Risk-free interest rate (as a percent)

[Table of Contents](#ifd0dff1f28084ac0b92d7f0a49d14a91_7)The following assumptions were used to estimate the fair value of performance share units granted during the nine month periods ended September 30, 2022 and 2021 using the Monte Carlo simulation pricing model.

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Nine Month Period Ended September 30, |
| Assumptions | 2022 |  | 2021 |
| Expected term (in years) | 2.9 - 5.0 |  | 2.9 |
| Risk-free interest rate | 1.7% - 3.4% |  | 0.2  | % |
| Assumed volatility | 35.0% - 36.4% |  | 36.9  | % |
| Expected dividend rate | 0.2  | % |  | —  | % |

Note 11. Accumulated Other Comprehensive LossThe Company’s other comprehensive income (loss) consists of (i) unrealized foreign currency net gains and losses on the translation of the assets and liabilities of its foreign operations; (ii) realized and unrealized foreign currency gains and losses on certain hedges of net investments in foreign operations, net of income taxes; (iii) unrealized gains and losses on cash flow hedges (consisting of interest rate swap and cap contracts), net of income taxes; and (iv) pension and other postretirement prior service cost and actuarial gains or losses, net of income taxes. See Note 8 “[Benefit Plans](#ifd0dff1f28084ac0b92d7f0a49d14a91_67)” and Note 12 “[Hedging Activities, Derivative Instruments and Fair Value Measurements](#ifd0dff1f28084ac0b92d7f0a49d14a91_85).”The before tax income (loss) and related income tax effect are as follows.

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  | For the Three Month Period Ended September 30, |
|  | 2022 |  | 2021 |
|  | Before-Tax Amount |  | Tax Benefit or (Expense) |  | Net of Tax Amount |  | Before-Tax Amount |  | Tax Benefit or (Expense) |  | Net of Tax Amount |
| Foreign currency translation adjustments, net | $ | (207.9) |  |  | $ | —  |  |  | $ | (207.9) |  |  | $ | (52.1) |  |  | $ | 4.5  |  |  | $ | (47.6) |  |
| Unrecognized gains on cash flow hedges | 26.1  |  |  | (6.5) |  |  | 19.6  |  |  | —  |  |  | —  |  |  | —  |  |
| Pension and other postretirement benefit prior service cost and gain or loss, net | 7.0  |  |  | (1.7) |  |  | 5.3  |  |  | 2.4  |  |  | (0.6) |  |  | 1.8  |  |
| Other comprehensive loss | $ | (174.8) |  |  | $ | (8.2) |  |  | $ | (183.0) |  |  | $ | (49.7) |  |  | $ | 3.9  |  |  | $ | (45.8) |  |



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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Nine Month Period Ended September 30, |
|  | 2022 |  | 2021 |
|  | Before-Tax Amount |  | Tax Benefit or (Expense) |  | Net of Tax Amount |  | Before-Tax Amount |  | Tax Benefit or (Expense) |  | Net of Tax Amount |
| Foreign currency translation adjustments, net | $ | (413.0) |  |  | $ | (35.8) |  |  | $ | (448.8) |  |  | $ | (108.3) |  |  | $ | 10.0  |  |  | $ | (98.3) |  |
| Unrecognized gains on cash flow hedges | 19.8  |  |  | (5.6) |  |  | 14.2  |  |  | —  |  |  | —  |  |  | —  |  |
| Pension and other postretirement benefit prior service cost and gain or loss, net | 2.9  |  |  | (0.7) |  |  | 2.2  |  |  | 5.4  |  |  | (1.1) |  |  | 4.3  |  |
| Other comprehensive loss | $ | (390.3) |  |  | $ | (42.1) |  |  | $ | (432.4) |  |  | $ | (102.9) |  |  | $ | 8.9  |  |  | $ | (94.0) |  |

The tables above include only the other comprehensive loss, net of tax, attributable to Ingersoll Rand Inc. Other comprehensive income (loss), net of tax, attributable to noncontrolling interest holders was $(1.9) million and $0.2 million for the three month periods ended September 30, 2022 and 2021, respectively, and $(6.1) million and $(2.1) million for the nine month periods ended September 30, 2022 and 2021, respectively, and related entirely to foreign currency translation adjustments.23
