Company: IR
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021883
Chunk: 74

Company: Ingersoll Rand Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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 jurisdictions outside of the United States. We do not assert ASC 740-30 (formerly APB 23) indefinite reinvestment of our 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. Our deferred income tax liability as of March 31, 2025 was $62.9 million which primarily consisted of withholding taxes.

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Working Capital

March 31, 2025December 31, 2024Net Working Capital:Current assets$4,351.7 $4,163.5 Less: Current liabilities1,826.8 1,818.9 Net working capital$2,524.9 $2,344.6 Operating Working Capital:Accounts receivable$1,348.3 $1,335.4 Plus: Inventories (excluding LIFO reserve)1,215.2 1,134.2 Plus: Contract assets116.3 111.2 Less: Accounts payable780.4 843.6 Less: Contract liabilities (current)328.9 318.6 Operating working capital$1,570.5 $1,418.6 

Net working capital increased $180.3 million to $2,524.9 million as of March 31, 2025 from $2,344.6 million as of December 31, 2024. Operating working capital increased $151.9 million to $1,570.5 million as of March 31, 2025 from $1,418.6 million as of December 31, 2024. The increase in operating working capital is due to higher inventories, higher accounts receivable, higher contract assets and lower accounts payable, partially offset by higher contract liabilities.

The increase in accounts receivable was primarily due to the timing of revenues in the quarter and seasonal changes in collection timing. The increase in inventories was primarily due to additions to inventory due to increased demand for certain products. The increase in contract assets was primarily due to the timing of revenue recognition and billing on our overtime contracts. The decrease in accounts payable was primarily due to the timing of vendor cash disbursements. The increase in contract liabilities was primarily due to the timing of customer milestone payments for in-process engineered to order contracts.

Cash Flows

The