Edgar Filing: Ingersoll-Rand plc

IR ESP 2012

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K



ý	ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2012



¨	TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 1-985



A.	Full title of the plan and address of the plan, if different from that of the issuer named below:

INGERSOLL-RAND COMPANY EMPLOYEE SAVINGS PLAN

(Full title of the plan)



B.	Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:

INGERSOLL-RAND PLC

170/175 Lakeview Drive

Airside Business Park

Swords, Co. Dublin

Ireland

Ingersoll-Rand Company Employee Savings Plan

Index

December 31, 2012 and 2011




	Page(s)

Report of Independent Registered Public Accounting Firm	2

Financial Statements

Statements of Net Assets Available for Benefits as of December 31, 2012 and 2011	3

Statements of Changes in Net Assets Available for Benefits for the years ended December 31, 2012 and 2011	4

Notes to Financial Statements	5

Supplemental Schedule

Schedule H, Part IV, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2012	13

Signatures	14

Exhibit Index	14



Note:	Other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Securities Act of 1974 have been omitted because they are not applicable.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Participants and Administrator of the

Ingersoll-Rand Company Employee Savings Plan

Davidson, North Carolina

We have audited the accompanying statements of net assets available for benefits of the Ingersoll-Rand Company Employee Savings Plan (the Plan) as of December 31, 2012 and 2011 , and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements of the Plan, referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2012 and 2011, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule of Assets (Held at End of Year) as of December 31, 2012 is presented for the purpose of additional analysis and is not a required part of the basic financial statements but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

/s/ Cherry Bekaert LLP

Charlotte, North Carolina

June 28, 2013

Ingersoll-Rand Company Employee Savings Plan

Statements of Net Assets Available for Benefits

December 31, 2012 and 2011



	2012		2011
Assets
Investments:
Plan's interest in Savings Plan Master Trust (Note 4), at fair value	$	3,246,069,166	$	2,906,449,030
Other assets, at fair value (Note 5)	—		25,142
Total investments	3,246,069,166		2,906,474,172
Receivables:
Employer contributions receivable	5,457,460		5,541,391
Employee contributions receivable	4,806,090		4,577,785
Notes receivable from participants	36,602,721		38,905,065
Total receivables	46,866,271		49,024,241
Net assets available for benefits	$	3,292,935,437	$	2,955,498,413

The accompanying notes are an integral part of these financial statements.

Ingersoll-Rand Company Employee Savings Plan

Statements of Changes in Net Assets Available for Benefits

For the years ended December 31, 2012 and 2011



	2012		2011
Additions (reductions) to net assets attributed to:
Plan's interest in investment income (loss) of the Savings Plan Master Trust (Note 4)	$	637,470,278	$	(365,961,724	)
Interest income on notes receivable from participants	1,479,093		1,665,329
Contributions
Participants	106,506,711		109,466,733
Employer	74,965,660		76,356,677
Employee rollover	8,046,699		8,136,149
Total contributions	189,519,070		193,959,559
Total additions (reductions)	828,468,441		(170,336,836		)
Deductions from net assets attributed to:
Participant withdrawals and distributions	319,151,609		328,833,576
Administrative expenses	266,358		378,091
Total deductions	319,417,967		329,211,667
Net increase (decrease) prior to transfers	509,050,474		(499,548,503		)
Transfers to other Plans (Note 1)	171,613,450		—
Net increase (decrease)	337,437,024		(499,548,503		)
Net assets available for benefits
Beginning of year	2,955,498,413		3,455,046,916
End of year	$	3,292,935,437	$	2,955,498,413

The accompanying notes are an integral part of these financial statements.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2012 and 2011



1	Description of Plan

The following brief description of the Ingersoll-Rand Company Employee Savings Plan (the “Plan”) provides only general information. Participants should refer to the Plan document for a complete description of the Plan’s provisions.

History

The Plan is sponsored by Ingersoll-Rand Company, a U.S. subsidiary of Ingersoll-Rand plc ("IR-plc") (IR-plc, Ingersoll-Rand Company and its participating affiliates are collectively referred to as the "Company"). The Company established the Plan effective January 1, 2003 as part of the implementation of the Retirement Income Program approved by the Board of Directors of the Company. The Plan was established in order to facilitate systematic savings by eligible employees and to provide those employees with an opportunity to fund their retirement and other specified needs.

On June 5, 2008, the Company acquired Trane Inc. and on December 31, 2009, all assets, including participant loans, of the employees participating in the Trane Savings Plan were merged into the Plan. On September 30, 2011, the Company completed a transaction to sell its Hussmann refrigerated display case business to a newly-formed affiliate ("Hussmann Parent") of private equity firm Clayton Dubilier & Rice, LLC ("CD&R"). This transaction included the equipment business and certain of the service branches in the U.S. ("Hussmann Business"). The final transaction allowed Hussmann Parent the option to acquire the remaining North American Hussmann service and installation branches ("Hussmann Branches"). Hussmann Parent completed the acquisition of the Hussmann Branches on November 30, 2011. All transferred and former employees of the U.S. business as defined by the purchase agreement remained in the Plan until April 5, 2012. On April 5, 2012, affected participants' balances in the Plan in the amount of $171,613,450 were transferred to a Hussmann Parent defined contribution plan intended to be qualified under section 401(a) of the U.S. Internal Revenue Code of 1986, as amended ("IRC") .

On June 8, 2012, the IR-plc Board of Directors approved amendments to the retirement plans for certain U.S. and Puerto Rico non-bargained employees, including amendments to the Plan. The amendments provided that eligible participants hired prior to July 1, 2012 were given a choice of remaining in their respective defined benefit plan until the plan freezes on December 31, 2022 or freezing their accrued benefits in their respective defined benefit plan as of December 31, 2012 and receiving an additional 2% non-matching company contribution into the Company's applicable defined contribution plan. Eligible employees hired or rehired on or after July 1, 2012 will automatically receive the 2% non-matching company contribution into the Plan in lieu of participating in the defined benefit plan. Beginning January 1, 2023, all eligible employees will receive the 2% non-matching contribution into the Plan.

General

The Plan is a defined contribution plan covering eligible employees of the Company, as defined in the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended ("ERISA").

Fidelity Management Trust Company (“Fidelity”) is the trustee and recordkeeper of the Plan and the Plan’s assets are part of the Ingersoll-Rand Company Savings Plan Master Trust (“Savings Plan Master Trust”) maintained by Fidelity.

The Ingersoll-Rand Company Benefits Administration Committee (the “Committee”) administers the Plan and is responsible for carrying out the provisions thereof on behalf of the Company. The IR-plc Benefits Design Committee approves recommended design changes to the Plan. The IR-plc Benefits Investment Committee selects and approves the Plan’s investment options. Participants direct investments among the approved investment options. The Plan is operated with the intent to satisfy the requirements of ERISA Section 404(c).

Other Assets

Certain Plan investments were owned by the Plan but were not part of the Savings Plan Master Trust as of December 31, 2011. These investments were comprised of variable annuity contracts with fair values of $25,142 at December 31, 2011.

These assets were transferred out of the Plan as a part of the Hussmann Business transfer.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2012 and 2011

Contributions

For those employees who are eligible to participate in the Plan, there is automatic enrollment whereby a new employee is automatically enrolled in the Plan upon date of hire with a 2% pre-tax contribution that is invested in a default investment fund defined by the Plan. The current default investment is the applicable target retirement date fund for that employee. The employee then has a period of approximately 30 days to elect to not contribute to the Plan or to change his or her contribution percentage and investment election. Payroll deductions, consequently, do not begin until such period has expired. Each year, participants may contribute up to 50% (in whole percentages) of their compensation, as defined in the Plan and subject to limits under the IRC. Participants may use before or after-tax dollars for part or all of their elective contributions.

Participants also may rollover to the Plan amounts representing distributions from other eligible retirement plans, as defined in the Plan. Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions. Contributions are subject to various limitations to ensure compliance with the requirements of the IRC. Participants may change their contribution amounts in accordance with the administrative procedures established by the Committee.

Participants direct the investment of their contributions into various investment options offered by the Plan. The Plan’s assets are held in the Savings Plan Master Trust, together with assets from other participating defined contribution plans sponsored by the Company or its affiliates and intended to qualify under IRC Section 401(a). Within the Savings Plan Master Trust, the Plan offers an interest bearing cash option, self-directed brokerage accounts, various commingled or mutual funds including target date retirement funds and an Ingersoll-Rand Stock Fund.

The Company contributes to the Plan via matching and non-matching contributions. The Plan requires company matching contributions of 100% of participants’ contributions up to 6% of eligible pay. The Company's matching contribution is contributed in cash with half to be invested in the same manner as the participant contributions and half to be invested in the Ingersoll-Rand Stock Fund. All contributions are immediately eligible to be sold and reinvested in any investment option under the Plan. Effective for pay periods ending after January 1, 2013, all matching contributions will be made in cash and invested in the same manner as the participant contributions. Participants who were hired or rehired on or after July 1, 2012 receive a non-matching company contribution of 2% of eligible compensation in lieu of participating in a defined benefit plan. Non-matching company contributions are made in cash and invested in the same manner as the participant contributions; if a participant does not have an investment election on file, company contributions are invested in the Plan's default investment fund which is the target date retirement fund.

Participant Accounts

Each participant’s account is credited with the participant’s contribution and allocations of (a) the Company’s contributions and (b) Plan earnings. Each participant's account is charged with withdrawals and allocations of (a) Plan losses and (b) applicable administrative expenses. Allocations are based on participant earnings or account balances, as defined. The benefit which a participant is entitled to receive is the benefit that can be provided from the participant’s vested account.

Vesting

Participants are vested immediately in their contributions plus actual earnings thereon. The Company’s matching contribution portion of participants’ accounts is also immediately vested. Company non-matching contributions are vested after 3 years of service or upon attainment of age 65, death or disability while employed.

Notes Receivable from Participants

Participants may borrow from their accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 reduced by their highest outstanding loan balance during the preceding twelve month period or 50% of their eligible account balance. The loans are secured by the balance in the participant’s account and bear a fixed interest rate of prime plus 0.1% (rounded to the nearest 0.5%) at the time of the loan, which is commensurate with local prevailing rates as determined by the Committee. At December 31, 2012, outstanding loans bore interest rates ranging from 3.25% to 10.0%. Principal and interest are paid ratably through payroll deductions. Loan terms range from 1-5 years. Effective January 1, 2010, a loan to acquire a principal residence may be for a term of up to 15 years. Loan terms for participants merged into the Plan remain at their original loan terms.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2012 and 2011

Payment of Benefits

Plan distributions may be in the form of a lump sum or in such other manner that the Plan may permit. In addition, Plan participants who terminate employment may elect distributions of at least $500 on a daily basis up to the balance in the account.



2	Summary of Significant Accounting Policies

Basis of Accounting

The financial statements of the Plan are prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Committee to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities at the dates of the financial statements. Actual results could differ from those estimates.

Valuation of Investments

With the exception of other assets described earlier, Plan investments are part of the Savings Plan Master Trust, which provides unified investment management. Fidelity invests Plan assets in various trust investment options at the direction of Plan participants and as required by the Plan. Separate participant accounts are maintained by investment option. These accounts record contributions, withdrawals, transfers, earnings and changes in market value.

Investments in the Savings Plan Master Trust are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Benefits Investment Committee determines the Plan's valuation policies utilizing information provided by investment advisors and custodians. See Notes 3 and 4 for discussion of fair value measurements of the investments.

Realized gains or losses on security transactions are recorded on the trade date. Realized gains or losses are the difference between the proceeds received and the security’s unit cost. Dividend income is recorded on the ex-dividend date and interest income is recorded when earned.

Certain management fees and expenses charged to the Plan for the investment in the Savings Plan Master Trust are deducted from income earned on a daily basis and are not separately reflected. Consequently, certain management fees and operating expenses are reflected as a reduction of investment returns for such investments.

The statements of changes in net assets available for benefits include unrealized appreciation or depreciation in accordance with the policy of stating investments at fair value. Net appreciation or depreciation of investments reflects both realized gains and losses and the change in unrealized appreciation and depreciation of investments.

Valuation of Notes Receivable from Participants

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Related fees are recorded as administrative expenses and are expensed when incurred. No allowance for credit losses has been recorded at December 31, 2012 and 2011. Delinquent participant loans are reclassified as distributions based upon the terms of the Plan document.

Contributions

Participant and Company matching and non-matching contributions are contributed to the Plan on a weekly, bi-weekly or monthly basis, as outlined in the Plan document. Participant contributions for each investment option or portfolio are based on the participants’ elections.

Expenses of the Plan

Certain expenses associated with the administration of the Plan and the Savings Plan Master Trust are paid for by the Company or through offsets and/or payments which may be attributable to the annual operating expenses of one or more of the Plan's designated investment options and are excluded from these financial statements. Expenses of the funds related to the investment

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2012 and 2011

and reinvestment of assets are included in the cost of the related investments. Other expenses such as loan fees, withdrawal fees and fees related to investments in the brokerage accounts are paid for by the participant and are included in these financial statements.

Benefit Payments

Distributions to terminated employees are recorded in the Plan’s financial statements when paid. There were no approved and unpaid amounts at December 31, 2012 and 2011.

Transfer of Assets from Other Plans

Employees may transfer their savings from other plans qualified under the IRC.



3	Fair Value Measurements

Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on a framework that utilizes the inputs market participants use to determine the fair value of an asset or liability and establishes a fair value hierarchy to prioritize those inputs. The fair value hierarchy is comprised of three levels that are described below:


Level 1	Inputs to the valuation methodology are based on quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access.


Level 2	Inputs other than Level 1. Inputs to the valuation methodology include:

•Quoted prices for similar assets or liabilities in active markets;

•Quoted prices for identical or similar assets or liabilities in markets that are not active;


•	Other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability


Level 3	Inputs to the valuation methodology are unobservable inputs based on little or no market activity and that are significant to the fair value of the assets and liabilities.

The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability based on the best information available under the circumstances. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2012 and 2011. There have been no significant transfers between Level 1 and Level 2 categories.

Ingersoll-Rand Stock Fund: The shares of the fund are valued at the daily net asset value (“NAV”) of shares held by the Savings Plan Master Trust at year end. NAV per share or the equivalent is used for fair value purposes as a practical expedient. NAVs are calculated by the investment manager or sponsor of the fund. The fund primarily invests in ordinary shares of IR-plc, which is traded on the New York Stock Exchange (“NYSE”) and is valued at its quoted market price at the daily close of the NYSE. A small portion of the fund is invested in short-term money market instruments. Such assets are classified as Level 2.

Mutual funds: The shares of registered investment companies are valued at quoted market prices in an exchange or active market, which represent the daily NAV of shares held by the Savings Plan Master Trust at year end and are classified as Level 1. Investments in registered investment companies generally may be redeemed daily.

Common collective trusts: These assets are not available in an exchange or active market; however, the fair value is determined based on the daily NAV of the underlying assets as traded in an exchange or active market. NAV per share or the equivalent is used for fair value purposes as a practical expedient. NAVs are calculated by the investment manager or sponsor of the fund. The Plan’s investment in common collective trusts are classified as Level 2.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2012 and 2011

Self-directed brokerage accounts: Investments in the self-directed brokerage accounts are at current value based on published market quotations from individual investments composing the brokerage accounts. Such assets are classified as Level 1.

Money market funds: The shares are valued at the daily NAV of the funds in which the Savings Plan Master Trust participates at year end. Such assets are classified as Level 1.

Investment contracts with insurance companies: The investments are valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit worthiness of the issuer. Funds under the contracts that have been allocated and applied to purchase annuities are excluded from the Savings Plan Master Trust assets. Such assets are classified within Level 3.

The preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

See Note 4 for further disclosures of the fair value of the assets held within the Savings Plan Master Trust.

The following summarizes the Plan’s investments, excluding the Savings Plan Master Trust, by classification and method of valuation as of December 31, 2011:



	Assets at fair value as of December 31, 2011
	Level 1		Level 2		Level 3		Total
Group annuity contracts	$	—	$	—	$	25,142	$	25,142

The following table sets forth a summary of changes in the fair value of the Plan’s level 3 assets for the years ended December 31, 2012 and 2011:



Level 3 assets
Years Ended December 31, 2011
	2012		2011
Balance, beginning of year	$	25,142	$	25,655
Realized gain/(losses)	—		(513		)
Unrealized gains/(losses) relating to instruments still held at the reporting date	—		—
Purchases	—		—
Sales	—		—
Issuances	—		—
Settlements	—		—
Transfers to other Plans (Note 1)	$	25,142
Balance, end of year	$	—	$	25,142
The amount of total gains or losses for the period attributable to the change in unrealized gains or losses relating to assets still held at the reporting date	$	—	$	—



4	Investment in Savings Plan Master Trust

Except for other assets shown above, the Plan’s investments are in the Savings Plan Master Trust which was established for the investment of assets of the Plan and several other retirement plans sponsored by the Company. The assets of the Savings Plan Master Trust are held by Fidelity. Each participating retirement plan has an undivided interest in the Savings Plan Master Trust; however, investment options for participants may vary by plan. Fidelity maintains separate accounting of all contributions,

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2012 and 2011

benefit payments and expenses and allocates income earned and received by the Savings Plan Master Trust on the basis of the adjusted value of each plan at each measurement date. At December 31, 2012 and 2011, the Plan had a 98.8% and 98.5% participation, respectively, in the Savings Plan Master Trust.

Summarized Savings Plan Master Trust information follows:



	2012		2011
Investments, at fair value
Money market portfolio	$	151,330,645	$	150,984,577
Mutual funds	1,275,790,709		1,079,238,368
Common collective trusts	767,327,600		869,210,492
Self-directed brokerage accounts	220,382,856		196,368,361
Ingersoll-Rand Stock Fund	871,016,942		656,044,168
Net assets available for benefits	$	3,285,848,752	$	2,951,845,966

Net realized and unrealized (depreciation) appreciation of investments and interest and dividend income for the Savings Plan Master Trust for the years ended December 31, are as follows:



	2012		2011
Investment income:
Net appreciation (depreciation) in fair value of investments
Mutual funds	$	137,288,776	$	(63,544,009	)
Self-directed brokerage accounts	17,780,112		(10,515,637		)
Common collective trusts	88,550,828		7,486,883
Ingersoll-Rand Stock Fund	345,923,346		(343,851,252		)
	589,543,062		(410,424,015		)
Interest and dividend income	59,790,393		42,021,998
Total investment income (loss)	$	649,333,455	$	(368,402,017	)

The following summarizes the classification of the Savings Plan Master Trust investments by classification and method of valuation as of December 31, 2012 and 2011:



Assets at fair value as of December 31, 2012
	Level 1		Level 2		Level 3		Total
Savings Plan Master Trust
Money market portfolio	$	151,330,645	$	—	$	—	$	151,330,645
Mutual funds:
Domestic equity funds	668,405,643		—		—		668,405,643
International equity fund	122,933,855		—		—		122,933,855
Fixed income funds	322,887,137		—		—		322,887,137
Index funds	161,564,074		—		—		161,564,074
Self-directed brokerage accounts	220,382,856		—		—		220,382,856
Common collective trusts:
Index funds ⁽¹⁾	—		51,745,319		—		51,745,319
Target date retirement funds ⁽²⁾	—		715,582,281		—		715,582,281
Ingersoll-Rand Stock Fund ⁽³⁾	—		871,016,942		—		871,016,942
Total assets at fair value	$	1,647,504,210	$	1,638,344,542	$	—	$	3,285,848,752

(1) Represents investment in common collective trusts that hold equity or fixed income securities. These funds have no unfunded commitments, redemption frequency restrictions, or other redemption restrictions.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2012 and 2011

(2) Represents investment in an asset mix that seeks to generate a level of risk and return appropriate for the fund’s particular time frame. The asset mix is determined by factors such as the investor’s age, projected level of risk aversion and the length of time until the principal will be withdrawn. There are no unfunded commitments, redemption frequency restrictions, or other redemption restrictions.

(3) Represents investment in Ingersoll-Rand plc ordinary shares, along with a minor amount of short-term investments, to provide liquidity. There are no unfunded commitments, redemption frequency restrictions, or other redemption restrictions.



Assets at fair value as of December 31, 2011
	Level 1		Level 2		Level 3		Total
Savings Plan Master Trust
Money market portfolio	$	150,984,577	$	—	$	—	$	150,984,577
Mutual funds:
Domestic equity funds	583,602,736		—		—		583,602,736
International equity fund	170,383,503		—		—		170,383,503
Fixed income funds	298,381,782		—		—		298,381,782
Index funds	26,870,347		—		—		26,870,347
Self-directed brokerage accounts	196,368,361		—		—		196,368,361
Common collective trusts:
Index funds ⁽¹⁾	—		157,300,110		—		157,300,110
Target date retirement funds ⁽²⁾	—		711,910,382		—		711,910,382
Ingersoll-Rand Stock Fund ⁽³⁾	—		656,044,168		—		656,044,168
Total assets at fair value	$	1,426,591,306	$	1,525,254,660	$	—	$	2,951,845,966

The Company revised the classification of items in the 2011 table to conform to the 2012 table classifications. Approximately $35 million of funds have been reclassified from Level 1 to Level 2 to better reflect the fact that these assets, which continue to be valued based on quoted market prices, are now held in a vehicle that is a common collective trust rather than a mutual fund. Fund categories have also been relabeled and reorganized for greater clarity.



5	Tax Status

The U.S. Internal Revenue Service (“IRS”) has determined and informed the Company by a letter dated April 29, 2004 that the Plan and related trust are designed in accordance with applicable sections of the IRC to be exempt from U.S. federal income tax. The Plan has been amended since receiving the determination letter. Plan management and the Plan’s counsel believe that the Plan is designed and is currently being operated in material compliance with the applicable requirements of the IRC and therefore no provision for U.S. federal income tax is required. In January 2011, an application for an updated determination letter was submitted to the IRS; however, the Company has not yet received the new letter.

GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize tax liability (or assets) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Plan administrator has analyzed the tax positions taken by the Plan and has concluded that as of December 31, 2012 and 2011, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2009.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2012 and 2011



6	Party-In-Interest

Certain Plan investments held in the Savings Plan Master Trust are shares or units of money market portfolio, commingled pool and mutual funds managed by Fidelity Management Trust Company, the Plan’s trustee and recordkeeper. These transactions qualify as permitted party-in-interest transactions.

Certain Savings Plan Master Trust investments are units of the Ingersoll-Rand Stock Fund which primarily invests in ordinary shares of IR-plc. These transactions qualify as permitted party-in-interest transactions.



7	Plan Termination

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of the Plan, ERISA and the IRC. In the event of Plan termination, all affected participants would become 100% vested in any unvested employer contributions.



8	Risks and Uncertainties

Through the Savings Plan Master Trust, the Plan provides for various investment options in any combination of common stocks, mutual funds, common collective trusts and short-term investments. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with the Plan’s investments, it is reasonably possible that changes in risks in the near term would materially affect participants' account balances and the amounts reported in the Statements of Net Assets Available for Benefits and the Statements of Changes in Net Assets Available for Benefits.



9	Subsequent Events

In December 2012, the Company's Board of Directors announced a plan to spin off the commercial and residential security businesses. The security businesses are being transferred to Allegion plc ("Allegion"), a newly created Irish company. The separation will result in two standalone companies: Ingersoll-Rand plc; and Allegion, a leading global provider of electronic and mechanical security products and services, delivering comprehensive solutions to commercial and residential customers. The completion of the spin-off is subject to certain customary conditions, including receipt of regulatory approvals, receipt of a ruling from the U.S. Internal Revenue Service as to the tax-free nature of the spin-off, as well as certain other matters relating to the spin-off: receipt of legal opinions, execution of intercompany agreements, effectiveness of appropriate filings with the SEC, and final approval of the transactions contemplated by the spin-off, as may be required under Irish law. There can be no assurance that any separation transaction will ultimately occur, or, if one does occur, its terms or timing. Upon completion of the spin-off, Allegion will become an independent publicly traded company and will form its own defined contribution plan(s) intended to be qualified under the section 401(a) of the IRC. The assets of all current and former employees of the Company that are determined to be part of the spin off to Allegion will be transferred into the newly formed Allegion defined contribution plan(s). The ordinary shares of IR plc held in the Savings Plan Master Trust attributable to the Plan will be treated in the same manner as all other outstanding ordinary shares of IR plc on the record date for the distribution. For every three ordinary shares of IR plc held in an account in the Plan, the account will be credited with one ordinary share of Allegion on the distribution date. The Plan administrator is currently assessing the impact on the Plan.

Schedule I

Ingersoll-Rand Company Employee Savings Plan

Schedule H, Part IV, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2012

Plan Sponsor: Ingersoll-Rand Company

Employer Identification: 13-5156640

Plan Number: 078




(a)	Identity of issue, borrower, lessor, or similar party (b)	Description of investment including maturity date, rate of interest, collateral, par or maturity value (c)	Cost (d)	Current Value (e)
*	Plan's interest in Savings Plan	Master Trust,
	Master Trust	98.8% participation	**	$	3,246,069,166

	Participant loans ***	Due 01/01/13 - 01/01/40 3.25% - 10.00%	**	36,602,721

	TOTAL ASSETS (Held at End of Year)			$	3,282,671,887


*	Includes assets which represent permitted party-in-interest transactions to the Plan.
**	Cost information is not required for participant directed investments and is therefore omitted.
***	The accompanying financial statements classify participant loans as notes receivable from participants.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

INGERSOLL-RAND COMPANY EMPLOYEE SAVINGS PLAN






Dated: June 28, 2013	By:	/s/ Sheila Savageau
	Name: Sheila Savageau Title: Benefits Administration Committee

EXHIBIT INDEX




Exhibit No.		Description

23		Consent of Cherry Bekaert LLP