Company: IR
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021883
Chunk: 39

Company: Ingersoll Rand Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 units. In some instances, such as death, awards may vest concurrently with or following an employee’s termination.Stock-Based CompensationFor the three month periods ended March 31, 2025 and 2024, the Company recognized stock-based compensation expense of $14.2 million and $14.1 million, respectively. These costs are included in “Cost of sales” and “Selling and administrative expenses” in the Condensed Consolidated Statements of Operations.As of March 31, 2025, there was $146.1 million of total unrecognized compensation expense related to outstanding stock options, restricted stock unit awards and performance stock unit awards granted to employees and non-employee directors, as well as 200,000 conditional stock options awarded during the third quarter of 2022 to our Chairman and CEO in which the service date precedes the grant date, and will be granted upon achievement of certain performance targets. These 200,000 stock options have not been included in the Stock Option Awards section below since the grant date has not occurred.Stock Option AwardsStock options are granted to employees with an exercise price equal to the fair value of the Company’s per share common stock on the date of grant. Stock option awards typically vest over four years or five years and expire ten years from the date of grant.A summary of the Company’s stock option activity for the three month period ended March 31, 2025 is presented in the following table (underlying shares in thousands).SharesWeighted-Average Exercise Price (per share)Stock options outstanding as of December 31, 20244,185 $43.33 Granted665 83.36 Exercised or settled(141)37.00 Forfeited(22)70.52 Expired(2)84.26 Stock options outstanding as of March 31, 20254,685 49.06 Vested as of March 31, 20253,034 33.74 

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The following assumptions were used to estimate the fair value of options granted during the three month periods ended March 31, 2025 and 2024 using the Black-Scholes option-pricing model.For the Three Month Period Ended March 31,Assumptions20252024Expected life of options (in years)6.3 - 7.56.3 - 7.5Risk-free interest rate4.1% - 4.2%4.3%Assumed volatility34