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Table of Contents

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, 2022
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 001-34400
_____________________________ 
TRANE TECHNOLOGIES PLC
(Exact name of registrant as specified in its charter)
_______________________________
Ireland98-0626632
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
170/175 Lakeview Dr.
Airside Business Park
Swords Co. Dublin
Ireland
(Address of principal executive offices, including zip code)
+(353) (0) 18707400
(Registrant’s telephone number, including area code)
_______________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Ordinary Shares, Par Value $1.00 per ShareTTNew 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  x    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  x   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 definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerxAccelerated filer¨Emerging growth company☐
Non-accelerated filer¨Smaller reporting 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  x
The number of ordinary shares outstanding of Trane Technologies plc as of July 22, 2022 was 231,717,363.

Table of Contents
TRANE TECHNOLOGIES PLC
FORM 10-Q
INDEX

Item 1 -
Item 2 -
Item 3 -
Item 4 -
Item 1 -
Item 1A -
Item 2 -
Item 5 -
Item 6 -


Table of Contents
PART I - FINANCIAL INFORMATION

Item 1.Financial Statements
TRANE TECHNOLOGIES PLC
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three months endedSix months ended
 June 30,June 30,
In millions, except per share amounts2022202120222021
Net revenues$4,190.4 $3,829.7 $7,545.9 $6,847.3 
Cost of goods sold(2,867.0)(2,559.0)(5,233.5)(4,623.4)
Selling and administrative expenses(612.8)(619.7)(1,213.6)(1,219.7)
Operating income710.6 651.0 1,098.8 1,004.2 
Interest expense(55.9)(59.3)(111.9)(120.0)
Other income/(expense), net(1.6)0.3 (2.3)(6.9)
Earnings before income taxes653.1 592.0 984.6 877.3 
Provision for income taxes(136.6)(122.8)(197.7)(171.2)
Earnings from continuing operations516.5 469.2 786.9 706.1 
Discontinued operations, net of tax(1.6)(0.2)(8.6)0.7 
Net earnings514.9 469.0 778.3 706.8 
Less: Net earnings from continuing operations attributable to noncontrolling interests(5.6)(4.3)(8.8)(6.9)
Net earnings attributable to Trane Technologies plc$509.3 $464.7 $769.5 $699.9 
Amounts attributable to Trane Technologies plc ordinary shareholders:
Continuing operations$510.9 $464.9 $778.1 $699.2 
Discontinued operations(1.6)(0.2)(8.6)0.7 
Net earnings$509.3 $464.7 $769.5 $699.9 
Earnings (loss) per share attributable to Trane Technologies plc ordinary shareholders:
Basic:
Continuing operations$2.19 $1.94 $3.32 $2.92 
Discontinued operations(0.01)— (0.03)— 
Net earnings$2.18 $1.94 $3.29 $2.92 
Diluted:
Continuing operations$2.17 $1.91 $3.29 $2.87 
Discontinued operations(0.01)— (0.03)0.01 
Net earnings$2.16 $1.91 $3.26 $2.88 
Weighted-average shares outstanding:
Basic233.8 239.9 234.2 239.6 
Diluted235.7 243.4 236.4 243.3 
See accompanying notes to Condensed Consolidated Financial Statements.

1
Table of Contents
TRANE TECHNOLOGIES PLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three months endedSix months ended
June 30,June 30,
In millions2022202120222021
Net earnings$514.9 $469.0 $778.3 $706.8 
Other comprehensive income (loss):
Currency translation(177.2)48.8 (194.3)(33.7)
Cash flow hedges:
Unrealized net gains (losses) arising during period(34.1)0.8 (21.6)(3.8)
Net (gains) losses reclassified into earnings(2.1)1.9 (2.7)2.8 
Tax (expense) benefit8.2 1.1 5.1 1.4 
Total cash flow hedges, net of tax(28.0)3.8 (19.2)0.4 
Pension and OPEB adjustments:
Amortization reclassified into earnings5.4 9.7 10.9 19.4 
Net curtailment and settlement (gains) losses reclassified to earnings— — — 6.9 
Currency translation and other10.0 (2.7)12.6 0.3 
Tax (expense) benefit(1.6)(10.3)(2.8)(14.7)
Total pension and OPEB adjustments, net of tax13.8 (3.3)20.7 11.9 
Other comprehensive income (loss), net of tax(191.4)49.3 (192.8)(21.4)
Comprehensive income, net of tax$323.5 $518.3 $585.5 $685.4 
Less: Comprehensive income attributable to noncontrolling interests(4.3)(6.0)(7.5)(6.2)
Comprehensive income attributable to Trane Technologies plc$319.2 $512.3 $578.0 $679.2 
See accompanying notes to Condensed Consolidated Financial Statements.



2
Table of Contents
TRANE TECHNOLOGIES PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In millionsJune 30,
2022		December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents$1,090.2 $2,159.2 
Accounts and notes receivable, net2,758.2 2,429.4 
Inventories1,886.9 1,530.8 
Other current assets389.9 351.5 
Total current assets6,125.2 6,470.9 
Property, plant and equipment, net1,425.9 1,398.8 
Goodwill5,456.6 5,504.8 
Intangible assets, net3,282.5 3,305.6 
Other noncurrent assets1,390.6 1,379.7 
Total assets$17,680.8 $18,059.8 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$2,000.2 $1,787.3 
Accrued compensation and benefits458.9 544.8 
Accrued expenses and other current liabilities2,121.4 2,069.9 
Short-term borrowings and current maturities of long-term debt1,049.8 350.4 
Total current liabilities5,630.3 4,752.4 
Long-term debt3,786.7 4,491.7 
Postemployment and other benefit liabilities757.2 810.9 
Deferred and noncurrent income taxes616.5 581.5 
Other noncurrent liabilities1,150.8 1,150.2 
Total liabilities11,941.5 11,786.7 
Equity:
Trane Technologies plc shareholders’ equity:
Ordinary shares256.2 259.7 
Ordinary shares held in treasury, at cost(1,719.4)(1,719.4)
Capital in excess of par value12.1 — 
Retained earnings8,003.7 8,353.2 
Accumulated other comprehensive income (loss)(829.1)(637.6)
Total Trane Technologies plc shareholders’ equity5,723.5 6,255.9 
Noncontrolling interests15.8 17.2 
Total equity5,739.3 6,273.1 
Total liabilities and equity$17,680.8 $18,059.8 
See accompanying notes to Condensed Consolidated Financial Statements.

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TRANE TECHNOLOGIES PLC
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
In millions, except per share amountsTotal
equity		Ordinary sharesOrdinary shares held
 in treasury,
at cost		Capital in
excess of
par value		Retained
earnings		Accumulated  other
comprehensive
income (loss)		Noncontrolling Interests
Amount at par valueShares
Balance at December 31, 2021$6,273.1 $259.7 259.7 $(1,719.4)$— $8,353.2 $(637.6)$17.2 
Net earnings263.4 — — — — 260.2 — 3.2 
Other comprehensive income (loss)(1.4)— — — — — (1.4)— 
Shares issued under incentive stock plans(24.2)0.5 0.5 — (24.7)— — — 
Repurchase of ordinary shares(350.0)(1.9)(1.9)— 3.3 (351.4)— — 
Share-based compensation21.4 — — — 21.3 0.1 — — 
Dividends declared to noncontrolling interest(2.5)— — — — — — (2.5)
Dividends declared to common shareholders(156.7)— — — — (156.7)— — 
Separation of Ingersoll Rand Industrial(6.7)— — — — (6.7)— — 
Other0.1 — — — 0.1 — — — 
Balance at March 31, 2022$6,016.5 $258.3 258.3 $(1,719.4)$— $8,098.7 $(639.0)$17.9 
Net earnings514.9 — — — — 509.3 — 5.6 
Other comprehensive income (loss)(191.4)— — — — — (190.1)(1.3)
Shares issued under incentive stock plans4.1 0.2 0.2 — 3.9 — — — 
Repurchase of ordinary shares(300.1)(2.3)(2.3)— (5.7)(292.1)— — 
Share-based compensation13.1 — — — 13.9 (0.8)— — 
Dividends declared to noncontrolling interest(6.4)— — — — — — (6.4)
Dividends declared to common shareholders(311.1)— — — — (311.1)— — 
Separation of Ingersoll Rand Industrial(0.3)— — — — (0.3)— — 
Balance at June 30, 2022$5,739.3 $256.2 256.2 $(1,719.4)$12.1 $8,003.7 $(829.1)$15.8 
See accompanying notes to Condensed Consolidated Financial Statements.
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TRANE TECHNOLOGIES PLC
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (CONTINUED)
(Unaudited)
In millions, except per share amountsTotal
equity		Ordinary sharesOrdinary shares held
 in treasury,
at cost		Capital in
excess of
par value		Retained
earnings		Accumulated  other
comprehensive
income (loss)		Noncontrolling Interests
Amount at par valueShares
December 31, 2020$6,427.1 $263.3 263.3 $(1,719.4)$— $8,495.3 $(631.5)$19.4 
Net earnings237.8 — — — — 235.2 — 2.6 
Other comprehensive income (loss)(70.7)— — — — — (68.3)(2.4)
Shares issued under incentive stock plans(7.0)1.0 1.0 — (8.0)— — — 
Repurchase of ordinary shares(104.2)(0.7)(0.7)— (16.7)(86.8)— — 
Share-based compensation24.2 — — — 24.7 (0.5)— — 
Dividends declared to noncontrolling interest(3.5)— — — — — — (3.5)
Dividends declared to common shareholders(141.0)— — — — (141.0)— — 
Separation of Ingersoll Rand Industrial(49.9)— — — — (49.9)— — 
Balance at March 31, 2021$6,312.8 $263.6 263.6 $(1,719.4)$— $8,452.3 $(699.8)$16.1 
Net earnings469.0 — — — — 464.7 — 4.3 
Other comprehensive income (loss)49.3 — — — — — 47.6 1.7 
Shares issued under incentive stock plans25.7 0.5 0.5 — 25.2 — — — 
Repurchase of ordinary shares(250.0)(1.4)(1.4)— (40.0)(208.6)— — 
Share-based compensation13.9 — — — 14.8 (0.9)— — 
Dividends declared to noncontrolling interest(6.7)— — — — — — (6.7)
Dividends declared to common shareholders(281.4)— — — — (281.4)— — 
Balance at June 30, 2021$6,332.6 $262.7 262.7 $(1,719.4)$— $8,426.1 $(652.2)$15.4 
See accompanying notes to Condensed Consolidated Financial Statements.

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TRANE TECHNOLOGIES PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
 June 30,
In millions20222021
Cash flows from operating activities:
Net earnings$778.3 $706.8 
Discontinued operations, net of tax8.6 (0.7)
Adjustments for non-cash transactions:
Depreciation and amortization157.1 150.8 
Pension and other postretirement benefits20.4 29.2 
Stock settled share-based compensation35.3 39.5 
Changes in assets and liabilities, net of the effects of acquisitions(560.4)(167.2)
Other non-cash items, net(21.6)(6.6)
Net cash provided by (used in) continuing operating activities417.7 751.8 
Net cash provided by (used in) discontinued operating activities(184.2)(1.2)
Net cash provided by (used in) operating activities233.5 750.6 
Cash flows from investing activities:
Capital expenditures(143.9)(77.5)
Acquisitions of businesses, net of cash acquired(109.6)(12.8)
Other investing activities, net(4.6)(71.8)
Net cash provided by (used in) continuing investing activities(258.1)(162.1)
Net cash provided by (used in) discontinued investing activities(0.6)— 
Net cash provided by (used in) investing activities(258.7)(162.1)
Cash flows from financing activities:
Payments of long-term debt(7.5)(307.5)
Debt issuance costs(2.1)(2.6)
Dividends paid to ordinary shareholders(310.9)(281.6)
Dividends paid to noncontrolling interests(8.9)(10.2)
Proceeds (payments) from shares issued under incentive plans, net(20.1)18.7 
Repurchase of ordinary shares(650.1)(354.2)
Other financing activities, net(2.0)(0.2)
Net cash provided by (used in) financing activities(1,001.6)(937.6)
Effect of exchange rate changes on cash and cash equivalents(42.2)(28.4)
Net increase (decrease) in cash and cash equivalents(1,069.0)(377.5)
Cash and cash equivalents - beginning of period2,159.2 3,289.9 
Cash and cash equivalents - end of period$1,090.2 $2,912.4 
See accompanying notes to Condensed Consolidated Financial Statements.
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TRANE TECHNOLOGIES PLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
Trane Technologies plc, a public limited company, incorporated in Ireland in 2009, and its consolidated subsidiaries (collectively, we, our, the Company or Trane Technologies), is a global climate innovator. The Company brings sustainable and efficient solutions to buildings, homes and transportation through the Company's strategic brands, Trane® and Thermo King®, and its environmentally responsible portfolio of products, services and connected intelligent controls. The Company generates revenue and cash primarily through the design, manufacture, sale and service of solutions for Heating, Ventilation and Air Conditioning (HVAC) and transport refrigeration. As an industry leader with an extensive global install base, the Company’s growth strategy includes expanding recurring revenue through services and rental options. The Company’s unique business operating system, uplifting culture and highly engaged team around the world are also central to its earnings and cash flow growth.
The accompanying unaudited Condensed Consolidated Financial Statements of Trane Technologies reflects the consolidated operations of the Company and have been prepared in accordance with United States Securities and Exchange Commission (SEC) interim reporting requirements. Accordingly, the accompanying Condensed Consolidated Financial Statements do not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP) for full financial statements and should be read in conjunction with the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, the accompanying Condensed Consolidated Financial Statements contain all adjustments, which include only normal recurring adjustments, necessary to fairly state the condensed consolidated results for the interim periods presented.
Reorganization of Aldrich and Murray
On May 1, 2020, certain subsidiaries of the Company underwent an internal corporate restructuring that was effectuated through a series of transactions (2020 Corporate Restructuring). As a result, Aldrich Pump LLC (Aldrich) and Murray Boiler LLC (Murray), indirect wholly-owned subsidiaries of Trane Technologies plc, became solely responsible for the asbestos-related liabilities, and the beneficiaries of the asbestos-related insurance assets, of Trane Technologies Company LLC and Trane U.S. Inc, respectively. On a consolidated basis, the 2020 Corporate Restructuring did not have an impact on the Condensed Consolidated Financial Statements. In connection with the 2020 Corporate Restructuring, certain subsidiaries of the Company entered into funding agreements with Aldrich and Murray (collectively the Funding Agreements), pursuant to which those subsidiaries are obligated, among other things, to pay the costs and expenses of Aldrich and Murray during the pendency of the Chapter 11 cases to the extent distributions from their respective subsidiaries are insufficient to do so and to provide an amount for the funding for a trust established pursuant to section 524(g) of the Bankruptcy Code, to the extent that the other assets of Aldrich and Murray are insufficient to provide the requisite trust funding.
On June 18, 2020 (Petition Date), Aldrich and Murray filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code (the Bankruptcy Code) in the United States Bankruptcy Court for the Western District of North Carolina (the Bankruptcy Court) to resolve equitably and permanently all current and future asbestos related claims in a manner beneficial to claimants and to Aldrich and Murray. As a result of the Chapter 11 filings, all asbestos-related lawsuits against Aldrich and Murray have been stayed due to the imposition of a statutory automatic stay applicable in Chapter 11 bankruptcy cases. Only Aldrich and Murray have filed for Chapter 11 relief. Neither Aldrich's wholly-owned subsidiary, 200 Park, Inc. (200 Park), Murray's wholly-owned subsidiary, ClimateLabs LLC (ClimateLabs), Trane Technologies plc nor its other subsidiaries (the Trane Companies) are part of the Chapter 11 filings. The Trane Companies are expected to continue to operate as usual, with no disruption to their employees, suppliers, or customers globally. As of the Petition Date, Aldrich and its wholly-owned subsidiary 200 Park and Murray and its wholly-owned subsidiary ClimateLabs were deconsolidated and their respective assets and liabilities were derecognized from the Company's Condensed Consolidated Financial Statements. Refer to Note 18, "Commitments and Contingencies," for more information regarding the status of Chapter 11 bankruptcy and asbestos-related matters.
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Note 2. Recent Accounting Pronouncements
The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) is the sole source of authoritative GAAP other than SEC issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standards Update (ASU) to communicate changes to the codification. The Company considers the applicability and impact of all ASU's. ASU's not listed below were assessed and determined to be either not applicable or are not expected to have a material impact on the Condensed Consolidated Financial Statements.
Recently Adopted Accounting Pronouncements
In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (ASU 2021-10), which requires additional disclosures regarding government grants and cash contributions. The additional disclosures required by this update include information about the nature of the transactions and the related accounting policy used to account for the transaction, the financial statement line items affected by the transactions and the amounts applicable to each financial statement line item and significant terms and conditions of the transactions, including commitments and contingencies. ASU 2021-10 is effective for annual periods beginning after December 15, 2021 with early adoption permitted. The Company adopted this standard on January 1, 2022 with no material impact on its financial statements.
In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (ASU 2021-08), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, “Revenue from Contracts with Customers” (ASC 606). ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 including interim periods therein with early adoption permitted. The Company early adopted this standard during the fourth quarter of 2021 and applied it retrospectively to all business combinations for which the acquisition date occurred on or after January 1, 2021 resulting in no material impact on its financial statements.
In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (ASU 2019-12), which simplifies certain aspects of income tax accounting guidance in ASC 740, reducing the complexity of its application. Certain exceptions to ASC 740 presented within the ASU include: intraperiod tax allocation, deferred tax liabilities related to outside basis differences and year-to-date loss in interim periods, among others. ASU 2019-12 is effective for annual reporting periods beginning after December 15, 2020 including interim periods therein with early adoption permitted. The Company adopted this standard on January 1, 2021 with no material impact on its financial statements.
Note 3. Inventories
Depending on the business, U.S. inventories are stated at the lower of cost or market using the last-in, first-out (LIFO) method or the lower of cost and net realizable value (NRV) using the first-in, first-out (FIFO) method. Non-U.S. inventories are primarily stated at the lower of cost and NRV using the FIFO method.
The major classes of inventory were as follows:
In millionsJune 30,
2022		December 31,
2021
Raw materials$536.6 $404.6 
Work-in-process304.4 215.9 
Finished goods1,140.7 982.9 
1,981.7 1,603.4 
LIFO reserve(94.8)(72.6)
Total$1,886.9 $1,530.8 
The Company performs periodic assessments to determine the existence of obsolete, slow-moving and non-saleable inventories and records necessary provisions to reduce such inventories to the lower of cost and NRV. Reserve balances, primarily related to obsolete and slow-moving inventories, were $80.7 million and $79.0 million at June 30, 2022 and December 31, 2021, respectively.
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Note 4. Goodwill
The changes in the carrying amount of goodwill for the six months ended June 30, 2022 were as follows:
In millionsAmericasEMEAAsia PacificTotal
Net balance as of December 31, 2021$4,185.2 $740.8 $578.8 $5,504.8 
Acquisitions (1)
42.1 (1.0)— 41.1 
Currency translation(0.1)(61.8)(27.4)(89.3)
Net balance as of June 30, 2022$4,227.2 $678.0 $551.4 $5,456.6 
(1) Includes measurement period adjustment related to prior year acquisition.
The net goodwill balances at June 30, 2022 and December 31, 2021 include $2,496.0 million of accumulated impairment, primarily related to the Americas segment. The accumulated impairment relates entirely to a charge recorded in 2008.
Note 5. Intangible Assets
The gross amount of the Company’s intangible assets and related accumulated amortization were as follows:
June 30, 2022December 31, 2021
In millionsGross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Customer relationships$2,145.2 $(1,529.3)$615.9 $2,110.8 $(1,475.3)$635.5 
Other247.3 (204.6)42.7 245.5 (201.3)44.2 
Total finite-lived intangible assets2,392.5 (1,733.9)658.6 2,356.3 (1,676.6)679.7 
Trademarks (indefinite-lived)2,623.9 — 2,623.9 2,625.9 — 2,625.9 
Total$5,016.4 $(1,733.9)$3,282.5 $4,982.2 $(1,676.6)$3,305.6 
Intangible asset amortization expense was $36.0 million and $30.9 million for the three months ended June 30, 2022 and 2021, respectively. Intangible asset amortization expense was $69.8 million and $61.7 million for the six months ended June 30, 2022 and 2021, respectively.
Note 6. Debt and Credit Facilities
Short-term borrowings and current maturities of long-term debt consisted of the following:
In millionsJune 30,
2022		December 31,
2021
Debentures with put feature$342.9 $342.9 
4.250% Senior notes due 2023
699.4 — 
Other current maturities of long-term debt7.5 7.5 
Total$1,049.8 $350.4 
Commercial Paper Program
The Company uses borrowings under its commercial paper program for general corporate purposes. The maximum aggregate amount of unsecured commercial paper notes available to be issued, on a private placement basis, under the commercial paper program is $2.0 billion. The Company had no outstanding balance under its commercial paper program as of June 30, 2022 and December 31, 2021.
Debentures with Put Feature
At June 30, 2022 and December 31, 2021, the Company had $342.9 million of fixed rate debentures outstanding which contain a put feature that the holders may exercise on each anniversary of the issuance date. If exercised, the Company is obligated to repay in whole or in part, at the holder’s option, the outstanding principal amount of the debentures plus accrued interest. If these options are not exercised, the final contractual maturity dates would range between 2027 and 2028. Holders of these debentures had the option to exercise the put feature on $37.2 million of the outstanding debentures in February 2022, subject to the notice requirement. No exercises were made.
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Long-term debt, excluding current maturities, consisted of the following:
In millionsJune 30,
2022		December 31,
2021
4.250% Senior notes due 2023
$— $699.1 
7.200% Debentures due 2022-2025
14.9 22.4 
3.550% Senior notes due 2024
498.4 498.0 
6.480% Debentures due 2025
149.7 149.7 
3.500% Senior notes due 2026
398.1 397.8 
3.750% Senior notes due 2028
546.5 546.2 
3.800% Senior notes due 2029
745.4 745.0 
5.750% Senior notes due 2043
495.1 495.0 
4.650% Senior notes due 2044
296.3 296.3 
4.300% Senior notes due 2048
296.4 296.3 
4.500% Senior notes due 2049
345.9 345.9 
Total$3,786.7 $4,491.7 

Other Credit Facilities
On April 25, 2022, the Company entered into a new $1.0 billion senior unsecured revolving credit facility which matures in April 2027 (2027 Credit Facility) and terminated its $1.0 billion credit facility that would have expired in April 2023. As a result, the Company maintains two $1.0 billion senior unsecured revolving credit facilities, one of which matures in June 2026 (2026 Credit Facility) and the other which matures in April 2027 (collectively, the Facilities) through its wholly-owned subsidiaries, Trane Technologies HoldCo Inc., Trane Technologies Global Holding Company Limited and Trane Technologies Financing Limited (collectively, the Borrowers). On June 30, 2022, the Company amended its 2026 Credit Facility to include a Secured Overnight Financing Rate (SOFR) borrowing index provision and to eliminate the London Interbank Offer Rate (LIBOR) index provision. These provisions are consistent with the 2027 Credit Facility. Additionally, both Facilities include Environmental, Social, and Governance (ESG) metrics related to two of the Company’s sustainability commitments: a reduction in greenhouse gas intensity and an increase in the percentage of women in management. The Company's annual performance against these ESG metrics may result in price adjustments to the commitment fee and applicable interest rate.
The Facilities provide support for the Company’s commercial paper program and can be used for working capital and other general corporate purposes. Trane Technologies plc, Trane Technologies Irish Holdings Unlimited Company, Trane Technologies Lux International Holding Company S.à.r.l. and Trane Technologies Company LLC each provide irrevocable and unconditional guarantees for these Facilities. In addition, each Borrower will guarantee the obligations under the Facilities of the other Borrowers. Total commitments of $2.0 billion were unused at June 30, 2022 and December 31, 2021.
Fair Value of Debt
The fair value of the Company's debt instruments at June 30, 2022 and December 31, 2021 was $4.7 billion and $5.6 billion, respectively. The Company measures the fair value of its debt instruments for disclosure purposes based upon observable market prices quoted on public exchanges for similar assets. These fair value inputs are considered Level 2 within the fair value hierarchy.
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Note 7. Financial Instruments
In the normal course of business, the Company is exposed to certain risks arising from business operations and economic factors. These fluctuations can increase the cost of financing, investing and operating the business. The Company uses various financial instruments, including derivative instruments, to manage the risks associated with interest rate, commodity price and foreign currency exposures. These financial instruments are not used for trading or speculative purposes. The Company recognizes all derivatives in the Condensed Consolidated Balance Sheets at their fair value as either assets or liabilities.
On the date a derivative contract is entered into, the Company designates the derivative instrument as a cash flow hedge of a forecasted transaction or as an undesignated derivative. The Company formally documents its hedge relationships, including identification of the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivative instruments that are designated as hedges to specific assets, liabilities or forecasted transactions.
The Company assesses at inception and at least quarterly thereafter, whether the derivatives used in cash flow hedging transactions are highly effective in offsetting the changes in the cash flows of the hedged item. To the extent the derivative is deemed to be a highly effective hedge, the fair market value changes of the instrument are recorded to Accumulated other comprehensive income (loss) (AOCI). If the hedging relationship ceases to be highly effective, or it becomes probable that a forecasted transaction is no longer expected to occur, the hedging relationship will be undesignated and any future gains and losses on the derivative instrument will be recorded in Net earnings.
The fair values of derivative instruments included within the Condensed Consolidated Balance Sheets were as follows:
 Derivative assetsDerivative liabilities
In millionsJune 30,
2022		December 31,
2021		June 30,
2022		December 31,
2021
Derivatives designated as hedges:
Currency derivatives$— $0.1 $6.0 $2.7 
Commodity derivatives0.2 4.9 15.5 0.2 
Derivatives not designated as hedges:
Currency derivatives2.0 10.5 0.3 14.0 
Total derivatives$2.2 $15.5 $21.8 $16.9 
Asset and liability derivatives included in the table above are recorded within Other current assets and Accrued expenses and other current liabilities, respectively.
Currency Derivative Instruments
The notional amount of the Company’s currency derivatives was $0.3 billion and $0.5 billion at June 30, 2022 and December 31, 2021, respectively. At June 30, 2022 and December 31, 2021, a net loss of $5.6 million and $2.2 million, net of tax, respectively, was included in AOCI related to the fair value of the Company’s currency derivatives designated as accounting hedges. The amount expected to be reclassified into Net earnings over the next twelve months is a net loss of $5.6 million. The actual amounts that will be reclassified to Net earnings may vary from this amount as a result of changes in market conditions. Gains and losses associated with the Company’s currency derivatives not designated as hedges are recorded in Net earnings as changes in fair value occur. At June 30, 2022, the maximum term of the Company’s currency derivatives was 12 months.
Commodity Derivative Instruments
At June 30, 2022 and December 31, 2021, a net loss of $11.5 million and net gain of $3.5 million, net of tax, respectively, was included in AOCI related to the fair market value of the Company's commodity derivatives designated as accounting hedges. A change in fair value of commodity derivative instruments deemed highly effective is included in AOCI and is reclassified to Cost of Goods Sold in the period the sale of the finished goods inventory containing the commodity impacts Net earnings. The amount expected to be reclassified into Net earnings over the next twelve months is a net loss of $11.5 million. The actual amounts that will be reclassified to Net earnings may vary from this amount as a result of changes in market conditions. At June 30, 2022, the Company has commodity contracts to hedge certain forecasted purchases over the next 12 months.
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