Company Quick10K Filing
Gardner Denver Holdings
Price28.68 EPS1
Shares209 P/E45
MCap5,994 P/FCF25
Net Debt1,195 EBIT232
TEV7,189 TEV/EBIT31
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-04
10-Q 2020-03-31 Filed 2020-05-15
10-K 2019-12-31 Filed 2020-02-26
10-Q 2019-09-30 Filed 2019-10-30
10-Q 2019-06-30 Filed 2019-08-02
10-Q 2019-03-31 Filed 2019-04-30
10-K 2018-12-31 Filed 2019-02-27
10-Q 2018-09-30 Filed 2018-10-29
10-Q 2018-06-30 Filed 2018-08-03
S-1 2018-04-30 Public Filing
10-Q 2018-03-31 Filed 2018-04-27
10-K 2017-12-31 Filed 2018-02-16
10-Q 2017-09-30 Filed 2017-10-27
10-Q 2017-06-30 Filed 2017-08-04
8-K 2020-08-03 Earnings, Exhibits
8-K 2020-06-29 Enter Agreement, Off-BS Arrangement, Exhibits
8-K 2020-06-16
8-K 2020-06-16
8-K 2020-06-16
8-K 2020-06-12
8-K 2020-06-05
8-K 2020-06-05
8-K 2020-05-12
8-K 2020-05-01
8-K 2020-04-15
8-K 2020-02-28
8-K 2020-02-21
8-K 2020-02-17
8-K 2020-02-13
8-K 2020-01-30
8-K 2020-01-27
8-K 2019-12-12
8-K 2019-10-28
8-K 2019-10-03
8-K 2019-07-31
8-K 2019-06-29
8-K 2019-06-28
8-K 2019-05-09
8-K 2019-04-30
8-K 2019-04-30
8-K 2019-04-30
8-K 2019-02-19
8-K 2018-12-18
8-K 2018-12-13
8-K 2018-11-28
8-K 2018-10-31
8-K 2018-10-25
8-K 2018-10-24
8-K 2018-09-11
8-K 2018-08-01
8-K 2018-05-10
8-K 2018-05-02
8-K 2018-04-26
8-K 2018-02-15
8-K 2018-02-07
8-K 2018-01-05

GDI 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1. Basis of Presentation and Recent Accounting Pronouncements
Note 2. Business Combinations
Note 3. Restructuring
Note 4. Inventories
Note 5. Goodwill and Other Intangible Assets
Note 6. Accrued Liabilities
Note 7. Benefit Plans
Note 8. Debt
Note 9. Stock - Based Compensation Plan
Note 10. Accumulated Other Comprehensive (Loss) Income
Note 11. Hedging Activities and Fair Value Measurements
Note 12. Revenue From Contracts with Customers
Note 13. Income Taxes
Note 14. Supplemental Information
Note 15. Contingencies
Note 16. Segment Results
Note 17. Related Party Transactions
Note 18. (Loss) Earnings per Share
Note 19. Subsequent Events
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.2 ex10_2.htm
EX-31.1 ex31_1.htm
EX-31.2 ex31_2.htm
EX-32.1 ex32_1.htm
EX-32.2 ex32_2.htm

Gardner Denver Holdings Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
4.83.82.91.91.00.02017201820192020
Assets, Equity
0.70.50.30.2-0.0-0.22017201820192020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22017201820192020
Ops, Inv, Fin


 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020
or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________to___________
Commission File Number: 001-38095

Ingersoll Rand Inc.
(Exact Name of Registrant as Specified in Its Charter)

Delaware
 
46-2393770
(State or Other Jurisdiction of Incorporation or Organization)
 
(I.R.S. Employer Identification No.)

800-A Beaty Street
Davidson, North Carolina 28036
(Address of Principal Executive Offices) (Zip Code)

(704) 655-4000
(Registrant’s Telephone Number, Including Area Code)


Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Stock, $0.01 Par Value per share
IR
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes     No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
Accelerated filer
       
Non-accelerated filer
 
Smaller reporting company
       
Emerging growth Company
   

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No 

The registrant had outstanding 417,059,081 shares of Common Stock, par value $0.01 per share, as of July 31, 2020.





INGERSOLL RAND INC. AND SUBSIDIARIES

FORM 10-Q

INDEX

Page
No.
PART I. FINANCIAL INFORMATION
 
6
39
58
59
PART II. OTHER INFORMATION
 
59
60
60
60
60
60
61
62


2


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to historical information, this Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which are subject to the “safe harbor” created by those sections.  All statements, other than statements of historical facts included in this Form 10-Q, including statements concerning our plans, objectives, goals, beliefs, business strategies, future events, business conditions, results of operations, financial position, business outlook, business trends and other information, may be forward-looking statements.  Words such as “estimates,” “expects,” “contemplates,” “will,” “anticipates,” “projects,” “plans,” “intends,” “believes,” “forecasts,” “may,” “should” and variations of such words or similar expressions are intended to identify forward-looking statements.  The forward-looking statements are not historical facts, and are based upon our current expectations, beliefs, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond our control.  Our expectations, beliefs, estimates and projections are expressed in good faith and we believe there is a reasonable basis for them.  However, there can be no assurance that management’s expectations, beliefs, estimates and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

There are a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from the forward-looking statements contained in this Form 10-Q.  Such risks, uncertainties and other important factors that could cause actual results to differ include, among others, the risks, uncertainties and factors set forth under “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and “Part II. Item 1A. Risk Factors” in our quarterly report on Form 10-Q for the quarterly period ended March 31, 2020, as such risk factors may be updated from time to time in our periodic filings with the SEC, and are accessible on the SEC’s website at www.sec.gov, and also include the following:

The COVID-19 pandemic has adversely affected our business and results of operations, and could have a material and adverse effect on our business, results of operations and financial condition in the future;

The anticipated benefits of our acquisition of the Ingersoll Rand Industrial business may not be realized fully or at all, may take longer to realize than expected and the integration process will be complex, costly and time-consuming, which could adversely affect our business, financial results and financial condition.

We have exposure to the risks associated with instability in the global economy and financial markets, which may negatively impact our revenues, liquidity, suppliers and customers.

More than half of our sales and operations are in non-U.S. jurisdictions and we are subject to the economic, political, regulatory and other risks of international operations.

Our revenues and operating results, especially in the High Pressure Solutions segment, depend on the level of activity in the energy industry, which is significantly affected by volatile oil and gas prices.

Our results of operations are subject to exchange rate and other currency risks. A significant movement in exchange rates could adversely impact our results of operations and cash flows.

Potential governmental regulations restricting the use, and increased public attention to and litigation regarding the impacts, of hydraulic fracturing or other processes on which it relies could reduce demand for our products.

3



We face competition in the markets we serve, which could materially and adversely affect our operating results.

Large or rapid increases in the cost of raw materials and component parts, substantial decreases in their availability or our dependence on particular suppliers of raw materials and component parts could materially and adversely affect our operating results.

Our operating results could be adversely affected by a loss or reduction of business with key customers or consolidation or the vertical integration of our customer base.

Credit and counterparty risks could harm our business.

Acquisitions and integrating such acquisitions create certain risks and may affect our operating results.

The loss of, or disruption in, our distribution network could have a negative impact on our abilities to ship products, meet customer demand and otherwise operate our business.

Our ongoing and expected restructuring plans and other cost savings initiatives may not be as effective as we anticipate, and we may fail to realize the cost savings and increased efficiencies that we expect to result from these actions. Our operating results could be negatively affected by our inability to effectively implement such restructuring plans and other cost savings initiatives.

Our success depends on our executive management and other key personnel and our ability to attract and retain top talent throughout the Company.

If we are unable to develop new products and technologies, our competitive position may be impaired, which could materially and adversely affect our sales and market share.

Cost overruns, delays, penalties or liquidated damages could negatively impact our results, particularly with respect to fixed-price contracts for custom engineered products.

The risk of non-compliance with U.S. and foreign laws and regulations applicable to our international operations could have a significant impact on our results of operations, financial condition or strategic objectives.

Changes in tax or other laws, regulations, or adverse determinations by taxing or other governmental authorities could increase our effective tax rate and cash taxes paid or otherwise affect our financial condition or operating results.

A significant portion of our assets consists of goodwill and other intangible assets, the value of which may be reduced if we determine that those assets are impaired.

Our business could suffer if we experience employee work stoppages, union and work council campaigns or other labor difficulties.

We are a defendant in certain asbestos and silica-related personal injury lawsuits, which could adversely affect our financial condition.

A natural disaster, catastrophe, pandemic or other event could adversely affect our operations.

Information systems failure may disrupt our business and result in financial loss and liability to our customers.

The nature of our products creates the possibility of significant product liability and warranty claims, which could harm our business.

Environmental compliance costs and liabilities could adversely affect our financial condition.

4



Third parties may infringe upon our intellectual property or may claim we have infringed their intellectual property, and we may expend significant resources enforcing or defending our rights or suffer competitive injury.

We face risks associated with our pension and other postretirement benefit obligations.

Our substantial indebtedness could have important adverse consequences and adversely affect our financial condition.

We may not be able to generate sufficient cash to service all of our indebtedness, and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.

Despite our level of indebtedness, we and our subsidiaries may still be able to incur substantially more debt, including off-balance sheet financing, contractual obligations and general and commercial liabilities. This could further exacerbate the risks to our financial condition described above.

The terms of the credit agreement governing the Senior Secured Credit Facilities may restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.

Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase significantly.

We utilize derivative financial instruments to reduce our exposure to market risks from changes in interest rates on our variable rate indebtedness and we will be exposed to risks related to counterparty credit worthiness or non-performance of these instruments.

If the financial institutions that are part of the syndicate of our Revolving Credit Facility fail to extend credit under our facility or reduce the borrowing base under our Revolving Credit Facility, our liquidity and results of operations may be adversely affected.

The Company may face risk associated with the discontinuation of and transition from currently used financial reference rates.

We caution you that the risks, uncertainties and other factors referenced above may not contain all of the risks, uncertainties and other factors that are important to you.  In addition, we cannot assure you that we will realize the results, benefits or developments that we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our business in the way expected.  There can be no assurance that (i) we have correctly measured or identified all of the factors affecting our business or the extent of these factors’ likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct or (iv) our strategy, which is based in part on this analysis, will be successful.  All forward-looking statements in this report apply only as of the date of this report or as of the date they were made and, except as required by applicable law, we undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise.

All references to “we,” “us,” “our,” the “Company” or “Ingersoll Rand” in this Quarterly Report on Form 10-Q mean Ingersoll Rand Inc. and its subsidiaries, unless the context otherwise requires.

Website Disclosure

We use our website www.irco.com as a channel of distribution of Company information. Financial and other important information regarding us is routinely accessible through and posted on our website. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about Ingersoll Rand Inc. when you enroll your email address by visiting the “Email Alerts” section of our website at investors.irco.com. The contents of our website are not, however, a part of this Quarterly Report on Form 10-Q.

5




PART I.
FINANCIAL INFORMATION

ITEM 1.
FINANCIAL STATEMENTS

INGERSOLL RAND INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in millions, except per share amounts)

 
For the
Three Month
Period Ended
June 30,
   
For the
Six Month
Period Ended
June 30,
 
   
2020
   
2019
   
2020
   
2019
 
Revenues
 
$
1,264.4
   
$
629.1
   
$
2,064.3
   
$
1,249.4
 
Cost of sales
   
904.4
     
394.7
     
1,459.8
     
784.5
 
Gross Profit
   
360.0
     
234.4
     
604.5
     
464.9
 
Selling and administrative expenses
   
247.7
     
110.7
     
403.1
     
227.7
 
Amortization of intangible assets
   
114.6
     
30.9
     
169.8
     
62.3
 
Other operating expense, net
   
49.9
     
18.2
     
150.6
     
20.0
 
Operating (Loss) Income
   
(52.2
)
   
74.6
     
(119.0
)
   
154.9
 
Interest expense
   
30.8
     
22.4
     
57.9
     
44.8
 
Loss on extinguishment of debt
   
     
0.2
     
2.0
     
0.2
 
Other income, net
   
(2.3
)
   
(1.2
)
   
(2.5
)
   
(2.5
)
(Loss) Income Before Income Taxes
   
(80.7
)
   
53.2
     
(176.4
)
   
112.4
 
Provision for income taxes
   
95.8
     
8.3
     
37.0
     
20.3
 
Net (Loss) Income
   
(176.5
)
   
44.9
     
(213.4
)
   
92.1
 
Less: Net income attributable to noncontrolling interests
   
1.1
     
     
1.0
     
 
Net (Loss) Income Attributable to Ingersoll Rand Inc.
 
$
(177.6
)
 
$
44.9
   
$
(214.4
)
 
$
92.1
 
Basic (loss) earnings per share
 
$
(0.43
)
 
$
0.22
   
$
(0.62
)
 
$
0.45
 
Diluted (loss) earnings per share
 
$
(0.43
)
 
$
0.21
   
$
(0.62
)
 
$
0.44
 

The accompanying notes are an integral part of these condensed consolidated financial statements.
6



INGERSOLL RAND INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Unaudited)
(Dollars in millions)

 
For the Three Month
Period Ended
June 30,
   
For the Six Month
Period Ended
June 30,
 
   
2020
   
2019
   
2020
   
2019
 
Comprehensive (Loss) Income Attributable to Ingersoll Rand Inc.
                       
Net (loss) income attributable to Ingersoll Rand Inc.
 
$
(177.6
)
 
$
44.9
   
$
(214.4
)
 
$
92.1
 
Other comprehensive (loss) income, net of tax
                               
Foreign currency translation adjustments, net
   
44.9
     
(6.4
)
   
(47.3
)
   
(6.5
)
Unrecognized gain (loss) on cash flow hedges, net
   
5.5
     
(0.5
)
   
6.7
     
1.4
 
Pension and other postretirement prior service cost and gain or loss, net
   
0.5
     
1.2
     
3.4
     
1.4
 
Total other comprehensive income (loss), net of tax
   
50.9
     
(5.7
)
   
(37.2
)
   
(3.7
)
Comprehensive (loss) income attributable to Ingersoll Rand Inc.
 
$
(126.7
)
 
$
39.2
   
$
(251.6
)
 
$
88.4
 
Comprehensive Loss Attributable to Noncontrolling Interests
                               
Net income attributable to noncontrolling interests
 
$
1.1
   
$
   
$
1.0
   
$
 
Other comprehensive income, net of tax
                               
Foreign currency translation adjustments, net
   
(0.4
)
   
     
(4.4
)
   
 
Total other comprehensive loss, net of tax
   
(0.4
)
   
     
(4.4
)
   
 
Comprehensive income (loss) attributable to noncontrolling interests
   
0.7
     
     
(3.4
)
   
 
Total Comprehensive (Loss) Income
 
$
(126.0
)
 
$
39.2
   
$
(255.0
)
 
$
88.4
 

The accompanying notes are an integral part of these condensed consolidated financial statements.
7



INGERSOLL RAND INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in millions, except share and per share amounts)

 
June 30,
2020
   
December 31,
2019
 
Assets
           
Current assets:
           
Cash and cash equivalents
 
$
1,173.6
   
$
505.5
 
Accounts receivable, net of allowance for doubtful accounts of $65.6 and $18.4, respectively
   
922.2
     
459.1
 
Inventories
   
1,026.4
     
502.5
 
Other current assets
   
204.6
     
76.8
 
Total current assets
   
3,326.8
     
1,543.9
 
Property, plant and equipment, net of accumulated depreciation of $335.2 and $298.4, respectively
   
832.0
     
326.6
 
Goodwill
   
6,055.1
     
1,287.7
 
Other intangible assets, net
   
4,848.7
     
1,255.0
 
Deferred tax assets
   
13.7
     
3.0
 
Other assets
   
357.0
     
212.2
 
Total assets
 
$
15,433.3
   
$
4,628.4
 
Liabilities and Stockholders’ Equity
               
Current liabilities:
               
Short-term borrowings and current maturities of long-term debt
 
$
39.8
   
$
7.6
 
Accounts payable
   
683.5
     
322.9
 
Accrued liabilities
   
754.9
     
244.1
 
Total current liabilities
   
1,478.2
     
574.6
 
Long-term debt, less current maturities
   
3,816.7
     
1,603.8
 
Pensions and other postretirement benefits
   
271.1
     
99.7
 
Deferred income taxes
   
913.3
     
251.0
 
Other liabilities
   
312.2
     
229.4
 
Total liabilities
 
$
6,791.5
   
$
2,758.5
 
Commitments and contingencies (Note 15)
   
     
 
Stockholders’ equity
               
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 418,592,336 and 206,767,529 shares issued as of June 30, 2020 and December 31, 2019, respectively
   
4.2
     
2.1
 
Capital in excess of par value
   
9,256.5
     
2,302.0
 
Accumulated deficit
   
(356.8
)
   
(141.4
)
Accumulated other comprehensive loss
   
(293.2
)
   
(256.0
)
Treasury stock at cost; 1,633,875 and 1,701,785 shares as of June 30, 2020 and December 31, 2019, respectively
   
(35.8
)
   
(36.8
)
Total Ingersoll Rand Inc stockholders’ equity
 
$
8,574.9
   
$
1,869.9
 
Noncontrolling interests
   
66.9
     
 
Total stockholders’ equity
 
$
8,641.8
   
$
1,869.9
 
Total liabilities and stockholders’ equity
 
$
15,433.3
   
$
4,628.4
 

The accompanying notes are an integral part of these condensed consolidated financial statements.


8



INGERSOLL RAND INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(Dollars in millions)

 
For the Three Month
Period Ended
June 30,
 
   
2020
   
2019
 
Number of Common Shares Issued (in millions)
           
Balance at beginning of period
   
418.2
     
203.3
 
Issuance of common stock for stock-based compensation plans
   
0.4
     
2.4
 
Balance at end of period
   
418.6
     
205.7
 
Common Stock
               
Balance at beginning of period
 
$
4.2
   
$
2.0
 
Issuance of common stock for stock-based compensation plans
   
     
0.1
 
Balance at end of period
 
$
4.2
   
$
2.1
 
Capital in Excess of Par Value
               
Balance at beginning of period
 
$
9,241.5
   
$
2,289.3
 
Issuance of common stock for stock-based compensation plans
   
3.7
     
11.8
 
Issuance of treasury stock for stock-based compensation plans
   
(0.6
)
   
(16.0
)
Stock-based compensation
   
11.9
     
2.8
 
Balance at end of period
 
$
9,256.5
   
$
2,287.9
 
Accumulated Deficit
               
Balance at beginning of period
 
$
(179.2
)
 
$
(253.3
)
Net (loss) income attributable to Ingersoll Rand Inc.
   
(177.6
)
   
44.9
 
Balance at end of period
 
$
(356.8
)
 
$
(208.4
)
Accumulated Other Comprehensive Loss
               
Balance at beginning of period
 
$
(344.1
)
 
$
(253.2
)
Foreign currency translation adjustments, net
   
44.9
     
(6.4
)
Unrecognized gains (losses) on cash flow hedges, net
   
5.5
     
(0.5
)
Pension and other postretirement prior service cost and gain or loss, net
   
0.5
     
1.2
 
Balance at end of period
 
$
(293.2
)
 
$
(258.9
)
Treasury Stock
               
Balance at beginning of period
 
$
(36.2
)
 
$
(47.0
)
Purchases of treasury stock
   
(0.6
)
   
(8.6
)
Issuance of treasury stock for stock-based compensation plans
   
1.0
     
18.2
 
Balance at end of period
 
$
(35.8
)
 
$
(37.4
)
Total Ingersoll Rand Inc. Stockholders' Equity
 
$
8,574.9
   
$
1,785.3
 
Noncontrolling Interests
               
Balance at beginning of period
 
$
69.3
   
$
 
Net income attributable to noncontrolling interests
   
1.1
     
 
Foreign currency translation adjustments, net
   
(1.5
)
   
 
Adjustments for shares tendered in open offer (Note 1)
   
(2.0
)
   
 
Balance at end of period
 
$
66.9
   
$
 
Total Stockholders’ Equity
 
$
8,641.8
   
$
1,785.3
 

The accompanying notes are an integral part of these condensed consolidated financial statements.

9



INGERSOLL RAND INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(Dollars in millions)

 
For the Six Month
Period Ended
June 30,
 
   
2020
   
2019
 
Number of Common Shares Issued (in millions)
           
Balance at beginning of period
   
206.8
     
201.1
 
Issuance of common stock for stock-based compensation plans
   
0.8
     
4.6
 
Shares issued to acquire Ingersoll Rand Industrial
   
211.0
     
 
Balance at end of period
   
418.6
     
205.7
 
Common Stock
               
Balance at beginning of period
 
$
2.1
   
$
2.0
 
Issuance of common stock for stock-based compensation plans
   
     
0.1
 
Shares issued to acquire Ingersoll Rand Industrial
   
2.1
     
 
Balance at end of period
 
$
4.2
   
$
2.1
 
Capital in Excess of Par Value
               
Balance at beginning of period
 
$
2,302.0
   
$
2,282.7
 
Issuance of common stock for stock-based compensation plans
   
5.9
     
24.7
 
Issuance of treasury stock for stock-based compensation plans
   
(1.5
)
   
(25.2
)
Shares issued for Ingersoll Rand Industrial acquisition
   
6,917.4
     
 
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
     
 
Cost incurred to issue shares for Ingersoll Rand Industrial acquisition
   
(1.0
)
   
 
Stock-based compensation
   
16.2
     
5.7
 
Balance at end of period
 
$
9,256.5
   
$
2,287.9
 
Accumulated Deficit
               
Balance at beginning of period
 
$
(141.4
)
 
$
(308.7
)
Net (loss) income attributable to Ingersoll Rand Inc.
   
(214.4
)
   
92.1
 
Cumulative-effect adjustment upon adoption of new accounting standard (ASU 2018-02)
   
     
8.2
 
Cumulative-effect adjustment upon adoption of new accounting standard (ASU 2016-13)
   
(1.0
)
   
 
Balance at end of period
 
$
(356.8
)
 
$
(208.4
)
Accumulated Other Comprehensive Loss
               
Balance at beginning of period
 
$
(256.0
)
 
$
(247.0
)
Foreign currency translation adjustments, net
   
(47.3
)
   
(6.5
)
Unrecognized gains on cash flow hedges, net
   
6.7
     
1.4
 
Pension and other postretirement prior service cost and gain or loss, net
   
3.4
     
1.4
 
Cumulative-effect adjustment upon adoption of new accounting standard (ASU 2018-02)
   
     
(8.2
)
Balance at end of period
 
$
(293.2
)
 
$
(258.9
)
Treasury Stock
               
Balance at beginning of period
 
$
(36.8
)
 
$
(53.0
)
Purchases of treasury stock
   
(1.3
)
   
(17.1
)
Issuance of treasury stock for stock-based compensation plans
   
2.3
     
32.7
 
Balance at end of period
 
$
(35.8
)
 
$
(37.4
)
Total Ingersoll Rand Inc. Stockholders' Equity
 
$
8,574.9
   
$
1,785.3
 
Noncontrolling Interests
               
Balance at beginning of period
 
$
   
$
 
Noncontrolling interest from acquisition of Ingersoll Rand Industrial
   
72.3
     
 
Net income attributable to noncontrolling interests
   
1.0
     
 
Foreign currency translation adjustments, net
   
(4.4
)
   
 
Adjustments for shares tendered in open offer (Note 1)
   
(2.0
)
   
 
Balance at end of period
 
$
66.9
   
$
 
Total Stockholders’ Equity
 
$
8,641.8
   
$
1,785.3
 

The accompanying notes are an integral part of these condensed consolidated financial statements.
10



INGERSOLL RAND INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 (Dollars in millions)

 
For the
six month
period ended
June 30,
 
   
2020
   
2019
 
Cash Flows From Operating Activities:
           
Net (Loss) income
 
$
(213.4
)
 
$
92.1
 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
               
Amortization of intangible assets
   
169.8
     
62.3
 
Depreciation in cost of sales
   
41.7
     
22.8
 
Depreciation in selling and administrative expenses
   
5.3
     
4.8
 
Stock-based compensation expense
   
16.2
     
13.6
 
Foreign currency transaction losses, net
   
7.8
     
3.7
 
Deferred income taxes
   
25.1