Edgar Filing: Ingersoll-Rand plc

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Form 11-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

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

For the fiscal year ended December 31, 2010

¨	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, 2010 and 2009


	Page(s)

Report of Independent Registered Public Accounting Firm		1

Financial Statements

Statements of Assets Available for Benefits as of December 31, 2010 and 2009		2

Statements of Changes in Assets Available for Benefits for the years ended December 31, 2010 and 2009		3

Notes to Financial Statements		4 –13

Supplemental Schedules

Schedule H, Part IV, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2010		14

Schedule H, Part IV, Line 4a – Schedule of Delinquent Participant Contributions For the year ended December 31, 2010		15

Signatures		16

Consent of Independent Registered Public Accounting Firm

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.

LOGO

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Participants and Administrator of the

Ingersoll-Rand Company Employee Savings Plan

Piscataway, New Jersey

We have audited the accompanying financial statements of the Ingersoll-Rand Company Employee Savings Plan (the Plan) as of and for the years ended December 31, 2010 and 2009 as listed in the forgoing Index. 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, 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, 2010 and 2009, 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) and supplemental Schedule of Delinquent Participant Contributions are presented for the purpose of additional analysis and are 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. These supplemental schedules are the responsibility of the Plan’s management. Such schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole.

/s/ Cherry, Bekaert & Holland, L.L.P.

Charlotte, North Carolina

June 27, 2011

Ingersoll-Rand Company Employee Savings Plan

Statements of Assets Available for Benefits

December 31, 2010 and 2009


	2010		2009
Assets
Investments:
Plan's interest in Savings Plan Master Trust (Note 4), at fair value	$	3,406,115,712	$	3,013,666,284
Other assets, at fair value (Note 5)		25,655		24,640

Total investments		3,406,141,367		3,013,690,924

Recievables:
Employer contributions receivable		5,506,073		1,281,182
Employee contributions receivable		5,226,336		—
Notes receivable from participants		38,173,140		37,770,796

Total receivables		48,905,549		39,051,978

Net assets available for benefits, at fair value	$	3,455,046,916	$	3,052,742,902

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

Ingersoll-Rand Company Employee Savings Plan

Statements of Changes in Assets Available for Benefits

For the years ended December 31, 2010 and 2009


	2010		2009
Additions to net assets attributed to:
Plan's interest in investment income of the Savings Plan Master Trust (Note 4)	$	532,545,219	$	285,443,572
Interest income on notes receivable from participants		1,710,591		1,203,462

Contributions
Participants		105,315,985		48,797,320
Employer		73,631,523		35,171,441
Employee rollover		5,139,174		2,076,941

Total contributions		184,086,682		86,045,702

Total additions		718,342,492		372,692,736

Deductions from net assets attributed to:
Participant withdrawals and distributions		315,681,400		93,657,132
Administrative expenses		357,078		191,471

Total deductions		316,038,478		93,848,603

Net increase prior to transfers		402,304,014		278,844,133
Transfers from other plans (Note 1)		—		2,010,900,424

Net increase		402,304,014		2,289,744,557
Net assets available for benefits
Beginning of year		3,052,742,902		762,998,345

End of year	$	3,455,046,916	$	3,052,742,902

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

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

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

On July 1, 2009, Ingersoll-Rand Company Limited (“IR-Limited”), a Bermuda company, completed a reorganization to change the jurisdiction of incorporation of the parent company of Ingersoll Rand Company from Bermuda to Ireland. As a result, Ingersoll-Rand plc (“IR-Ireland”) replaced IR-Limited as the ultimate parent company effective July 1, 2009 (collectively referred to as “the Company”). As a result of the reorganization, IR-Limited became a wholly-owned subsidiary of IR-Ireland and the Class A common shares of IR-Limited became ordinary shares of IR-Ireland. Shares of Ingersoll-Rand plc continue to trade on the New York Stock Exchange under the symbol “IR”, the same symbol under which the Ingersoll-Rand Company Limited Class A common shares previously traded.

The Company established the Ingersoll-Rand Company Employee Savings Plan (the “Plan”) effective January 1, 2003 as part of the implementation of the Retirement Income Program approved by the Board of Directors of the Ingersoll-Rand 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.

The Plan was adopted effective January 1, 2003, reflecting a spin-off of certain account balances and the merger of all or a portion of the account balances of the following plans into the Plan:

–

Ingersoll-Rand Company Savings and Stock Investment Plan (the “SSIP”), except with respect to the account balances of employees whose employment with the Company terminated as a result of the sale of the Engineered Business Solutions.

–

Ingersoll-Rand/Thermo King Savings and Stock Investment Plan, except with respect to the account balances of employees whose eligibility to participate is subject to collective bargaining.

–

Kryptonite Corporation Profit Sharing Plan.

–

National Refrigeration Services, Inc. 401(k) Retirement Savings Plan.

–

Hussmann International, Inc. Retirement Savings Plan for Hourly Employees, except with respect to the account balances of employees whose eligibility to participate is subject to collective bargaining.

–

Hussmann International, Inc. Retirement Savings Plan for Salaried Employees.

–

Taylor Industries, Inc. 401(k) Profit Sharing Plan.

–

WHS Refrigeration Systems, Inc. 401(k) Savings Plan.

Effective December 31, 2003, the account balances of participants in the SSIP, the Electronic Technology Corporation 401(k) Plan (the “ETC Plan”) and the Integrated Access Systems, Inc. Employee Salary Reduction Plan (the “Integrated Access Plan”) were merged into the Plan.

Effective May 31, 2005, the account balances of participants in the Ingersoll-Dresser Pump Company Hourly Pension Plan (the “IDP Plan”), the Falcon Lock 401(k) Plan (the “Falcon Lock Plan”) and the Nelson Refrigeration Profit Sharing Plan (the “Nelson Plan”) were merged into the Plan. Effective

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

September 30, 2005, the Security One Systems, Inc. 401K Savings Plan (the “SOS Plan”) was merged into the Plan.

On February 27, 2007, the Company agreed to sell its Road Development business unit to AB Volvo. The U.S. portion of the sale was completed on April 30, 2007. The assets of the “Transferred Employees” and “Former Employees,” as defined in the asset and stock purchase agreement between Ingersoll Rand Company, Limited and AB Volvo (Public), dated February 27, 2007 were transferred to an AB Volvo defined contribution plan intended to be qualified under IRC Section 401(a) during 2008.

On July 29, 2007, the Company agreed to sell its Bobcat, Utility Equipment and Attachment businesses (collectively, Compact Equipment) to Doosan Infracore. The sale was completed on November 30, 2007. The assets and liabilities of “Transferred Employees” and “Former Employees,” as defined in the asset and stock purchase agreement among Ingersoll Rand Company, Limited, Doosan Infracore Co. Limited and Doosan Engine Co. LTD, dated as of July 20, 2007 were transferred to a Doosan defined contribution plan intended to be qualified under IRC Section 401(a) during 2007.

On March 31, 2008, all assets of the Ingersoll-Rand Matching Contributions Plan were merged into the Plan.

On June 5, 2008, the Company acquired Trane, Inc. On December 31, 2009, all assets, including participant loans, of US employees participating in the Trane Savings Plan were merged into the Plan. These employees were covered by the Plan going forward.

General

The Plan is a defined contribution plan covering eligible employees, 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 Ingersoll-Rand Company Benefits Design Committee designs and approves changes to the Plan. The Ingersoll-Rand Company Benefits Investment Committee selects and approves the Plan’s investment options. Participants direct investments among the primary investment options. The Plan is operated with the intent to satisfy the requirements of ERISA Section 404(c).

Other Assets

Certain Plan investments relate to assets received as a result of the merger of the Nelson Plan into the Plan effective May 31, 2005. These assets were owned by the Plan but were not part of the Savings Plan Master Trust as of December 31, 2010 and 2009. The Company has no intentions to transfer these assets to the Savings Plan Master Trust at this time.

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 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 options within the Plan. 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 U.S. Internal Revenue Code of 1986, as amended (“IRC”). Participants may use before or after-tax dollars for part or all of their elective contributions.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

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 Ingersoll-Rand Company participating defined contribution plans 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 mutual funds, and an Ingersoll Rand Stock Fund.

The Company contributes to the Plan via a matching contribution. The Plan requires Company matching contributions of 100% of participants’ contributions up to 6% of salary. The Company’s matching contribution is contributed in half cash and half stock. The cash half is immediately invested in the same manner as the participant contributions and the stock half, contributed in Ingersoll-Rand plc ordinary shares, is immediately eligible to be sold and reinvested in any investment option under the Plan. The Plan also had a discretionary profit sharing contribution available for certain participants working for an affiliate of the Company through January 1, 2010. This profit sharing contribution, if any, was determined annually by the sector leadership of the affiliate. At December 31, 2009, employer contribution receivable included $515,936 related to this profit sharing contribution. Effective January 1, 2010, the profit sharing contribution has been eliminated, other than any contribution made in 2010 for the 2009 Plan year.

Participant Accounts

Each participant’s account is credited with the participant’s contribution and allocations of (a) the Company’s contribution and (b) Plan earnings. Each participants 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 and profit sharing contribution portion of participants’ accounts is also immediately vested. Company basic contributions or additional contributions made under the Trane Savings Plan and merged into the Plan on December 31, 2009 remain subject to a three year vesting schedule.

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 Plan Administrator. At December 31, 2010, outstanding loans bore interest rates ranging from 3.25% to 10.5%. 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.

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.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

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 assets of merged plans described earlier and notes receivable from participants, 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. 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.

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

Notes Receivable from Participants

Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participant loans are reclassified as distributions based upon the terms of the Plan document.

Transfers to/from Other Plans

Assets acquired through plan merger are recorded at the fair value on the effective date of the plan merger.

Contributions

Participant and Company 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. Expenses of the funds related to the investment 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.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

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, 2010 and 2009.

Reclassifications

Certain reclassifications have been made to the prior periods presented in the financial statements to conform to the current year presentation.

New Accounting Pronouncements

Effective January 1, 2010, the Plan adopted the Financial Accounting Standards Board (“FASB”) authoritative guidance on reporting loans to participants by defined contribution pension plans. In accordance with the provisions, participant loans are required to be classified as notes receivable from participants, which are segregated from Plan investments and measured at their unpaid principal balance, plus any accrued but unpaid interest. The adoption of this accounting standard requires reclassification of participant loans from investments to notes receivable from participants on the Statements of Net Assets Available for Benefits as of December 31, 2010 and 2009. Accordingly, the 2009 financial statements have been reclassified to conform to the 2010 presentation.

3.	Fair Value Measurements

GAAP provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1

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

Level 2

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 inactive markets;

•

Inputs other than quoted prices that are observable for the asset or liability;

•

Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability.

Level 3

Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

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, 2010 and 2009.

Ingersoll Rand Stock Fund: Valued at the net asset value (“NAV”) of shares held by the Savings Plan Master Trust at year end. The fund primarily invests in ordinary shares of Ingersoll-Rand 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.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

Mutual funds: The shares of registered investment companies are valued at quoted market prices in an exchange or active market, which represent the 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 NAV of the underlying assets as traded in an exchange or active market. Common collective trusts generally may be redeemed monthly. Effective January 1, 2010, Plan management applied fair value measurement guidance when using NAV as a practical expedient and determined that the level of the Plan’s investment in common collective trusts as of January 1, 2010 should be reclassified within Level 2.

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.

Money market portfolio: Valued at the NAV of the funds in which the Savings Plan Master Trust participates at year-end.

Investment contracts with insurance companies (assets of merged plans): 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 by classification and method of valuation as of December 31, 2010 and 2009:


	Assets at fair value as of December 31, 2010

	Level 1		Level 2		Level 3		Total
Group annuity contracts	$	—	$	—	$	25,655	$	25,655


	Assets at fair value as of December 31, 2009

	Level 1		Level 2		Level 3		Total
Group annuity contracts	$	—	$	—	$	24,640	$	24,640

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

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, 2010 and 2009:


Level 3 assets
Years Ended December 31, 2010 and 2009
	2010		2009
Balance, beginning of year	$	24,640	$	20,157
Realized gain/(losses)		1,015		4,483
Unrealized gains/(losses) relating to instruments still held at the reporting date		—		—
Purchases, sales, issuances and settlements, net		—		—

Balance, end of year	$	25,655	$	24,640

4.	Investment in Savings Plan Master Trust

Except for the assets of merged plans, 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 Ingersoll-Rand Company sponsored retirement plans. 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. Fidelity maintains separate accounting of all contributions, 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, 2010 and 2009, the Plan had a 98.6% and 98.5% participation, respectively, in the Savings Plan Master Trust.

Summarized Savings Plan Master Trust information follows:


	2010		2009
Investments, at fair value
Money market portfolio	$	141,723,176	$	148,291,472
Mutual funds		1,228,345,429		1,068,037,088
Common collective trust		833,294,317		764,508,750
Self-directed brokerage accounts		184,713,390		135,234,812
Ingersoll Rand Stock Fund		1,067,495,072		943,251,993

Net assets available for benefits	$	3,455,571,384	$	3,059,324,115

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

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


	2010		2009
Investment income:
Net appreciation in fair value of investments
Mutual funds	$	123,831,355	$	71,158,770
Self-directed brokerage accounts		20,895,315		2,635,445
Common collective trust		93,642,569		84,195,864
Ingersoll Rand Stock Fund		259,087,378		123,599,700

		497,456,617		281,589,779
Interest and dividend income		40,954,758		10,949,748

Total investment income	$	538,411,375	$	292,539,527

The following summarizes the classification of the Savings Plan Master Trust investments by classification and method of valuation as of December 31, 2010 and 2009:


Assets at fair value as of December 31, 2010

	Level 1		Level 2		Level 3		Total
Savings Plan Master Trust
Money market portfolio	$	141,723,176	$	—	$	—	$	141,723,176
Mutual funds:
Growth funds		506,689,258		—		—		506,689,258
Bond fund		278,762,743		—		—		278,762,743
International growth funds		236,196,087		—		—		236,196,087
Domestic equity fund		86,053,138		—		—		86,053,138
Fixed income fund		55,655,818		—		—		55,655,818
Value equity fund		37,877,101		—		—		37,877,101
Index funds		27,111,284		—		—		27,111,284
Self-directed brokerage accounts		184,713,390		—		—		184,713,390
Common or collective trusts:
Index funds *		—		117,362,141		—		117,362,141
Lifestyle funds **		—		715,932,176		—		715,932,176
Ingersoll Rand Stock Fund ***		—		1,067,495,072		—		1,067,495,072

Total assets at fair value	$	1,554,781,995	$	1,900,789,389	$	—	$	3,455,571,384

* Represents investment in common collective trust consisting of companies composing the Standard & Poor’s (“S&P”) 500 index. Equity index funds seek to replicate the movements of an index specific market, such as the S&P 500 Index, regardless of market conditions. There are no unfunded commitments, redemption frequency restrictions, or other redemption restrictions.

** Represents investment in an asset mix determined by the level of risk and return for the fund’s particular time frame. Lifestyle funds seek to provide an asset mix based on factors such as the investor’s age, 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.

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

*** 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, 2009

	Level 1		Level 2		Level 3		Total
Savings Plan Master Trust
Money market portfolio	$	148,291,472	$	—	$	—	$	148,291,472
Mutual funds:
Growth funds		426,302,881		—		—		426,302,881
Bond fund		254,891,834		—		—		254,891,834
International growth funds		225,141,090		—		—		225,141,090
Domestic equity fund		80,192,203		—		—		80,192,203
Fixed income fund		40,348,957		—		—		40,348,957
Value equity fund		21,744,332		—		—		21,744,332
Index funds		19,415,792		—		—		19,415,792
Self-directed brokerage accounts		135,234,812		—		—		135,234,812
Common or collective trusts
Index funds *		108,327,338		—		—		108,327,338
Lifestyle funds **		—		656,181,411		—		656,181,411
Ingersoll Rand Stock Fund ***		—		943,251,993		—		943,251,993

Total assets at fair value	$	1,459,890,711	$	1,599,433,404	$	—	$	3,059,324,115

5.	Assets of Merged Plans

Investments in the assets of merged plans category are comprised of the investments of the Nelson Plan which were merged into the Plan effective May 31, 2005. The investments of this merged plan are comprised of $25,655 and $24,640 of variable annuity accounts at December 31, 2010 and 2009.

6.	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

Ingersoll-Rand Company Employee Savings Plan

Notes to Financial Statements

December 31, 2010 and 2009

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, 2010, 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 2007.

7.	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. These transactions qualify as permitted party-in-interest transactions.

8.	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 their employer contributions.

9.	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 the values of the Plan’s investments will occur in the near term and that such changes could materially affect participant account balances and the amounts reported in the Statements of Net Assets Available for Benefits.

10.	Subsequent Events

On April 21, 2011, the Company announced a plan to divest its Hussmann North American (U.S. and Canada) refrigerated display case equipment business, and the equipment, service and installation businesses outside of North America. The Company is unaware at this time how this transaction will impact the Plan.

Ingersoll-Rand Company Employee Savings Plan

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

December 31, 2010

Schedule I

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	98.6% participation	**	$	3,406,115,712

	Mass Mutual Variable Annuity
	Contracts	Variable annuity contracts	**		25,655
***	Participant loans	Due 01/01/11 - 02/11/16 3.25% - 9.50%	**		38,173,140

	TOTAL ASSETS (Held at End of Year)			$	3,444,314,507


*	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.

Ingersoll-Rand Company Employee Savings Plan

Schedule H, Part IV, Line 4a – Schedule of Delinquent Participant Contributions

For the year ended December 31, 2010

Plan Sponsor: Ingersoll-Rand Company

Employer Identification: 13-5156640

Plan Number: 078


		Total That Constitutes Nonexempt Prohibited Transactions
Participant contributions transferred late to the Plan	Check Here if Late Participant Loan Repayments are Included	Contributions Not Corrected		Contributions Corrected Outside Voluntary Fiduciary Correction Program		Contributions Pending Correction in Voluntary Fiduciary Correction Program		Total Fully Corrected Under Voluntary Fiduciary Correction Program and PTE 2002-51
	X		—	$	25,523	$	—		—

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

EXHIBIT INDEX


Exhibit No.		Description

23		Consent of Cherry, Bekaert & Holland, L.L.P

Dated: June 27, 2011

/s/ Sheila Savageau

Name: Sheila Savageau

Title: Benefits Administration Committee