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Ingersoll Rand Delivers Fourth-Quarter EPS From Continuing Operations Of $0.77

This news release includes “forward-looking statements,” which are statements that are not historical facts, including statements that relate to the mix of and demand for our products, performance of the markets in which we operate, the proposed spin-off of our commercial and residential security technologies businesses, our capital allocation strategy and our 2013 full-year and first-quarter financial performance. These forward-looking statements are based on our current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from our current expectations. Such factors include, but are not limited to, our ability to successfully, if ever, complete the proposed spin-off; our ability to fully realize the expected benefits of the proposed spin-off; global economic conditions, demand for our products and services and tax law changes. Additional factors that could cause such differences can be found in our Form 10-K for the year ended December 31, 2011, Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012, and in our other SEC filings. We assume no obligation to update these forward-looking statements.

This news release also includes adjusted non-GAAP financial information which should be considered supplemental to, not a substitute for or superior to, the financial measure calculated in accordance with GAAP. Further information about the adjusted non-GAAP financial information, including reconciliation to the nearest GAAP measure, is included in financial tables attached to this news release.

All amounts reported within the earnings release above related to net earnings (loss), earnings (loss) from continuing operations, earnings (loss) from discontinued operations, and per share amounts are attributed to Ingersoll Rand’s ordinary shareholders.

Ingersoll Rand (NYSE:IR) is a world leader in creating and sustaining safe, comfortable and efficient environments in commercial, residential and industrial markets. Our people and our family of brands—including Club Car®, Ingersoll Rand®, Schlage®, Thermo King® and Trane®—work together to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties, and increase industrial productivity and efficiency. We are a $14 billion global business committed to sustainable business practices within our company and for our customers. For more information, visit www.ingersollrand.com.

02/01/13(See Accompanying Tables)

  • Condensed Consolidated Income Statement
  • Segments
  • Non-GAAP Financial Tables
  • Condensed Consolidated Balance Sheet
  • Condensed Consolidated Statement of Cash Flow
  • Balance Sheet Metrics and Available Cash Flow
 
INGERSOLL-RAND PLC Condensed Consolidated Income Statement(In millions, except per share amounts)
 

UNAUDITED

                       
 

Three MonthsEnded December 31,

Twelve MonthsEnded December 31,
2012 2011 2012 2011
 
Net revenues $ 3,470.2 $ 3,506.7 $ 14,034.9 $ 14,782.0
 
Cost of goods sold (2,410.5 ) (2,505.9 ) (9,758.2 ) (10,493.6 )
 
Selling & administrative expenses (692.2 ) (666.3 ) (2,776.0 ) (2,781.2 )
 
Gain (loss) on sale / (asset impairment)   -     4.7     4.5     (646.9 )
 
Operating income 367.5 339.2 1,505.2 860.3
 
Interest expense (61.4 ) (70.2 ) (253.5 ) (280.0 )
 
Other income (expense), net   3.8     4.4     25.0     33.0  
 
Earnings (loss) before income taxes 309.9 273.4 1,276.7 613.3
 
Provision for income taxes   (69.0 )   (18.2 )   (227.0 )   (187.2 )
 
Earnings (loss) from continuing operations 240.9 255.2 1,049.7 426.1
 
Discontinued operations, net of tax   0.9     (7.2 )   (5.7 )   (56.8 )
 
Net earnings (loss) 241.8 248.0 1,044.0 369.3
 
Less: Net earnings attributable to noncontrolling interests   (6.2 )   (5.8 )   (25.4 )   (26.1 )
 
Net earnings (loss) attributable to Ingersoll-Rand plc $ 235.6   $ 242.2   $ 1,018.6   $ 343.2  
 
 

Amounts attributable to Ingersoll-Rand plc

ordinary shareholders:

Continuing operations $ 234.7 $ 249.4 $ 1,024.3 $ 400.0
Discontinued operations   0.9     (7.2 )   (5.7 )   (56.8 )
Net earnings (loss) $ 235.6   $ 242.2   $ 1,018.6   $ 343.2  
 
 

Diluted earnings (loss) per share attributable to

Ingersoll-Rand plc ordinary shareholders:

Continuing operations $ 0.77 $ 0.79 $ 3.30 $ 1.18
Discontinued operations   0.01     (0.03 )   (0.02 )   (0.17 )
$ 0.78   $ 0.76   $ 3.28   $ 1.01  
 
Weighted-average number of ordinary
shares outstanding:
Diluted 304.0 316.7 310.6 339.3
 
 

INGERSOLL-RAND PLC Business Review(In millions, except percentages)

 

UNAUDITED

                       
 
Three MonthsEnded December 31, Twelve MonthsEnded December 31,
2012 2011 2012 2011

Climate Solutions

Net revenues $ 1,838.5 $ 1,904.6 $ 7,409.1 $ 8,284.6
Segment operating income * 188.5 192.9 768.1 824.6 **
and as a % of Net revenues 10.3 % 10.1 % 10.4 % 10.0 %
 

Industrial Technologies

Net revenues 765.3 744.0 2,945.8 2,852.9
Segment operating income 123.3 113.9 455.8 415.5
and as a % of Net revenues 16.1 % 15.3 % 15.5 % 14.6 %
 

Residential Solutions

Net revenues 421.7 442.9 2,054.4 2,012.7
Segment operating income 29.0 (5.2 ) 115.4 62.1
and as a % of Net revenues 6.9 % -1.2 % 5.6 % 3.1 %
 

Security Technologies

Net revenues 444.7 415.2 1,625.6 1,631.8
Segment operating income 91.5 79.4 327.7 331.6
and as a % of Net revenues 20.6 % 19.1 % 20.2 % 20.3 %
 
Gain (loss) on sale / (asset impairment) - 4.7 4.5 (646.9 ) **
 
Unallocated corporate expense   (64.8 )   (46.5 )   (166.3 )   (126.6 )
 
Consolidated net revenues $ 3,470.2 $ 3,506.7 $ 14,034.9 $ 14,782.0
Consolidated operating income $ 367.5   $ 339.2   $ 1,505.2   $ 860.3  
and as a % of Net revenues 10.6 % 9.7 % 10.7 % 5.8 %
 
 

* Segment operating income is the measure of profit and loss that the Company uses to evaluate thefinancial performance of the business and as the basis for performance reviews, compensation andresource allocation. For these reasons, the Company believes that Segment operating income representsthe most relevant measure of segment profit and loss. The Company may exclude certain charges or gainsfrom Operating income to arrive at Segment operating income that is a more meaningful measure of profitand loss upon which to base its operating decisions.

 

** During the twelve months ended December 31, 2011, the Company recorded a pre-tax loss on sale andimpairment charges related to the Hussmann divestiture of approximately $647 million. These chargeshave been excluded from Segment operating income within the Climate Solutions segment.

 
 

INGERSOLL-RAND PLC Reconciliation of non-GAAP to GAAP(In millions, except per share amounts) UNAUDITED

                                     
For the quarter ended December 31, 2012 For the year ended December 31, 2012
As As As As
Reported   Adjustments Adjusted Reported   Adjustments Adjusted
 
Net revenues $ 3,470.2 $ - $ 3,470.2 $ 14,034.9 $ - $ 14,034.9
 
Operating income 367.5 - (a) 367.5 1,505.2 (4.5) (a) 1,500.7
Operating margin 10.6% 10.6% 10.7% 10.7%
 
Earnings from continuing operations
before income taxes 309.9 - (a) 309.9 1,276.7 (4.5) (a) 1,272.2
Provision for income taxes (69.0) (4.8) (b) (73.8) (227.0) 2.6 (b) (224.4)
Tax rate 22.3% 23.8% 17.8% 17.6%
Earnings from continuing operations
attributable to Ingersoll-Rand plc 234.7 (4.8) (c) 229.9 1,024.3 (1.9) (c) 1,022.4
 

Diluted earnings per common share

Continuing operations $ 0.77 $ (0.01) $ 0.76 $ 3.30 $ (0.01) $ 3.29
 
Weighted-average number of common
shares outstanding
Diluted 304.0 - 304.0 310.6 - 310.6
 

Detail of Adjustments:

(a) Adjustment to Hussmann loss on sale $ - $ (4.5)
(b) Tax impact of Hussmann divestiture (4.8) 2.6
(c) Impact of adjustments on earnings from
continuing operations attributable to
Ingersoll-Rand plc $ (4.8) $ (1.9)
 

The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). This supplemental schedule provides adjusted non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP.

 

The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.

 

We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations. We believe that it is meaningful to provide the relative impact of impairment charges and the corresponding tax impacts in order to present a better understanding of our results on a period to period comparative basis.

 

The non-GAAP financial measures for operating income and margin, tax rate and EPS assist investors with analyzing our business segment results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. They are the basis for performance reviews, compensation and resource allocation. We believe that the presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as management.

 

As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.

 

INGERSOLL-RAND PLC Reconciliation of non-GAAP to GAAP(In millions, except per share amounts) UNAUDITED

                                   
For the quarter ended December 31, 2011 For the year ended December 31, 2011
As As As As
Reported       Adjustments     Adjusted Reported         Adjustments       Adjusted
 
Net revenues $ 3,506.7 $ - $ 3,506.7 $ 14,782.0 $ - $ 14,782.0
 
Operating income 339.2 (4.7 ) (a) 334.5 860.3 646.9 (a) 1,507.2
Operating margin 9.7 % 9.5 % 5.8 % 10.2 %
 
Earnings (loss) from continuing operations
before income taxes 273.4 (4.7 ) (a) 268.7 613.3 646.9 (a) 1,260.2
Provision for income taxes (18.2 ) (4.7 ) (b) (22.9 ) (187.2 ) (88.9 ) (b) (276.1 )
Tax rate 6.7 % 8.5 % 30.5 % 21.9 %
Earnings (loss) from continuing operations
attributable to Ingersoll-Rand plc 249.4 (9.4 ) (c) 240.0 400.0 558.0 (c) 958.0
 

Diluted earnings per common share

Continuing operations $ 0.79 $ (0.03 ) $ 0.76 $ 1.18 $ 1.64 $ 2.82
 
Weighted-average number of common
shares outstanding
Diluted 316.7 - 316.7 339.3 - 339.3
 

Detail of Adjustments:

(a) Impairment charge related to Hussmann $ (4.7 ) $ 646.9
(b) Tax impact of Hussmann divestiture   (4.7 )   (88.9 )
(c) Impact of adjustments on earnings from
continuing operations attributable to
Ingersoll-Rand plc $ (9.4 ) $ 558.0  
 
 
The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). This supplemental schedule provides adjusted non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP.

 

The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.

 

We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations. We believe that it is meaningful to provide the relative impact of impairment charges and the corresponding tax impacts in order to present a better understanding of our results on a period to period comparative basis.

 

The non-GAAP financial measures for operating income and margin, tax rate and EPS assist investors with analyzing our business segment results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. They are the basis for performance reviews, compensation and resource allocation. We believe that the presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as management.

 

As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.

 

INGERSOLL-RAND PLC Reconciliation of non-GAAP to GAAP(In millions) UNAUDITED

                         
For the quarter ended December 31, 2012 For the year ended December 31, 2012
As Reported Margin As Reported Margin
Climate Solutions
Net revenues $ 1,838.5
 
Segment operating income $ 188.5 10.3 %
Other income (expense) (0.3 ) 0.0 %
Depreciation and amortization   40.0   2.1 %
EBITDA $ 228.2   12.4 %
 
Industrial Technologies
Net revenues $ 765.3
 
Segment operating income $ 123.3 16.1 %
Other income (expense) 0.8 0.1 %
Depreciation and amortization   12.2   1.6 %
EBITDA $ 136.3   17.8 %
 
Residential Solutions
Net revenues $ 421.7
 
Segment operating income $ 29.0 6.9 %
Other income (expense) 0.4 0.1 %
Depreciation and amortization   24.7   5.8 %
EBITDA $ 54.1   12.8 %
 
Security Technologies
Net revenues $ 444.7
 
Segment operating income $ 91.5 20.6 %
Other income (expense) 0.1 0.0 %
Depreciation and amortization   9.0   2.0 %
EBITDA $ 100.6   22.6 %
 
Total Company
Net revenues $ 3,470.2 $ 14,034.9
 
Adjusted operating income $ 367.5 10.6 % $ 1,500.7 10.7 %
Other income (expense) - 0.0 % - 0.0 %
Depreciation and amortization   90.1   2.6 %   375.5 2.7 %
EBITDA $ 457.6   13.2 % $ 1,876.2 13.4 %
 
The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). This supplemental schedule provides adjusted non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP.
 
The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.
 
We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations.
 
The non-GAAP financial measures of EBITDA and EBITDA margin assist investors with analyzing our business segment results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. They are the basis for performance reviews, compensation and resource allocation. We believe that the presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as management.
 
As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
 
 

INGERSOLL-RAND PLC Reconciliation of non-GAAP to GAAP(In millions) UNAUDITED

                               
For the quarter ended December 31, 2011    
As Reported Margin Hussmann As Adjusted Margin
Climate Solutions
Net revenues $ 1,904.6 $ 36.8 $ 1,867.8
 
Segment operating income $ 192.9 10.1 % $ 2.5 $ 190.4 10.2 %
Other income (expense) 0.9 0.0 % - 0.9 0.0 %
Depreciation and amortization   40.9   2.2 %   -   40.9   2.2 %
EBITDA $ 234.7   12.3 % $ 2.5 $ 232.2   12.4 %
 
Industrial Technologies
Net revenues $ 744.0
 
Segment operating income $ 113.9 15.3 %
Other income (expense) (2.1 ) -0.3 %
Depreciation and amortization   13.2   1.8 %
EBITDA $ 125.0   16.8 %
 
Residential Solutions
Net revenues $ 442.9
 
Segment operating income $ (5.2 ) -1.2 %
Other income (expense) 0.3 0.1 %
Depreciation and amortization   28.5   6.4 %
EBITDA $ 23.6   5.3 %
 
Security Technologies
Net revenues $ 415.2
 
Segment operating income $ 79.4 19.1 %
Other income (expense) 0.4 0.1 %
Depreciation and amortization   9.0   2.2 %
EBITDA $ 88.8   21.4 %
 
Total Company
Net revenues $ 3,506.7 $ 36.8 $ 3,469.9
 
Adjusted operating income $ 334.5 9.5 % $ 2.5 $ 332.0 9.6 %
Other income (expense) (1.6 ) 0.0 % - (1.6 ) -0.1 %
Depreciation and amortization   100.6   2.9 %   -   100.6   2.9 %
EBITDA $ 433.5   12.4 % $ 2.5 $ 431.0   12.4 %
 
 
The Company reports its financial results in accordance with generally accepted accounting principles in the
United States (GAAP). This supplemental schedule provides adjusted non-GAAP financial information and a
quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures
calculated and reported in accordance with GAAP.
 
The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to,
financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all
of the costs associated with the operations of our businesses as determined in accordance with GAAP. In
addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.
 
We believe the non-GAAP financial information provides important supplemental information to both management and
investors regarding financial and business trends used in assessing our financial condition and results of
operations.
 
The non-GAAP financial measures of EBITDA and EBITDA margin assist investors with analyzing
our business segment results as well as with predicting future performance. In addition, these non-GAAP financial
measures are also reviewed by management in order to evaluate the financial performance of each segment. They
are the basis for performance reviews, compensation and resource allocation. We believe that the presentation
of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same
basis as management.
 
As a result, one should not consider these measures in isolation or as a substitute for our results reported
under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP
basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
 
INGERSOLL-RAND PLC Reconciliation of non-GAAP to GAAP(In millions) UNAUDITED
                               

 

For the year ended December 31, 2011
As Reported Margin Hussmann As Adjusted Margin
 
Total Company
Net revenues $ 14,782.0 $ 818.5 $ 13,963.5

 

Adjusted operating income

$

1,507.2

10.2 % $ 58.6 $ 1,448.6 10.4 %
Other income (expense) - 0.0 % - - 0.0 %
Depreciation and amortization   402.7 2.7 %   -   402.7 2.9 %
EBITDA $ 1,909.9 12.9 % $ 58.6 $ 1,851.3 13.3 %
 
 
The Company reports its financial results in accordance with generally accepted accounting principles in the
United States (GAAP). This supplemental schedule provides adjusted non-GAAP financial information and a
quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures
calculated and reported in accordance with GAAP.
 
The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to,
financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all
of the costs associated with the operations of our businesses as determined in accordance with GAAP. In
addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.
 
We believe the non-GAAP financial information provides important supplemental information to both management and
investors regarding financial and business trends used in assessing our financial condition and results of
operations.
 
The non-GAAP financial measures of EBITDA and EBITDA margin assist investors with analyzing
our business segment results as well as with predicting future performance. In addition, these non-GAAP financial
measures are also reviewed by management in order to evaluate the financial performance of each segment. They
are the basis for performance reviews, compensation and resource allocation. We believe that the presentation
of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same
basis as management.
 
As a result, one should not consider these measures in isolation or as a substitute for our results reported
under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP
basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
 
                       

INGERSOLL-RAND PLC Reconciliation of non-GAAP to GAAP(In millions) UNAUDITED

 
For the year ended December 31, 2010 For the year ended December 31, 2009
As Reported Margin As Reported Margin
 
Total Company
Net revenues $ 14,001.1 $ 13,009.1
 
Operating income $ 1,261.4 9.0 % $ 885.2 6.8 %
Other income (expense) - 0.0 % - 0.0 %
Depreciation and amortization   436.8 3.1 %   421.5 3.2 %
EBITDA $ 1,698.2 12.1 % $ 1,306.7 10.0 %
 
 
The Company reports its financial results in accordance with generally accepted accounting principles in the United States (GAAP). This supplemental schedule provides adjusted non-GAAP financial information and a quantitative reconciliation of the difference between the non-GAAP financial measures and the financial measures calculated and reported in accordance with GAAP.
 
The non-GAAP financial measures should be considered supplemental to, not a substitute for or superior to, financial measures calculated in accordance with GAAP. They have limitations in that they do not reflect all of the costs associated with the operations of our businesses as determined in accordance with GAAP. In addition, these measures may not be comparable to non-GAAP financial measures reported by other companies.
 
We believe the non-GAAP financial information provides important supplemental information to both management and investors regarding financial and business trends used in assessing our financial condition and results of operations.
 
The non-GAAP financial measures of EBITDA and EBITDA margin assist investors with analyzing our business segment results as well as with predicting future performance. In addition, these non-GAAP financial measures are also reviewed by management in order to evaluate the financial performance of each segment. They are the basis for performance reviews, compensation and resource allocation. We believe that the presentation of these non-GAAP financial measures will permit investors to assess the performance of the Company on the same basis as management.
 
As a result, one should not consider these measures in isolation or as a substitute for our results reported under GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis, prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
 

INGERSOLL-RAND PLC Condensed Consolidated Balance Sheets(In millions) UNAUDITED

                 
 
 
December 31, December 31,
2012 2011
ASSETS
Cash and cash equivalents $ 882.1 $ 1,160.7
Accounts and notes receivable, net 2,157.5 2,135.6
Inventories 1,308.8 1,278.3
Other current assets   594.3   704.6
Total current assets 4,942.7 5,279.2
Property, plant and equipment, net 1,652.6 1,639.4
Goodwill 6,138.9 6,104.0
Intangible assets, net 4,200.9 4,333.6
Other noncurrent assets   1,557.8   1,487.9
Total assets $ 18,492.9 $ 18,844.1
 
LIABILITIES AND EQUITY
Accounts payable $ 1,230.2 $ 1,224.2
Accrued expenses and other current liabilities 1,967.4 2,138.1
Short-term borrowings and current maturities of long-term debt   963.7   763.3
Total current liabilities 4,161.3 4,125.6
Long-term debt 2,269.3 2,879.3
Other noncurrent liabilities 4,833.0 4,823.5
Equity   7,229.3   7,015.7
Total liabilities and equity $ 18,492.9 $ 18,844.1
 
 

INGERSOLL-RAND PLC Condensed Consolidated Statement of Cash Flow(In millions) UNAUDITED

               
Twelve Months
Ended December 31,
2012 2011
Operating Activities
Income from continuing operations $ 1,049.7 $ 426.1
Loss (Gain) on sale/asset impairment (4.5 ) 646.9
Depreciation and amortization 375.5 402.7
Changes in assets and liabilities and other non-cash items   (143.0 )   (245.5 )
Net cash from operating activities of continuing operations 1,277.7 1,230.2
Net cash from operating activities of discontinued operations   (96.8 )   (43.4 )
Net cash from operating activities 1,180.9 1,186.8
 
Investing Activities
Capital expenditures (262.6 ) (242.9 )
Proceeds from business dispositions, net of cash 52.7 400.3
Other investing activities, net   63.5     50.1  
Net cash from investing activities of continuing operations (146.4 ) 207.5
Net cash from investing activities of discontinued operations   -     -  
Net cash from investing activities (146.4 ) 207.5
 
Financing Activities
Net debt proceeds (repayments) (414.8 ) (54.0 )
Dividends paid (213.1 ) (163.5 )
Repurchase of ordinary shares (839.8 ) (1,157.5 )
Other financing activities, net   163.8     128.6  
Net cash from financing activities of continuing operations (1,303.9 ) (1,246.4 )
Net cash from financing activities of discontinued operations   -     -  
Net cash from financing activities (1,303.9 ) (1,246.4 )
 
Effect of exchange rate changes on cash and cash equivalents   (9.2 )   (1.5 )
Net increase (decrease) in cash and cash equivalents (278.6 ) 146.4
Cash and cash equivalents - beginning of period   1,160.7     1,014.3  
Cash and cash equivalents - end of period $ 882.1   $ 1,160.7  
 
 

INGERSOLL-RAND PLC Balance Sheet Metrics and Available Cash Flow($ in millions) UNAUDITED

           
 
December 31, December 31,
2011 2012
 
Net Receivables $ 2,136 $ 2,158
Days Sales Outstanding 56.2 56.7
 
Net Inventory $ 1,278 $ 1,309
Inventory Turns 7.7 7.4
 
Accounts Payable $ 1,224 $ 1,230
Days Payable Outstanding 45.1 46.6
 
 
 
 

Twelve MonthsEnded

December 31, 2012
 
Cash flow from operating activities (a) $ 1,180.9
Capital expenditures (a) (262.6 )
 
Available cash flow $ 918.3  
 
 
(a) Includes both continuing and discontinued operations.
 
The Company reports its financial results in accordance with generally accepted accounting principles in the
United States (GAAP). This supplemental schedule provides adjusted non-GAAP financial information and a
quantitative reconciliation of the difference between the non-GAAP financial measure and the financial measure
calculated and reported in accordance with GAAP.
 
The non-GAAP financial measure should be considered supplemental to, not a substitute for or superior to,
the financial measure calculated in accordance with GAAP. It has limitations in that it does not reflect all
of the costs associated with the operations of our businesses as determined in accordance with GAAP. In
addition, this measure may not be comparable to non-GAAP financial measures reported by other companies.
 
We believe the non-GAAP financial information provides important supplemental information to both management
and investors regarding financial and business trends used in assessing our financial condition and cash flow.
 
The non-GAAP financial measure of available cash flow assists investors with analyzing our business results
as well as with predicting future performance. In addition, this non-GAAP financial measure is reviewed by
management in order to evaluate the financial performance of each segment as well as the Company as a whole.
It is the basis for performance reviews, compensation and resource allocation. We believe that the presentation
of this non-GAAP financial measure will permit investors to assess the performance of the Company on the same
basis as management.
 
As a result, one should not consider this measure in isolation or as a substitute for our results reported under
GAAP. We compensate for these limitations by analyzing results on a GAAP basis as well as a non-GAAP basis,
prominently disclosing GAAP results and providing reconciliations from GAAP results to non-GAAP results.
 




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