Income Taxes

3 Months Ended

Mar. 31, 2020

Note 13. Income Taxes

The following table summarizes the Company’s (benefit) provision for income taxes and effective income tax provision rate for the three month periods ended March 31, 2020 and 2019.

	For the Three Month Period Ended March 31,
	2020			2019
(Loss) income before income taxes	$	(95.7	)	$	59.1
(Benefit) provision for income taxes	$	(58.9	)	$	12.0
Effective income tax rate		61.5	%		20.3	%

The decrease in the provision for income taxes to a benefit for income taxes and the increase in the effective income tax provision rate for the three month period ended March 31, 2020 when compared to the same three month period of 2019 is primarily due to the decrease in earnings generated in countries with a higher statutory tax rate than the United States. The reduction in pre-tax book income is mainly from the transaction costs associated with the merger and additional amortization and depreciation expense associated with the purchase price step up adjustments.

The impact of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act that was passed during the three month period ended March 31, 2020 was taken into consideration but did not have a material impact to the overall provision in the three month period ended March 31, 2020.

In connection with the acquisition of Ingersoll Rand Industrial, the Company was indemnified by Trane Technologies for certain potential tax obligations arising prior to the acquisition. The Company recognized an offsetting asset and liability for the tax indemnification in the Condensed Consolidated Balance Sheets.