Company: IR
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021883
Chunk: 7

Company: Ingersoll Rand Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 2
Chunk 7
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 Operating Activities to Free Cash Flow.

For the Three Month Period Ended March 31,20252024Net Income$188.4 $204.5 Plus:Interest expense61.2 36.8 Provision for income taxes58.5 54.4 Depreciation expense (a)27.6 24.7 Amortization expense (b)91.3 91.6 Restructuring and related business transformation costs (c)5.4 10.7 Acquisition and other transaction related expenses and non-cash charges (d)9.8 15.3 Stock-based compensation14.2 14.1 Foreign currency transaction losses (gains), net6.8 (0.7)Loss on equity method investments6.2 10.7 Adjustments to LIFO inventories3.0 6.8 Cybersecurity incident costs (e)(0.2)0.6 Interest income on cash and cash equivalents(10.3)(11.4)Other adjustments (f)(2.2)0.4 Adjusted EBITDA$459.7 $458.5 Minus:Interest expense$61.2 $36.8 Income tax provision, as adjusted (g)85.7 86.4 Depreciation expense27.6 24.7 Amortization of non-acquisition related intangible assets2.3 2.1 Interest income on cash and cash equivalents(10.3)(11.4)Adjusted Net Income$293.2 $319.9 Free Cash FlowCash flows from operating activities$256.4 $161.6 Minus:Capital expenditures33.7 62.3 Free Cash Flow$222.7 $99.3 

(a)Depreciation expense excludes $1.1 million and $0.9 million of depreciation of rental equipment for the three month periods ended March 31, 2025 and 2024, respectively.

(b)Represents $89.0 million and $89.5 million of amortization of intangible assets arising from acquisitions (customer relationships, technology, tradenames and backlog) and $2.3 million and $2.1 million of amortization of non-acquisition related intangible assets, in each case, for the three month periods ended March 31, 2025 and 2024, respectively.

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(c)Restr