Company: IR
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006391
Chunk: 28

Company: Ingersoll Rand Inc.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 28
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 million and the unfavorable impact of foreign currencies of $5.2 million. The increase in Adjusted EBITDA as a percentage of revenues is primarily attributable to higher pricing, input cost productivity improvements, and product mix.

Adjusted Net Income

Adjusted Net Income increased $133.5 million to $1,349.3 million in 2024 compared to $1,215.8 million in 2023. The increase was primarily due to increased Adjusted EBITDA, partially offset by higher interest expense and higher income tax provision, as adjusted.

Non-GAAP Financial Measures

Set forth below are reconciliations of Net Income to Adjusted EBITDA and Adjusted Net Income and Cash flows from operating activities to Free Cash Flow. For additional information regarding Adjusted EBITDA and Adjusted Net Income, see “How We Assess the Performance of Our Business” above.

Year Ended December 31,20242023Net Income$846.3 $785.1 Plus:Interest expense213.2 156.7 Provision for income taxes262.5 240.0 Depreciation expense(a)105.0 87.9 Amortization expense(b)373.0 367.5 Impairment of other intangible assets13.9 — Restructuring and related business transformation costs(c)32.3 22.9 Acquisition and other transaction related expenses and non-cash charges(d)59.8 63.9 Stock-based compensation58.8 51.9 Foreign currency transaction losses, net3.2 5.1 Loss on equity method investments24.0 6.0 Loss on extinguishment of debt3.0 13.5 Adjustments to LIFO inventories6.7 12.0 Cybersecurity incident costs(e)0.5 2.3 Loss on asbestos sale58.8 — Interest income on cash and cash equivalents(43.3)(28.8)Other adjustments(f)0.4 0.8 Adjusted EBITDA$2,018.1 $1,786.8 Minus:Interest expense$213.2 $156.7 Income tax provision, as adjusted(g)385.2 345.2 Depreciation expense105.0 87.9 Amortization of non-acquisition related intangible assets8.7 10.0 Interest income on cash and cash equivalents(