Ingersoll-Rand Company Savings and Stock
Investment Plan
Independent Auditors' Report
Financial Statements
Years Ended December 31, 2001 and 2000
Supplemental Schedules
Year Ended December 31, 2001
INGERSOLL-RAND COMPANY SAVINGS AND STOCK INVESTMENT PLAN
TABLE OF CONTENTS
Page
INDEPENDENT AUDITORS' REPORT 1
FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED
DECEMBER 31, 2001 AND 2000:
Statements of Financial Condition 2
Statements of Income and Changes in Plan Equity 3
Notes to Financial Statements 4-16
SUPPLEMENTAL SCHEDULES (Combined Investment Trust):
Schedule I - Schedule of Assets Held at End of Year -
December 31, 2001 17
Schedule II - Schedule of Reportable Transactions -
December 31, 2001 18
Other schedules required by Section 2520.103-10 of the DOL's Rules
and Regulations for Reporting and Disclosure under ERISA have been
omitted because they are not applicable.
INDEPENDENT AUDITORS' REPORT
To the Benefits Committee and Participants in the Ingersoll-Rand
Company Savings and Stock Investment Plan Woodcliff Lake, New Jersey.
We have audited the accompanying statements of financial
condition of the Ingersoll-Rand Company Savings and Stock
Investment Plan (the "Plan") as of December 31, 2001 and 2000,
and the related statements of income and changes in plan equity
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 auditing standards
generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. 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 the Plan's 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, such financial statements present fairly, in
all material respects, the financial condition of the Plan as
of December 31, 2001 and 2000, and the income and changes in
plan equity 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 schedules listed in the Table of Contents 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
schedules (modified cash basis) are the responsibility of the
Plan's Management. Such schedules have been subjected to the
auditing procedures applied in our audit of the basic 2001
financial statements and, in our opinion, are fairly stated in
all material respects when considered in relation to the basic
2001 financial statements taken as a whole.
/s/ Deloitte & Touche LLP
Parsippany, New Jersey
June 24, 2002
INGERSOLL-RAND COMPANY SAVINGS AND STOCK INVESTMENT PLAN
STATEMENTS OF FINANCIAL CONDITION
DECEMBER 31, 2001 AND 2000
2001 2000
Assets:
Investments at current value :
Combined Trust Fixed Income Fund $261,437,029 $220,866,728
Combined Trust Mutual Fund 345,302,380 406,090,952
Combined Trust Ingersoll-Rand Company Common Stock Fund 236,230,688 278,863,776
Total investments 842,970,097 905,821,456
Participant loans receivable 22,467,157 24,408,547
Contributions receivable 1,196,750 1,088,804
Due from merged plans 2,483,759 0
Total assets and Plan equity $869,117,763 $931,318,807
See notes to financial statements.
INGERSOLL-RAND COMPANY SAVINGS AND STOCK INVESTMENT PLAN
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
YEARS ENDED DECEMBER 31, 2001 AND 2000
2001 2000
Contributions:
Participants $ 52,734,350 $ 51,229,104
Investment (loss) income:
Dividends 8,172,493 39,634,921
Interest 17,085,453 16,349,429
Net depreciation of investments (60,630,497) (149,571,712)
Net investment loss (35,372,551) (93,587,362)
Total additions(deductions) 17,361,799 (42,358,258)
Participant withdrawals and distributions (81,586,296) (93,457,321)
Net decrease prior to transfers (64,224,497) (135,815,579)
Transfers from other plans, net 2,023,453 10,087,306
Net decrease in plan equity (62,201,044) (125,728,273)
Plan equity, beginning of year 931,318,807 1,057,047,080
Plan equity, end of year $869,117,763 $931,318,807
See notes to financial statements.
INGERSOLL-RAND COMPANY SAVINGS AND STOCK INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2001 AND 2000
1. PLAN DESCRIPTION
The following brief description of the Ingersoll-Rand Company
Savings and Stock Investment Plan (the "Plan") provides only
general information. Participants should refer to the Plan
Document for a more complete description of the Plan's
provisions.
General - Ingersoll-Rand Company Limited (the "Company") adopted
the Plan for eligible employees at participating locations.
Prior to July 1, 1999, eligible participants could participate
in the Plan on the first day of the month following 30 calendar
days of employment. Effective July 1, 1999, automatic
enrollment was instituted for the Plan, whereby a new employee
is automatically enrolled in the Plan upon date of hire with a
2% pre-tax contribution. The employee then has a period of
approximately 30 days to elect to not contribute to the Plan.
Payroll deductions, consequently, do not begin until such period
has expired.
JP Morgan Chase Bank ("Chase") and PricewaterhouseCoopers are
the trustee and recordkeeper of the Plan, respectively.
The Benefits Committee, which is appointed by the Company's
Board of Directors (or its delegate), administers the Plan. The
Finance Committee of the Company's Board of Directors
establishes the Plan's investment policies.
The Company intends to continue the Plan indefinitely. However,
the Company retains the right to terminate the Plan. If the
Company discontinues the Plan, all participant account balances
become fully vested at the termination date.
Contributions - Participants may contribute as basic
contributions one to six percent (in whole percentages) of their
compensation through payroll deductions. Participants
contributing 6% of compensation may contribute an additional one
to 10% of compensation as supplemental contributions.
Participants may use before- or after-tax dollars for part or
all of their contributions. Contributions are subject to
varying limitations to ensure compliance with Internal Revenue
Code ("IRC") requirements. Participants may change their
contribution amounts at any time effective the first pay period
of the following month by contacting the recordkeeper through
its automated Benefits Information Line ("BIL").
The Company contributes to the Plan via a matching contribution
and a Company retirement contribution. The Company matches basic
contributions at a rate determined by the Company's Board of
Directors. The Plan requires that Company matching
contributions be at least 25%, but no more than 100% of
participants' basic contributions. For 2001 and 2000, the
Company matching contribution was set at 50% of basic
contributions. As a Company retirement contribution for certain
eligible employees, the Company also contributes to the Plan one
percent of the participant's monthly compensation. An
additional one percent is contributed to the Plan for employees
who meet certain criteria, as outlined in the Plan.
Effective October 1, 1995, for Company matching contributions,
and effective March 1, 1996, for Company retirement
contributions, the Plan was amended to provide for an offset to
the Company contributions under the Plan with an equivalent
benefit to the Plan participants under the I-R/Clark Leveraged
Employee Stock Ownership Plan (the "LESOP"), a participating
plan in the Ingersoll-Rand Company Combined Investment Trust
(the "Combined Trust"). Amounts accrued under the Plan prior to
the effective dates of these amendments remain in the Plan
unaffected.
Participant contributions are always 100% vested. Company
matching and retirement contributions, including those provided
to the LESOP, vest on a five-year, graded-vesting schedule.
Employees are immediately 20% vested. After completing two
years of service, the vested percentage increases in increments
of 20% per year until fully vested after five years of service.
All Company matching and retirement contributions become 100%
vested if a participant is disabled or his or her employment
terminates due to retirement or death.
Investment Options - The Plan assets are held in the Combined
Trust, together with assets from other participating plans.
Participants may invest their contributions, in multiples of 1%,
in one or more of the following funds:
O Fixed Income Fund - A fund that invests in securities that
produce a fixed rate of return. Investments may include United
States government securities, corporate bonds, notes, debentures,
convertible securities, preferred stocks, investment funds or
investment contracts.
O Mutual Fund - Participants are able to select from the following
mutual funds: Fidelity Growth and Income Portfolio, Fidelity
Magellan Fund, Templeton Foreign Fund, Fidelity Contra Fund,
Fidelity Low-Priced Stock Fund, Fidelity U.S. Equity Index
Commingled Pool Fund (formerly known as the Fidelity Institutional
S&P 500 Index), Putnam Vista Fund and Putnam New Opportunities
Fund. Each fund consists of a portfolio of common stocks or other
securities based on the fund's investment objective. Prospectuses
are available from the respective fund's management company.
O Ingersoll-Rand Company Common Stock Fund - A fund consisting
primarily of Class A common shares of Ingersoll-Rand Company
Limited. Effective December 31, 2001, there was a reorganization
whereby Ingersoll-Rand Company Limited, a Bermuda Company, became
the successor to Ingersoll-Rand Company, a New Jersey Corporation.
Participants are permitted to invest up to 100% of current
contributions or account balance on transfers into this fund.
Each fund reinvests its income in that fund.
On any business day,participants may change their allocation of
future contributions and transfer prior contributions between
funds. Transfers of prior contributions must be made in whole
percentages.
Participants have several options that permit access to their
contributions, earnings, and certain vested Company contributions.
These options are subject to certain rules and restrictions.
Distributions and Withdrawals - Plan distributions may be in the
form of a lump sum or in such other manner that the Benefits
Committee may permit. In addition, effective December 1, 1998,
Plan participants who separate from service may elect
distributions of at least $500 on a daily basis.
At December 31, 2001 and 2000, the number of participants with
balances in the Plan approximated 18,400 and 19,400,
respectively. The number of participants contributing to each
of the Plan's funds at December 31, 2001, were approximately:
Fixed Income Fund 11,200
Mutual Fund:
Templeton Foreign Fund 1,400
Fidelity Contra Fund 2,900
Putnam Vista Fund 3,200
Fidelity U.S. Equity Index Commingled Pool Fund 4,400
Fidelity Low-Priced Stock Fund 2,400
Fidelity Growth and Income Portfolio 5,300
Putnam New Opportunities Fund 4,500
Fidelity Magellan Fund 5,000
Ingersoll-Rand Company Common Stock Fund 6,700
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation - The Plan follows the accrual method of
accounting.
Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles
requires the Benefits Committee to make estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities
at the dates of the financial statements and the reported
amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates.
Valuation of Investments - Plan assets are part of the Combined
Trust, which provides unified investment management. Chase
invests the Plan assets in the various Combined Trust investment
funds.
Separate participant accounts are maintained by investment fund.
These accounts record contributions, withdrawals, transfers,
earnings and changes in market value.
The Putnam Managed Accounts are recorded at their respective
contract values. Contract value equals principal plus
cumulative interest earned, reduced by distributions.
The Metropolitan Life Insurance ("MetLife") Stable Income Fund
invests in a group annuity contract which is carried at contract
value, an approximation of current value.
The PIMCO Stable Value Contract is carried at contract value,
which equals net deposits plus credited interest.
The Chase Domestic Liquidity Fund contains short-term debt, bank
certificates of deposit and collateralized repurchase
agreements. The carrying value of these investments is a
reasonable estimate of their current value due to the short-term
nature of the instruments. Rates of return on the money-market
funds vary with the instruments purchased and changes in short-
term interest rates.
The financial statements report investments in the Mutual Funds
and the Ingersoll-Rand Company Common Stock Fund at current
value based on published market quotations.
Security Transactions and Investment Income - 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 participant's average unit cost. Dividend
income is recorded on the ex-dividend date and interest income
is recorded when earned.
The statement of income and changes in plan equity includes
unrealized appreciation or depreciation in accordance with the
policy of stating investments at current value. Appreciation or
depreciation of investments reflects both realized gains and
losses and the change in unrealized appreciation and
depreciation of investments.
Contributions - Participant and Company matching contributions
are contributed to the Combined Trust or the LESOP trust, as
applicable, on a monthly basis. Participant contributions for
each fund are based on the participants' investment decisions.
Company retirement contributions are contributed to the Combined
Trust or the LESOP trust after the end of each month or
annually, as outlined in the Plan. The Company matching and
retirement contributions may be made to the Combined Trust or
LESOP in cash or Company stock.
Forfeitures - Forfeitures of nonvested Company contributions
occur when participants are terminated. Forfeitures of $13,298
in 2001 and $127,733 in 2000 were or will be used to reduce
future Company contributions. Effective April 8, 2000,
forfeitures may also be used to make Company contributions other
than Company Matching Contributions and Company Retirement
Contributions.
Expenses of the Plan - Most expenses associated with the
administration of the Plan and the Combined 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.
Benefit Obligations - Distributions to terminated employees are
recorded in the Plan's financial statements when paid. The
approved and unpaid amounts were $1,278,777 and $1,934,376 at
December 31, 2001 and 2000, respectively. These amounts will be
reflected as liabilities on the Plan's Form 5500 in accordance
with Department of Labor Regulations.
Risks and Uncertainties - The assets of the Plan are primarily
financial instruments which are monetary in nature.
Accordingly, interest rates have a more significant impact on
the Plan's performance than do the effects of general levels of
inflation. Interest rates generally do not move in the same
direction or with the same magnitude as prices of goods and
services as measured by the consumer price index. Investments
are subject to risk conditions of the individual investment's
objectives, stock market performance, interest rates, economic
conditions and world affairs. 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 the amounts reported in the statements of
financial condition.
3. FIXED INCOME FUND
Investments in the Fixed Income Fund at December 31 were as
follows:
2001 2000
Putnam Managed Accounts $ - $125,128,764
Chase Domestic Liquidity Fund 77,406,675 19,236,393
MetLife Stable Income Fund 182,480,994 73,988,601
PIMCO Stable Value Contract 97,411,709 91,844,955
Total Combined Trust Fixed Income Fund 357,299,378 310,198,713
Less other plans 95,862,349 89,331,985
Plan investment in Fixed Income Fund $261,437,029 $220,866,728
At December 31, 2001 and 2000, certain assets of the Combined
Trust were invested in synthetic investment contracts. The
Putnam Managed Accounts consist principally of an investment
agreement between the Company and Putnam and a wrapper contract
with a financially responsible third party which provides
liquidity, or benefit responsiveness.
The Putnam Managed Account under contract at December 31, 2000
was terminated on August 8, 2001, and its assets were
transferred to the MetLife Stable Income Fund.
The Putnam Managed Account under contract at December 31, 2000
was:
Average Guaranteed Maturity Rate
Amount Yield of Return Date
$125,128,764 5.96% 6.630% None - end upon written notice
The net crediting rate for all synthetic investment contracts is
reset twice a year, on January 1 and July 1. In no event is the
net crediting rate reset below 0%.
The Chase Domestic Liquidity Fund reported an annualized rate of
return as of December 31 of 4.289% in 2001 and 6.428% in 2000.
From August through December in 2001, The MetLife Stable Income
Fund is a guaranteed insurance contract with a lump-sum payment
to be made upon its maturity in July of 2002. The fund had a
guaranteed interest rate of 8.49% as of December 31, 2001. From
January 1, 2000 through July 31, 2001, the MetLife Stable Income
Fund invested in a group annuity contract which is carried at
contract value, an approximation of current value. Interest rates
credited to the fund were 6.06% from January 1, 2000 through June
30, 2000; 6.23% from July 1, 2000 through December 31, 2000; and
5.87% from January 1, 2001 through July 31, 2001. The MetLife
group annuity contract consists principally of an investment
agreement between the Company and MetLife in which MetLife
maintains a separate account for the investment of participants'
assets in an actively managed institutional bond fund.
The PIMCO Stable Value Contract was purchased by the Plan on
August 3, 1998. The fund is comprised of a separate account
fixed income portfolio actively managed by PIMCO and a book
value wrap contract issued by AIG Financial Products. The book
value wrap contract allows for the portfolio to be carried at
contract value, which equals net deposits plus credited
interest. The contract has no expiration date. Interest rates
credited to the fund were 6.08% from January 1, 2000 through
January 30, 2000; 6.00% from January 31, 2000 through March 31,
2000; 6.07% from April 1, 2000 through June 30, 2000; 5.90% from
July 1, 2000 through September 30, 2000; and 6.21% from October
1, 2000 through December 31, 2000; 6.38% from January 1, 2001
through March 31, 2001; 6.09% from April 1, 2001 through April
30, 2001; 5.79% from May 1, 2001 through May 31, 2001; 5.77%
from June 1, 2001 through June 30, 2001; 5.50% from July 1, 2001
through July 31, 2001; 5.53% from August 1, 2001 through August
31, 2001; 5.70% from September 1, 2001 through October 31, 2001;
5.46% from November 1, 2001 through November 30, 2001; and 5.75%
from December 1, 2001 through December 31, 2001.
4. MUTUAL FUND
Investments in the Mutual Fund at December 31 were as follows:
2001 2000
Templeton Foreign Fund $ 8,258,093 $ 8,427,712
Fidelity Contra Fund 27,026,852 30,178,848
Putnam Vista Fund 30,792,023 47,764,103
Fidelity U.S. Equity Index Commingled
Pool Fund 80,162,864 97,089,713
Fidelity Low-Priced Stock Fund 28,104,585 14,679,402
Fidelity Growth and Income Portfolio 73,840,406 83,029,238
Putnam New Opportunities Fund 39,652,717 57,971,107
Fidelity Magellan Fund 57,678,551 67,891,609
Total Combined Trust Mutual Fund 345,516,091 407,031,732
Less other plans 213,711 940,780
Plan investment in Mutual Fund $345,302,380 $406,090,952
The total cost of the Combined Trust Mutual Fund was $369,178,883
and $369,720,898 at December 31, 2001 and 2000, respectively.
Net realized and unrealized (depreciation) appreciation of
investments for the years ended December 31 were as follows:
2001 2000
Templeton Foreign Fund $ (932,542) $ (973,936)
Fidelity Contra Fund (4,041,420) (6,301,456)
Putnam Vista Fund (16,454,720) (12,491,479)
Fidelity U.S. Equity Index Commingled
Pool Fund (11,636,548) (10,090,468)
Fidelity Low-Priced Stock Fund 3,286,214 333,950
Fidelity Growth and Income Portfolio (9,366,306) (10,808,648)
Putnam New Opportunities Fund (17,367,324) (29,326,885)
Fidelity Magellan Fund (8,617,781) (10,481,802)
Fidelity U.S. Equity Index Portfolio - (16,473)
Fidelity Fund - (15,224)
Total Combined Trust Mutual Fund (65,130,427) (80,172,421)
Putnam Managed Accounts 111 (339,541)
Less other plans (9,963) (247,192)
Net Plan depreciation $(65,120,353) $(80,264,770)
5. INGERSOLL-RAND COMPANY COMMON STOCK FUND
Investments in the Ingersoll-Rand Company Common Stock Fund at
December 31, 2001 were as follows:
2001
Ingersoll-Rand Company Limited Class A Common Shares $244,785,676
Chase Domestic Liquidity Fund 2,630,310
Total Combined Trust Ingersoll-Rand Company 247,415,986
Limited Class A Common Shares
Less other plans 11,185,298
Plan investment in Ingersoll-Rand Company $236,230,688
Limited Class A Common Shares
The Company Common Stock Fund investment in Class A common
shares of Ingersoll-Rand Company Limited at December 31, 2001
included 5,854,716 shares and the average cost of these shares
was $194,444,442.
Investmetns in the Ingersoll-Rand Company Common Stock Fund at
December 31, 2000 were as follows:
2000
Ingersoll-Rand Company Common Stock $288,178,558
Chase Domestic Liquidity Fund 2,534,105
Total Combined Trust Ingersoll-Rand Company 290,712,663
Common Stock Fund
Less other plans 11,848,887
Plan investment in Ingersoll-Rand Company $278,863,776
Common Stock Fund
The Company Common Stock Fund investment in Ingersoll-Rand
Company Common Stock at December 31, 2000 included 6,881,876
shares and the average cost of these shares was $205,653,151.
Net realized and unrealized appreciation (depreciation) of
investments for the years ended December 31 were as follows:
2001 2000
Total Combined Trust Ingersoll-Rand Company $4,578,559 $(79,738,091)
Common Stock Fund
Less other plans (88,703) (10,431,149)
Net Plan appreciation (depreciation) $4,489,856 $(69,306,942)
6. INVESTMENTS
The following investments represent 5 percent or more of the
Plan's net assets at December 31:
2001 2000
Fixed Income Fund $261,437,029 $220,866,728
Putnam Vista Fund - 47,629,280
Fidelity U.S. Equity Index Commingled
Pool Fund 80,177,649 96,703,304
Fidelity Growth and Income Portfolio 73,699,593 82,831,596
Putnam New Opportunities Fund - 57,863,772
Fidelity Magellan Fund 57,653,670 67,807,485
Ingersoll-Rand Company Common Stock Fund * 236,230,688 278,863,776
* Nonparticipant-directed
7. LOAN FUND
The Plan allows participants to borrow from their vested account
balance subject to certain limits. Loans are withdrawn from the
participants' accounts in a sequence outlined in the Plan.
The number of loans outstanding at December 31, 2001 and 2000
was 6,471 and 6,923, respectively.
The Benefits Committee establishes the loan interest rate and
reviews the rate quarterly. The loan rate may be adjusted each
quarter in order to reflect the current prime rate. The
interest rate on new loans is based on the prime rate and ranged
from 6% to 10% and 9% to 10% in 2001 and 2000, respectively.
Interest charges begin 60 days after the initial loan date.
Loans are repaid in equal installments through payroll
deductions over a maximum of five years. Loan repayments
consist of interest and principal, and are reinvested according
to the participant's current investment elections. If a
participant terminates employment with the Company, any
outstanding loan balance is considered a distribution.
8. DIVIDEND AND INTEREST INCOME
Dividend and interest income for all investments at December 31
were as follows:
2001 2000
Total Combined Trust $31,141,387 $64,916,178
Less other plans 5,883,441 8,931,828
Net Plan dividend and interest income from
investments $25,257,946 $55,984,350
9. TAX STATUS
The Internal Revenue Service has determined and informed the
Company by letter dated October 27, 1999 that the Plan and
related trust are designed in accordance with applicable
sections of the IRC. The Plan has been amended since receiving
the determination letter. However, the Plan administrator
believes that the Plan is currently designed and being operated
in compliance with the applicable requirements of the IRC.
10.TRANSFERS TO/FROM OTHER PLANS
Effective December 31, 2000, Ingersoll-Rand Company completed
the sale of the assets of the ALCO Building Products ("ALCO")
business unit of Steelcraft to LaForce, Inc. As a result of the
sale, effective September, 28 2001, a trust-to-trust transfer of
the assets held in the Plan was transferred to LaForce, Inc.
for the benefit of participants who were former employees of
ALCO and who, on December 29, 2000 became employees of LaForce,
Inc.
The Ingersoll-Dresser Pump Company ("IDP") was sold on August 7,
2000, to Flowserve Corporation ("Flowserve"). Effective October
31, 2000, the total account balances of participants who were
employed by IDP and became employees of Flowserve were
transferred to the qualified defined contribution 401(k) plan
maintained by Flowserve at which time the Plan's assets were
removed from the Combined Trust. Effective December 31, 2000,
the total accounts of participants which were not transferred to
the qualified 401(k) defined contribution plan maintained by
Flowserve were merged into the Plan.
Effective December 31, 1999, the assets of the Johnstone Pump
Co. Savings Plan; Monarch Hardware, Inc. Profit Sharing Plan;
Zimmerman Handling Systems, Ingersoll-Rand's Employees 401(k)
Plan; and Torrington Rockford Salary Savings Plan (collectively,
the "Merged Plans") were merged into the Plan. During March
2000, the existing participant balances in the Merged Plans were
transferred to the investment options available in the Plan that
were elected by each participant.
Effective November 8, 1999, certain assets of the Harrow
Products, Inc. 401(k) Savings Plan & Trust (the "Harrow Plan")
were merged into the Plan. During March 2000, the existing
participant balances in the Harrow Plan were transferred to the
investment options available in the Plan that were elected by
each participant.
11.SUBSEQUENT EVENTS
Effective December 31, 2001, the Company approved the merger and
trust-to-trust transfer of the assets held in Dor-O-Matic, Inc.
Employees' Profit Sharing Retirement Plan into the Plan. This
transfer in the amount of $2,483,759 was made on January 2, 2002
and is reflected as Due from Merged Plans within the Statement
of Financial Condition and as Transfers From Other Plans, Net
within the Statement of Income and Changes in Plan Equity.
12.COMBINED INVESTMENT TRUST FINANCIAL INFORMATION
At both December 31, 2001 and 2000, the Plan had an 89%
participation in the Combined Trust. The financial statements
for the Combined Trust are prepared on the modified cash basis
of accounting, which is substantially the same as the accrual
basis of accounting. The supplemental schedules of the Combined
Trust for the year ended December 31, 2001 follow.
SCHEDULE I
INGERSOLL-RAND COMPANY COMBINED INVESTMENT TRUST
SCHEDULE OF ASSETS HELD AT END OF YEAR (Schedule H, Line 4i)
YEAR ENDED DECEMBER 31, 2001
Identity of Issue Description of Investment Shares, Units, Current Value
Principal Amount
Guaranteed Investment Contracts:
MetLife Stable Income Fund Group Annuity Contract - $182,480,994
PIMCO Stable Value Contract Group Annuity Contract - 97,411,709
Mutual Funds:
Templeton Foreign Fund Open-end Mutual Fund 892,767 8,258,093
Fidelity Contra Fund Open-end Mutual Fund 631,911 27,026,852
Putnam Vista Fund Open-end Mutual Fund 3,563,891 30,792,023
Fidelity U.S. Equity Index
Commingled Pool Fund Open-end Mutual Fund 2,375,196 80,162,864
Fidelity Low-Priced Stock Fund Open-end Mutual Fund 1,024,967 28,104,585
Fidelity Growth and Income
Portfolio Open-end Mutual Fund 1,975,399 73,840,406
Putnam New Opportunities Fund Open-end Mutual Fund 967,611 39,652,717
Fidelity Magellan Fund Open-end Mutual Fund 553,431 57,678,551
Ingersoll-Rand Company Common
Stock Fund Class A 5,854,716 247,415,986
Chase Domestic Liquidity Fund Money Market Fund 77,406,675
Participant Loans Receivable Due 1/1/01 - 12/31/05; 6% - 10% 22,467,157
TOTAL INVESTMENTS $972,698,612
Note: The investment information above is that of the Ingersoll-Rand Company Combined Investment
Trust (the "Trust") as of December 31, 2001 in which the Plan represents 89% of the total net assets
of the Trust. The cost of the investment in the Ingersoll-Rand Company Common Stock fund at
December 31, 2001 was $194,444,442.
INGERSOLL-RAND COMPANY COMBINED INVESTMENT TRUST SCHEDULE II
SCHEDULE OF REPORTABLE TRANSACTIONS (Schedule H, Line 4j)
YEAR ENDED DECEMBER 31, 2001
Current Value
Expense of Asset on
Identity of Purchase Selling Incurred with Cost of Transaction Net Gain
Party Involved Description of Asset Price Price Transaction Asset Date (Loss)
Series of Transactions:
Ingersoll-Rand Company Common Stock Class A $32,503,461 $ - $25,074 $ - $ 32,478,391 $ -
Ingersoll-Rand Company Common Stock Class A - 74,436,327 53,429 40,423,080 74,436,327 33,959,812
Note: The schedule of reportable transactions above is that of the Ingersoll-Rand Company Combined Investment Trust (the "Trust)
as of December 31,2001 in which the Plan represents 89% of the total net assets of the Trust.
INDEPENDENT AUDITOR'S CONSENT
We consent to the incorporation by reference in Registration Statement
No. 333-42133 Ingersoll-Rand Company Savings and Stock Investment Plan
of Ingersoll-Rand Company on Form S-8 of our report dated June 24, 2002,
appearing in this Annual Report on Form 11-K of Ingersoll-Rand Company
Savings and Stock Investment Plan for the year ended December 31, 2001.
/S/ Deloitte & Touche LLP
Parsippany, New Jersey
June 24, 2002