Company: IR
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006391
Chunk: 110

Company: Ingersoll Rand Inc.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 110
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 achieved on the first date during the five year performance period on which the sum of (i) the 60-day volume-weighted average closing price of the Company’s common stock, plus (ii) the cumulative value of any dividends paid during the five year performance period equals or exceeds $81.85. Vesting of this award is conditional upon the service condition even though the market condition was achieved prior to the end of the performance period. The grant date fair value of these awards was determined using a Monte Carlo simulation pricing model and compensation cost is recognized straight-line over a five year period. The Company also granted its Chairman and CEO Special EPS PSUs that are eligible to vest based on the level of compounded annual growth rate of the Company’s Adjusted EPS during the five year performance period. The grant date fair value of these awards is based on the market price of the Company’s common stock on the grant date and recognized as a compensation expense over a 4.3 year period.A summary of the Company’s performance stock unit activity for the year ended December 31, 2024 is presented in the following table (underlying shares in thousands).SharesWeighted-Average Grant-Date Fair ValueNon-vested as of December 31, 20231,380 $49.53 Granted87 132.98 Change in units based on performance122 55.84 Vested(244)55.84 Forfeited(6)71.81 Non-vested as of December 31, 20241,339 54.28 The following assumptions were used to estimate the fair value of performance share units granted during the year ended December 31, 2024, 2023 and 2022 using the Monte Carlo simulation pricing model.202420232022Expected term (in years)2.82.92.9 - 5.0Risk-free interest rate4.5%4.4%1.7% - 3.4%Assumed volatility28.9%31.8%35.0% - 36.4%Expected dividend rate0.1 %0.1 %0.2 %

Note 20:    Hedging Activities, Derivative Instruments and Credit Risk

Hedging ActivitiesThe Company is exposed to certain market risks during the normal course of its business arising from adverse changes in interest rates and foreign currency exchange rates. The Company selectively uses derivative financial instruments (“derivatives”), including cross-currency interest