Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

The Company’s other comprehensive income (loss) consists of (i) unrealized foreign currency net gains and losses on the translation of the assets and liabilities of its foreign operations; (ii) realized and unrealized foreign currency gains and losses on certain hedges of net investments in foreign operations, net of income taxes; (iii) unrealized gains and losses on cash flow hedges (consisting of interest rate swap and cap contracts), net of income taxes; and (iv) pension and other postretirement prior service cost and actuarial gains or losses, net of income taxes. See Note 8 “Benefit Plans” and Note 12 “Hedging Activities, Derivative Instruments and Fair Value Measurements.”

The before tax income (loss) and related income tax effect are as follows.


	For the Three Month Period Ended September 30,
	2022						2021
	Before-Tax Amount		Tax Benefit or (Expense)		Net of Tax Amount		Before-Tax Amount		Tax Benefit or (Expense)		Net of Tax Amount
Foreign currency translation adjustments, net	$	(207.9)	$	—	$	(207.9)	$	(52.1)	$	4.5	$	(47.6)
Unrecognized gains on cash flow hedges	26.1		(6.5)		19.6		—		—		—
Pension and other postretirement benefit prior service cost and gain or loss, net	7.0		(1.7)		5.3		2.4		(0.6)		1.8
Other comprehensive loss	$	(174.8)	$	(8.2)	$	(183.0)	$	(49.7)	$	3.9	$	(45.8)


	For the Nine Month Period Ended September 30,
	2022						2021
	Before-Tax Amount		Tax Benefit or (Expense)		Net of Tax Amount		Before-Tax Amount		Tax Benefit or (Expense)		Net of Tax Amount
Foreign currency translation adjustments, net	$	(413.0)	$	(35.8)	$	(448.8)	$	(108.3)	$	10.0	$	(98.3)
Unrecognized gains on cash flow hedges	19.8		(5.6)		14.2		—		—		—
Pension and other postretirement benefit prior service cost and gain or loss, net	2.9		(0.7)		2.2		5.4		(1.1)		4.3
Other comprehensive loss	$	(390.3)	$	(42.1)	$	(432.4)	$	(102.9)	$	8.9	$	(94.0)

The tables above include only the other comprehensive loss, net of tax, attributable to Ingersoll Rand Inc. Other comprehensive income (loss), net of tax, attributable to noncontrolling interest holders was $(1.9) million and $0.2 million for the three month periods ended September 30, 2022 and 2021, respectively, and $(6.1) million and $(2.1) million for the nine month periods ended September 30, 2022 and 2021, respectively, and related entirely to foreign currency translation adjustments.

Changes in accumulated other comprehensive income (loss) by component for the nine month periods ended September 30, 2022 and 2021 are presented in the following table net of tax.


	Foreign Currency Translation Adjustments, Net		Cash Flow Hedges		Pension and Other Postretirement Benefit Plans		Total
Balance as of December 31, 2021	$	(29.9)	$	—	$	(11.7)	$	(41.6)
Other comprehensive income (loss) before reclassifications	(444.5)		12.3		2.6		(429.6)
Amounts reclassified from accumulated other comprehensive loss	(4.3)		1.9		(0.4)		(2.8)
Other comprehensive income (loss)	(448.8)		14.2		2.2		(432.4)

Balance as of September 30, 2022	$	(478.7)	$	14.2	$	(9.5)	$	(474.0)


	Foreign Currency Translation Adjustments, Net		Cash Flow Hedges		Pension and Other Postretirement Benefit Plans		Total
Balance as of December 31, 2020	$	74.6	$	—	$	(60.4)	$	14.2
Other comprehensive income (loss) before reclassifications	(98.3)		—		2.2		(96.1)
Amounts reclassified from accumulated other comprehensive loss	—		—		2.1		2.1
Other comprehensive income (loss)	(98.3)		—		4.3		(94.0)
Divestiture of foreign subsidiaries	(1.5)		—		—		(1.5)
Balance as of September 30, 2021	$	(25.2)	$	—	$	(56.1)	$	(81.3)

Reclassifications out of accumulated other comprehensive income (loss) for the nine month periods ended September 30, 2022 and 2021 are presented in the following table.


Amount Reclassified from Accumulated Other Comprehensive Loss
Details about Accumulated Other Comprehensive Loss Components	For the Nine Month Period Ended September 30,				Affected Line(s) in the Statement Where Net Income is Presented
	2022		2021
Cash flow hedges (interest rate swaps and caps)	$	2.5	$	—	Interest expense
Benefit for income taxes	(0.6)		—		Provision for income taxes
Cash flow hedges (interest rate swaps and caps), net of tax	$	1.9	$	—

Net investment hedges	$	(5.7)	$	—	Interest expense
Provision for income taxes	1.4		—		Provision for income taxes
Net investment hedges, net of tax	$	(4.3)	$	—

Amortization of defined benefit pension and other postretirement benefit items(1)	$	(0.5)	$	2.8	Cost of sales and Selling and administrative expenses
Provision (benefit) for income taxes	0.1		(0.7)		Provision for income taxes
Amortization of defined benefit pension and other postretirement benefit items, net of tax	$	(0.4)	$	2.1

Total reclassifications for the period, net of tax	$	(2.8)	$	2.1

(1)These components are included in the computation of net periodic benefit cost. See Note 8 “Benefit Plans” for additional details.