Benefit Plans

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Benefit Plans

Benefit Plans

Acquisition of Ingersoll Rand Industrial

Defined Contribution Plans

In connection with the acquisition of Ingersoll Rand Industrial, the Company assumed liabilities for certain defined contribution plans. Most of the Ingersoll Rand Industrial employees in the U.S. are covered by a defined contribution plan. Employer contributions are determined based on criteria specific to the individual.

Pension and Other Postretirement Benefit Plans

The Company assumed liabilities for a number of pension and postretirement plans worldwide. As of the date of acquisition of Ingersoll Rand Industrial, the Company recognized the funded status of the acquired defined benefit pension plans. The funded status is the difference between the fair value of the plan assets and the projected benefit obligation. Certain Company employees participate in various other postretirement benefit plans that are sponsored by Ingersoll Rand and cover certain U.S. and non – U.S. employees. The other postretirement benefit plans are unfunded. The Company funds the other postretirement plans on a pay-as-you-go basis in the form of direct benefit payments. Other postretirement benefits are contributory with contributions adjusted for annually. Life insurance plans for retirees are primarily noncontributory.

Deferred Compensation Plans

The Company assumed liabilities for deferred compensation plans which allow certain key employees to defer a portion of their eligible compensation into a number of investment choices, including the Company’s common stock equivalents. Except with respect to the Supplemental Employee Savings Plan I and II, which plans settle all investments in cash, any amounts invested in common stock are settled in shares of Ingersoll Rand common stock at the time of distribution. All other investments are settled in cash. The portion of the acquired deferred compensation to be settled in shares is accounted for in the consideration transferred.

Net Periodic Benefit Cost

The following table summarizes the components of net periodic benefit cost for the Company’s defined benefit pension plans and other postretirement benefit plans recognized for the three and nine month periods ended September 30, 2020 and 2019.

	Pension Benefits								Other Postretirement Benefits
	U.S. Plans				Non-U.S. Plans
	For the Three Month Period Ended September 30, 2020		For the Nine Month Period Ended September 30, 2020		For the Three Month Period Ended September 30, 2020		For the Nine Month Period Ended September 30, 2020		For the Three Month Period Ended September 30, 2020		For the Nine Month Period Ended September 30, 2020
Service cost	$	1.8	$	4.1	$	1.2	$	3.1	$	—	$	—
Interest cost	2.8		6.8		1.6		4.6		0.2		0.5
Expected return on plan assets	(4.0)		(9.5)		(2.8)		(8.2)		—		—
Recognition of:
Unrecognized prior service cost	—		—		—		0.1		—		—
Unrecognized net actuarial loss	—		—		0.8		2.2		—		—
	$	0.6	$	1.4	$	0.8	$	1.8	$	0.2	$	0.5

	Pension Benefits								Other Postretirement Benefits
	U.S. Plans				Non-U.S. Plans
	For the Three Month Period Ended September 30, 2019		For the Nine Month Period Ended September 30, 2019		For the Three Month Period Ended September 30, 2019		For the Nine Month Period Ended September 30, 2019		For the Three Month Period Ended September 30, 2019		For the Nine Month Period Ended September 30, 2019
Service cost	$	—	$	—	$	0.4	$	1.2	$	—	$	—
Interest cost	0.5		1.6		1.9		5.7		—		0.1
Expected return on plan assets	(0.5)		(1.6)		(2.5)		(7.7)		—		—
Recognition of:
Unrecognized prior service cost	—		—		—		0.1		—		—
Unrecognized net actuarial loss	—		0.1		0.5		1.5		—		—
	$	—	$	0.1	$	0.3	$	0.8	$	—	$	0.1

The components of net periodic benefit cost other than the service cost component are included in “Other income, net” in the Condensed Consolidated Statements of Operations.