Company: IR
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006391
Chunk: 97

Company: Ingersoll Rand Inc.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 97
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$(11.8)$(11.7)$2.1 Net investment hedges$(17.7)$(19.0)$(11.5)Interest expenseProvision for income taxes4.4 4.8 2.9 Provision for income taxesNet investment hedges, net of tax$(13.3)$(14.2)$(8.6)Amortization of defined benefit pension and other postretirement benefit items(1)$(1.4)$(2.9)$(0.1)Cost of sales and Selling and administrative expensesProvision for income taxes0.4 0.7 — Provision for income taxesAmortization of defined benefit pension and other postretirement benefit items, net of tax$(1.0)$(2.2)$(0.1)Total reclassifications for the period$(26.1)$(28.1)$(6.6)(1)These components are included in the computation of net periodic benefit cost. See Note 13 “Benefit Plans” for additional details.

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Note 16:    Revenue from Contracts with Customers

OverviewThe Company recognizes revenue when it has satisfied its obligation and control is transferred to the customer. The amount of revenue recognized includes adjustments for any variable consideration, such as rebates, sales discounts and liquidated damages, which are included in the transaction price, and allocated to each performance obligation. The variable consideration is estimated throughout the course of the contract using the Company’s best estimates. Judgements impacting variable consideration related to material rebate and sales discount programs, and significant contracts containing liquidated damage clauses are governed by management review processes.The majority of the Company’s revenues are derived from short duration contracts and revenue is recognized at a single point in time when control is transferred to the customer, generally at shipment or when delivery has occurred or services have been rendered.The Company has certain long duration engineered to order (“ETO”) contracts that require highly-engineered solutions designed to customer specific applications. For contracts where the contractual deliverables have no alternative use and the contract termination clauses provide for the recovery of cost plus a reasonable margin, revenue is recognized over time based on the Company’s progress in satisfying the contractual performance obligations, generally measured as the ratio of actual costs incurred to date to the estimated total costs to complete the contract. For contracts with termination provisions that do not provide for recovery of cost and a reasonable margin, revenue is recognized at a point in time, generally at