Continuing Operations 138.3 (151.9) 228.4 (193.2) Income (loss) from discontinued operations, net of tax 96.3 (24.6) (83.9) (20.2) Net Income (Loss) $ 234.6 $ (176.5) $ 144.5 $ (213.4) a) Depreciation and amortization expense excludes $1.0 million and $0.4 million of depreciation of rental equipment for the three month periods ended June 30, 2021 and 2020, respectively, and excludes $2.0 million and $0.9 million for the six month periods ended June 30, 2021 and 2020, respectively. b) Restructuring and related business transformation costs consist of the following. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Restructuring charges $ 6.8 $ 29.4 $ 9.2 $ 67.4 Facility reorganization, relocation and other costs — 0.1 — 0.5 Other, net (0.1) 1.5 0.2 1.7 Total restructuring and related business transformation costs $ 6.7 $ 31.0 $ 9.4 $ 69.6 c) Represents costs associated with successful and/or abandoned acquisitions and divestitures, including third-party expenses, post-closure integration costs (including certain incentive and non-incentive cash compensation costs) and non-cash charges and credits arising from fair value purchase accounting adjustments. d) Represents stock-based compensation expense recognized for the three and six month periods ended June 30, 2021 of $21.5 million and $43.1 million, respectively. Represents stock-based compensation expense recognized for the three and six month periods ended June 30, 2020 of $12.1 million and $15.4 million, respectively, and decreased by $0.5 million for the six month period ended June 30, 2020, due to costs associated with employer taxes. e) Represents a loss on extinguishment of a portion of the U.S. term loan and the amendment of the revolving credit facility. f) Represents a gain on settlement of post-acquisition contingencies outside of the measurement period related to adjustments to the transaction price for retirement plan funding and net working capital. g) Includes (i) effects of amortization of prior service costs and amortization of losses in pension and other postemployment (“OPEB”) expense, (ii) certain legal and compliance costs and (iii) other miscellaneous adjustments. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The number of weighted-average shares outstanding used in the computations of basic and diluted earnings (loss) per share are as follows. For the Three Month Period Ended June 30, For the Six Month Period Ended June 30, 2021 2020 2021 2020 Average shares outstanding Basic 419.9 417.0 419.5 347.2 Diluted 426.8 417.0 426.4 347.2 |
Basis of Presentation and Rec_3
Basis of Presentation and Recent Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Subsidiary, Sale of Stock [Line Items] | ||||||
Stockholders' equity | $ 9,346.4 | $ 9,025.7 | $ 9,189.5 | $ 8,641.8 | $ 8,755.5 | $ 1,869.9 |
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Stockholders' equity | (1) | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Accounts Receivable | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Stockholders' equity | (1) | |||||
Accumulated Deficit | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Stockholders' equity | $ (32.2) | $ (266.1) | $ (175.7) | $ (356.8) | $ (179.2) | (141.4) |
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Stockholders' equity | (1) | |||||
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Stockholders' equity | $ (1) |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | Feb. 14, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 09, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (loss) on disposal group | $ 248.3 | $ 0 | $ 45 | $ 0 | ||
Specialty Vehicle Technologies | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration for sale of business | $ 1,680 | |||||
Gain (loss) on disposal group | 256.7 | 0 | 256.7 | 0 | ||
High Pressure Solutions | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration for sale of business | $ 278.3 | |||||
Gain (loss) on disposal group | $ (8.4) | $ 0 | $ (211.7) | $ 0 | ||
Majority interest sold (as a percent) | 55.00% | |||||
Common equity interest retained after disposal (as a percent) | 45.00% |
Discontinued Operations - Resul
Discontinued Operations - Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (Loss) from Discontinued Operations, Net of Tax | $ 96.3 | $ (24.6) | $ (83.9) | $ (20.2) |
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 187 | 239 | 489.7 | 422.1 |
Cost of sales | 141.8 | 187.6 | 369.3 | 329.5 |
Gross Profit | 45.2 | 51.4 | 120.4 | 92.6 |
Selling and administrative expenses | 17.5 | 38.6 | 40.2 | 54.6 |
Amortization of intangible assets | 0.9 | 18.2 | 12.8 | 26.7 |
Loss (gain) on sale | (248.3) | 0 | (45) | 0 |
Other operating expense (income), net | 16.6 | 1.8 | 31.7 | 6 |
Income (Loss) from Discontinued Operations Before Income Taxes | 258.5 | (7.2) | 80.7 | 5.3 |
Discontinued Operation, Tax Effect of Discontinued Operation | 162.2 | 17.4 | 164.6 | 25.5 |
Income (Loss) from Discontinued Operations, Net of Tax | 96.3 | (24.6) | (83.9) | (20.2) |
Discontinued Operations, Disposed of by Sale | Specialty Vehicle Technologies | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 184 | 217.5 | 424.3 | 304.2 |
Cost of sales | 137.9 | 166.4 | 314.9 | 238.7 |
Gross Profit | 46.1 | 51.1 | 109.4 | 65.5 |
Selling and administrative expenses | 16.9 | 18.2 | 35.3 | 26 |
Amortization of intangible assets | 0.9 | 12.3 | 10.4 | 14.9 |
Loss (gain) on sale | (256.7) | 0 | (256.7) | 0 |
Other operating expense (income), net | 9.2 | (0.1) | 16.2 | 0.7 |
Income (Loss) from Discontinued Operations Before Income Taxes | 275.8 | 20.7 | 304.2 | 23.9 |
Discontinued Operation, Tax Effect of Discontinued Operation | 162.8 | 29.2 | 169.7 | 30 |
Income (Loss) from Discontinued Operations, Net of Tax | 113 | (8.5) | 134.5 | (6.1) |
Discontinued Operations, Disposed of by Sale | High Pressure Solutions | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 3 | 21.5 | 65.4 | 117.9 |
Cost of sales | 3.9 | 21.2 | 54.4 | 90.8 |
Gross Profit | (0.9) | 0.3 | 11 | 27.1 |
Selling and administrative expenses | 0.6 | 20.4 | 4.9 | 28.6 |
Amortization of intangible assets | 0 | 5.9 | 2.4 | 11.8 |
Loss (gain) on sale | 8.4 | 0 | 211.7 | 0 |
Other operating expense (income), net | 7.4 | 1.9 | 15.5 | 5.3 |
Income (Loss) from Discontinued Operations Before Income Taxes | (17.3) | (27.9) | (223.5) | (18.6) |
Discontinued Operation, Tax Effect of Discontinued Operation | (0.6) | (11.8) | (5.1) | (4.5) |
Income (Loss) from Discontinued Operations, Net of Tax | $ (16.7) | $ (16.1) | $ (218.4) | $ (14.1) |
Discontinued Operations - Balan
Discontinued Operations - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Total current assets | $ 73.7 | $ 337.4 |
Total non-current assets | 0 | 1,862.8 |
Current liabilities: | ||
Total current liabilities | 67.9 | 212.9 |
Total non-current liabilities | 0 | 192.8 |
Discontinued Operations, Disposed of by Sale | Specialty Vehicle Technologies | ||
Current assets: | ||
Total assets | 1,512.7 | |
Current liabilities: | ||
Total liabilities | 354.1 | |
Discontinued Operations, Disposed of by Sale | High Pressure Solutions | ||
Current assets: | ||
Accounts receivable, net | 18.7 | 104.8 |
Inventories | 19.6 | 226.9 |
Other current assets | 4.5 | 5.7 |
Total current assets | 42.8 | 337.4 |
Property, plant and equipment, net | 2.1 | 188.3 |
Goodwill | 0.8 | 721 |
Other intangible assets, net | 28 | 935.4 |
Deferred tax assets | 0 | 0.5 |
Other assets | 0 | 17.6 |
Total non-current assets | 30.9 | 1,862.8 |
Total assets | 73.7 | 2,200.2 |
Current liabilities: | ||
Accounts payable | 32.3 | 134.7 |
Accrued liabilities | 31.8 | 78.2 |
Total current liabilities | 64.1 | 212.9 |
Pensions and other postretirement benefits | 0 | 2.5 |
Deferred income taxes | 3.8 | 173.3 |
Other liabilities | 0 | 17 |
Total non-current liabilities | 3.8 | 192.8 |
Total liabilities | $ 67.9 | $ 405.7 |
Discontinued Operations - Cash
Discontinued Operations - Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Stock-based compensation expense | $ 29.9 | $ 12.7 | $ 54 | $ 16.2 |
Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss (gain) on sale | (248.3) | 0 | (45) | 0 |
Depreciation and amortization | 18.8 | 38 | ||
Stock-based compensation expense | 10.9 | 0.8 | ||
Capital expenditures | 1.9 | 2.7 | ||
Discontinued Operations, Disposed of by Sale | Specialty Vehicle Technologies | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss (gain) on sale | (256.7) | 0 | (256.7) | 0 |
Depreciation and amortization | 14.8 | 19.8 | ||
Stock-based compensation expense | 8.2 | 0.4 | ||
Capital expenditures | 1.6 | 1.3 | ||
Discontinued Operations, Disposed of by Sale | High Pressure Solutions | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss (gain) on sale | $ 8.4 | $ 0 | 211.7 | 0 |
Depreciation and amortization | 4 | 18.2 | ||
Stock-based compensation expense | 2.7 | 0.4 | ||
Capital expenditures | $ 0.3 | $ 1.4 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Millions | Jan. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 01, 2020USD ($) | Feb. 29, 2020USD ($) | Jun. 30, 2021USD ($) | Sep. 30, 2020USD ($)business | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021USD ($)business | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||||||||||
Cash consideration for acquisition | $ 215.8 | |||||||||||
Goodwill | $ 5,637 | $ 5,637 | $ 5,582.6 | |||||||||
Number of businesses acquired | business | 5 | |||||||||||
Industrial Technologies and Services | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | 4,209.5 | $ 4,209.5 | $ 4,151.2 | |||||||||
MD Pneumatics and Kinney Vacuum Pumps and All Others | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Revenue from acquisition date | 31.5 | |||||||||||
Operating income from acquisition date | 4 | |||||||||||
M-D Pneumatics and Kinney Vacuum Pumps | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration for acquisition | $ 184.4 | |||||||||||
Goodwill | $ 80 | |||||||||||
All Others | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration for acquisition | 31.5 | |||||||||||
Goodwill | 3.5 | $ 3.5 | ||||||||||
Revenue from acquisition date | $ 5.3 | |||||||||||
Operating income from acquisition date | 2 | |||||||||||
Ingersoll Rand Industrial | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 4,899.2 | |||||||||||
Revenue from acquisition date | $ 609 | $ 815.7 | ||||||||||
Purchase consideration | $ 6,937 | $ 6,937 | ||||||||||
Acquisition-related costs | $ 42.3 | $ 87.3 | ||||||||||
Net payment upon final measurements of post-closing steps | 49.5 | |||||||||||
Adjustment to receivables upon final measurements of post-closing steps | $ 30.1 | |||||||||||
Manufacturer of electric peristaltic pumps | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash consideration, net of cash acquired | $ 15.5 | |||||||||||
Deferred consideration | $ 0.9 | |||||||||||
Sales and services businesses | Industrial Technologies and Services | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Number of businesses acquired | business | 2 | |||||||||||
Cash consideration, net of cash acquired | $ 15 | |||||||||||
Deferred consideration | $ 5.1 | $ 5.1 |
Business Combinations - Assets
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Jan. 31, 2021 | Dec. 31, 2020 | Feb. 29, 2020 |
Estimated Fair Value [Abstract] | ||||
Goodwill | $ 5,637 | $ 5,582.6 | ||
M-D Pneumatics and Kinney Vacuum Pumps | ||||
Estimated Fair Value [Abstract] | ||||
Accounts receivable | $ 4.8 | |||
Inventories | 3.8 | |||
Other current assets | 0.6 | |||
Property, plant and equipment | 16.2 | |||
Goodwill | 80 | |||
Other intangible assets | 82.5 | |||
Total current liabilities | (3.5) | |||
Total noncurrent liabilities | 0 | |||
Total consideration | $ 184.4 | |||
All Others | ||||
Estimated Fair Value [Abstract] | ||||
Accounts receivable | 2.5 | |||
Inventories | 2.7 | |||
Other current assets | 0 | |||
Property, plant and equipment | 2.5 | |||
Goodwill | 3.5 | |||
Other intangible assets | 23.9 | |||
Total current liabilities | (1.8) | |||
Total noncurrent liabilities | (1.8) | |||
Total consideration | $ 31.5 | |||
Ingersoll Rand Industrial | ||||
Estimated Fair Value [Abstract] | ||||
Cash | $ 38.8 | |||
Accounts receivable | 585.8 | |||
Inventories | 625.4 | |||
Other current assets | 87.2 | |||
Property, plant and equipment | 516.5 | |||
Goodwill | 4,899.2 | |||
Other intangible assets | 3,766.6 | |||
Other noncurrent assets | 270.9 | |||
Total current liabilities | (753) | |||
Deferred tax liability | (842.4) | |||
Long-term debt, net of debt issuance costs and an original issue discount | (1,851.7) | |||
Other noncurrent liabilities | (333) | |||
Noncontrolling interest | (73.3) | |||
Total consideration | 6,937 | |||
Current maturities of long-term debt | $ 19 |
Business Combinations - Prelimi
Business Combinations - Preliminary Purchase Price Allocation (Details) - Ingersoll Rand Industrial - USD ($) $ in Millions | Sep. 30, 2020 | Feb. 29, 2020 | Jun. 30, 2021 |
Purchase Price [Abstract] | |||
Fair value of Ingersoll Rand common stock issued for Ingersoll Rand Industrial outstanding common stock | $ 6,919.5 | ||
Fair value attributable to pre-merger service for replacement equity awards | $ 8.6 | ||
Fair value attributable to pre-merger service for deferred compensation plan | 8.9 | ||
Purchase consideration | $ 6,937 | $ 6,937 |
Business Combinations - Results
Business Combinations - Results of Ingersoll Rand Industrial Subsequent (Details) - Ingersoll Rand Industrial - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||
Revenues | $ 609 | $ 815.7 |
Income (Loss) from Continuing Operations Before Income Taxes | $ (82.1) | $ (124.8) |
Business Combinations - Unaudit
Business Combinations - Unaudited Pro Forma Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 15 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Unaudited Pro Forma Information [Abstract] | ||||||
Increase to revenue as a result of deferred revenue fair value adjustment, net of tax | $ 1,279.1 | $ 1,025.4 | $ 2,408.6 | $ 1,642.2 | ||
Decrease to expense as a result of inventory fair value adjustment, net of tax | $ 766.4 | 716.8 | $ 1,443.8 | 1,130.3 | ||
Ingersoll Rand Industrial | ||||||
Unaudited Pro Forma Information [Abstract] | ||||||
Business Acquisition, Pro Forma Revenue | 1,271.6 | 2,541.3 | ||||
Net Income (Loss) | 7 | 6.8 | ||||
Decrease to expense as a result of transaction costs, net of tax | $ 42.3 | $ 87.3 | ||||
Ingersoll Rand Industrial | Deferred Revenue | ||||||
Unaudited Pro Forma Information [Abstract] | ||||||
Increase to revenue as a result of deferred revenue fair value adjustment, net of tax | 5.6 | 5.5 | ||||
Ingersoll Rand Industrial | Inventory | ||||||
Unaudited Pro Forma Information [Abstract] | ||||||
Decrease to expense as a result of inventory fair value adjustment, net of tax | (58.5) | (89.6) | ||||
Ingersoll Rand Industrial | Transaction Costs | ||||||
Unaudited Pro Forma Information [Abstract] | ||||||
Decrease to expense as a result of transaction costs, net of tax | $ 0 | $ (38.1) |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 18 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | |
Restructuring Costs [Abstract] | |||||
Restructuring charges | $ 6.8 | $ 29.4 | $ 9.2 | $ 67.4 | |
Restructuring Program 2020 to 2022 | |||||
Restructuring Costs [Abstract] | |||||
Expected restructuring cost | 350 | 350 | $ 350 | ||
Restructuring Program 2020 to 2022 | Other Operating Expense, Net | |||||
Restructuring Costs [Abstract] | |||||
Restructuring charges | 6.8 | 9.2 | |||
Restructuring Program 2020 to 2022 | Other Operating Expense, Net | Corporate | |||||
Restructuring Costs [Abstract] | |||||
Restructuring charges | 4.5 | 4.9 | 10.9 | ||
Restructuring Program 2020 to 2022 | Other Operating Expense, Net | Industrial Technologies and Services | |||||
Restructuring Costs [Abstract] | |||||
Restructuring charges | 2.5 | 4.2 | 74.5 | ||
Restructuring Program 2020 to 2022 | Other Operating Expense, Net | Precision and Science Technologies | |||||
Restructuring Costs [Abstract] | |||||
Restructuring charges | $ (0.2) | $ 0.1 | $ 7 |
Restructuring - Activity in Res
Restructuring - Activity in Restructuring Programs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Balance at beginning of period | $ 11.9 | $ 27.8 | $ 17.5 | $ 4.8 |
Charged to expense - termination benefits | 6.2 | 29.7 | 8.6 | 64.9 |
Charged to expense - other | 0.6 | (0.3) | 0.6 | 2.5 |
Payments | (4.2) | (26.3) | (11.8) | (41.3) |
Currency translation adjustment and other | 0.2 | (1.9) | (0.2) | (1.9) |
Balance at end of period | $ 14.7 | $ 29 | $ 14.7 | $ 29 |
Inventories - Summary (Details)
Inventories - Summary (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Raw materials, including parts and subassemblies | $ 490.4 | $ 451 |
Work-in-process | 87 | 62.2 |
Finished goods | 210.6 | 194.7 |
Gross inventories | 788 | 707.9 |
Excess of LIFO costs over FIFO costs | 8.8 | 8.8 |
Inventories | $ 796.8 | $ 716.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill by Segment (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 5,582.6 |
Acquisitions | 76.7 |
Foreign currency translation | (22.3) |
Balance at end of period | 5,637 |
Industrial Technologies and Services | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 4,151.2 |
Acquisitions | 76.7 |
Foreign currency translation | (18.4) |
Balance at end of period | 4,209.5 |
Precision and Science Technologies | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 1,431.4 |
Acquisitions | 0 |
Foreign currency translation | (3.9) |
Balance at end of period | $ 1,427.5 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions | Jun. 30, 2021USD ($) |
Industrial Technologies and Services | |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | |
Accumulated impairment on goodwill | $ 220.6 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized intangible assets | ||
Accumulated Amortization | $ (1,074) | $ (953.6) |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Gross Carrying Amount | 4,799.5 | 4,750.8 |
Accumulated Amortization | (1,074) | (953.6) |
Net Carrying Amount | 3,725.5 | 3,797.2 |
Tradenames | ||
Unamortized intangible assets | ||
Carrying amount | 1,499.2 | 1,491.3 |
Customer lists and relationships | ||
Amortized intangible assets | ||
Gross Carrying Amount | 2,857.7 | 2,835 |
Accumulated Amortization | (928.1) | (841.3) |
Net Carrying Amount | 1,929.6 | 1,993.7 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (928.1) | (841.3) |
Technology | ||
Amortized intangible assets | ||
Gross Carrying Amount | 293.9 | 279.9 |
Accumulated Amortization | (56.4) | (38.1) |
Net Carrying Amount | 237.5 | 241.8 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (56.4) | (38.1) |
Tradenames | ||
Amortized intangible assets | ||
Gross Carrying Amount | 41.5 | 41.8 |
Accumulated Amortization | (17.8) | (15.6) |
Net Carrying Amount | 23.7 | 26.2 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | (17.8) | (15.6) |
Other | ||
Amortized intangible assets | ||
Gross Carrying Amount | 107.2 | 102.8 |
Accumulated Amortization | (71.7) | (58.6) |
Net Carrying Amount | 35.5 | 44.2 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Accumulated Amortization | $ (71.7) | $ (58.6) |
Accrued Liabilities - Summary (
Accrued Liabilities - Summary (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities [Abstract] | ||||||
Salaries, wages and related fringe benefits | $ 191.5 | $ 197 | ||||
Contract liabilities | 189.2 | 164.6 | ||||
Product warranty | 42 | $ 40.4 | 41.1 | $ 38.7 | $ 37.6 | $ 19.1 |
Operating lease liabilities | 40.2 | 47.1 | ||||
Restructuring | 14.7 | 17.5 | ||||
Taxes | 439.3 | 116.1 | ||||
Other | 136.7 | 125.5 | ||||
Total accrued liabilities | $ 1,053.6 | $ 708.9 |
Accrued Liabilities - Accrued P
Accrued Liabilities - Accrued Product Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 40.4 | $ 37.6 | $ 41.1 | $ 19.1 |
Product warranty accruals | 5.4 | 3 | 9.8 | 7.6 |
Acquired warranty | 0 | 0 | 0.1 | 19.8 |
Settlements | (4.1) | (2.5) | (8.9) | (7.9) |
Charged to other accounts | 0.3 | 0.6 | (0.1) | 0.1 |
Balance at end of period | $ 42 | $ 38.7 | $ 42 | $ 38.7 |
Benefit Plans - Summary (Detail
Benefit Plans - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Pension Benefits | U.S. Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 1.7 | $ 1.7 | $ 3.4 | $ 2.3 |
Interest cost | 2.8 | 2.8 | 5.5 | 4 |
Expected return on plan assets | (3.1) | (3.9) | (6.2) | (5.5) |
Recognition of: | ||||
Unrecognized prior service cost | 0 | 0 | 0 | 0 |
Unrecognized net actuarial loss | 0 | 0 | 0 | 0 |
Total recognized in other comprehensive (loss) income | 1.4 | 0.6 | 2.7 | 0.8 |
Pension Benefits | Non-U.S. Plans | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 1.1 | 1.2 | 2.2 | 1.9 |
Interest cost | 1.1 | 1.5 | 2.3 | 3 |
Expected return on plan assets | (3) | (2.7) | (6.1) | (5.4) |
Recognition of: | ||||
Unrecognized prior service cost | 0.1 | 0.1 | 0.1 | 0.1 |
Unrecognized net actuarial loss | 1.2 | 0.7 | 2.5 | 1.4 |
Total recognized in other comprehensive (loss) income | 0.5 | 0.8 | 1 | 1 |
Other Postretirement Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0.1 | 0.2 | 0.3 | 0.3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognition of: | ||||
Unrecognized prior service cost | (0.1) | 0 | (0.2) | 0 |
Unrecognized net actuarial loss | 0 | 0 | 0 | 0 |
Total recognized in other comprehensive (loss) income | $ 0 | $ 0.2 | $ 0.1 | $ 0.3 |
Debt - Summary (Details)
Debt - Summary (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt [Abstract] | ||
Short-term borrowings | $ 0 | $ 0 |
Long-term debt: | ||
Finance leases and other long-term debt | 17.9 | 17.2 |
Unamortized debt issuance costs | (37.4) | (41.4) |
Total long-term debt, net, including current maturities | 3,864 | 3,899.5 |
Current maturities of long-term debt | 40.7 | 40.4 |
Total long-term debt, net | 3,823.3 | 3,859.1 |
Revolving credit facility, due 2025 | ||
Long-term debt: | ||
Long-term debt, gross | 0 | 0 |
Dollar Term Loan B, Due 2027 | ||
Long-term debt: | ||
Long-term debt, gross | 1,874.3 | 1,883.7 |
Unamortized discounts | $ 1.9 | |
Stated interest rate of debt instrument (as a percent) | 1.84% | |
Weighted-average interest rate of debt instrument (as a percent) | 1.86% | |
Dollar Term Loan, due 2027 | ||
Long-term debt: | ||
Long-term debt, gross | $ 915.1 | 919.6 |
Unamortized discounts | $ 0.9 | |
Stated interest rate of debt instrument (as a percent) | 1.84% | |
Weighted-average interest rate of debt instrument (as a percent) | 1.86% | |
Euro Term Loan, due 2027 | ||
Long-term debt: | ||
Long-term debt, gross | $ 703.2 | 728 |
Unamortized discounts | $ 0.7 | |
Stated interest rate of debt instrument (as a percent) | 2.00% | |
Weighted-average interest rate of debt instrument (as a percent) | 2.00% | |
Dollar Term Loan Series A, Due 2027 | ||
Long-term debt: | ||
Long-term debt, gross | $ 390.9 | $ 392.4 |
Unamortized discounts | $ 5.1 | |
Stated interest rate of debt instrument (as a percent) | 2.84% | |
Weighted-average interest rate of debt instrument (as a percent) | 2.86% |
Debt - Narrative (Details)
Debt - Narrative (Details) - Revolving Credit Facility $ in Millions | Jun. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
Long-term debt | $ 1,100 |
Letters of credit outstanding | 84.1 |
Outstanding borrowings | 0 |
Unused borrowing capacity | 1,015.9 |
Ingersoll Rand | |
Debt Instrument [Line Items] | |
Letters of credit outstanding | $ 400 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Narrative (Details) employee in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($)employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 29,900,000 | $ 12,700,000 | $ 54,000,000 | $ 16,200,000 | |
Unrecognized compensation expense | 132,400,000 | 132,400,000 | |||
Continuing Operations | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 21,500,000 | 12,100,000 | 43,100,000 | 15,400,000 | |
Total equity grant to employees | $ 150,000,000 | ||||
Number of employees granted equity awards | employee | 16 | ||||
Discontinued Operations | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 8,400,000 | $ 600,000 | 10,900,000 | $ 800,000 | |
Discontinued Operations | 2013 Stock Incentive Plan and 2017 Omnibus Incentive Plan | Former Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 3,800,000 | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting/performance period | 2 years | ||||
Equity Awards | Continuing Operations | 2013 Stock Incentive Plan and 2017 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 42,900,000 | ||||
Equity Awards | Discontinued Operations | 2013 Stock Incentive Plan and 2017 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 7,100,000 | ||||
Stock Appreciation Rights (SARs) | Continuing Operations | 2013 Stock Incentive Plan and 2017 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase (decrease) in liabilities | 200,000 | ||||
Equity Awards - Founders Grant | Continuing Operations | 2013 Stock Incentive Plan and 2017 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 28,900,000 | ||||
Equity Awards - Founders Grant | Discontinued Operations | 2013 Stock Incentive Plan and 2017 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 5,400,000 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award expiration period | 10 years | ||||
Stock Options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting/performance period | 4 years | ||||
Stock Options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting/performance period | 5 years | ||||
Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting/performance period | 3 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 29.9 | $ 12.7 | $ 54 | $ 16.2 |
Discontinued Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 8.4 | 0.6 | 10.9 | 0.8 |
Continuing Operations | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 21.5 | $ 12.1 | $ 43.1 | $ 15.4 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Stock Option Awards (Details) - Stock Options shares in Thousands | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Balance at beginning of period (in shares) | shares | 7,742 |
Granted (in shares) | shares | 758 |
Exercised or settled (in shares) | shares | (800) |
Forfeited (in shares) | shares | (209) |
Expired (in shares) | shares | (5) |
Balance at end of period (in shares) | shares | 7,486 |
Vested (in shares) | shares | 5,041 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Balance at beginning of period (in usd per share) | $ / shares | $ 18.47 |
Granted (in usd per share) | $ / shares | 45.58 |
Exercised or settled (in usd per share) | $ / shares | 16.83 |
Forfeited (in usd per share) | $ / shares | 30.57 |
Expired (in usd per share) | $ / shares | 9.07 |
Balance at end of period (in usd per share) | $ / shares | 21.06 |
Vested (in usd per share) | $ / shares | $ 15.69 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Assumptions Used to Estimate Fair Value of Options Granted (Details) - Stock Options | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected life of options (in years) | 6 years 3 months 18 days | 6 years 3 months 18 days |
Expected dividend rate (as a percent) | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk-free interest rate (as a percent) | 0.90% | 0.40% |
Assumed volatility (as a percent) | 39.10% | 24.60% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk-free interest rate (as a percent) | 1.10% | 1.50% |
Assumed volatility (as a percent) | 39.40% | 41.10% |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Restricted Stock Unit Awards (Details) - Restricted Stock Units shares in Thousands | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Shares [Roll Forward] | |
Balance at beginning of period (in shares) | shares | 5,546 |
Granted (in shares) | shares | 326 |
Vested (in shares) | shares | (711) |
Forfeited (in shares) | shares | (532) |
Balance at end of period (in shares) | shares | 4,629 |
Weighted-Average Grant-Date Fair Value [Abstract] | |
Balance at beginning of period (in usd per share) | $ / shares | $ 33.09 |
Granted (in usd per share) | $ / shares | 45.58 |
Vested (in usd per share) | $ / shares | 30.30 |
Forfeited (in usd per share) | $ / shares | 34.15 |
Balance at end of period (in usd per share) | $ / shares | $ 34.28 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Performance Share Unit Awards (Details) - Performance Share Units shares in Thousands | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Shares [Roll Forward] | |
Balance at beginning of period (in shares) | shares | 255 |
Granted (in shares) | shares | 158 |
Forfeited (in shares) | shares | (20) |
Balance at end of period (in shares) | shares | 393 |
Weighted-Average Grant-Date Fair Value [Abstract] | |
Balance at beginning of period (in usd per share) | $ / shares | $ 29.72 |
Granted (in usd per share) | $ / shares | 55.84 |
Forfeited (in usd per share) | $ / shares | 36.36 |
Balance at end of period (in usd per share) | $ / shares | $ 39.89 |
Stock-Based Compensation Plan_8
Stock-Based Compensation Plans - Performance Share Unit Fair Value Assumptions (Details) - Performance Share Units | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 2 years 10 months 24 days | 2 years 9 months 18 days |
Risk-free interest rate (as a percent) | 0.20% | 0.50% |
Assumed volatility (as a percent) | 36.90% | 35.20% |
Expected dividend rate (as a percent) | 0.00% | 0.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Balances (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Before-Tax Amount | ||||
Foreign currency translation adjustments, net | $ 51 | $ 41.9 | $ (56.2) | $ (47.7) |
Unrecognized gains on cash flow hedges, net | 0 | 7.3 | 0 | 8.8 |
Pension and other postretirement benefit prior service cost and gain or loss, net | 1.5 | 0.4 | 3 | 3.9 |
Other comprehensive income (loss) | 52.5 | 49.6 | (53.2) | (35) |
Tax Benefit or (Expense) | ||||
Foreign currency translation adjustments, net | (1.9) | 3 | 5.5 | 0.4 |
Unrecognized gains on cash flow hedges, net | 0 | (1.8) | 0 | (2.1) |
Pension and other postretirement benefit prior service cost and gain or loss, net | (0.2) | 0.1 | (0.5) | (0.5) |
Other comprehensive income (loss) | (2.1) | 1.3 | 5 | (2.2) |
Net of Tax Amount | ||||
Foreign currency translation adjustments, net | 49.1 | 44.9 | (50.7) | (47.3) |
Unrecognized gains on cash flow hedges, net | 0 | 5.5 | 0 | 6.7 |
Pension and other postretirement benefit prior service cost and gain or loss, net | 1.3 | 0.5 | 2.5 | 3.4 |
Total other comprehensive income (loss), net of tax | 50.4 | 50.9 | (48.2) | (37.2) |
Other comprehensive income, net of tax [Abstract] | ||||
Other comprehensive income (loss), net of tax, attributable to noncontrolling interest | $ (1.2) | $ (0.4) | $ (2.3) | $ (4.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Changes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 9,119.7 | |||
Other comprehensive income (loss) before reclassifications | (50.1) | $ (48.2) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 1.9 | 11 | ||
Total other comprehensive income (loss), net of tax | $ 50.4 | $ 50.9 | (48.2) | (37.2) |
Divestiture of foreign subsidiaries | (1.5) | (1.5) | ||
Balance at end of period | 9,277.9 | 9,277.9 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 14.2 | (256) | ||
Divestiture of foreign subsidiaries | (1.5) | (1.5) | ||
Balance at end of period | (35.5) | (293.2) | (35.5) | (293.2) |
Foreign Currency Translation Adjustments, Net | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 74.6 | (193.6) | ||
Other comprehensive income (loss) before reclassifications | (50.7) | (47.3) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | (50.7) | (47.3) | ||
Divestiture of foreign subsidiaries | (1.5) | |||
Balance at end of period | 22.4 | (240.9) | 22.4 | (240.9) |
Unrecognized Gains (Losses) on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 0 | (10.9) | ||
Other comprehensive income (loss) before reclassifications | 0 | (3.2) | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 9.9 | ||
Total other comprehensive income (loss), net of tax | 0 | 6.7 | ||
Divestiture of foreign subsidiaries | 0 | |||
Balance at end of period | 0 | (4.2) | 0 | (4.2) |
Pension and Other Postretirement Benefit Plans | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (60.4) | (51.5) | ||
Other comprehensive income (loss) before reclassifications | 0.6 | 2.3 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 1.9 | 1.1 | ||
Total other comprehensive income (loss), net of tax | 2.5 | 3.4 | ||
Divestiture of foreign subsidiaries | 0 | |||
Balance at end of period | $ (57.9) | $ (48.1) | $ (57.9) | $ (48.1) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Interest expense | $ 22.7 | $ 30.8 | $ 45.8 | $ 57.9 |
Benefit for income taxes | (12.5) | (78.4) | (23.1) | (11.5) |
Net income (loss) attributable to parent | $ 233.9 | $ (177.6) | 143.5 | (214.4) |
Reclassification out of Accumulated Other Comprehensive (Loss) Income | ||||
Income Statement [Abstract] | ||||
Net income (loss) attributable to parent | 1.9 | 11 | ||
Unrecognized Gains (Losses) on Cash Flow Hedges | Reclassification out of Accumulated Other Comprehensive (Loss) Income | ||||
Income Statement [Abstract] | ||||
Interest expense | 0 | 13.2 | ||
Benefit for income taxes | 0 | (3.3) | ||
Net income (loss) attributable to parent | 0 | 9.9 | ||
Pension and Other Postretirement Benefit Plans | Reclassification out of Accumulated Other Comprehensive (Loss) Income | ||||
Income Statement [Abstract] | ||||
Cost of sales and Selling and administrative expenses | 2.6 | 1.5 | ||
Benefit for income taxes | (0.7) | (0.4) | ||
Net income (loss) attributable to parent | $ 1.9 | $ 1.1 |
Hedging Activities, Derivativ_3
Hedging Activities, Derivative Instruments and Fair Value Measurements - Narrative (Details) € in Millions, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2021USD ($)contractContract | Jun. 30, 2021EUR (€)contractContract | Jun. 30, 2020USD ($) | Feb. 28, 2020EUR (€) | Aug. 17, 2017EUR (€) | |
Derivatives, Fair Value [Line Items] | |||||
Amount of hedged item | € | € 615 | ||||
Euro Term Loan | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of hedged item | € | € 593.6 | € 601.2 | |||
LIBOR | |||||
Derivatives, Fair Value [Line Items] | |||||
Long-term debt | $ 3,188.2 | € 593.6 | |||
Foreign Currency Forward Contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Number of derivatives held | contract | 7 | 7 | |||
Foreign Currency Forward Contracts | Maximum | |||||
Derivatives, Fair Value [Line Items] | |||||
Term of derivative contract | 1 year | ||||
Notional amount of derivative | $ 48.4 | ||||
Foreign Currency Forward Contracts | Minimum | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional amount of derivative | $ 10.8 | ||||
Interest Rate Swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Number of derivatives held | Contract | 0 | 0 | |||
Balance included in accumulated other comprehensive (loss) income | $ 43.9 | $ 74.9 |
Hedging Activities, Derivativ_4
Hedging Activities, Derivative Instruments and Fair Value Measurements - Balance Sheets (Details) - Derivatives Not Designated as Hedging Instruments - Fair Value - Foreign currency forwards - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivative | $ 78.3 | $ 230.5 |
Fair Value Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets fair value | 0.4 | 2.9 |
Fair Value Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets fair value | 0 | 0 |
Fair Value Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities fair value | 0 | 0 |
Fair Value Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities fair value | 0 | 0 |
Notional amount of derivative | 100.6 | 51.2 |
Fair Value Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets fair value | 0 | 0 |
Fair Value Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Assets fair value | 0 | 0 |
Fair Value Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities fair value | 0.8 | 0.7 |
Fair Value Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities fair value | $ 0 | $ 0 |
Hedging Activities, Derivativ_5
Hedging Activities, Derivative Instruments and Fair Value Measurements - Comprehensive Income (Loss) (Details) - Interest Rate Swaps - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Gains and Losses on Derivatives Designated as Cash Flow Hedges [Abstract] | ||||
Loss recognized in AOCI on derivatives | $ 0 | $ (0.6) | $ 0 | $ (4.3) |
Loss reclassified from AOCI into income (effective portion) | $ 0 | $ (7.9) | $ 0 | $ (13.2) |
Hedging Activities, Derivativ_6
Hedging Activities, Derivative Instruments and Fair Value Measurements - Derivative Instruments not Designated as Accounting Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||||
Total foreign currency transaction gains (losses), net | $ (3.4) | $ (4.9) | $ 14.7 | $ (6.9) |
Foreign currency forward contracts gains (losses) | ||||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net [Abstract] | ||||
Total foreign currency transaction gains (losses), net | $ 0.7 | $ 0.5 | $ (0.1) | $ (2.1) |
Hedging Activities, Derivativ_7
Hedging Activities, Derivative Instruments and Fair Value Measurements - Gains (Losses), Net of Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Gain, net of income tax, recorded through other comprehensive income | $ (5.7) | $ (9.1) | $ 13.2 | $ 0.9 |
Hedging Activities, Derivativ_8
Hedging Activities, Derivative Instruments and Fair Value Measurements - Fair Value Measurements (Details) - Recurring - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Financial Assets | ||
Foreign currency forwards | $ 0.4 | $ 2.9 |
Trading securities held in deferred compensation plan | 11.2 | 9.1 |
Total | 11.6 | 12 |
Financial Liabilities | ||
Foreign currency forwards | 0.8 | 0.7 |
Deferred compensation plans | 25.1 | 25.7 |
Total | 25.9 | 26.4 |
Level 1 | ||
Financial Assets | ||
Foreign currency forwards | 0 | 0 |
Trading securities held in deferred compensation plan | 11.2 | 9.1 |
Total | 11.2 | 9.1 |
Financial Liabilities | ||
Foreign currency forwards | 0 | 0 |
Deferred compensation plans | 25.1 | 25.7 |
Total | 25.1 | 25.7 |
Level 2 | ||
Financial Assets | ||
Foreign currency forwards | 0.4 | 2.9 |
Trading securities held in deferred compensation plan | 0 | 0 |
Total | 0.4 | 2.9 |
Financial Liabilities | ||
Foreign currency forwards | 0.8 | 0.7 |
Deferred compensation plans | 0 | 0 |
Total | 0.8 | 0.7 |
Level 3 | ||
Financial Assets | ||
Foreign currency forwards | 0 | 0 |
Trading securities held in deferred compensation plan | 0 | 0 |
Total | 0 | 0 |
Financial Liabilities | ||
Foreign currency forwards | 0 | 0 |
Deferred compensation plans | 0 | 0 |
Total | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,279.1 | $ 1,025.4 | $ 2,408.6 | $ 1,642.2 |
Revenue Recognized at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,190.9 | 945.9 | 2,253.6 | 1,518.2 |
Revenue Recognized Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 88.2 | 79.5 | 155 | 124 |
Original equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 822.2 | 671.1 | 1,529.6 | 1,073.3 |
Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 456.9 | 354.3 | 879 | 568.9 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 565.1 | 453.9 | 1,080 | 730.5 |
U.S. Plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 495 | 373.5 | 946.2 | 599.9 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70.1 | 80.4 | 133.8 | 130.6 |
EMEIA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 419.4 | 310.8 | 818.9 | 552.3 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 294.6 | 260.7 | 509.7 | 359.4 |
Industrial Technologies and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,047.5 | 829.6 | 1,961.3 | 1,333.6 |
Industrial Technologies and Services | Revenue Recognized at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 959.9 | 750.1 | 1,807.8 | 1,209.6 |
Industrial Technologies and Services | Revenue Recognized Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 87.6 | 79.5 | 153.5 | 124 |
Industrial Technologies and Services | Original equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 623.7 | 502 | 1,152.4 | 805.2 |
Industrial Technologies and Services | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 423.8 | 327.6 | 808.9 | 528.4 |
Industrial Technologies and Services | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 458.5 | 360.3 | 871.8 | 582.7 |
Industrial Technologies and Services | U.S. Plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 391.9 | 289.8 | 745 | 466.9 |
Industrial Technologies and Services | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 66.6 | 70.5 | 126.8 | 115.8 |
Industrial Technologies and Services | EMEIA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 336.3 | 247.1 | 655.7 | 447.7 |
Industrial Technologies and Services | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 252.7 | 222.2 | 433.8 | 303.2 |
Precision and Science Technologies | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 231.6 | 195.8 | 447.3 | 308.6 |
Precision and Science Technologies | Revenue Recognized at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 231 | 195.8 | 445.8 | 308.6 |
Precision and Science Technologies | Revenue Recognized Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0.6 | 0 | 1.5 | 0 |
Precision and Science Technologies | Original equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 198.5 | 169.1 | 377.2 | 268.1 |
Precision and Science Technologies | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33.1 | 26.7 | 70.1 | 40.5 |
Precision and Science Technologies | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 106.6 | 93.6 | 208.2 | 147.8 |
Precision and Science Technologies | U.S. Plans | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 103.1 | 83.7 | 201.2 | 133 |
Precision and Science Technologies | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3.5 | 9.9 | 7 | 14.8 |
Precision and Science Technologies | EMEIA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 83.1 | 63.7 | 163.2 | 104.6 |
Precision and Science Technologies | Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 41.9 | $ 38.5 | $ 75.9 | $ 56.2 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Remaining Performance Obligation (Details) $ in Millions | Jun. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 429.4 |
Remaining performance obligation, expected timing of satisfaction | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 390.6 |
Remaining performance obligation, expected timing of satisfaction |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Abstract] | ||
Accounts receivable, net | $ 935.8 | $ 861.8 |
Contract assets | 52.3 | 60.4 |
Contract liabilities | $ 190.5 | $ 166.2 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of the period | $ 49.2 | $ 50.9 |
Provision charged to expense | 1.3 | 1.6 |
Write-offs, net of recoveries | (1.7) | (2.7) |
Foreign currency translation and other | 0.5 | (0.5) |
Balance at end of the period | $ 49.3 | $ 49.3 |
Income Taxes - Summary (Details
Income Taxes - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before income taxes | $ 151.5 | $ (73.5) | $ 252.2 | $ (181.7) |
Provision for income taxes | $ 12.5 | $ 78.4 | $ 23.1 | $ 11.5 |
Effective income tax provision rate (as a percent) | 8.30% | (106.70%) | 9.20% | (6.30%) |
Other Operating Expense, Net -
Other Operating Expense, Net - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Operating Expense, Net [Abstract] | ||||
Foreign currency transaction losses (gains), net | $ 3.4 | $ 4.9 | $ (14.7) | $ 6.9 |
Restructuring charges, net | 6.8 | 29.4 | 9.2 | 67.4 |
Acquisition and other transaction related expenses | 15.3 | 12.8 | 23.6 | 67.8 |
Other, net | (0.4) | 1 | 1.3 | 2.5 |
Total other operating expense, net | $ 25.1 | $ 48.1 | $ 19.4 | $ 144.6 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Loss Contingencies [Line Items] | ||
Undiscounted accrued liabilities for environmental loss contingencies | $ 13.4 | $ 13.7 |
Asbestos and Silica Related Litigation | ||
Loss Contingencies [Line Items] | ||
Estimated litigation liability | 127.5 | 131.4 |
Insurance recovery receivable | $ 132.1 | $ 132.1 |
Segment Results - Narrative (De
Segment Results - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Results - Summary (Deta
Segment Results - Summary (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Increase to revenue as a result of deferred revenue fair value adjustment, net of tax | $ 1,279.1 | $ 1,025.4 | $ 2,408.6 | $ 1,642.2 |
Adjusted EBITDA | 329.7 | 243.1 | 608.4 | 370.8 |
Less items to reconcile Segment Adjusted EBITDA to Income (Loss) Before Income Taxes: | ||||
Interest expense | 22.7 | 30.8 | 45.8 | 57.9 |
Restructuring and related business transformation costs | 6.7 | 31 | 9.4 | 69.6 |
Acquisition and other transaction related expenses and non-cash charges | 15.3 | 12.8 | 23.6 | 67.8 |
Stock-based compensation | 43.1 | 15.4 | ||
Foreign currency transaction losses, net | 3.4 | 4.9 | (14.7) | 6.9 |
Loss on extinguishment of debt | 0 | 0 | 0 | 2 |
Income (Loss) from Continuing Operations Before Income Taxes | 151.5 | (73.5) | 252.2 | (181.7) |
Provision for income taxes | 12.5 | 78.4 | 23.1 | 11.5 |
Loss on equity method investments | (0.7) | 0 | (0.7) | 0 |
Income (Loss) from Continuing Operations | 138.3 | (151.9) | 228.4 | (193.2) |
Income (loss) from discontinued operations, net of tax | 96.3 | (24.6) | (83.9) | (20.2) |
Net Income (Loss) | 234.6 | (176.5) | 144.5 | (213.4) |
Depreciation of rental equipment | 1 | 0.4 | 2 | 0.9 |
Restructuring Costs [Abstract] | ||||
Restructuring charges | 6.8 | 29.4 | 9.2 | 67.4 |
Facility reorganization, relocation and other costs | 0 | 0.1 | 0 | 0.5 |
Other, net | (0.1) | 1.5 | 0.2 | 1.7 |
Total restructuring and related business transformation costs | 6.7 | 31 | 9.4 | 69.6 |
Stock-based compensation expense recognized in continuing operations | 21.5 | 12.1 | 43.1 | 15.4 |
Increase in stock-based compensation expense due to costs associated with employer taxes | (0.5) | |||
Industrial Technologies and Services | ||||
Segment Reporting [Abstract] | ||||
Increase to revenue as a result of deferred revenue fair value adjustment, net of tax | 1,047.5 | 829.6 | 1,961.3 | 1,333.6 |
Precision and Science Technologies | ||||
Segment Reporting [Abstract] | ||||
Increase to revenue as a result of deferred revenue fair value adjustment, net of tax | 231.6 | 195.8 | 447.3 | 308.6 |
Operating Segments | Industrial Technologies and Services | ||||
Segment Reporting [Abstract] | ||||
Increase to revenue as a result of deferred revenue fair value adjustment, net of tax | 1,047.5 | 829.6 | 1,961.3 | 1,333.6 |
Adjusted EBITDA | 258.6 | 183.8 | 470.1 | 278.6 |
Operating Segments | Precision and Science Technologies | ||||
Segment Reporting [Abstract] | ||||
Increase to revenue as a result of deferred revenue fair value adjustment, net of tax | 231.6 | 195.8 | 447.3 | 308.6 |
Adjusted EBITDA | 71.1 | 59.3 | 138.3 | 92.2 |
Corporate expenses not allocated to segments | ||||
Less items to reconcile Segment Adjusted EBITDA to Income (Loss) Before Income Taxes: | ||||
Corporate expenses not allocated to segments | 37.6 | 25.6 | 72.3 | 41.1 |
Segment Reconciling Items | ||||
Less items to reconcile Segment Adjusted EBITDA to Income (Loss) Before Income Taxes: | ||||
Interest expense | 22.7 | 30.8 | 45.8 | 57.9 |
Depreciation and amortization expenses | 101.3 | 118.9 | 205.8 | 177.9 |
Restructuring and related business transformation costs | 6.7 | 31 | 9.4 | 69.6 |
Acquisition and other transaction related expenses and non-cash charges | 14.3 | 90.3 | 24.8 | 179.8 |
Stock-based compensation | 21.5 | 12.1 | 43.1 | 14.9 |
Foreign currency transaction losses, net | 3.4 | 4.9 | (14.7) | 6.9 |
Loss on extinguishment of debt | 0 | 0 | 0 | 2 |
Gain on settlement of post-acquisition contingencies | (30.1) | 0 | (30.1) | 0 |
Other adjustments | 0.8 | 3 | (0.2) | 2.4 |
Income (Loss) from Continuing Operations Before Income Taxes | 151.5 | (73.5) | 252.2 | (181.7) |
Restructuring Costs [Abstract] | ||||
Total restructuring and related business transformation costs | $ 6.7 | $ 31 | $ 9.4 | $ 69.6 |
Related Party Transactions (Det
Related Party Transactions (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2021EUR (€)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | |
KKR | ||||
Related Party Transaction [Line Items] | ||||
Expenses with related party | $ 0.8 | $ 7.5 | ||
KKR | Lender in Senior Secured Credit Facilities | Euro Term Loan Facility | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction amount | € | € 38.2 | |||
KKR | Lender in Senior Secured Credit Facilities | Dollar Term Loan B Facility | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction amount | $ 39.5 | |||
KKR | Ingersoll Rand | Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Stock owned by non-controlling owners (in shares) | shares | 29,788,635 | 29,788,635 | ||
Ownership interest by non-controlling owners (as a percent) | 7.00% | 7.00% |
Earnings (Loss) Per Share - Sum
Earnings (Loss) Per Share - Summary (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Average shares outstanding | ||||
Basic (shares) | 419.9 | 417 | 419.5 | 347.2 |
Diluted (shares) | 426.8 | 417 | 426.4 | 347.2 |
Earnings (Loss) Per Share - Nar
Earnings (Loss) Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings (loss) per share (shares) | 0.8 | 3.8 | 0.7 | 3.9 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions, $ in Millions | Jul. 30, 2021CAD ($) | Jun. 30, 2021USD ($) |
Subsequent Event [Line Items] | ||
Cash consideration for acquisition | $ 215.8 | |
Subsequent Event | Maximus Solutions | ||
Subsequent Event [Line Items] | ||
Cash consideration for acquisition | $ 135.4 |
Uncategorized Items - iri-20210
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |