Company: IR
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006391
Chunk: 105

Company: Ingersoll Rand Inc.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 105
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The Company includes interest expense and penalties related to unrecognized tax benefits as part of the provision for income taxes. The Company’s income tax liabilities at December 31, 2024 and 2023 include accrued interest and penalties of $3.2 million and $2.0 million, respectively.The statutes of limitations for U.S. Federal tax returns are open beginning with the 2020 tax year, and state returns are open beginning with the 2014 tax year. The Company is currently under audit for the 2020 tax year. The Internal Revenue Service (“IRS”) has largely completed its examination of the 2020 tax year and no material adjustments were proposed. The Company was notified during 2024 of a new U.S. Federal income tax audit for the tax years 2021 and 2022. There are no known issues as the audit will start in 2025.The Company is subject to income tax in 48 jurisdictions outside the U.S. The statute of limitations varies by jurisdiction with 2013 being the oldest year still open. The Company’s significant operations outside the U.S. are located in the United Kingdom, Germany, China, Ireland, Switzerland, and Singapore. In Germany, a tax audit covering tax years 2011-2014 was closed in Q4 2024. Note that any other liabilities arising from pre-merger tax years for legacy Ingersoll Rand Industrial entities would be indemnified.

The Company does not assert the ASC 740-30 (formerly APB 23) indefinite reinvestment of the Company’s historical non-U.S. earnings or future non-U.S. earnings. The Company records a deferred foreign tax liability to cover all estimated withholding, state income tax and foreign income tax associated with repatriating all non-U.S. earnings back to the United States. The Company’s deferred income tax liability as of December 31, 2024 was $41.8 million.

Note 18:    Leases

The components of lease expense for the years ended December 31, 2024 and 2023 are as follows.20242023Operating lease cost$64.5 $53.7 Finance lease costAmortization of right-of-use assets$1.5 $1.5 Interest on lease liabilities0.9 0.9 Total finance lease cost$2.4 $2.4 Short-term lease cost$2.2 $1.9 

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