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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
_______________________________
FORM 10-Q
_______________________________
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number 001-35971
_______________________________ 
logoallea10.jpg
ALLEGION PUBLIC LIMITED COMPANY
(Exact name of registrant as specified in its charter)
_______________________________
Ireland98-1108930
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
Block D
Iveagh Court
Harcourt Road
Dublin 2, D02 VH94, Ireland
(Address of principal executive offices, including zip code)
+(353) (1) 2546200
(Registrant’s telephone number, including area code)
_______________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of exchange on which registered
Ordinary shares, par value $0.01 per shareALLENew York Stock Exchange
3.500% Senior Notes due 2029ALLE 3 ½New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x   No  ¨


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐
Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐   No  ☒
The number of ordinary shares outstanding of Allegion plc as of October 22, 2024 was 86,929,281.

ALLEGION PLC
FORM 10-Q
INDEX
Item 1 -
Item 2 -
Item 3 -
Item 4 -
Item 1 -
Item 1A -
Item 2 -
Item 5 -
Item 6 -


PART I-FINANCIAL INFORMATION

Item 1 – Financial Statements

Allegion plc
Condensed and Consolidated Statements of Comprehensive Income
(Unaudited)
Three months endedNine months ended
 September 30,September 30,
In millions, except per share amounts2024202320242023
Net revenues$967.1 $917.9 $2,826.6 $2,753.4 
Cost of goods sold535.0 514.6 1,574.8 1,557.2 
Selling and administrative expenses217.1 210.2 655.7 647.5 
Operating income215.0 193.1 596.1 548.7 
Interest expense28.8 22.9 76.8 70.2 
Other (income) expense, net(8.4)0.1 (17.2)(1.8)
Earnings before income taxes194.6 170.1 536.5 480.3 
Provision for income taxes20.4 13.7 83.1 58.3 
Net earnings174.2 156.4 453.4 422.0 
Less: Net earnings attributable to noncontrolling interests— 0.1 — 0.2 
Net earnings attributable to Allegion plc$174.2 $156.3 $453.4 $421.8 
Earnings per share attributable to Allegion plc ordinary shareholders:
Basic net earnings$2.00 $1.78 $5.19 $4.80 
Diluted net earnings $1.99 $1.77 $5.16 $4.78 
Weighted-average shares outstanding:
Basic87.1 87.9 87.3 87.9 
Diluted87.6 88.2 87.8 88.3 
Total comprehensive income$215.5 $127.2 $465.6 $411.0 
Less: Total comprehensive income attributable to noncontrolling interests— 0.8 — 0.1 
Total comprehensive income attributable to Allegion plc$215.5 $126.4 $465.6 $410.9 
See accompanying notes to condensed and consolidated financial statements.
1
Allegion plc
Condensed and Consolidated Balance Sheets
(Unaudited)
In millions, except share amountsSeptember 30,
2024		December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents$878.9 $468.1 
Accounts and notes receivable, net458.8 412.8 
Inventories449.9 438.5 
Other current assets74.8 41.5 
Total current assets1,862.4 1,360.9 
Property, plant and equipment, net384.8 358.1 
Goodwill1,505.8 1,443.1 
Intangible assets, net604.8 572.8 
Other noncurrent assets615.9 576.6 
Total assets$4,973.7 $4,311.5 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$266.7 $259.2 
Accrued expenses and other current liabilities405.9 407.9 
Short-term borrowings and current maturities of long-term debt418.9 412.6 
Total current liabilities1,091.5 1,079.7 
Long-term debt1,983.2 1,602.4 
Other noncurrent liabilities328.0 311.1 
Total liabilities3,402.7 2,993.2 
Equity:
Ordinary shares, $0.01 par value (86,924,345 and 87,504,673 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively)
0.9 0.9 
Retained earnings1,819.4 1,578.9 
Accumulated other comprehensive loss(249.3)(261.5)
Total equity1,571.0 1,318.3 
Total liabilities and equity$4,973.7 $4,311.5 
See accompanying notes to condensed and consolidated financial statements.

2
Allegion plc
Condensed and Consolidated Statements of Cash Flows
(Unaudited)
Nine months ended
 September 30,
In millions20242023
Cash flows from operating activities:
Net earnings$453.4 $422.0 
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization89.3 83.7 
Changes in assets and liabilities and other non-cash items(86.7)(124.6)
Net cash provided by operating activities456.0 381.1 
Cash flows from investing activities:
Capital expenditures(68.0)(60.7)
Acquisition of businesses, net of cash acquired(121.2)(31.7)
Other investing activities, net(1.0)9.0 
Net cash used in investing activities(190.2)(83.4)
Cash flows from financing activities:
Debt repayments, net(10.1)(9.5)
Proceeds from Revolving Facility
— 30.0 
Repayments of Revolving Facility
— (99.0)
Proceeds from issuance of senior notes400.0 — 
      Net proceeds from (repayments of) debt
389.9 (78.5)
Debt financing costs(6.9)— 
Dividends paid to ordinary shareholders(125.6)(119.2)
Repurchase of ordinary shares(120.0)(19.9)
Other financing activities, net9.9 (2.3)
Net cash provided by (used in) financing activities
147.3 (219.9)
Effect of exchange rate changes on cash and cash equivalents(2.3)(1.5)
Net increase in cash and cash equivalents
410.8 76.3 
Cash and cash equivalents - beginning of period468.1 288.0 
Cash and cash equivalents - end of period$878.9 $364.3 
See accompanying notes to condensed and consolidated financial statements.

3
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying Condensed and Consolidated Financial Statements of Allegion plc, an Irish public limited company, and its consolidated subsidiaries ("Allegion" or "the Company"), reflect the consolidated operations of the Company and have been prepared in accordance with United States ("U.S.") Securities and Exchange Commission ("SEC") interim reporting requirements. Accordingly, the accompanying Condensed and Consolidated Financial Statements do not include all disclosures required by accounting principles generally accepted in the U.S. ("GAAP") for full financial statements and should be read in conjunction with the Consolidated Financial Statements included in the Allegion Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the accompanying Condensed and Consolidated Financial Statements contain all adjustments, which include normal recurring adjustments, necessary to state fairly the consolidated unaudited results for the interim periods presented.

NOTE 2 - ACQUISITIONS
2024
On February 1, 2024, the Company, through its subsidiaries, acquired 100% of Boss Door Controls, a door solutions provider in the United Kingdom. Boss Door Controls is reported in the Company's Allegion International segment.
On March 4, 2024, the Company, through its subsidiaries, acquired 100% of Montajes electronicos Dorcas S.L. ("Dorcas"), a leading manufacturer of electromechanical access control solutions based in Spain. Dorcas is reported in the Company's Allegion International segment.
On June 3, 2024, the Company, through its subsidiaries, acquired 100% of Krieger Specialty Products, LLC ("Krieger"), a leading manufacturer of high-performance special purpose doors and windows based in the United States. Krieger is reported in the Company's Allegion Americas segment.
On June 10, 2024, the Company, through its subsidiaries, acquired 100% of Unicel Architectural Corp. ("Unicel"), a leading manufacturer of advanced glass, timber and aluminum building solutions based in Canada. Unicel is reported in the Company's Allegion Americas segment.
Acquisitions were accounted for as business combinations and were funded with available cash on hand. Initial aggregate cash consideration for these acquisitions was approximately $121.2 million (net of cash acquired). Additional consideration may be payable in the future in the event certain financial metrics are achieved.
The following table summarizes the preliminary allocation of the aggregate purchase price, which includes initial cash consideration and the estimated fair value of contingent consideration, to assets acquired and liabilities assumed as of the respective acquisition dates:
In millions
Net working capital$8.7 
Property, plant and equipment3.0 
Goodwill61.0 
Intangible assets69.2 
Other noncurrent liabilities(13.5)
Total net assets acquired and liabilities assumed$128.4 
The valuations of assets acquired and liabilities assumed had not yet been finalized as of September 30, 2024, and finalization of the valuations during the measurement period could result in a change in the amounts recorded. The completion of the valuations will occur no later than one year from the respective acquisition dates as required by GAAP.
Goodwill results from several factors including Allegion-specific synergies that were excluded from the cash flow projections used in the valuation of intangible assets and intangible assets that do not qualify for separate recognition. The majority of the goodwill related to these acquisitions is not expected to be deductible for tax purposes.





4
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Intangible assets recognized as of the acquisition dates were comprised of the following:
In millionsValue (in millions)Weighted Average Useful life (in years)
Completed technologies/patents$14.3 15
Customer relationships29.3 18
Trade names (finite-lived)15.3 15
Backlog revenue10.3 1
2023
On January 3, 2023, the Company, through its subsidiaries, completed an acquisition of the assets of plano. group, a SaaS workforce management solution business based in Germany ("plano"), for initial cash consideration of $36.6 million. Additional consideration may be payable in future periods in the event plano achieves certain specified financial results. This acquisition was accounted for as a business combination, and plano has been incorporated into the Allegion International segment.
The allocation of the purchase price, which includes initial cash consideration and the estimated fair value of contingent consideration, to assets acquired and liabilities assumed as of the acquisition date includes $17.5 million of finite-lived intangible assets and approximately $23.0 million of goodwill and $3.9 million of net liabilities assumed. The finite-lived intangible assets have a weighted average useful life of approximately 15 years.

NOTE 3 - INVENTORIES
Inventories are stated at the lower of cost and net realizable value using the first-in, first-out (FIFO) method. The major classes of inventories were as follows:
In millionsSeptember 30,
2024		December 31,
2023
Raw materials$205.5 $218.4 
Work-in-process51.7 41.6 
Finished goods192.7 178.5 
Total$449.9 $438.5 

NOTE 4 - GOODWILL
The changes in the carrying amount of goodwill for the nine months ended September 30, 2024, were as follows:
In millionsAllegion AmericasAllegion International
Total (1)
December 31, 2023$1,126.7 $316.4 $1,443.1 
Acquisitions and adjustments56.2 4.8 61.0 
Currency translation(1.6)3.3 1.7 
September 30, 2024$1,181.3 $324.5 $1,505.8 
(1) Accumulated impairment for the International segment was $573.6 million as of September 30, 2024 and December 31, 2023. There are no accumulated impairment losses for the Americas segment.
There was no impairment of goodwill for the nine months ended September 30, 2024 and 2023.

5
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTE 5 - INTANGIBLE ASSETS
The gross amount of the Company’s intangible assets and related accumulated amortization were as follows:
September 30, 2024December 31, 2023
In millionsGross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Completed technologies/patents$79.3 $(42.0)$37.3 $64.5 $(36.9)$27.6 
Customer relationships569.1 (206.8)362.3 535.3 (185.2)350.1 
Trade names (finite-lived)158.3 (92.0)66.3 142.2 (79.3)62.9 
Other93.1 (59.0)34.1 75.3 (47.5)27.8 
Total finite-lived intangible assets899.8 $(399.8)500.0 817.3 $(348.9)468.4 
Trade names (indefinite-lived)104.8 104.8 104.4 104.4 
Total$1,004.6 $604.8 $921.7 $572.8 
                                                                                                                                            
Intangible asset amortization expense was $48.0 million and $46.6 million for the nine months ended September 30, 2024 and 2023, respectively. Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $64.0 million for full year 2024, $60.5 million for 2025, $51.5 million for 2026, $44.7 million for 2027 and $35.4 million for 2028.

NOTE 6 - DEBT AND CREDIT FACILITIES
Long-term debt and other borrowings consisted of the following:
In millionsSeptember 30,
2024		December 31,
2023
Term Facility$215.6 $225.0 
3.200% Senior Notes due 2024
400.0 400.0 
3.550% Senior Notes due 2027
400.0 400.0 
3.500% Senior Notes due 2029
400.0 400.0 
5.411% Senior Notes due 2032
600.0 600.0 
5.600% Senior Notes due 2034
400.0 — 
Other debt0.1 0.1 
Total borrowings outstanding2,415.7 2,025.1 
Discounts and debt issuance costs, net(13.6)(10.1)
Total debt2,402.1 2,015.0 
Less current portion of long-term debt418.9 412.6 
Total long-term debt$1,983.2 $1,602.4 
Unsecured Credit Facilities
The Company has an unsecured credit agreement consisting of a $250.0 million term loan facility (the “Term Facility”), of which $215.6 million was outstanding at September 30, 2024, and a $750.0 million revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Credit Facilities”), of which no balance was outstanding at September 30, 2024. The Credit Facilities are unconditionally guaranteed jointly and severally on an unsecured basis by Allegion plc, Allegion US Holding Company Inc. ("Allegion US Hold Co"), the Company’s wholly-owned subsidiary, and Allegion (Ireland) Finance Designated Activity Company (“Allegion Ireland DAC”), the Company’s wholly-owned subsidiary.
The Term Facility requires quarterly principal payments through its maturity on November 18, 2026. Future payments total $3.1 million for the remainder of 2024, $21.9 million due in 2025, and $190.6 million due in 2026. The Company repaid $9.4 million of principal on the Term Facility during the nine months ended September 30, 2024.
The Revolving Facility matures on May 20, 2029 and includes up to $100.0 million for the issuance of letters of credit. The Company had $18.5 million of letters of credit outstanding at September 30, 2024. Borrowings under the Revolving Facility may be repaid at any time without premium or penalty, and amounts repaid may be reborrowed.
Outstanding borrowings under the Credit Facilities accrue interest, at the option of the Company, equal to either: (i) a Secured Overnight Financing Rate ("SOFR") rate plus an applicable margin or (ii) a base rate plus the applicable margin. The applicable margin ranges from 0.875% to 1.375% depending on the Company’s credit ratings. At September 30, 2024, the Company's outstanding borrowings under the Credit Facilities accrued interest at SOFR plus a margin of 1.225%, resulting in an interest
6
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
rate of 6.070%. The Credit Facilities also contain negative and affirmative covenants and events of default that, among other things, limit or restrict the Company’s ability to enter into certain transactions. In addition, the Credit Facilities require the Company to comply with a maximum leverage ratio as defined in the credit agreement. As of September 30, 2024, the Company was in compliance with all applicable covenants under the credit agreement.
Senior Notes
As of September 30, 2024, Allegion US Hold Co had $400.0 million outstanding of its 3.200% Senior Notes due 2024 (the "3.200% Senior Notes"), $400.0 million outstanding of its 3.550% Senior Notes due 2027 (the “3.550% Senior Notes”), $600.0 million outstanding of its 5.411% Senior Notes due 2032 (the "5.411% Senior Notes") and $400.0 million outstanding of its 5.600% Senior Notes due 2034 (the "5.600% Senior Notes"), and Allegion plc had $400.0 million outstanding of its 3.500% Senior Notes due 2029 (the “3.500% Senior Notes”, and all five senior notes collectively, the “Senior Notes”). The 3.550% Senior Notes and 3.500% Senior Notes require semi-annual interest payments on April 1 and October 1 of each year and will mature on October 1, 2027 and October 1, 2029, respectively. The 5.411% Senior Notes require semi-annual interest payments on January 1 and July 1 of each year, and will mature on July 1, 2032. The 5.600% Senior Notes require semi-annual interest payments on May 29 and November 29, beginning November 29, 2024, and mature on May 29, 2034. The Company repaid the 3.200% Senior Notes on October 1, 2024.
The 3.550% Senior Notes, 5.411% Senior Notes, and 5.600% Senior Notes are senior unsecured obligations of Allegion US Hold Co and rank equally with all of Allegion US Hold Co’s existing and future senior unsecured and unsubordinated indebtedness. The guarantee of the 3.550% Senior Notes, the 5.411% Senior Notes and the 5.600% Senior Notes is the senior unsecured obligation of Allegion plc and ranks equally with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness. The 3.500% Senior Notes are senior unsecured obligations of Allegion plc, are guaranteed by Allegion US Hold Co and rank equally with all of the Company’s existing and future senior unsecured indebtedness. As of September 30, 2024, the company was in compliance with all applicable covenants under the Senior Notes.

NOTE 7 - FINANCIAL INSTRUMENTS
Currency Hedging Instruments
The gross notional amount of the Company’s currency derivatives was $221.8 million and $175.4 million at September 30, 2024 and December 31, 2023, respectively. Neither the fair values of currency derivatives, which are determined based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily observable (Level 2 inputs under the fair value hierarchy described in Note 10), nor the balances included in Accumulated other comprehensive loss were material as of September 30, 2024 or December 31, 2023. Currency derivatives designated as cash flow hedges did not have a material impact to either Net earnings or Other comprehensive income during the nine months ended September 30, 2024 and 2023, nor is the amount to be reclassified into Net earnings over the next twelve months expected to be material. At September 30, 2024, the maximum term of the Company’s currency derivatives was less than one year.
Concentration of Credit Risk
The counterparties to the Company’s forward contracts consist of a number of investment grade major international financial institutions. The Company could be exposed to losses in the event of nonperformance by the counterparties. However, the credit ratings and the concentration of risk in these financial institutions are monitored on a continuous basis, and therefore, the Company believes they present no significant credit risk to the Company.

NOTE 8 - LEASES
Total rental expense for the nine months ended September 30, 2024 and 2023, was $48.3 million and $47.6 million, respectively, and is classified within Cost of goods sold and Selling and administrative expenses within the Condensed and Consolidated Statements of Comprehensive Income. Rental expense related to short-term leases, variable lease payments or other leases or lease components not included within the right of use ("ROU") asset or lease liability totaled $12.3 million and $15.0 million, respectively, for the nine months ended September 30, 2024 and 2023. No material lease costs have been capitalized on the Condensed and Consolidated Balance Sheets as of September 30, 2024 or December 31, 2023.
The Company assesses the specific terms and conditions of each lease to determine the appropriate classification as either an operating or finance lease and the lease term. Substantially all of the Company's leases for which the Company is a lessee are classified as operating leases.
As a lessee, the Company categorizes its leases into two general categories: real estate leases and equipment leases. Amounts included within the Condensed and Consolidated Balance Sheets related to the Company’s ROU asset and lease liability for both real estate and equipment leases were as follows:
7
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
September 30, 2024December 31, 2023
In millionsBalance Sheet classificationReal estateEquipmentTotalReal estateEquipmentTotal
ROU assetOther noncurrent assets$112.2 $40.6 $152.8 $114.7 $33.4 $148.1 
Lease liability - currentAccrued expenses and other current liabilities20.1 17.2 37.3 18.7 15.0 33.7 
Lease liability - noncurrentOther noncurrent liabilities95.9 23.3 119.2 98.9 18.4 117.3 
Other information:
Weighted-average remaining term (years)11.12.811.62.7
Weighted-average discount rate5.2 %5.6 %5.0 %4.4 %
The following table summarizes additional information related to the Company’s leases for the nine months ended September 30:
20242023
In millionsReal estateEquipmentTotalReal estateEquipmentTotal
Cash paid for amounts included in the measurement of lease liabilities$18.9 $17.1 $36.0 $18.0 $14.6 $32.6 
ROU assets obtained in exchange for new lease liabilities11.0 14.6 25.6 57.3 10.8 68.1 
Future Repayments
Scheduled minimum lease payments required under non-cancellable operating leases for both the real estate and equipment lease portfolios for the remainder of 2024 and for each of the years thereafter as of September 30, 2024, are as follows:
In millionsRemainder of 20242025202620272028ThereafterTotal
Real estate leases$6.4 $25.2 $21.2 $17.0 $11.4 $77.2 $158.4 
Equipment leases5.2 17.5 11.4 6.3 3.1 0.4 43.9 
Total$11.6 $42.7 $32.6 $23.3 $14.5 $77.6 $202.3 
The difference between the total undiscounted minimum lease payments and the combined current and noncurrent lease liabilities as of September 30, 2024, is due to imputed interest of approximately $46 million.

NOTE 9 - DEFINED BENEFIT PLANS
The Company sponsors several U.S. and non-U.S. defined benefit pension plans for eligible employees and retirees and also maintains other supplemental plans for officers and other key employees. The components of the Company’s Net periodic pension benefit cost (income) for the three and nine months ended September 30 were as follows:
U.S.
Three months endedNine months ended
In millions2024202320242023
Service cost$0.2 $0.2 $0.6 $0.6 
Interest cost2.9 3.1 8.7 9.0 
Expected return on plan assets(3.7)(3.7)(11.3)(11.2)
Administrative costs and other0.2 0.3 0.8 0.8 
Net amortization of:
Prior service costs— — 0.1 0.1 
Plan net actuarial losses0.3 0.3 0.7 0.6 
Net periodic pension benefit (income) cost$(0.1)$0.2 $(0.4)$(0.1)
8
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Non-U.S.
Three months endedNine months ended
In millions2024202320242023
Service cost$0.4 $0.2 $1.3 $1.0 
Interest cost3.0 3.0 9.0 9.0 
Expected return on plan assets(4.0)(3.8)(12.1)(11.6)
Administrative costs and other0.4 0.5 1.3 1.3 
Net amortization of:
Prior service costs0.1 0.1 0.1 0.1 
Plan net actuarial losses0.8 0.7 2.6 2.5 
Net periodic pension benefit cost$0.7 $0.7 $2.2 $2.3 
Service cost is recorded in Cost of goods sold and Selling and administrative expenses, while the remaining components of Net periodic pension benefit cost (income) are recorded in Other income, net within the Condensed and Consolidated Statements of Comprehensive Income. Employer contributions to the plans were not material during the nine months ended September 30, 2024 or 2023. Employer contributions totaling approximately $3.7 million are expected to be made during the remainder of 2024.

NOTE 10 - 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 based on quoted prices in active markets for identical assets or liabilities.
•Level 2 – Inputs other than Level 1 quoted prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or 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 – 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.
Assets and liabilities measured at fair value as of September 30, 2024, were as follows:
 Fair value measurementsTotal
fair value
In millionsQuoted prices in active markets for identical assets (Level 1)Significant other observable inputs (Level 2)Significant unobservable inputs (Level 3)
Recurring fair value measurements
Assets:
Investments$— $17.1 $— $17.1 
       Total asset recurring fair value measurements$— $17.1 $— $17.1 
Liabilities:
Deferred compensation and other retirement plans$— $17.1 $— $17.1 
Total liability recurring fair value measurements$— $17.1 $— $17.1 
Financial instruments not carried at fair value
Total debt$— $2,432.4 $— $2,432.4 
Total financial instruments not carried at fair value$— $2,432.4 $— $2,432.4 
9
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Assets and liabilities measured at fair value as of December 31, 2023, were as follows:
 Fair value measurementsTotal
fair value
In millionsQuoted prices in active markets for identical assets (Level 1)Significant other observable inputs (Level 2)Significant unobservable inputs (Level 3)
Recurring fair value measurements
Assets:
Investments$— $18.0 $— $18.0 
Total asset recurring fair value measurements$— $18.0 $— $18.0 
Liabilities:
Deferred compensation and other retirement plans$— $18.2 $— $18.2 
Total liability recurring fair value measurements$— $18.2 $— $18.2 
Financial instruments not carried at fair value
Total debt$— $1,984.9 $— $1,984.9 
Total financial instruments not carried at fair value$— $1,984.9 $— $1,984.9 
The Company determines the fair value of its financial assets and liabilities using the following methodologies:
•Investments – These instruments include equity mutual funds and corporate bond funds. The fair value is obtained based on observable market prices quoted on public exchanges for similar instruments.
•Deferred compensation and other retirement plans – These include obligations related to deferred compensation and other retirement plans adjusted for market performance. The fair value is obtained based on observable market prices quoted on public exchanges for similar instruments.
•Debt – These instruments are recorded at cost and include the Credit Facilities and Senior Notes maturing through 2034. The fair value of these debt instruments is obtained based on observable market prices quoted on public exchanges for similar instruments.
The methodologies used by the Company to determine the fair value of its financial assets and liabilities as of September 30, 2024, are the same as those used as of December 31, 2023. The carrying values of Cash and cash equivalents, Accounts and notes receivable, net, Accounts payable and Accrued expenses and other current liabilities are a reasonable estimate of their fair value due to the short-term nature of these instruments.
The Company also had investments in debt and equity securities without readily determinable fair values of $66.8 million and $65.8 million as of September 30, 2024 and December 31, 2023, respectively, which are classified as Other noncurrent assets within the Condensed and Consolidated Balance Sheets. These investments are considered to be nonrecurring fair value measurements, and thus, are not included in the fair value tables above.




















10
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
NOTE 11 - EQUITY
The changes in the components of Equity for the nine months ended September 30, 2024, were as follows:
Allegion plc shareholders' equity
Ordinary shares
In millions, except per share amountsTotal equityAmountSharesCapital in excess of par valueRetained earningsAccumulated other comprehensive loss
Balance at December 31, 2023$1,318.3 $0.9 87.5 $— $1,578.9 $(261.5)
Net earnings123.8 — — — 123.8 — 
Other comprehensive loss, net (24.0)— — — — (24.0)
Repurchase of ordinary shares(40.0)— (0.3)(14.8)(25.2)— 
Share-based compensation activity14.8 — 0.2 14.8 — — 
Dividends to ordinary shareholders ($0.48 per share)
(42.0)— — — (42.0)— 
Balance at March 31, 20241,350.9 0.9 87.4 — 1,635.5 (285.5)
Net earnings155.4 — — — 155.4 — 
Other comprehensive loss, net(5.1)— — — — (5.1)
Repurchase of ordinary shares(40.0)— (0.3)(4.1)(35.9)— 
Share-based compensation activity5.9 — — 5.9 — — 
Dividends to ordinary shareholders ($0.48 per share)
(41.8)— — — (41.8)— 
Balance at June 30, 20241,425.3 0.9 87.1 1.8 1,713.2 (290.6)
Net earnings174.2 — — — 174.2 — 
Other comprehensive income, net41.3 — — — — 41.3 
Repurchase of ordinary shares(40.0)— (0.3)(13.8)(26.2)— 
Share-based compensation activity12.0 — 0.1 12.0 — — 
Dividends to ordinary shareholders ($0.48 per share)
(41.8)— — — (41.8)— 
Balance at September 30, 2024$1,571.0 $0.9 86.9 $— $1,819.4 $(249.3)
11
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
The changes in the components of Equity for the nine months ended September 30, 2023, were as follows:
Allegion plc shareholders' equity
Ordinary shares
In millions, except per share amountsTotal equityAmountSharesCapital in excess of par valueRetained earningsAccumulated other comprehensive lossNoncontrolling
interests
Balance at December 31, 2022$944.5 $0.9 87.9 $13.9 $1,212.8 $(285.8)$2.7 
Net earnings123.6 — — — 123.5 — 0.1 
Other comprehensive income, net
10.3 — — — — 10.2 0.1 
Share-based compensation activity5.7 — — 5.7 — — — 
Dividends to ordinary shareholders ($0.45 per share)
(39.5)— — — (39.5)— — 
Balance at March 31, 20231,044.6 0.9 87.9 19.6 1,296.8 (275.6)2.9 
Net earnings142.0 — — — 142.0 — — 
Other comprehensive income (loss), net
7.9 — — — — 8.8 (0.9)
Repurchase of ordinary shares(19.9)— (0.2)(19.9)— — — 
Share-based compensation activity5.6 — 0.1 5.6 — — — 
Dividends to noncontrolling interests(0.1)— — — — — (0.1)
Dividends to ordinary shareholders ($0.45 per share)
(39.6)— — — (39.6)— — 
Balance at June 30, 20231,140.5 0.9 87.8 5.3 1,399.2 (266.8)1.9 
Net earnings156.4 — — — 156.3 — 0.1 
Other comprehensive (loss) income, net(29.2)— — — — (29.9)0.7 
Share-based compensation activity6.1 — — 6.1 — — — 
Acquisition of noncontrolling interest(3.0)— — 0.4 — — (3.4)
Dividends to ordinary shareholders ($0.45 per share)
(39.4)— — — (39.4)— — 
Balance at September 30, 2023
$1,231.4 $0.9 87.8 $11.8 $1,516.1 $(296.7)$(0.7)
In June 2023, the Company’s Board of Directors (the "Board") reauthorized the Company's existing share repurchase program and, as a result, authorized the repurchase of up to, and including, $500.0 million of the Company’s ordinary shares (the "Share Repurchase Authorization"). During the nine months ended September 30, 2024 the Company paid $120.0 million to repurchase ordinary shares on the open market under the Share Repurchase Authorization. As of September 30, 2024, the Company had approximately $340.0 million available under the Share Repurchase Authorization.
Accumulated Other Comprehensive Loss
The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2024, were as follows:
In millionsCash flow hedgesDefined benefit itemsForeign currency itemsTotal
December 31, 2023$5.6 $(125.9)$(141.2)$(261.5)
Other comprehensive income (loss) before reclassifications0.8 (4.8)13.4 9.4 
Amounts reclassified from accumulated other comprehensive loss(a)
(0.8)3.5 — 2.7 
Tax (expense) benefit(0.2)0.3 — 0.1 
September 30, 2024$5.4 $(126.9)$(127.8)$(249.3)
12
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2023, were as follows:
In millionsCash flow hedgesDefined benefit itemsForeign currency itemsTotal
December 31, 2022$6.1 $(117.1)$(174.8)$(285.8)
Other comprehensive income (loss) before reclassifications0.7 (0.7)(13.6)(13.6)
Amounts reclassified from accumulated other comprehensive loss(a)
(0.5)2.9 — 2.4 
Tax benefit0.2 0.1 — 0.3 
September 30, 2023$6.5 $(114.8)$(188.4)$(296.7)
(a)    Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to cash flow hedges are recorded in Cost of goods sold and Interest expense. Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to defined benefit items are recorded in Other income, net.

NOTE 12 - SHARE-BASED COMPENSATION
The Company’s share-based compensation plans include programs for stock options, restricted stock units ("RSUs") and performance stock units ("PSUs"). Share-based compensation expense is included in Cost of goods sold and Selling and administrative expenses within the Condensed and Consolidated Statements of Comprehensive Income. The following table summarizes the share-based compensation expense recognized for the three and nine months ended September 30:
Three months endedNine months ended
In millions2024202320242023
Stock options$0.9 $0.8 $4.0 $3.6 
RSUs3.1 3.1 12.1 11.2 
PSUs2.0 2.0 6.0 5.5 
Pre-tax expense6.0 5.9 22.1 20.3 
Tax benefit(0.6)(0.6)(2.2)(2.5)
After-tax expense$5.4 $5.3 $19.9 $17.8 
Stock Options / RSUs
Eligible participants may receive (i) stock options, (ii) RSUs or (iii) a combination of both stock options and RSUs. Grants issued during the nine months ended September 30 were as follows:
 20242023
 Number
granted		Weighted-
average fair
value per award		Number
granted		Weighted-
average fair
value per award
Stock options135,906 $40.92 156,929 $33.66 
RSUs103,564 $129.48 131,386 $112.72 
The weighted-average fair value of the stock options granted is determined using the Black-Scholes option-pricing model. The following weighted-average assumptions were used during the nine months ended September 30:
20242023
Dividend yield1.47 %1.60 %
Volatility29.29 %28.47 %
Risk-free rate of return4.29 %4.10 %
Expected life (years)6.06.0
Volatility is based on the Company’s historic volatility. The risk-free rate of return is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. The expected life of the Company’s stock option awards is derived from the simplified approach based on the weighted-average time to vest and the remaining contractual term and represents the period of time that awards are expected to be outstanding.
Performance Stock Units
During the nine months ended September 30, 2024, the Company granted PSUs with a maximum award level of approximately 0.1 million shares. In February 2022, 2023 and 2024, the Company’s Compensation Committee granted PSUs that were earned based 50% upon a performance condition, measured at each reporting period by earnings per share ("EPS") performance in
13
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
relation to pre-established targets for each performance period set by the Compensation and Human Capital Committee of the Board, and 50% upon a market condition, measured by the Company’s relative total shareholder return against, for 2022 and 2023, the S&P 400 Capital Goods Index over a three-year performance period, and for 2024 a 50/50 blend of the S&P 400 Capitals Goods Index and the S&P 500 Capital Goods Index over a three-year performance period. The fair values of the market condition are estimated using a Monte Carlo Simulation approach in a risk-neutral framework to model future stock price movements based upon historical volatility, risk-free rates of return and correlation matrix.

NOTE 13 - OTHER INCOME, NET
The components of Other (income) expense, net for the three and nine months ended September 30 were as follows:
Three months endedNine months ended
In millions2024202320242023
Interest income$(8.3)$(1.5)$(16.9)$(3.4)
Foreign currency exchange (gain) loss(0.5)1.1 0.3 2.8 
Net periodic pension and postretirement benefit cost, less service cost— 0.4 — 0.5 
Other expense (income)
0.4 0.1 (0.6)(1.7)
Other (income) expense, net$(8.4)$0.1 $(17.2)$(1.8)

NOTE 14 - INCOME TAXES
The effective income tax rates for the three months ended September 30, 2024 and 2023, were 10.5% and 8.1%, respectively. The increase in the effective income tax rate compared to 2023 is primarily due to the enactment of global minimum tax in 2024, the unfavorable year over year change in the amounts recognized for uncertain tax positions and the unfavorable mix of income earned in higher tax rate jurisdictions.
The effective income tax rates for the nine months ended September 30, 2024 and 2023, were 15.5% and 12.1%, respectively. The increase in the effective income tax rate compared to 2023 is primarily due to the enactment of global minimum tax in 2024, the unfavorable year over year change in the amounts recognized for uncertain tax positions and the unfavorable mix of income earned in higher tax rate jurisdictions.

NOTE 15 - EARNINGS PER SHARE ("EPS")
Basic EPS is calculated by dividing Net earnings attributable to Allegion plc by the weighted-average number of ordinary shares outstanding for the applicable period. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potentially dilutive ordinary shares, which in the Company’s case includes shares issuable under share-based compensation plans.
The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted EPS calculations for the three and nine months ended September 30:
Three months endedNine months ended
In millions2024202320242023
Weighted-average number of basic shares87.1 87.9 87.3 87.9 
Shares issuable under share-based compensation plans0.5 0.3 0.5 0.4 
Weighted-average number of diluted shares87.6 88.2 87.8 88.3 
At September 30, 2024 and 2023, 0.3 million and 0.6 million stock options, respectively, were excluded from the computation of weighted-average diluted shares outstanding because the effect of including these shares would have been anti-dilutive.

NOTE 16 - NET REVENUES
The following tables show the Company’s Net revenues related to both tangible product sales and services for the three and nine months ended September 30, 2024 and 2023, respectively, disaggregated by business segment:
14
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Three months ended September 30, 2024Nine months ended September 30, 2024
In millionsAllegion AmericasAllegion InternationalTotalAllegion AmericasAllegion InternationalTotal
Net revenues
Products$744.6 $175.6 $920.2 $2,144.4 $542.5 $2,686.9 
Services37.8 9.1 46.9 118.0 21.7 139.7 
Total Net revenues$782.4 $184.7 $967.1 $2,262.4 $564.2 $2,826.6 
Three months ended September 30, 2023Nine months ended September 30, 2023
In millionsAllegion AmericasAllegion InternationalTotalAllegion AmericasAllegion InternationalTotal
Net revenues
Products$703.4 $167.1 $870.5 $2,090.5 $521.8 $2,612.3 
Services37.5 9.9 47.4 118.5 22.6 141.1 
Total Net revenues$740.9 $177.0 $917.9 $2,209.0 $544.4 $2,753.4 
Net revenues are shown by tangible product sales and services, as contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar within each of these two principal revenue streams. Product sales involve contracts with a single performance obligation, the transfer of control of a product or bundle of products to a customer. Service revenue, which includes inspection, maintenance and repair, design and installation, aftermarket and locksmith services, as well as software-as-a-service offerings such as access control, IoT integration and workforce management solutions, is delayed until the service performance obligations are satisfied.
As of September 30, 2024 and December 31, 2023, contract assets related to the Company’s right to consideration for work completed but not billed were not material. The Company does not have any costs to obtain or fulfill a contract that are capitalized on its Condensed and Consolidated Balance Sheets. During the three and nine months ended September 30, 2024 and 2023, no adjustments related to performance obligations satisfied in previous periods were recorded.
As of September 30, 2024 and December 31, 2023, contract liabilities related to revenues allocated to remaining performance obligations totaled $34.2 million and $27.2 million, respectively, and are classified as Accrued Expenses and Other Current Liabilities and Other noncurrent liabilities within the Condensed and Consolidated Balance Sheets. A majority of the contract liabilities are expected to be recognized as revenue within the next twelve months.

NOTE 17 - COMMITMENTS AND CONTINGENCIES
The Company is involved in various litigation, claims and administrative proceedings, including those related to environmental and product warranty matters. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for contingent liabilities, except as expressly set forth in this note, management believes that any liability which may result from these legal matters would not have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.
Environmental Matters
As of September 30, 2024 and December 31, 2023, the Company had reserves for environmental matters of $18.2 million and $20.2 million, respectively. The total reserve at September 30, 2024 and December 31, 2023, included $10.1 million and $11.2 million, respectively, related to remediation of sites previously disposed by the Company. Environmental reserves are classified as Accrued expenses and other current liabilities or Other noncurrent liabilities within the Condensed and Consolidated Balance Sheets based on the timing of their expected future payment. The Company’s total current environmental reserve at September 30, 2024 and December 31, 2023, was $2.0 million and $3.6 million, respectively, and the remainder was classified as noncurrent. Expenses related to environmental remediation were not material during the nine months ended September 30, 2024 or 2023. Given the evolving nature of environmental laws, regulations and technology, the ultimate cost of future compliance is uncertain.




15
ALLEGION PLC
NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Unaudited)
Warranty Liability
The changes in the standard product warranty liability for the nine months ended September 30 were as follows:
In millions20242023
Balance at beginning of period$20.7 $18.2 
Reductions for payments(10.4)(6.8)
Accruals for warranties issued during the current period11.6 8.9 
Changes to accruals related to preexisting warranties(0.6)(0.5)
Currency translation0.1 (0.2)
Balance at end of period$21.4 $19.6 
Standard product warranty liabilities are classified as either Accrued expenses and other current liabilities or Other noncurrent liabilities within the Condensed and Consolidated Balance Sheets based on the timing of the expected future payments.

NOTE 18 - BUSINESS SEGMENT INFORMATION
The Company classifies its business into the following two reportable segments based on industry and market focus: Allegion Americas and Allegion International. The Company largely evaluates performance based on Segment operating income and Segment operating margins. Segment operating income is the measure of profit and loss that the Company’s chief operating decision maker, the chief executive officer, uses to evaluate the financial performance of the business and as the basis for resource allocation, performance reviews and compensation. For these reasons, the Company believes that Segment operating income represents the most relevant measure of segment profit and loss. The Company’s chief operating decision maker may exclude certain charges or gains, such as corporate charges and other special charges, from Operating income to arrive at a Segment operating income that is a more meaningful measure of profit and loss upon which to base operating decisions. The Company defines Segment operating margin as Segment operating income as a percentage of the segment’s Net revenues.
A summary of operations by reportable segment for the three and nine months ended September 30 was as follows:
Three months endedNine months ended
In millions2024202320242023
Net revenues
Allegion Americas$782.4 $740.9 $2,262.4 $2,209.0 
Allegion International184.7 177.0 564.2 544.4 
     Total$967.1 $917.9 $2,826.6 $2,753.4 
Segment operating income
Allegion Americas$221.1 $200.2 $622.4 $582.2 
Allegion International17.9 15.7 48.6 40.2 
Total239.0 215.9 671.0 622.4 
Reconciliation to Operating income
Unallocated corporate expense(24.0)(22.8)(74.9)(73.7)
Operating income215.0 193.1 596.1 548.7 
Reconciliation to earnings before income taxes
Interest expense28.8 22.9 76.8 70.2 
Other (income) expense, net
(8.4)0.1 (17.2)(1.8)
Earnings before income taxes$194.6 $170.1 $536.5 $480.3 

NOTE 19 - SUBSEQUENT EVENTS
On October 1, 2024, the Company repaid the $400.0 million outstanding balance on the 3.200% Senior Notes.
On October 17, 2024, the Company, through its subsidiaries, acquired 100% of SOSS Door Hardware ("SOSS"), a manufacturer of premium door hardware primarily sold across North America. SOSS will be incorporated into the Company's Allegion Americas segment.
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Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from the results discussed in the forward-looking statements. Factors that may cause a difference include, but are not limited to, those discussed under Part I, Item 1A – Risk Factors in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The following section is qualified in its entirety by the more detailed information, including our Condensed and Consolidated Financial Statements and the notes thereto, which appears elsewhere in this Quarterly Report.

Overview
Organization
Allegion plc and its consolidated subsidiaries ("Allegion," "the Company", "we," "our," or "us") are a leading global provider of security products and solutions operating in two segments: Allegion Americas and Allegion International. We sell a wide range of security products and solutions for end-users in commercial, institutional and residential facilities worldwide, including the education, healthcare, government, hospitality, retail, commercial office and single and multi-family residential markets. Our leading brands include CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®.
Recent Developments
Business and Industry Trends and Outlook
In the third quarter of 2024, we experienced a mid-single digits percent increase in revenue as compared to the same period in 2023, driven by favorable pricing, volume growth from most of our major businesses, as well as the impact from acquisitions made during the year. We expect the business to continue to grow in the last quarter of 2024.
Acquisitions
On February 1, 2024, we, through our subsidiaries, acquired 100% of Boss Door Controls, a door solutions provider in the United Kingdom. Boss Door Controls is reported in the Allegion International segment.
On March 4, 2024, we, through our subsidiaries, acquired 100% of Montajes electronicos Dorcas S.L. ("Dorcas"), a leading manufacturer of electro-mechanical access control solutions based in Spain. Dorcas is reported in the Allegion International segment.
On June 3, 2024, we, through our subsidiaries, acquired 100% of Krieger Specialty Products, LLC ("Krieger"), a leading manufacturer of high-performance special purpose doors and windows based in the United States. Krieger is reported in the Company's Allegion Americas segment.
On June 10, 2024, we, through our subsidiaries, acquired 100% of Unicel Architectural Corp. ("Unicel"), a leading manufacturer of advanced glass, timber and aluminum building solutions based in Canada. Unicel is reported in the Company's Allegion Americas segment.
2024 Dividends and Share Repurchases
During the nine months ended September 30, 2024, we paid dividends of $1.44 per ordinary share to shareholders and repurchased approximately 0.9 million shares for $120.0 million.


17
Results of Operations – Three months ended September 30
In millions, except per share amounts2024% of
revenues		2023% of
revenues
Net revenues$967.1 $917.9 
Cost of goods sold535.0 55.3 %514.6 56.1 %
Selling and administrative expenses217.1 22.5 %210.2 22.9 %
Operating income215.0 22.2 %193.1 21.0 %
Interest expense28.8 22.9 
Other (income) expense, net(8.4)0.1 
Earnings before income taxes194.6 170.1 
Provision for income taxes20.4 13.7 
Net earnings 174.2 156.4 
Less: Net earnings attributable to noncontrolling interests— 0.1 
Net earnings attributable to Allegion plc$174.2 $156.3 
Diluted net earnings per ordinary share attributable to Allegion plc ordinary shareholders:$1.99 $1.77 
The discussions that follow describe the significant factors contributing to the changes in our results of operations for the periods presented and form the basis used by management to evaluate the financial performance of the business.
Net Revenues
Net revenues for the three months ended September 30, 2024, increased by 5.4%, or $49.2 million, compared with the same period in 2023, due to the following:
Pricing1.8 %
Volume1.5 %
Acquisitions1.9 %
Currency exchange rates0.2 %
Total5.4 %
The increase in Net revenues was driven by improved pricing, higher volumes, the acquisitions made during the year, and favorable foreign currency exchange rate movements.
Pricing includes increases or decreases of price, including discounts, surcharges and/or other sales deductions, on our existing products and services. Volume includes increases or decreases of revenue due to changes in unit volume of existing products and services, as well as new products and services.
Operating Income/Margin
Operating income for the three months ended September 30, 2024, increased $21.9 million compared to the same period in 2023. Operating margin, which we define as Operating income as a percentage of total Net revenues, for the three months ended September 30, 2024, increased to 22.2% from 21.0% for the same period in 2023, due to the following:
In millionsOperating IncomeOperating Margin
September 30, 2023$193.1 21.0 %
Pricing and productivity in excess of inflation and investment spending6.9 0.4 %
Volume / product mix6.9 0.4 %
Acquisitions4.1 0.1 %
Currency exchange rates2.5 0.1 %
Acquisition / integration/ restructuring expenses1.5 0.2 %
September 30, 2024$215.0 22.2 %
The increase in Operating income and Operating margin was driven by pricing and productivity improvements in excess of inflation and investment spending, favorable volume/product mix, the contribution to operating income from recent acquisition activity, favorable foreign currency exchange rate movements and lower acquisition, integration and restructuring expenses.
Pricing and productivity in excess of inflation and investment spending includes the impact to both Operating income and Operating margin from pricing, as defined above, in addition to productivity, inflation and investment spending. Productivity represents improvements in unit costs of materials, cost reductions related to improvements to our manufacturing design and
18
processes and reductions in selling and administrative expenses due to productivity projects. Inflation includes both unit costs for the current period compared to the average actual cost for the prior period, multiplied by current year volumes, and current period costs of ongoing selling and administrative functions compared to the same ongoing expenses in the prior period. Expenses related to increased head count for strategic initiatives, new facilities or other significant spending for strategic initiatives or new product and channel development, are captured in investment spending.
Volume/product mix represents the impact to both Operating income and Operating margin due to increases or decreases of revenue due to changes in unit volume, including new products and services, including the effect of changes in the mix of products and services sold on Cost of goods sold.
Interest Expense
Interest expense for the three months ended September 30, 2024, increased $5.9 million compared with the same period in 2023, primarily due to higher outstanding indebtedness compared to the same period in the prior year.
Other Income, net
The components of Other (income) expense, net for the three months ended September 30 were as follows:
In millions20242023
Interest income$(8.3)$(1.5)
Foreign currency exchange (gain) loss
(0.5)1.1 
Net periodic pension and postretirement benefit cost, less service cost— 0.4 
Other expense0.4 0.1 
Other (income) expense, net$(8.4)$0.1 
The increase in interest income for the three months ended September 30, 2024 compared with the same period in 2023 is due to higher cash on hand and higher interest rates earned on deposits.
Provision for Income Taxes
The effective income tax rates for the three months ended September 30, 2024 and 2023, were 10.5% and 8.1%, respectively. The increase in the effective income tax rate compared to 2023 is primarily due to the enactment of global minimum tax in 2024, the unfavorable year over year change in the amounts recognized for uncertain tax positions and the unfavorable mix of income earned in higher tax rate jurisdictions.

Results of Operations – Nine months ended September 30
In millions, except per share amounts2024% of
revenues		2023% of
revenues
Net revenues$2,826.6 $2,753.4 
Cost of goods sold1,574.8 55.7 %1,557.2 56.6 %
Selling and administrative expenses655.7 23.2 %647.5 23.5 %
Operating income596.1 21.1 %548.7 19.9 %
Interest expense76.8 70.2 
Other income, net(17.2)(1.8)
Earnings before income taxes536.5 480.3 
Provision for income taxes83.1 58.3 
Net earnings 453.4 422.0 
Less: Net earnings attributable to noncontrolling interests— 0.2 
Net earnings attributable to Allegion plc$453.4 $421.8 
Diluted net earnings per ordinary share attributable to Allegion plc ordinary shareholders:$5.16 $4.78 
The discussions that follow describe the significant factors contributing to the changes in our results of operations for the periods presented and form the basis used by management to evaluate the financial performance of the business.
19
Net Revenues
Net revenues for the nine months ended September 30, 2024, increased by 2.7%, or $73.2 million, compared with the same period in 2023, due to the following:
Pricing2.9 %
Volume(1.3)%
Acquisitions1.0 %
Currency exchange rates0.1 %
Total2.7 %
The increase in Net revenues was driven by improved pricing across our major businesses, acquisitions made during the year, and favorable foreign currency exchange rate movements, which was partially offset by lower volumes.
Operating Income/Margin
Operating income for the nine months ended September 30, 2024, increased $47.4 million compared to the same period in 2023. Operating margin for the nine months ended September 30, 2024, increased to 21.1% from 19.9% for the same period in 2023, due to the following:
In millionsOperating IncomeOperating Margin
September 30, 2023$548.7 19.9 %
Pricing and productivity in excess of inflation and investment spending52.5 1.3 %
Volume / product mix(14.6)(0.3)%
Acquisitions5.5 — %
Currency exchange rates(0.2)— %
Acquisition / integration/ restructuring expenses4.2 0.2 %
September 30, 2024$596.1 21.1 %
The increase in Operating income and Operating margin was driven by pricing and productivity improvements in excess of inflation and investment spending, the contribution to operating income from recent acquisition activity and lower acquisition, integration and restructuring expenses. These increases were partially offset by unfavorable volume/product mix and unfavorable foreign currency exchange rate movements.
Interest Expense
Interest expense for the nine months ended September 30, 2024, increased $6.6 million compared with the same period in 2023, primarily due to higher outstanding indebtedness compared to the same period in the prior year.
Other Income, net
The components of Other (income) expense, net for the nine months ended September 30 were as follows:
In millions20242023
Interest income$(16.9)$(3.4)
Foreign currency exchange loss0.3 2.8 
Net periodic pension and postretirement benefit cost, less service cost— 0.5 
Other income(0.6)(1.7)
Other income, net$(17.2)$(1.8)
The increase in interest income for the nine months ended September 30, 2024 compared with the same period in 2023 is due to higher cash on hand and higher interest rates earned on deposits.
Provision for Income Taxes
The effective income tax rates for the nine months ended September 30, 2024 and 2023, were 15.5% and 12.1%, respectively. The increase in the effective income tax rate compared to 2023 is primarily due to the enactment of global minimum tax in 2024, the unfavorable year over year change in the amounts recognized for uncertain tax positions and the unfavorable mix of income earned in higher tax rate jurisdictions.




20

Review of Business Segments
We operate in and report financial results for two segments: Allegion Americas and Allegion International. These segments represent the level at which our chief operating decision maker reviews our financial performance and makes operating decisions.
Segment operating income is the measure of profit and loss that our chief operating decision maker uses to evaluate the financial performance of the business and as the basis for resource allocation, performance reviews and compensation. For these reasons, we believe that Segment operating income represents the most relevant measure of Segment profit and loss. Our chief operating decision maker may exclude certain charges or gains, such as corporate charges and other special charges, to arrive at a Segment operating income that is a more meaningful measure of profit and loss upon which to base our operating decisions. We define Segment operating margin as Segment operating income as a percentage of the segment’s Net revenues.
The segment discussions that follow describe the significant factors contributing to the changes in results for each segment included in Net earnings.
Segment Results of Operations - For the three and nine months ended September 30:
Three months endedNine months ended
In millions20242023% Change20242023% Change
Net revenues
Allegion Americas$782.4 $740.9 5.6 %$2,262.4 $2,209.0 2.4 %
Allegion International184.7 177.0 4.4 %564.2 544.4 3.6 %
Total$967.1 $917.9 $2,826.6 $2,753.4 
Segment operating income
Allegion Americas$221.1 $200.2 10.4 %$622.4 $582.2 6.9 %
Allegion International17.9 15.7 14.0 %48.6 40.2 20.9 %
Total$239.0 $215.9 $671.0 $622.4 
Segment operating margin
Allegion Americas28.3 %27.0 %27.5 %26.4 %
Allegion International9.7 %8.9 %8.6 %7.4 %
Allegion Americas
Our Allegion Americas segment is a leading provider of security products, services and solutions throughout North America. The segment sells a broad range of products and solutions including locks, locksets, key systems, door controls and systems, exit devices, doors, accessories, electronic security products, access control systems and software and service solutions to customers in commercial, institutional and residential facilities, including the education, healthcare, government, hospitality, retail, commercial office and single and multi-family residential markets. This segment’s primary brands are LCN, Schlage, Von Duprin and Stanley Access Technologies, which we utilize with permission in accordance with the terms of an agreement with Stanley Black & Decker ("Stanley" is the property of Stanley Logistics L.L.C.).
Net Revenues
Net revenues for the three months ended September 30, 2024, increased by 5.6%, or $41.5 million, compared to the same period in 2023, due to the following:
Pricing2.0 %
Volume2.1 %
Acquisitions1.6 %
Currency exchange rates(0.1)%
Total5.6 %
The increase in Net revenues was driven by improved pricing across our major businesses, higher volumes, and the acquisitions made during the year, which was partially offset by unfavorable foreign currency exchange rate movements.
Net revenues from our non-residential business for the three months ended September 30, 2024, increased by a mid-single digits percent compared to the same period in the prior year, driven by higher volumes, improved pricing, and acquisition activity, which was partially offset by unfavorable foreign currency exchange rate movements.
21
Net revenues from residential products for the three months ended September 30, 2024, increased by a low-single digits percent compared to the same period in the prior year, driven by higher volumes.
Growth in electronic security products and solutions is a metric that is actively monitored by management and a focus of our investors. Electronic security products encompass both residential and non-residential solutions and include all electrified product categories including, but not limited to, electronic and electrified locks, access control systems and electronic and electrified door controls and systems and exit devices. For the three months ended September 30, 2024, Net revenues from the sale of electronic security products in the Allegion Americas segment decreased by a high-single digits percent compared to the same period in the prior year in which the sale of electronic security products grew by a high-teens percent.
Net revenues for the nine months ended September 30, 2024, increased by 2.4%, or $53.4 million, compared to the same period in 2023, due to the following:
Pricing3.2 %
Volume(1.5)%
Acquisitions0.7 %
Total2.4 %
The increase in Net revenues was driven by improved pricing and the acquisitions made during the year, which was partially offset by lower volumes.
Net revenues from non-residential products for the nine months ended September 30, 2024, increased by a low-single digits percent compared to the same period in the prior year, driven by improved pricing and acquisition activity, partially offset by lower volumes. We currently anticipate low-single digit growth from our non-residential products and services for 2024.
Net revenues from residential products for the nine months ended September 30, 2024, increased by a low-single digits percent compared to the same period in the prior year, driven by higher volumes. We expect low-single digits growth from our residential business for 2024.
Operating income/margin
Segment operating income for the three months ended September 30, 2024, increased $20.9 million compared to the same period in 2023, and Segment operating margin for the three months ended September 30, 2024, increased to 28.3% from 27.0%, due to the following:
In millionsOperating IncomeOperating Margin
September 30, 2023$200.2 27.0 %
Pricing and productivity in excess of inflation and investment spending6.6 0.4 %
Volume / product mix8.6 0.6 %
Acquisitions3.4 0.1 %
Currency exchange rates1.9 0.1 %
Acquisition / integration/ restructuring expenses0.4 0.1 %
September 30, 2024$221.1 28.3 %
The increase in Segment operating income and Segment operating margin was primarily driven by favorable volume/product mix, pricing and productivity improvements in excess of inflation and investment spending, the contribution to operating income from recent acquisition activity, favorable foreign currency exchange rate movements and lower acquisition, integration and restructuring expenses.
Segment operating income for the nine months ended September 30, 2024, increased $40.2 million compared to the same period in 2023, and Segment operating margin for the nine months ended September 30, 2024, increased to 27.5% from 26.4%, due to the following:
In millionsOperating IncomeOperating Margin
September 30, 2023$582.2 26.4 %
Pricing and productivity in excess of inflation and investment spending51.9 1.4 %
Volume / product mix(14.9)(0.3)%
Acquisitions3.9 — %
Currency exchange rates(0.9)— %
Acquisition / integration/ restructuring expenses0.2 — %
September 30, 2024$622.4 27.5 %
The increase in Segment operating income and Segment operating margin was primarily driven by pricing and productivity improvements in excess of inflation and investment spending, the contribution to operating income from recent acquisition
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activity, and lower acquisition, integration and restructuring expenses. These increases were partially offset by unfavorable volume/product mix and unfavorable foreign currency exchange rate movements.
Allegion International
Our Allegion International segment provides security products, services and solutions primarily throughout Europe, Asia and Oceania. The segment offers end-users a broad range of products, services and solutions including locks, locksets, portable locks, key systems, door closers and systems, exit devices, doors, electronic security products, access control systems, time and attendance and workforce productivity solutions, among other software and service solutions. This segment’s primary brands are AXA, Bricard, Briton, CISA, Gainsborough, Interflex, Kryptonite and SimonsVoss.
Net Revenues
Net revenues for the three months ended September 30, 2024, increased by 4.4%, or $7.7 million, compared to the same period in 2023, due to the following:
Pricing1.4 %
Volume(1.2)%
Acquisitions2.9 %
Currency exchange rates1.3 %
Total4.4 %
The increase in Net revenues was primarily driven by improved pricing, the favorable impact from the current year acquisitions, and favorable foreign currency exchange rate movements, which was partially offset by lower volumes.
Net revenues for the nine months ended September 30, 2024, increased by 3.6%, or $19.8 million, compared to the same period in 2023, due to the following:
Pricing1.6 %
Volume(0.8)%
Acquisitions2.5 %
Currency exchange rates0.3 %
Total3.6 %
The increase in Net revenues was primarily driven by improved pricing, the favorable impact from the current year acquisitions, and favorable foreign currency exchange rate movements, which was partially offset by lower volumes.
Operating income/margin
Segment operating income for the three months ended September 30, 2024, increased $2.2 million compared to the same period in 2023, and Segment operating margin for the three months ended September 30, 2024, increased to 9.7% from 8.9%, due to the following:
In millionsOperating IncomeOperating Margin
September 30, 2023$15.7 8.9 %
Pricing and productivity in excess of inflation and investment spending 2.0 1.0 %
Volume / product mix(1.6)(0.8)%
Currency exchange rates0.6 0.2 %
Acquisitions0.6 0.1 %
Acquisition / integration/ restructuring expenses0.6 0.3 %
September 30, 2024$17.9 9.7 %
The increase in Segment operating income and Segment operating margin was primarily driven by favorable pricing and productivity in excess of inflation and investment spending, the favorable impact from foreign currency exchange rate movements, current year acquisitions, and lower acquisition, integration and restructuring expenses. These increases were partially offset by unfavorable volume/product mix.
Segment operating income for the nine months ended September 30, 2024, increased $8.4 million compared to the same period in 2023, and Segment operating margin for the nine months ended September 30, 2024, increased to 8.6% from 7.4%, due to the following:
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In millionsOperating IncomeOperating Margin
September 30, 2023$40.2 7.4 %
Pricing and productivity in excess of inflation and investment spending 1.3 0.1 %
Volume / product mix0.2 0.1 %
Currency exchange rates0.8 0.1 %
Acquisitions1.6 0.1 %
Acquisition / integration/ restructuring expenses4.5 0.8 %
September 30, 2024$48.6 8.6 %
The increase in Segment operating income and Segment operating margin was primarily driven by favorable pricing and productivity in excess of inflation and investment spending, favorable volume/product mix, current year acquisitions, the favorable impact from foreign currency exchange rate movements, and lower acquisition, integration and restructuring expenses.

Liquidity and Capital Resources
Liquidity Outlook, Sources and Uses
Our primary source of liquidity is cash provided by operating activities. Cash provided by operating activities is used to invest in new product development and fund capital expenditures and working capital requirements. Our ability to generate cash from operating activities, our unused borrowing capacity under the Revolving Facility and our access to the capital and credit markets enable us to fund these capital needs, execute our long-term growth strategies and return value to our shareholders. Further, our business operates with strong operating cash flows, low leverage and low capital intensity, providing financial flexibility, including sufficient access to credit markets.
Our short-term financing needs primarily consist of working capital requirements, restructuring initiatives, capital spending, dividend payments and principal and interest payments on our long-term debt. Long-term financing needs depend largely on potential growth opportunities, including potential acquisitions, repayment or refinancing of our long-term obligations and repurchases of our ordinary shares. Of our total outstanding indebtedness as of September 30, 2024, approximately 91% incurs fixed-rate interest and is therefore not exposed to the risk of rising variable interest rates.
Based upon our operations, existing cash balances and unused borrowing capacity under the Revolving Facility, as of September 30, 2024, we expect our cash flows from operations will be sufficient to maintain a sound financial position and liquidity and to meet our current financing needs for at least the next 12 months. Further, we do not anticipate any covenant compliance challenges with any of our outstanding indebtedness for at least the next 12 months. We also believe existing borrowing capacity under the Revolving Facility, together with financing we believe would be accessible to us in the credit and capital markets, are sufficient to achieve our longer-term strategic plans.
The following table reflects the major categories of cash flows for the nine months ended September 30. For additional details, see the Condensed and Consolidated Statements of Cash Flows in the Condensed and Consolidated Financial Statements.
In millions20242023
Net cash provided by operating activities$456.0 $381.1 
Net cash used in investing activities(190.2)(83.4)
Net cash provided by (used in) financing activities
147.3 (219.9)
Operating Activities: Net cash provided by operating activities during the nine months ended September 30, 2024, increased $74.9 million compared to the same period in 2023, primarily driven by higher net earnings and lower cash used for working capital.
Investing Activities: Net cash used in investing activities during the nine months ended September 30, 2024, increased $106.8 million compared to the same period in 2023, primarily due to cash used for acquisitions and higher capital expenditures.
Financing Activities: Net cash provided by financing activities during the nine months ended September 30, 2024, increased $367.2 million compared to the same period in 2023, primarily due to the proceeds from the issuance of the 5.600% Senior Notes. The increase was partially offset by an increase in the cash used to repurchase shares compared to the same period in 2023. Proceeds from the issuance of the 5.600% Senior Notes were used to repay the 3.200% Senior Notes on October 1, 2024.
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Capitalization
Long-term debt and other borrowings consisted of the following:
In millionsSeptember 30,
2024		December 31,
2023
Term Facility$215.6 $225.0 
3.200% Senior Notes due 2024400.0 400.0 
3.550% Senior Notes due 2027400.0 400.0 
3.500% Senior Notes due 2029400.0 400.0 
5.411% Senior Notes due 2032600.0 600.0 
5.600% Senior Notes due 2034400.0 — 
Other debt0.1 0.1 
Total borrowings outstanding2,415.7 2,025.1 
Discounts and debt issuance costs, net(13.6)(10.1)
Total debt2,402.1 2,015.0 
Less current portion of long-term debt418.9 412.6 
Total long-term debt$1,983.2 $1,602.4 
We have an unsecured credit agreement consisting of a $250.0 million term loan facility (the “Term Facility”), of which $215.6 million was outstanding at September 30, 2024, and a $750.0 million revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Credit Facilities”), of which no balance was outstanding at September 30, 2024. The Credit Facilities are unconditionally guaranteed jointly and severally on an unsecured basis by Allegion plc, Allegion US Holding Company Inc. ("Allegion US Hold Co"), the Company’s wholly-owned subsidiary, and Allegion (Ireland) Finance Designated Activity Company (“Allegion Ireland DAC”), the Company’s wholly-owned subsidiary.
The Term Facility requires quarterly principal payments through its maturity on November 18, 2026. Future payments total $3.1 million for the remainder of 2024, $21.9 million due in 2025, and $190.6 million due in 2026. We repaid $9.4 million of principal on the Term Facility during the nine months ended September 30, 2024.
The Revolving Facility matures on May 20, 2029 and includes up to $100.0 million for the issuance of letters of credit. We had $18.5 million of letters of credit outstanding at September 30, 2024. Borrowings under the Revolving Facility may be repaid at any time without premium or penalty, and amounts repaid may be reborrowed.
Outstanding borrowings under the Credit Facilities accrue interest, at the option of the Company, equal to either: (i) a Secured Overnight Financing Rate ("SOFR") rate plus an applicable margin or (ii) a base rate plus the applicable margin. The applicable margin ranges from 0.875% to 1.375% depending on the Company’s credit ratings. At September 30, 2024, the Company's outstanding borrowings under the Credit Facilities accrued interest at SOFR plus a margin of 1.225%, resulting in an interest rate of 6.070%. The Credit Facilities also contain negative and affirmative covenants and events of default that, among other things, limit or restrict the Company’s ability to enter into certain transactions. In addition, the Credit Facilities require the Company to comply with a maximum leverage ratio as defined in the credit agreement. As of September 30, 2024, the Company was in compliance with all applicable covenants under the credit agreement.
As of September 30, 2024, Allegion US Hold Co had $400.0 million outstanding of its 3.200% Senior Notes due 2024 (the "3.200% Senior Notes"), $400.0 million outstanding of its 3.550% Senior Notes due 2027 (the “3.550% Senior Notes”), $600.0 million outstanding of its 5.411% Senior Notes due 2032 (the "5.411% Senior Notes") and $400.0 million outstanding of its 5.600% Senior Notes due 2034 (the "5.600% Senior Notes"), and Allegion plc had $400.0 million outstanding of its 3.500% Senior Notes due 2029 (the “3.500% Senior Notes”, and all five senior notes collectively, the “Senior Notes”). The 3.550% Senior Notes and 3.500% Senior Notes require semi-annual interest payments on April 1 and October 1 of each year and will mature on October 1, 2027 and October 1, 2029, respectively. The 5.411% Senior Notes require semi-annual interest payments on January 1 and July 1 of each year, and will mature on July 1, 2032. The 5.600% Senior Notes require semi-annual interest payments on May 29 and November 29, beginning November 29, 2024, and mature on May 29, 2034. We repaid the 3.200% Senior Notes on October 1, 2024.
The 3.550% Senior Notes, 5.411% Senior Notes, and 5.600% Senior Notes are senior unsecured obligations of Allegion US Hold Co and rank equally with all of Allegion US Hold Co’s existing and future senior unsecured and unsubordinated indebtedness. The guarantee of the 3.550% Senior Notes, the 5.411% Senior Notes and the 5.600% Senior Notes is the senior unsecured obligation of Allegion plc and ranks equally with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness. The 3.500% Senior Notes are senior unsecured obligations of Allegion plc, are guaranteed by Allegion US Hold Co and rank equally with all of the Company’s existing and future senior unsecured indebtedness. As of September 30, 2024, the company was in compliance with all applicable covenants under the Senior Notes.
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Historically, the majority of our earnings were considered to be permanently reinvested in jurisdictions where we have made, and intend to continue to make, substantial investments to support the ongoing development and growth of our global operations. At September 30, 2024, we analyzed our working capital requirements and the potential tax liabilities that would be incurred if certain subsidiaries made distributions and concluded that no material changes to our historic permanent reinvestment assertions are required.
Defined Benefit Plans
Our investment objective in managing defined benefit plan assets is to ensure that all present and future benefit obligations are met as they come due. We seek to achieve this goal while trying to mitigate volatility in plan funded status, contributions and expense by better matching the characteristics of the plan assets to that of the plan liabilities. Global asset allocation decisions are based on a dynamic approach whereby a plan’s allocation to fixed income assets increases as the funded status increases. We monitor plan funded status, asset allocation and the impact of market conditions on our defined benefit plans regularly in addition to investment manager performance. For further details on pension plan activity, see Note 9 to the Condensed and Consolidated Financial Statements.
For a further discussion of Liquidity and Capital Resources, refer to Part II, Item 7, "Management’s Discussion and Analysis of Financial Condition and Results of Operations," contained in our Annual Report on Form 10-K for the year ended December 31, 2023.
Guarantor Financial Information
Allegion US Hold Co is or was, as applicable, the issuer of the 3.200% Senior Notes, 3.550% Senior Notes, 5.411% Senior Notes, and 5.600% Senior Notes and is the guarantor of the 3.500% Senior Notes. Allegion plc (the “Parent”) is or was, as applicable, the issuer of the 3.500% Senior Notes and is or was, as applicable, the guarantor of the 3.200% Senior Notes, 3.550% Senior Notes, 5.411% Senior Notes, and 5.600% Senior Notes. Allegion US Hold Co is directly or indirectly 100% owned by the Parent and each of the guarantees of Allegion US Hold Co and the Parent is full and unconditional and joint and several.
The 3.200% Senior Notes, 3.550% Senior Notes, 5.411% Senior Notes, and 5.600% Senior Notes are or were, as applicable, senior unsecured obligations of Allegion US Hold Co and rank equally with all of Allegion US Hold Co’s existing and future senior unsecured and unsubordinated indebtedness. The guarantee of the 3.200% Senior Notes, 3.550% Senior Notes, 5.411% Senior Notes, and 5.600% Senior Notes is or was, as applicable, the senior unsecured obligation of the Parent and ranks equally with all of the Parent’s existing and future senior unsecured and unsubordinated indebtedness. The 3.500% Senior Notes are senior unsecured obligations of the Parent and rank equally with all of the Parent’s existing and future senior unsecured and unsubordinated indebtedness. The guarantee of the 3.500% Senior Notes is the senior unsecured obligation of Allegion US Hold Co and ranks equally with all of Allegion US Hold Co's existing and future senior unsecured and unsubordinated indebtedness.
Each guarantee is effectively subordinated to any secured indebtedness of the applicable guarantor to the extent of the value of the assets securing such indebtedness. The Senior Notes are structurally subordinated to indebtedness and other liabilities of the subsidiaries of the applicable guarantor, none of which guarantee the notes. The obligations of the applicable guarantor under its guarantee are limited as necessary to prevent such guarantee from constituting a fraudulent conveyance under applicable law and, therefore, are limited to the amount that the applicable guarantor could guarantee without such guarantee constituting a fraudulent conveyance; this limitation, however, may not be effective to prevent such guarantee from constituting a fraudulent conveyance. If the guarantee was rendered voidable, it could be subordinated by a court to all other indebtedness (including guarantees and other contingent liabilities) of the applicable guarantor, and, depending on the amount of such indebtedness, the applicable guarantor’s liability on its guarantee could be reduced to zero. In such an event, the notes would be structurally subordinated to the indebtedness and other liabilities of the applicable guarantor.
For further details, terms and conditions of the Senior Notes refer to the Company’s Forms 8-K filed October 2, 2017, September 27, 2019 June 22, 2022, and May 29, 2024.
The following tables present the summarized financial information specified in Rule 1-02(bb)(1) of Regulation S-X for each issuer and guarantor. The summarized financial information has been prepared in accordance with Rule 13-01 of Regulation S-X.
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Selected Condensed Statement of Comprehensive Income Information
Nine months ended September 30, 2024Year ended December 31, 2023
In millionsAllegion plcAllegion US
Hold Co		Allegion plcAllegion US
Hold Co
Net revenues$— $— $— $— 
Gross profit— — — — 
Operating loss(6.1)(0.1)(7.4)(0.5)
Equity earnings in affiliates, net of tax500.8 289.5 606.5 330.6 
Transactions with related parties and subsidiaries(a)
(18.5)(64.4)(30.8)(77.0)
Net earnings453.4 209.6 540.4 232.6 
Net earnings attributable to the entity453.4 209.6 540.4 232.6 
(a) Transactions with related parties and subsidiaries include intercompany interest and fees.
Selected Condensed Balance Sheet Information
September 30, 2024December 31, 2023
In millionsAllegion plcAllegion US
Hold Co		Allegion plcAllegion US
Hold Co
Current assets:
Amounts due from related parties and subsidiaries $1.2 $837.8 $0.1 $558.6 
Total current assets21.6 1,273.3 16.3 595.6 
Noncurrent assets:
Amounts due from related parties and subsidiaries— 1,300.1 — 1,439.9 
Total noncurrent assets1,792.6 1,398.8 1,792.2 1,525.7 
Current liabilities:
Amounts due to related parties and subsidiaries $47.7 $534.1 $64.8 $826.6 
Total current liabilities77.8 964.7 84.5 1,250.4 
Noncurrent liabilities:
Amounts due to related parties and subsidiaries367.0 2,882.1 564.2 2,458.9 
Total noncurrent liabilities962.0 4,270.9 1,174.5 3,454.7 

Critical Accounting Policies
Management’s Discussion and Analysis of Financial Condition and Results of Operations are based upon our Condensed and Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with those accounting principles requires management to use judgments in making estimates and assumptions based on the relevant information available at the end of each period. These estimates and assumptions have a significant effect on reported amounts of assets and liabilities, revenue and expenses, as well as the disclosure of contingent assets and liabilities because they result primarily from the need to make estimates and assumptions on matters that are inherently uncertain. Actual results may differ from estimates.
Management believes there have been no significant changes during the nine months ended September 30, 2024, to the items we disclosed as our critical accounting policies in "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023.

Recent Accounting Pronouncements
Refer to Note 2 under the paragraph "Recent Accounting Pronouncements" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Since the date of the Company's most recent Annual Report, there have been no new accounting pronouncements not yet effective or adopted that we believe have a significant impact, or potential significant impact, to our condensed and consolidated financial statements.

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Forward-Looking Statements
Certain statements in this report, other than purely historical information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "forecast," "outlook," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements.
These statements are based on currently available information and our current assumptions, expectations and projections about future events. While we believe that our assumptions, expectations and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Forward-looking statements speak only as of the date they are made and are not guarantees of future performance. They are subject to future events, risks and uncertainties – many of which are beyond our control – as well as potentially inaccurate assumptions, that could cause actual results to differ materially from our expectations and projections including, among other things:
•ongoing macroeconomic challenges and continued economic instability;
•increased prices and inflation;
•volatility and uncertainty in the political, economic and regulatory environments in which we operate, including changes to trade agreements, sanctions, import and export regulations, custom duties and applicable tax regulations and interpretations, social and political unrest, instability, national and international conflict, terrorist acts and other geographical disputes and uncertainties;
•the strength and stability of the institutional, commercial and residential construction and remodeling markets;
•fluctuations in currency exchange rates;
•potential impairment of our goodwill, indefinite-lived intangible assets and/or our long-lived assets;
•instability in the U.S. and global capital and credit markets;
•our ability to make scheduled debt payments or to refinance our debt obligations;
•increased competition, including from technological developments;
•the development, commercialization and acceptance of new products and services;
•changes in customer and consumer preferences and our ability to maintain beneficial relationships with large customers;
•our products or solutions failing to meet certification and specification requirements, being defective, causing property damage, bodily harm or injury, or otherwise falling short of customers’ needs and expectations;
•our ability to identify and successfully complete and integrate acquisitions, including achieving their anticipated strategic and financial benefits;
•business opportunities that diverge from our core business;
•our ability to achieve the expected improvements or financial returns we expect from our strategic initiatives;
•our ability to effectively manage and implement restructuring initiatives or other organizational changes;
•global climate change or other unexpected events, including global health crises, such as COVID-19;
•the proper functioning of our information technology and operational technology systems, including disruption or breaches of our information systems, such as cybersecurity attacks;
•the failure of our third-party vendors to provide effective support for many of the critical elements of our global information and operational technology infrastructure;
•our ability to recruit and retain a highly qualified and diverse workforce;
•disruptions in our global supply chain, including product manufacturing and logistical services provided by our supplier partners;
•our ability to effectively manage real or perceived issues related to product quality, safety, corporate social responsibility and other reputational matters;
•our ability to protect our brand reputation and trademarks;
•legal judgments, fines, penalties or settlements imposed against us or our assets as a result of legal proceedings, claims and disputes;
•claims of infringement of intellectual property rights by third parties;
•improper conduct by any of our employees, agents or business partners;
•changes to, or changes in interpretations of, current laws and regulations;
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•uncertainty and inherent subjectivity related to transfer pricing regulations in the countries in which we operate;
•changes in tax rates, the adoption of new tax legislation or exposure to additional tax liabilities; and
•risks related to our incorporation in Ireland, including the possible effects on us of future legislation or adverse determinations by taxing authorities that could increase our tax burden.
These events, risks and uncertainties are described more fully in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. There may also be other factors that have not been anticipated or that are not described in our periodic filings with the SEC, generally because we did not believe them to be significant at the time, which could cause actual results to differ materially from our projections and expectations. We do not undertake to update any forward-looking statements, except as required by applicable law.

Item 3 – Quantitative and Qualitative Disclosures about Market Risk
There have been no material changes in our exposure to market risk during the third quarter of 2024. For a discussion of the Company’s exposure to market risk, refer to Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

Item 4 – Controls and Procedures
The Company’s management, including its Chief Executive Officer and Chief Financial Officer, have conducted an evaluation of the effectiveness of disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded as of September 30, 2024, that the disclosure controls and procedures are effective in ensuring that all material information required to be filed in this Quarterly Report on Form 10-Q has been recorded, processed, summarized and reported when required and the information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
There have not been any changes in the Company’s internal control over financial reporting that occurred during the third quarter of 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II – OTHER INFORMATION

Item 1 – Legal Proceedings
In the normal course of business, we are involved in a variety of lawsuits, claims and legal proceedings, including commercial and contract disputes, labor and employment matters, product liability claims, environmental liabilities, antitrust and trade regulation matters, intellectual property disputes and tax-related matters. In our opinion, pending legal matters are not expected to have a material adverse impact on our results of operations, financial condition, liquidity or cash flows.

Item 1A – Risk Factors
There have been no material changes to our risk factors contained in our Annual Report on Form 10-K for the period ended December 31, 2023. For a further discussion of our Risk Factors, refer to the “Risk Factors” discussion contained in our Annual Report on Form 10-K for the year ended December 31, 2023.

Item 2 - Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

Issuer Purchases of Equity Securities
PeriodTotal number of shares purchased (000s)Average price paid per shareTotal number of shares purchased as part of publicly announced plans or programs (000s)Approximate dollar value of shares that may yet be purchased under the plans or programs (000s) (1)
July 1 - July 3113 $138.44 13 $378,197 
August 1 - August 31150 132.58 150 358,316 
September 1 - September 30131 139.92 131 340,024 
Total294 $136.09 294 $340,024 
(1) In June 2023, our Board of Directors reauthorized the Company’s ordinary existing share repurchase program and, as a result, authorized the repurchase of up to $500.0 million of the Company’s ordinary shares under the program. The share repurchase program does not have a prescribed expiration date and does not oblige the Company to acquire any particular amount of the Company's ordinary shares. Share repurchases may be made from time-to-time in open market, accelerated stock repurchase or privately negotiated transactions, including pursuant to one or more Rule 10b5-1 trading plans. The timing and manner of any share repurchase and the actual number of ordinary shares repurchased will be determined at the discretion of management based on a variety of factors, including, among others, the Company’s stock price, corporate and regulatory requirements, and other general market and economic conditions. The Board of Directors may suspend, modify, or terminate the repurchase program at any time without prior notice.

Item 5 - Other Information

During the three months ended September 30, 2024, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-rule 10b5-1 trading arrangement," as each term is defined in item 408(a) of Regulation S-K.















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Item 6 – Exhibits
(a) Exhibits
Exhibit No.DescriptionMethod of Filing
Amended and Restated Memorandum and Articles of Association of Allegion plc.Incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed with the SEC on June 13, 2016 (File No. 001-35971).
Subsidiary Guarantors and Issuers of Guaranteed SecuritiesFiled herewith.
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.Filed herewith.
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.Filed herewith.
Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.Furnished herewith.
101.INSXBRL Instance Document.The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCHXBRL Taxonomy Extension Schema Document.Filed herewith.
101.CALXBRL Taxonomy Extension Calculation Linkbase Document.Filed herewith.
101.DEFXBRL Taxonomy Extension Definition Linkbase Document.Filed herewith.
101.LABXBRL Taxonomy Extension Labels Linkbase Document.Filed herewith.
101.PREXBRL Taxonomy Extension Presentation Linkbase Document.Filed herewith.
104Cover Page Interactive Data File.Formatted as Inline XBRL and contained in Exhibit 101.

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ALLEGION PLC
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ALLEGION PLC
(Registrant)
Date:October 24, 2024
/s/ Michael J. Wagnes
Michael J. Wagnes, Senior Vice President
and Chief Financial Officer
Principal Financial Officer
Date:October 24, 2024
/s/ Nickolas A. Musial
Nickolas A. Musial, Vice President,
Controller, Chief Accounting Officer and Treasurer
Principal Accounting Officer

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Exhibit 22
Subsidiary Guarantors and Issuers of Guaranteed Securities
The table below sets forth the guarantor of the 3.500% Senior Notes due 2029 issued by Allegion plc and the jurisdiction of incorporation or organization of such entity.

Name of GuarantorJurisdiction of Incorporation or Organization
Allegion US Holding Company Inc.Delaware
The table below sets forth the guarantor of the 3.200% Senior Notes due 2024, 3.550% Senior Notes due 2027, 5.411% Senior Notes due 2032, and 5.600% Senior Notes due 2034 issued by Allegion US Holding Company Inc., a wholly-owned subsidiary of Allegion plc, and the jurisdiction of incorporation or organization of such entity.

Name of GuarantorJurisdiction of Incorporation or Organization
Allegion plcIreland




Exhibit 31.1
CERTIFICATION
I, John H. Stone, certify that:
1.I have reviewed the Quarterly Report on Form 10-Q of Allegion plc for the three and nine months ended September 30, 2024;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date:October 24, 2024 /s/ John H. Stone
 John H. Stone
 Principal Executive Officer



Exhibit 31.2
CERTIFICATION
I, Michael J. Wagnes, certify that:
1.I have reviewed the Quarterly Report on Form 10-Q of Allegion plc for the three and nine months ended September 30, 2024;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date:October 24, 2024 /s/ Michael J. Wagnes
 Michael J. Wagnes
 Principal Financial Officer



Exhibit 32.1
Section 1350 Certifications
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), each of the undersigned officers of Allegion plc (the Company), does hereby certify that:
The Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024 (the Form 10-Q) of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
/s/ John H. Stone
John H. Stone
Principal Executive Officer
October 24, 2024
/s/ Michael J. Wagnes
Michael J. Wagnes
Principal Financial Officer
October 24, 2024


v3.24.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2024
Oct. 22, 2024
Class of Stock [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2024  
Document Transition Report false  
Entity File Number 001-35971  
Entity Central Index Key 0001579241  
Entity Registrant Name Allegion plc  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Entity Incorporation, State or Country Code L2  
Entity Tax Identification Number 98-1108930  
Entity Address, Address Line One Block D  
Entity Address, Address Line Two Iveagh Court  
Entity Address, Address Line Three Harcourt Road  
Entity Address, City or Town Dublin 2  
Entity Address, Postal Zip Code D02 VH94  
Entity Address, Country IE  
Country Region 353  
City Area Code 1  
Local Phone Number 2546200  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   86,929,281
Ordinary shares    
Class of Stock [Line Items]    
Title of 12(b) Security Ordinary shares, par value $0.01 per share  
Trading Symbol ALLE  
Security Exchange Name NYSE  
3.500% Senior Notes Due 2029    
Class of Stock [Line Items]    
Title of 12(b) Security 3.500% Senior Notes due 2029  
Trading Symbol ALLE 3 ½  
Security Exchange Name NYSE  
v3.24.3
Condensed Consolidated Statements of Comprehensive Income - USD ($)
shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net revenues $ 967.1 $ 917.9 $ 2,826.6 $ 2,753.4
Cost of goods sold 535.0 514.6 1,574.8 1,557.2
Selling and administrative expenses 217.1 210.2 655.7 647.5
Operating income 215.0 193.1 596.1 548.7
Interest expense 28.8 22.9 76.8 70.2
Other (income) expense, net (8.4) 0.1 (17.2) (1.8)
Earnings before income taxes 194.6 170.1 536.5 480.3
Provision for income taxes 20.4 13.7 83.1 58.3
Net earnings 174.2 156.4 453.4 422.0
Less: Net earnings attributable to noncontrolling interests 0.0 0.1 0.0 0.2
Net earnings attributable to Allegion plc $ 174.2 $ 156.3 $ 453.4 $ 421.8
Earnings per share attributable to Allegion plc ordinary shareholders:        
Basic net earnings (in dollars per share) $ 2.00 $ 1.78 $ 5.19 $ 4.80
Diluted net earnings (in dollars per share) $ 1.99 $ 1.77 $ 5.16 $ 4.78
Weighted-average shares outstanding:        
Basic (in shares) 87.1 87.9 87.3 87.9
Diluted (in shares) 87.6 88.2 87.8 88.3
Total comprehensive income $ 215.5 $ 127.2 $ 465.6 $ 411.0
Less: Total comprehensive income attributable to noncontrolling interests 0.0 0.8 0.0 0.1
Total comprehensive income attributable to Allegion plc $ 215.5 $ 126.4 $ 465.6 $ 410.9
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
ASSETS    
Cash and cash equivalents $ 878.9 $ 468.1
Accounts and notes receivable, net 458.8 412.8
Inventories 449.9 438.5
Other current assets 74.8 41.5
Total current assets 1,862.4 1,360.9
Property, plant and equipment, net 384.8 358.1
Goodwill 1,505.8 1,443.1
Intangible assets, net 604.8 572.8
Other noncurrent assets 615.9 576.6
Total assets 4,973.7 4,311.5
LIABILITIES AND EQUITY    
Accounts payable 266.7 259.2
Accrued expenses and other current liabilities 405.9 407.9
Short-term borrowings and current maturities of long-term debt 418.9 412.6
Total current liabilities 1,091.5 1,079.7
Long-term debt 1,983.2 1,602.4
Other noncurrent liabilities 328.0 311.1
Total liabilities 3,402.7 2,993.2
Equity:    
Ordinary shares, $0.01 par value (86,924,345 and 87,504,673 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively) 0.9 0.9
Retained earnings 1,819.4 1,578.9
Accumulated other comprehensive loss (249.3) (261.5)
Total equity 1,571.0 1,318.3
Total liabilities and equity $ 4,973.7 $ 4,311.5
v3.24.3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Ordinary shares, par value (in dollars per share) $ 0.01 $ 0.01
Ordinary shares, issued (in shares) 86,924,345 87,504,673
Ordinary shares, outstanding (in shares) 86,924,345 87,504,673
v3.24.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flows from operating activities    
Net earnings $ 453.4 $ 422.0
Adjustments to arrive at net cash provided by operating activities:    
Depreciation and amortization 89.3 83.7
Changes in assets and liabilities and other non-cash items (86.7) (124.6)
Net cash provided by operating activities 456.0 381.1
Cash flows from investing activities    
Capital expenditures (68.0) (60.7)
Acquisition of businesses, net of cash acquired (121.2) (31.7)
Other investing activities, net (1.0) 9.0
Net cash used in investing activities (190.2) (83.4)
Cash flows from financing activities    
Debt repayments, net (10.1) (9.5)
Proceeds from Revolving Facility 0.0 30.0
Repayments of Revolving Facility 0.0 (99.0)
Proceeds from issuance of senior notes 400.0 0.0
Net proceeds from (repayments of) debt 389.9 (78.5)
Debt financing costs 6.9 0.0
Dividends paid to ordinary shareholders (125.6) (119.2)
Repurchase of ordinary shares (120.0) (19.9)
Other financing activities, net 9.9 (2.3)
Net cash provided by (used in) financing activities 147.3 (219.9)
Effect of exchange rate changes on cash and cash equivalents (2.3) (1.5)
Net increase in cash and cash equivalents 410.8 76.3
Cash and cash equivalents - beginning of period 468.1 288.0
Cash and cash equivalents - end of period $ 878.9 $ 364.3
v3.24.3
Basis of Presentation
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation BASIS OF PRESENTATION
The accompanying Condensed and Consolidated Financial Statements of Allegion plc, an Irish public limited company, and its consolidated subsidiaries ("Allegion" or "the Company"), reflect the consolidated operations of the Company and have been prepared in accordance with United States ("U.S.") Securities and Exchange Commission ("SEC") interim reporting requirements. Accordingly, the accompanying Condensed and Consolidated Financial Statements do not include all disclosures required by accounting principles generally accepted in the U.S. ("GAAP") for full financial statements and should be read in conjunction with the Consolidated Financial Statements included in the Allegion Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, the accompanying Condensed and Consolidated Financial Statements contain all adjustments, which include normal recurring adjustments, necessary to state fairly the consolidated unaudited results for the interim periods presented.
v3.24.3
Acquisitions
 9 Months Ended
Sep. 30, 2024
Business Combinations [Abstract]  
Acquisitions ACQUISITIONS
2024
On February 1, 2024, the Company, through its subsidiaries, acquired 100% of Boss Door Controls, a door solutions provider in the United Kingdom. Boss Door Controls is reported in the Company's Allegion International segment.
On March 4, 2024, the Company, through its subsidiaries, acquired 100% of Montajes electronicos Dorcas S.L. ("Dorcas"), a leading manufacturer of electromechanical access control solutions based in Spain. Dorcas is reported in the Company's Allegion International segment.
On June 3, 2024, the Company, through its subsidiaries, acquired 100% of Krieger Specialty Products, LLC ("Krieger"), a leading manufacturer of high-performance special purpose doors and windows based in the United States. Krieger is reported in the Company's Allegion Americas segment.
On June 10, 2024, the Company, through its subsidiaries, acquired 100% of Unicel Architectural Corp. ("Unicel"), a leading manufacturer of advanced glass, timber and aluminum building solutions based in Canada. Unicel is reported in the Company's Allegion Americas segment.
Acquisitions were accounted for as business combinations and were funded with available cash on hand. Initial aggregate cash consideration for these acquisitions was approximately $121.2 million (net of cash acquired). Additional consideration may be payable in the future in the event certain financial metrics are achieved.
The following table summarizes the preliminary allocation of the aggregate purchase price, which includes initial cash consideration and the estimated fair value of contingent consideration, to assets acquired and liabilities assumed as of the respective acquisition dates:
In millions
Net working capital$8.7 
Property, plant and equipment3.0 
Goodwill61.0 
Intangible assets69.2 
Other noncurrent liabilities(13.5)
Total net assets acquired and liabilities assumed$128.4 
The valuations of assets acquired and liabilities assumed had not yet been finalized as of September 30, 2024, and finalization of the valuations during the measurement period could result in a change in the amounts recorded. The completion of the valuations will occur no later than one year from the respective acquisition dates as required by GAAP.
Goodwill results from several factors including Allegion-specific synergies that were excluded from the cash flow projections used in the valuation of intangible assets and intangible assets that do not qualify for separate recognition. The majority of the goodwill related to these acquisitions is not expected to be deductible for tax purposes.
Intangible assets recognized as of the acquisition dates were comprised of the following:
In millionsValue (in millions)Weighted Average Useful life (in years)
Completed technologies/patents$14.3 15
Customer relationships29.3 18
Trade names (finite-lived)15.3 15
Backlog revenue10.3 1
2023
On January 3, 2023, the Company, through its subsidiaries, completed an acquisition of the assets of plano. group, a SaaS workforce management solution business based in Germany ("plano"), for initial cash consideration of $36.6 million. Additional consideration may be payable in future periods in the event plano achieves certain specified financial results. This acquisition was accounted for as a business combination, and plano has been incorporated into the Allegion International segment.
The allocation of the purchase price, which includes initial cash consideration and the estimated fair value of contingent consideration, to assets acquired and liabilities assumed as of the acquisition date includes $17.5 million of finite-lived intangible assets and approximately $23.0 million of goodwill and $3.9 million of net liabilities assumed. The finite-lived intangible assets have a weighted average useful life of approximately 15 years.
v3.24.3
Inventories
 9 Months Ended
Sep. 30, 2024
Inventory, Net [Abstract]  
Inventories INVENTORIES
Inventories are stated at the lower of cost and net realizable value using the first-in, first-out (FIFO) method. The major classes of inventories were as follows:
In millionsSeptember 30,
2024		December 31,
2023
Raw materials$205.5 $218.4 
Work-in-process51.7 41.6 
Finished goods192.7 178.5 
Total$449.9 $438.5 
v3.24.3
Goodwill
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill GOODWILL
The changes in the carrying amount of goodwill for the nine months ended September 30, 2024, were as follows:
In millionsAllegion AmericasAllegion International
Total (1)
December 31, 2023$1,126.7 $316.4 $1,443.1 
Acquisitions and adjustments56.2 4.8 61.0 
Currency translation(1.6)3.3 1.7 
September 30, 2024$1,181.3 $324.5 $1,505.8 
(1) Accumulated impairment for the International segment was $573.6 million as of September 30, 2024 and December 31, 2023. There are no accumulated impairment losses for the Americas segment.
There was no impairment of goodwill for the nine months ended September 30, 2024 and 2023.
v3.24.3
Intangible Assets
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets INTANGIBLE ASSETS
The gross amount of the Company’s intangible assets and related accumulated amortization were as follows:
September 30, 2024December 31, 2023
In millionsGross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Completed technologies/patents$79.3 $(42.0)$37.3 $64.5 $(36.9)$27.6 
Customer relationships569.1 (206.8)362.3 535.3 (185.2)350.1 
Trade names (finite-lived)158.3 (92.0)66.3 142.2 (79.3)62.9 
Other93.1 (59.0)34.1 75.3 (47.5)27.8 
Total finite-lived intangible assets899.8 $(399.8)500.0 817.3 $(348.9)468.4 
Trade names (indefinite-lived)104.8 104.8 104.4 104.4 
Total$1,004.6 $604.8 $921.7 $572.8 
                                                                                                                                            
Intangible asset amortization expense was $48.0 million and $46.6 million for the nine months ended September 30, 2024 and 2023, respectively. Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $64.0 million for full year 2024, $60.5 million for 2025, $51.5 million for 2026, $44.7 million for 2027 and $35.4 million for 2028.
v3.24.3
Debt and Credit Facilities
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Debt and Credit Facilities DEBT AND CREDIT FACILITIES
Long-term debt and other borrowings consisted of the following:
In millionsSeptember 30,
2024		December 31,
2023
Term Facility$215.6 $225.0 
3.200% Senior Notes due 2024
400.0 400.0 
3.550% Senior Notes due 2027
400.0 400.0 
3.500% Senior Notes due 2029
400.0 400.0 
5.411% Senior Notes due 2032
600.0 600.0 
5.600% Senior Notes due 2034
400.0 — 
Other debt0.1 0.1 
Total borrowings outstanding2,415.7 2,025.1 
Discounts and debt issuance costs, net(13.6)(10.1)
Total debt2,402.1 2,015.0 
Less current portion of long-term debt418.9 412.6 
Total long-term debt$1,983.2 $1,602.4 
Unsecured Credit Facilities
The Company has an unsecured credit agreement consisting of a $250.0 million term loan facility (the “Term Facility”), of which $215.6 million was outstanding at September 30, 2024, and a $750.0 million revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Credit Facilities”), of which no balance was outstanding at September 30, 2024. The Credit Facilities are unconditionally guaranteed jointly and severally on an unsecured basis by Allegion plc, Allegion US Holding Company Inc. ("Allegion US Hold Co"), the Company’s wholly-owned subsidiary, and Allegion (Ireland) Finance Designated Activity Company (“Allegion Ireland DAC”), the Company’s wholly-owned subsidiary.
The Term Facility requires quarterly principal payments through its maturity on November 18, 2026. Future payments total $3.1 million for the remainder of 2024, $21.9 million due in 2025, and $190.6 million due in 2026. The Company repaid $9.4 million of principal on the Term Facility during the nine months ended September 30, 2024.
The Revolving Facility matures on May 20, 2029 and includes up to $100.0 million for the issuance of letters of credit. The Company had $18.5 million of letters of credit outstanding at September 30, 2024. Borrowings under the Revolving Facility may be repaid at any time without premium or penalty, and amounts repaid may be reborrowed.
Outstanding borrowings under the Credit Facilities accrue interest, at the option of the Company, equal to either: (i) a Secured Overnight Financing Rate ("SOFR") rate plus an applicable margin or (ii) a base rate plus the applicable margin. The applicable margin ranges from 0.875% to 1.375% depending on the Company’s credit ratings. At September 30, 2024, the Company's outstanding borrowings under the Credit Facilities accrued interest at SOFR plus a margin of 1.225%, resulting in an interest
rate of 6.070%. The Credit Facilities also contain negative and affirmative covenants and events of default that, among other things, limit or restrict the Company’s ability to enter into certain transactions. In addition, the Credit Facilities require the Company to comply with a maximum leverage ratio as defined in the credit agreement. As of September 30, 2024, the Company was in compliance with all applicable covenants under the credit agreement.
Senior Notes
As of September 30, 2024, Allegion US Hold Co had $400.0 million outstanding of its 3.200% Senior Notes due 2024 (the "3.200% Senior Notes"), $400.0 million outstanding of its 3.550% Senior Notes due 2027 (the “3.550% Senior Notes”), $600.0 million outstanding of its 5.411% Senior Notes due 2032 (the "5.411% Senior Notes") and $400.0 million outstanding of its 5.600% Senior Notes due 2034 (the "5.600% Senior Notes"), and Allegion plc had $400.0 million outstanding of its 3.500% Senior Notes due 2029 (the “3.500% Senior Notes”, and all five senior notes collectively, the “Senior Notes”). The 3.550% Senior Notes and 3.500% Senior Notes require semi-annual interest payments on April 1 and October 1 of each year and will mature on October 1, 2027 and October 1, 2029, respectively. The 5.411% Senior Notes require semi-annual interest payments on January 1 and July 1 of each year, and will mature on July 1, 2032. The 5.600% Senior Notes require semi-annual interest payments on May 29 and November 29, beginning November 29, 2024, and mature on May 29, 2034. The Company repaid the 3.200% Senior Notes on October 1, 2024.
The 3.550% Senior Notes, 5.411% Senior Notes, and 5.600% Senior Notes are senior unsecured obligations of Allegion US Hold Co and rank equally with all of Allegion US Hold Co’s existing and future senior unsecured and unsubordinated indebtedness. The guarantee of the 3.550% Senior Notes, the 5.411% Senior Notes and the 5.600% Senior Notes is the senior unsecured obligation of Allegion plc and ranks equally with all of the Company’s existing and future senior unsecured and unsubordinated indebtedness. The 3.500% Senior Notes are senior unsecured obligations of Allegion plc, are guaranteed by Allegion US Hold Co and rank equally with all of the Company’s existing and future senior unsecured indebtedness. As of September 30, 2024, the company was in compliance with all applicable covenants under the Senior Notes.
v3.24.3
Financial Instruments
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments FINANCIAL INSTRUMENTS
Currency Hedging Instruments
The gross notional amount of the Company’s currency derivatives was $221.8 million and $175.4 million at September 30, 2024 and December 31, 2023, respectively. Neither the fair values of currency derivatives, which are determined based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily observable (Level 2 inputs under the fair value hierarchy described in Note 10), nor the balances included in Accumulated other comprehensive loss were material as of September 30, 2024 or December 31, 2023. Currency derivatives designated as cash flow hedges did not have a material impact to either Net earnings or Other comprehensive income during the nine months ended September 30, 2024 and 2023, nor is the amount to be reclassified into Net earnings over the next twelve months expected to be material. At September 30, 2024, the maximum term of the Company’s currency derivatives was less than one year.
Concentration of Credit Risk
The counterparties to the Company’s forward contracts consist of a number of investment grade major international financial institutions. The Company could be exposed to losses in the event of nonperformance by the counterparties. However, the credit ratings and the concentration of risk in these financial institutions are monitored on a continuous basis, and therefore, the Company believes they present no significant credit risk to the Company.
v3.24.3
Leases
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases LEASES
Total rental expense for the nine months ended September 30, 2024 and 2023, was $48.3 million and $47.6 million, respectively, and is classified within Cost of goods sold and Selling and administrative expenses within the Condensed and Consolidated Statements of Comprehensive Income. Rental expense related to short-term leases, variable lease payments or other leases or lease components not included within the right of use ("ROU") asset or lease liability totaled $12.3 million and $15.0 million, respectively, for the nine months ended September 30, 2024 and 2023. No material lease costs have been capitalized on the Condensed and Consolidated Balance Sheets as of September 30, 2024 or December 31, 2023.
The Company assesses the specific terms and conditions of each lease to determine the appropriate classification as either an operating or finance lease and the lease term. Substantially all of the Company's leases for which the Company is a lessee are classified as operating leases.
As a lessee, the Company categorizes its leases into two general categories: real estate leases and equipment leases. Amounts included within the Condensed and Consolidated Balance Sheets related to the Company’s ROU asset and lease liability for both real estate and equipment leases were as follows:
September 30, 2024December 31, 2023
In millionsBalance Sheet classificationReal estateEquipmentTotalReal estateEquipmentTotal
ROU assetOther noncurrent assets$112.2 $40.6 $152.8 $114.7 $33.4 $148.1 
Lease liability - currentAccrued expenses and other current liabilities20.1 17.2 37.3 18.7 15.0 33.7 
Lease liability - noncurrentOther noncurrent liabilities95.9 23.3 119.2 98.9 18.4 117.3 
Other information:
Weighted-average remaining term (years)11.12.811.62.7
Weighted-average discount rate5.2 %5.6 %5.0 %4.4 %
The following table summarizes additional information related to the Company’s leases for the nine months ended September 30:
20242023
In millionsReal estateEquipmentTotalReal estateEquipmentTotal
Cash paid for amounts included in the measurement of lease liabilities$18.9 $17.1 $36.0 $18.0 $14.6 $32.6 
ROU assets obtained in exchange for new lease liabilities11.0 14.6 25.6 57.3 10.8 68.1 
Future Repayments
Scheduled minimum lease payments required under non-cancellable operating leases for both the real estate and equipment lease portfolios for the remainder of 2024 and for each of the years thereafter as of September 30, 2024, are as follows:
In millionsRemainder of 20242025202620272028ThereafterTotal
Real estate leases$6.4 $25.2 $21.2 $17.0 $11.4 $77.2 $158.4 
Equipment leases5.2 17.5 11.4 6.3 3.1 0.4 43.9 
Total$11.6 $42.7 $32.6 $23.3 $14.5 $77.6 $202.3 
The difference between the total undiscounted minimum lease payments and the combined current and noncurrent lease liabilities as of September 30, 2024, is due to imputed interest of approximately $46 million.
v3.24.3
Defined Benefit Plans
 9 Months Ended
Sep. 30, 2024
Retirement Benefits, Description [Abstract]  
Defined Benefit Plans DEFINED BENEFIT PLANS
The Company sponsors several U.S. and non-U.S. defined benefit pension plans for eligible employees and retirees and also maintains other supplemental plans for officers and other key employees. The components of the Company’s Net periodic pension benefit cost (income) for the three and nine months ended September 30 were as follows:
U.S.
Three months endedNine months ended
In millions2024202320242023
Service cost$0.2 $0.2 $0.6 $0.6 
Interest cost2.9 3.1 8.7 9.0 
Expected return on plan assets(3.7)(3.7)(11.3)(11.2)
Administrative costs and other0.2 0.3 0.8 0.8 
Net amortization of:
Prior service costs— — 0.1 0.1 
Plan net actuarial losses0.3 0.3 0.7 0.6 
Net periodic pension benefit (income) cost$(0.1)$0.2 $(0.4)$(0.1)
Non-U.S.
Three months endedNine months ended
In millions2024202320242023
Service cost$0.4 $0.2 $1.3 $1.0 
Interest cost3.0 3.0 9.0 9.0 
Expected return on plan assets(4.0)(3.8)(12.1)(11.6)
Administrative costs and other0.4 0.5 1.3 1.3 
Net amortization of:
Prior service costs0.1 0.1 0.1 0.1 
Plan net actuarial losses0.8 0.7 2.6 2.5 
Net periodic pension benefit cost$0.7 $0.7 $2.2 $2.3 
Service cost is recorded in Cost of goods sold and Selling and administrative expenses, while the remaining components of Net periodic pension benefit cost (income) are recorded in Other income, net within the Condensed and Consolidated Statements of Comprehensive Income. Employer contributions to the plans were not material during the nine months ended September 30, 2024 or 2023. Employer contributions totaling approximately $3.7 million are expected to be made during the remainder of 2024.
v3.24.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements 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 based on quoted prices in active markets for identical assets or liabilities.
•Level 2 – Inputs other than Level 1 quoted prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or 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 – 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.
Assets and liabilities measured at fair value as of September 30, 2024, were as follows:
 Fair value measurementsTotal
fair value
In millionsQuoted prices in active markets for identical assets (Level 1)Significant other observable inputs (Level 2)Significant unobservable inputs (Level 3)
Recurring fair value measurements
Assets:
Investments$— $17.1 $— $17.1 
       Total asset recurring fair value measurements$— $17.1 $— $17.1 
Liabilities:
Deferred compensation and other retirement plans$— $17.1 $— $17.1 
Total liability recurring fair value measurements$— $17.1 $— $17.1 
Financial instruments not carried at fair value
Total debt$— $2,432.4 $— $2,432.4 
Total financial instruments not carried at fair value$— $2,432.4 $— $2,432.4 
Assets and liabilities measured at fair value as of December 31, 2023, were as follows:
 Fair value measurementsTotal
fair value
In millionsQuoted prices in active markets for identical assets (Level 1)Significant other observable inputs (Level 2)Significant unobservable inputs (Level 3)
Recurring fair value measurements
Assets:
Investments$— $18.0 $— $18.0 
Total asset recurring fair value measurements$— $18.0 $— $18.0 
Liabilities:
Deferred compensation and other retirement plans$— $18.2 $— $18.2 
Total liability recurring fair value measurements$— $18.2 $— $18.2 
Financial instruments not carried at fair value
Total debt$— $1,984.9 $— $1,984.9 
Total financial instruments not carried at fair value$— $1,984.9 $— $1,984.9 
The Company determines the fair value of its financial assets and liabilities using the following methodologies:
•Investments – These instruments include equity mutual funds and corporate bond funds. The fair value is obtained based on observable market prices quoted on public exchanges for similar instruments.
•Deferred compensation and other retirement plans – These include obligations related to deferred compensation and other retirement plans adjusted for market performance. The fair value is obtained based on observable market prices quoted on public exchanges for similar instruments.
•Debt – These instruments are recorded at cost and include the Credit Facilities and Senior Notes maturing through 2034. The fair value of these debt instruments is obtained based on observable market prices quoted on public exchanges for similar instruments.
The methodologies used by the Company to determine the fair value of its financial assets and liabilities as of September 30, 2024, are the same as those used as of December 31, 2023. The carrying values of Cash and cash equivalents, Accounts and notes receivable, net, Accounts payable and Accrued expenses and other current liabilities are a reasonable estimate of their fair value due to the short-term nature of these instruments.
The Company also had investments in debt and equity securities without readily determinable fair values of $66.8 million and $65.8 million as of September 30, 2024 and December 31, 2023, respectively, which are classified as Other noncurrent assets within the Condensed and Consolidated Balance Sheets. These investments are considered to be nonrecurring fair value measurements, and thus, are not included in the fair value tables above.
v3.24.3
Equity
 9 Months Ended
Sep. 30, 2024
Stockholders' Equity Note [Abstract]  
Equity EQUITY
The changes in the components of Equity for the nine months ended September 30, 2024, were as follows:
Allegion plc shareholders' equity
Ordinary shares
In millions, except per share amountsTotal equityAmountSharesCapital in excess of par valueRetained earningsAccumulated other comprehensive loss
Balance at December 31, 2023$1,318.3 $0.9 87.5 $— $1,578.9 $(261.5)
Net earnings123.8 — — — 123.8 — 
Other comprehensive loss, net (24.0)— — — — (24.0)
Repurchase of ordinary shares(40.0)— (0.3)(14.8)(25.2)— 
Share-based compensation activity14.8 — 0.2 14.8 — — 
Dividends to ordinary shareholders ($0.48 per share)
(42.0)— — — (42.0)— 
Balance at March 31, 20241,350.9 0.9 87.4 — 1,635.5 (285.5)
Net earnings155.4 — — — 155.4 — 
Other comprehensive loss, net(5.1)— — — — (5.1)
Repurchase of ordinary shares(40.0)— (0.3)(4.1)(35.9)— 
Share-based compensation activity5.9 — — 5.9 — — 
Dividends to ordinary shareholders ($0.48 per share)
(41.8)— — — (41.8)— 
Balance at June 30, 20241,425.3 0.9 87.1 1.8 1,713.2 (290.6)
Net earnings174.2 — — — 174.2 — 
Other comprehensive income, net41.3 — — — — 41.3 
Repurchase of ordinary shares(40.0)— (0.3)(13.8)(26.2)— 
Share-based compensation activity12.0 — 0.1 12.0 — — 
Dividends to ordinary shareholders ($0.48 per share)
(41.8)— — — (41.8)— 
Balance at September 30, 2024$1,571.0 $0.9 86.9 $— $1,819.4 $(249.3)
The changes in the components of Equity for the nine months ended September 30, 2023, were as follows:
Allegion plc shareholders' equity
Ordinary shares
In millions, except per share amountsTotal equityAmountSharesCapital in excess of par valueRetained earningsAccumulated other comprehensive lossNoncontrolling
interests
Balance at December 31, 2022$944.5 $0.9 87.9 $13.9 $1,212.8 $(285.8)$2.7 
Net earnings123.6 — — — 123.5 — 0.1 
Other comprehensive income, net
10.3 — — — — 10.2 0.1 
Share-based compensation activity5.7 — — 5.7 — — — 
Dividends to ordinary shareholders ($0.45 per share)
(39.5)— — — (39.5)— — 
Balance at March 31, 20231,044.6 0.9 87.9 19.6 1,296.8 (275.6)2.9 
Net earnings142.0 — — — 142.0 — — 
Other comprehensive income (loss), net
7.9 — — — — 8.8 (0.9)
Repurchase of ordinary shares(19.9)— (0.2)(19.9)— — — 
Share-based compensation activity5.6 — 0.1 5.6 — — — 
Dividends to noncontrolling interests(0.1)— — — — — (0.1)
Dividends to ordinary shareholders ($0.45 per share)
(39.6)— — — (39.6)— — 
Balance at June 30, 20231,140.5 0.9 87.8 5.3 1,399.2 (266.8)1.9 
Net earnings156.4 — — — 156.3 — 0.1 
Other comprehensive (loss) income, net(29.2)— — — — (29.9)0.7 
Share-based compensation activity6.1 — — 6.1 — — — 
Acquisition of noncontrolling interest(3.0)— — 0.4 — — (3.4)
Dividends to ordinary shareholders ($0.45 per share)
(39.4)— — — (39.4)— — 
Balance at September 30, 2023
$1,231.4 $0.9 87.8 $11.8 $1,516.1 $(296.7)$(0.7)
In June 2023, the Company’s Board of Directors (the "Board") reauthorized the Company's existing share repurchase program and, as a result, authorized the repurchase of up to, and including, $500.0 million of the Company’s ordinary shares (the "Share Repurchase Authorization"). During the nine months ended September 30, 2024 the Company paid $120.0 million to repurchase ordinary shares on the open market under the Share Repurchase Authorization. As of September 30, 2024, the Company had approximately $340.0 million available under the Share Repurchase Authorization.
Accumulated Other Comprehensive Loss
The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2024, were as follows:
In millionsCash flow hedgesDefined benefit itemsForeign currency itemsTotal
December 31, 2023$5.6 $(125.9)$(141.2)$(261.5)
Other comprehensive income (loss) before reclassifications0.8 (4.8)13.4 9.4 
Amounts reclassified from accumulated other comprehensive loss(a)
(0.8)3.5 — 2.7 
Tax (expense) benefit(0.2)0.3 — 0.1 
September 30, 2024$5.4 $(126.9)$(127.8)$(249.3)
The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2023, were as follows:
In millionsCash flow hedgesDefined benefit itemsForeign currency itemsTotal
December 31, 2022$6.1 $(117.1)$(174.8)$(285.8)
Other comprehensive income (loss) before reclassifications0.7 (0.7)(13.6)(13.6)
Amounts reclassified from accumulated other comprehensive loss(a)
(0.5)2.9 — 2.4 
Tax benefit0.2 0.1 — 0.3 
September 30, 2023$6.5 $(114.8)$(188.4)$(296.7)
(a)    Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to cash flow hedges are recorded in Cost of goods sold and Interest expense. Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to defined benefit items are recorded in Other income, net.
v3.24.3
Share-Based Compensation
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation SHARE-BASED COMPENSATION
The Company’s share-based compensation plans include programs for stock options, restricted stock units ("RSUs") and performance stock units ("PSUs"). Share-based compensation expense is included in Cost of goods sold and Selling and administrative expenses within the Condensed and Consolidated Statements of Comprehensive Income. The following table summarizes the share-based compensation expense recognized for the three and nine months ended September 30:
Three months endedNine months ended
In millions2024202320242023
Stock options$0.9 $0.8 $4.0 $3.6 
RSUs3.1 3.1 12.1 11.2 
PSUs2.0 2.0 6.0 5.5 
Pre-tax expense6.0 5.9 22.1 20.3 
Tax benefit(0.6)(0.6)(2.2)(2.5)
After-tax expense$5.4 $5.3 $19.9 $17.8 
Stock Options / RSUs
Eligible participants may receive (i) stock options, (ii) RSUs or (iii) a combination of both stock options and RSUs. Grants issued during the nine months ended September 30 were as follows:
 20242023
 Number
granted		Weighted-
average fair
value per award		Number
granted		Weighted-
average fair
value per award
Stock options135,906 $40.92 156,929 $33.66 
RSUs103,564 $129.48 131,386 $112.72 
The weighted-average fair value of the stock options granted is determined using the Black-Scholes option-pricing model. The following weighted-average assumptions were used during the nine months ended September 30:
20242023
Dividend yield1.47 %1.60 %
Volatility29.29 %28.47 %
Risk-free rate of return4.29 %4.10 %
Expected life (years)6.06.0
Volatility is based on the Company’s historic volatility. The risk-free rate of return is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. The expected life of the Company’s stock option awards is derived from the simplified approach based on the weighted-average time to vest and the remaining contractual term and represents the period of time that awards are expected to be outstanding.
Performance Stock Units
During the nine months ended September 30, 2024, the Company granted PSUs with a maximum award level of approximately 0.1 million shares. In February 2022, 2023 and 2024, the Company’s Compensation Committee granted PSUs that were earned based 50% upon a performance condition, measured at each reporting period by earnings per share ("EPS") performance in
relation to pre-established targets for each performance period set by the Compensation and Human Capital Committee of the Board, and 50% upon a market condition, measured by the Company’s relative total shareholder return against, for 2022 and 2023, the S&P 400 Capital Goods Index over a three-year performance period, and for 2024 a 50/50 blend of the S&P 400 Capitals Goods Index and the S&P 500 Capital Goods Index over a three-year performance period. The fair values of the market condition are estimated using a Monte Carlo Simulation approach in a risk-neutral framework to model future stock price movements based upon historical volatility, risk-free rates of return and correlation matrix.
v3.24.3
Other Income, Net
 9 Months Ended
Sep. 30, 2024
Other Income and Expenses [Abstract]  
Other, Net OTHER INCOME, NET
The components of Other (income) expense, net for the three and nine months ended September 30 were as follows:
Three months endedNine months ended
In millions2024202320242023
Interest income$(8.3)$(1.5)$(16.9)$(3.4)
Foreign currency exchange (gain) loss(0.5)1.1 0.3 2.8 
Net periodic pension and postretirement benefit cost, less service cost— 0.4 — 0.5 
Other expense (income)
0.4 0.1 (0.6)(1.7)
Other (income) expense, net$(8.4)$0.1 $(17.2)$(1.8)
v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
The effective income tax rates for the three months ended September 30, 2024 and 2023, were 10.5% and 8.1%, respectively. The increase in the effective income tax rate compared to 2023 is primarily due to the enactment of global minimum tax in 2024, the unfavorable year over year change in the amounts recognized for uncertain tax positions and the unfavorable mix of income earned in higher tax rate jurisdictions.
The effective income tax rates for the nine months ended September 30, 2024 and 2023, were 15.5% and 12.1%, respectively. The increase in the effective income tax rate compared to 2023 is primarily due to the enactment of global minimum tax in 2024, the unfavorable year over year change in the amounts recognized for uncertain tax positions and the unfavorable mix of income earned in higher tax rate jurisdictions.
v3.24.3
Earnings Per Share (EPS)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Earnings Per Share (EPS) EARNINGS PER SHARE ("EPS")
Basic EPS is calculated by dividing Net earnings attributable to Allegion plc by the weighted-average number of ordinary shares outstanding for the applicable period. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potentially dilutive ordinary shares, which in the Company’s case includes shares issuable under share-based compensation plans.
The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted EPS calculations for the three and nine months ended September 30:
Three months endedNine months ended
In millions2024202320242023
Weighted-average number of basic shares87.1 87.9 87.3 87.9 
Shares issuable under share-based compensation plans0.5 0.3 0.5 0.4 
Weighted-average number of diluted shares87.6 88.2 87.8 88.3 
At September 30, 2024 and 2023, 0.3 million and 0.6 million stock options, respectively, were excluded from the computation of weighted-average diluted shares outstanding because the effect of including these shares would have been anti-dilutive.
v3.24.3
Net Revenues
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Net Revenues NET REVENUES
The following tables show the Company’s Net revenues related to both tangible product sales and services for the three and nine months ended September 30, 2024 and 2023, respectively, disaggregated by business segment:
Three months ended September 30, 2024Nine months ended September 30, 2024
In millionsAllegion AmericasAllegion InternationalTotalAllegion AmericasAllegion InternationalTotal
Net revenues
Products$744.6 $175.6 $920.2 $2,144.4 $542.5 $2,686.9 
Services37.8 9.1 46.9 118.0 21.7 139.7 
Total Net revenues$782.4 $184.7 $967.1 $2,262.4 $564.2 $2,826.6 
Three months ended September 30, 2023Nine months ended September 30, 2023
In millionsAllegion AmericasAllegion InternationalTotalAllegion AmericasAllegion InternationalTotal
Net revenues
Products$703.4 $167.1 $870.5 $2,090.5 $521.8 $2,612.3 
Services37.5 9.9 47.4 118.5 22.6 141.1 
Total Net revenues$740.9 $177.0 $917.9 $2,209.0 $544.4 $2,753.4 
Net revenues are shown by tangible product sales and services, as contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar within each of these two principal revenue streams. Product sales involve contracts with a single performance obligation, the transfer of control of a product or bundle of products to a customer. Service revenue, which includes inspection, maintenance and repair, design and installation, aftermarket and locksmith services, as well as software-as-a-service offerings such as access control, IoT integration and workforce management solutions, is delayed until the service performance obligations are satisfied.
As of September 30, 2024 and December 31, 2023, contract assets related to the Company’s right to consideration for work completed but not billed were not material. The Company does not have any costs to obtain or fulfill a contract that are capitalized on its Condensed and Consolidated Balance Sheets. During the three and nine months ended September 30, 2024 and 2023, no adjustments related to performance obligations satisfied in previous periods were recorded.
As of September 30, 2024 and December 31, 2023, contract liabilities related to revenues allocated to remaining performance obligations totaled $34.2 million and $27.2 million, respectively, and are classified as Accrued Expenses and Other Current Liabilities and Other noncurrent liabilities within the Condensed and Consolidated Balance Sheets. A majority of the contract liabilities are expected to be recognized as revenue within the next twelve months.
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies COMMITMENTS AND CONTINGENCIES
The Company is involved in various litigation, claims and administrative proceedings, including those related to environmental and product warranty matters. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for contingent liabilities, except as expressly set forth in this note, management believes that any liability which may result from these legal matters would not have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company.
Environmental Matters
As of September 30, 2024 and December 31, 2023, the Company had reserves for environmental matters of $18.2 million and $20.2 million, respectively. The total reserve at September 30, 2024 and December 31, 2023, included $10.1 million and $11.2 million, respectively, related to remediation of sites previously disposed by the Company. Environmental reserves are classified as Accrued expenses and other current liabilities or Other noncurrent liabilities within the Condensed and Consolidated Balance Sheets based on the timing of their expected future payment. The Company’s total current environmental reserve at September 30, 2024 and December 31, 2023, was $2.0 million and $3.6 million, respectively, and the remainder was classified as noncurrent. Expenses related to environmental remediation were not material during the nine months ended September 30, 2024 or 2023. Given the evolving nature of environmental laws, regulations and technology, the ultimate cost of future compliance is uncertain.
Warranty Liability
The changes in the standard product warranty liability for the nine months ended September 30 were as follows:
In millions20242023
Balance at beginning of period$20.7 $18.2 
Reductions for payments(10.4)(6.8)
Accruals for warranties issued during the current period11.6 8.9 
Changes to accruals related to preexisting warranties(0.6)(0.5)
Currency translation0.1 (0.2)
Balance at end of period$21.4 $19.6 
Standard product warranty liabilities are classified as either Accrued expenses and other current liabilities or Other noncurrent liabilities within the Condensed and Consolidated Balance Sheets based on the timing of the expected future payments.
v3.24.3
Business Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Business Segment Information BUSINESS SEGMENT INFORMATION
The Company classifies its business into the following two reportable segments based on industry and market focus: Allegion Americas and Allegion International. The Company largely evaluates performance based on Segment operating income and Segment operating margins. Segment operating income is the measure of profit and loss that the Company’s chief operating decision maker, the chief executive officer, uses to evaluate the financial performance of the business and as the basis for resource allocation, performance reviews and compensation. For these reasons, the Company believes that Segment operating income represents the most relevant measure of segment profit and loss. The Company’s chief operating decision maker may exclude certain charges or gains, such as corporate charges and other special charges, from Operating income to arrive at a Segment operating income that is a more meaningful measure of profit and loss upon which to base operating decisions. The Company defines Segment operating margin as Segment operating income as a percentage of the segment’s Net revenues.
A summary of operations by reportable segment for the three and nine months ended September 30 was as follows:
Three months endedNine months ended
In millions2024202320242023
Net revenues
Allegion Americas$782.4 $740.9 $2,262.4 $2,209.0 
Allegion International184.7 177.0 564.2 544.4 
     Total$967.1 $917.9 $2,826.6 $2,753.4 
Segment operating income
Allegion Americas$221.1 $200.2 $622.4 $582.2 
Allegion International17.9 15.7 48.6 40.2 
Total239.0 215.9 671.0 622.4 
Reconciliation to Operating income
Unallocated corporate expense(24.0)(22.8)(74.9)(73.7)
Operating income215.0 193.1 596.1 548.7 
Reconciliation to earnings before income taxes
Interest expense28.8 22.9 76.8 70.2 
Other (income) expense, net
(8.4)0.1 (17.2)(1.8)
Earnings before income taxes$194.6 $170.1 $536.5 $480.3 
v3.24.3
Subsequent Events
 9 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events SUBSEQUENT EVENTS
On October 1, 2024, the Company repaid the $400.0 million outstanding balance on the 3.200% Senior Notes.
On October 17, 2024, the Company, through its subsidiaries, acquired 100% of SOSS Door Hardware ("SOSS"), a manufacturer of premium door hardware primarily sold across North America. SOSS will be incorporated into the Company's Allegion Americas segment.
v3.24.3
Acquisitions (Tables)
 9 Months Ended
Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the preliminary allocation of the aggregate purchase price, which includes initial cash consideration and the estimated fair value of contingent consideration, to assets acquired and liabilities assumed as of the respective acquisition dates:
In millions
Net working capital$8.7 
Property, plant and equipment3.0 
Goodwill61.0 
Intangible assets69.2 
Other noncurrent liabilities(13.5)
Total net assets acquired and liabilities assumed$128.4 
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination
Intangible assets recognized as of the acquisition dates were comprised of the following:
In millionsValue (in millions)Weighted Average Useful life (in years)
Completed technologies/patents$14.3 15
Customer relationships29.3 18
Trade names (finite-lived)15.3 15
Backlog revenue10.3 1
v3.24.3
Inventories (Tables)
 9 Months Ended
Sep. 30, 2024
Inventory, Net [Abstract]  
Major classes of inventory The major classes of inventories were as follows:
In millionsSeptember 30,
2024		December 31,
2023
Raw materials$205.5 $218.4 
Work-in-process51.7 41.6 
Finished goods192.7 178.5 
Total$449.9 $438.5 
v3.24.3
Goodwill (Tables)
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in carrying amount of goodwill
The changes in the carrying amount of goodwill for the nine months ended September 30, 2024, were as follows:
In millionsAllegion AmericasAllegion International
Total (1)
December 31, 2023$1,126.7 $316.4 $1,443.1 
Acquisitions and adjustments56.2 4.8 61.0 
Currency translation(1.6)3.3 1.7 
September 30, 2024$1,181.3 $324.5 $1,505.8 
v3.24.3
Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets, net of Goodwill The gross amount of the Company’s intangible assets and related accumulated amortization were as follows:
September 30, 2024December 31, 2023
In millionsGross carrying amountAccumulated amortizationNet carrying amountGross carrying amountAccumulated amortizationNet carrying amount
Completed technologies/patents$79.3 $(42.0)$37.3 $64.5 $(36.9)$27.6 
Customer relationships569.1 (206.8)362.3 535.3 (185.2)350.1 
Trade names (finite-lived)158.3 (92.0)66.3 142.2 (79.3)62.9 
Other93.1 (59.0)34.1 75.3 (47.5)27.8 
Total finite-lived intangible assets899.8 $(399.8)500.0 817.3 $(348.9)468.4 
Trade names (indefinite-lived)104.8 104.8 104.4 104.4 
Total$1,004.6 $604.8 $921.7 $572.8 
v3.24.3
Debt and Credit Facilities (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
Schedule of Debt
Long-term debt and other borrowings consisted of the following:
In millionsSeptember 30,
2024		December 31,
2023
Term Facility$215.6 $225.0 
3.200% Senior Notes due 2024
400.0 400.0 
3.550% Senior Notes due 2027
400.0 400.0 
3.500% Senior Notes due 2029
400.0 400.0 
5.411% Senior Notes due 2032
600.0 600.0 
5.600% Senior Notes due 2034
400.0 — 
Other debt0.1 0.1 
Total borrowings outstanding2,415.7 2,025.1 
Discounts and debt issuance costs, net(13.6)(10.1)
Total debt2,402.1 2,015.0 
Less current portion of long-term debt418.9 412.6 
Total long-term debt$1,983.2 $1,602.4 
v3.24.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Lessee, Operating Lease Asset and Liability, and Other Information Amounts included within the Condensed and Consolidated Balance Sheets related to the Company’s ROU asset and lease liability for both real estate and equipment leases were as follows:
September 30, 2024December 31, 2023
In millionsBalance Sheet classificationReal estateEquipmentTotalReal estateEquipmentTotal
ROU assetOther noncurrent assets$112.2 $40.6 $152.8 $114.7 $33.4 $148.1 
Lease liability - currentAccrued expenses and other current liabilities20.1 17.2 37.3 18.7 15.0 33.7 
Lease liability - noncurrentOther noncurrent liabilities95.9 23.3 119.2 98.9 18.4 117.3 
Other information:
Weighted-average remaining term (years)11.12.811.62.7
Weighted-average discount rate5.2 %5.6 %5.0 %4.4 %
Lease, Cost
The following table summarizes additional information related to the Company’s leases for the nine months ended September 30:
20242023
In millionsReal estateEquipmentTotalReal estateEquipmentTotal
Cash paid for amounts included in the measurement of lease liabilities$18.9 $17.1 $36.0 $18.0 $14.6 $32.6 
ROU assets obtained in exchange for new lease liabilities11.0 14.6 25.6 57.3 10.8 68.1 
Scheduled minimum lease payments under non-cancellable operating leases
Scheduled minimum lease payments required under non-cancellable operating leases for both the real estate and equipment lease portfolios for the remainder of 2024 and for each of the years thereafter as of September 30, 2024, are as follows:
In millionsRemainder of 20242025202620272028ThereafterTotal
Real estate leases$6.4 $25.2 $21.2 $17.0 $11.4 $77.2 $158.4 
Equipment leases5.2 17.5 11.4 6.3 3.1 0.4 43.9 
Total$11.6 $42.7 $32.6 $23.3 $14.5 $77.6 $202.3 
v3.24.3
Defined Benefit Plans (Tables)
 9 Months Ended
Sep. 30, 2024
Retirement Benefits, Description [Abstract]  
Schedule of Net Periodic Benefit Cost
The Company sponsors several U.S. and non-U.S. defined benefit pension plans for eligible employees and retirees and also maintains other supplemental plans for officers and other key employees. The components of the Company’s Net periodic pension benefit cost (income) for the three and nine months ended September 30 were as follows:
U.S.
Three months endedNine months ended
In millions2024202320242023
Service cost$0.2 $0.2 $0.6 $0.6 
Interest cost2.9 3.1 8.7 9.0 
Expected return on plan assets(3.7)(3.7)(11.3)(11.2)
Administrative costs and other0.2 0.3 0.8 0.8 
Net amortization of:
Prior service costs— — 0.1 0.1 
Plan net actuarial losses0.3 0.3 0.7 0.6 
Net periodic pension benefit (income) cost$(0.1)$0.2 $(0.4)$(0.1)
Non-U.S.
Three months endedNine months ended
In millions2024202320242023
Service cost$0.4 $0.2 $1.3 $1.0 
Interest cost3.0 3.0 9.0 9.0 
Expected return on plan assets(4.0)(3.8)(12.1)(11.6)
Administrative costs and other0.4 0.5 1.3 1.3 
Net amortization of:
Prior service costs0.1 0.1 0.1 0.1 
Plan net actuarial losses0.8 0.7 2.6 2.5 
Net periodic pension benefit cost$0.7 $0.7 $2.2 $2.3 
v3.24.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements, Recurring and Nonrecurring
Assets and liabilities measured at fair value as of September 30, 2024, were as follows:
 Fair value measurementsTotal
fair value
In millionsQuoted prices in active markets for identical assets (Level 1)Significant other observable inputs (Level 2)Significant unobservable inputs (Level 3)
Recurring fair value measurements
Assets:
Investments$— $17.1 $— $17.1 
       Total asset recurring fair value measurements$— $17.1 $— $17.1 
Liabilities:
Deferred compensation and other retirement plans$— $17.1 $— $17.1 
Total liability recurring fair value measurements$— $17.1 $— $17.1 
Financial instruments not carried at fair value
Total debt$— $2,432.4 $— $2,432.4 
Total financial instruments not carried at fair value$— $2,432.4 $— $2,432.4 
Assets and liabilities measured at fair value as of December 31, 2023, were as follows:
 Fair value measurementsTotal
fair value
In millionsQuoted prices in active markets for identical assets (Level 1)Significant other observable inputs (Level 2)Significant unobservable inputs (Level 3)
Recurring fair value measurements
Assets:
Investments$— $18.0 $— $18.0 
Total asset recurring fair value measurements$— $18.0 $— $18.0 
Liabilities:
Deferred compensation and other retirement plans$— $18.2 $— $18.2 
Total liability recurring fair value measurements$— $18.2 $— $18.2 
Financial instruments not carried at fair value
Total debt$— $1,984.9 $— $1,984.9 
Total financial instruments not carried at fair value$— $1,984.9 $— $1,984.9 
v3.24.3
Equity (Tables)
 9 Months Ended
Sep. 30, 2024
Stockholders' Equity Note [Abstract]  
Components of Equity
The changes in the components of Equity for the nine months ended September 30, 2024, were as follows:
Allegion plc shareholders' equity
Ordinary shares
In millions, except per share amountsTotal equityAmountSharesCapital in excess of par valueRetained earningsAccumulated other comprehensive loss
Balance at December 31, 2023$1,318.3 $0.9 87.5 $— $1,578.9 $(261.5)
Net earnings123.8 — — — 123.8 — 
Other comprehensive loss, net (24.0)— — — — (24.0)
Repurchase of ordinary shares(40.0)— (0.3)(14.8)(25.2)— 
Share-based compensation activity14.8 — 0.2 14.8 — — 
Dividends to ordinary shareholders ($0.48 per share)
(42.0)— — — (42.0)— 
Balance at March 31, 20241,350.9 0.9 87.4 — 1,635.5 (285.5)
Net earnings155.4 — — — 155.4 — 
Other comprehensive loss, net(5.1)— — — — (5.1)
Repurchase of ordinary shares(40.0)— (0.3)(4.1)(35.9)— 
Share-based compensation activity5.9 — — 5.9 — — 
Dividends to ordinary shareholders ($0.48 per share)
(41.8)— — — (41.8)— 
Balance at June 30, 20241,425.3 0.9 87.1 1.8 1,713.2 (290.6)
Net earnings174.2 — — — 174.2 — 
Other comprehensive income, net41.3 — — — — 41.3 
Repurchase of ordinary shares(40.0)— (0.3)(13.8)(26.2)— 
Share-based compensation activity12.0 — 0.1 12.0 — — 
Dividends to ordinary shareholders ($0.48 per share)
(41.8)— — — (41.8)— 
Balance at September 30, 2024$1,571.0 $0.9 86.9 $— $1,819.4 $(249.3)
The changes in the components of Equity for the nine months ended September 30, 2023, were as follows:
Allegion plc shareholders' equity
Ordinary shares
In millions, except per share amountsTotal equityAmountSharesCapital in excess of par valueRetained earningsAccumulated other comprehensive lossNoncontrolling
interests
Balance at December 31, 2022$944.5 $0.9 87.9 $13.9 $1,212.8 $(285.8)$2.7 
Net earnings123.6 — — — 123.5 — 0.1 
Other comprehensive income, net
10.3 — — — — 10.2 0.1 
Share-based compensation activity5.7 — — 5.7 — — — 
Dividends to ordinary shareholders ($0.45 per share)
(39.5)— — — (39.5)— — 
Balance at March 31, 20231,044.6 0.9 87.9 19.6 1,296.8 (275.6)2.9 
Net earnings142.0 — — — 142.0 — — 
Other comprehensive income (loss), net
7.9 — — — — 8.8 (0.9)
Repurchase of ordinary shares(19.9)— (0.2)(19.9)— — — 
Share-based compensation activity5.6 — 0.1 5.6 — — — 
Dividends to noncontrolling interests(0.1)— — — — — (0.1)
Dividends to ordinary shareholders ($0.45 per share)
(39.6)— — — (39.6)— — 
Balance at June 30, 20231,140.5 0.9 87.8 5.3 1,399.2 (266.8)1.9 
Net earnings156.4 — — — 156.3 — 0.1 
Other comprehensive (loss) income, net(29.2)— — — — (29.9)0.7 
Share-based compensation activity6.1 — — 6.1 — — — 
Acquisition of noncontrolling interest(3.0)— — 0.4 — — (3.4)
Dividends to ordinary shareholders ($0.45 per share)
(39.4)— — — (39.4)— — 
Balance at September 30, 2023
$1,231.4 $0.9 87.8 $11.8 $1,516.1 $(296.7)$(0.7)
Accumulated Other Comprehensive Loss
The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2024, were as follows:
In millionsCash flow hedgesDefined benefit itemsForeign currency itemsTotal
December 31, 2023$5.6 $(125.9)$(141.2)$(261.5)
Other comprehensive income (loss) before reclassifications0.8 (4.8)13.4 9.4 
Amounts reclassified from accumulated other comprehensive loss(a)
(0.8)3.5 — 2.7 
Tax (expense) benefit(0.2)0.3 — 0.1 
September 30, 2024$5.4 $(126.9)$(127.8)$(249.3)
The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2023, were as follows:
In millionsCash flow hedgesDefined benefit itemsForeign currency itemsTotal
December 31, 2022$6.1 $(117.1)$(174.8)$(285.8)
Other comprehensive income (loss) before reclassifications0.7 (0.7)(13.6)(13.6)
Amounts reclassified from accumulated other comprehensive loss(a)
(0.5)2.9 — 2.4 
Tax benefit0.2 0.1 — 0.3 
September 30, 2023$6.5 $(114.8)$(188.4)$(296.7)
(a)    Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to cash flow hedges are recorded in Cost of goods sold and Interest expense. Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to defined benefit items are recorded in Other income, net.
v3.24.3
Share-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation Expense The following table summarizes the share-based compensation expense recognized for the three and nine months ended September 30:
Three months endedNine months ended
In millions2024202320242023
Stock options$0.9 $0.8 $4.0 $3.6 
RSUs3.1 3.1 12.1 11.2 
PSUs2.0 2.0 6.0 5.5 
Pre-tax expense6.0 5.9 22.1 20.3 
Tax benefit(0.6)(0.6)(2.2)(2.5)
After-tax expense$5.4 $5.3 $19.9 $17.8 
Grants of Stock Options and RSUs Grants issued during the nine months ended September 30 were as follows:
 20242023
 Number
granted		Weighted-
average fair
value per award		Number
granted		Weighted-
average fair
value per award
Stock options135,906 $40.92 156,929 $33.66 
RSUs103,564 $129.48 131,386 $112.72 
Stock Options Fair Value Assumptions The following weighted-average assumptions were used during the nine months ended September 30:
20242023
Dividend yield1.47 %1.60 %
Volatility29.29 %28.47 %
Risk-free rate of return4.29 %4.10 %
Expected life (years)6.06.0
v3.24.3
Other Income, Net (Tables)
 9 Months Ended
Sep. 30, 2024
Other Income and Expenses [Abstract]  
Other Income, Net
The components of Other (income) expense, net for the three and nine months ended September 30 were as follows:
Three months endedNine months ended
In millions2024202320242023
Interest income$(8.3)$(1.5)$(16.9)$(3.4)
Foreign currency exchange (gain) loss(0.5)1.1 0.3 2.8 
Net periodic pension and postretirement benefit cost, less service cost— 0.4 — 0.5 
Other expense (income)
0.4 0.1 (0.6)(1.7)
Other (income) expense, net$(8.4)$0.1 $(17.2)$(1.8)
v3.24.3
Earnings Per Share (EPS) (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share Basic and Diluted Shares
The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted EPS calculations for the three and nine months ended September 30:
Three months endedNine months ended
In millions2024202320242023
Weighted-average number of basic shares87.1 87.9 87.3 87.9 
Shares issuable under share-based compensation plans0.5 0.3 0.5 0.4 
Weighted-average number of diluted shares87.6 88.2 87.8 88.3 
v3.24.3
Net Revenues (Tables)
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables show the Company’s Net revenues related to both tangible product sales and services for the three and nine months ended September 30, 2024 and 2023, respectively, disaggregated by business segment:
Three months ended September 30, 2024Nine months ended September 30, 2024
In millionsAllegion AmericasAllegion InternationalTotalAllegion AmericasAllegion InternationalTotal
Net revenues
Products$744.6 $175.6 $920.2 $2,144.4 $542.5 $2,686.9 
Services37.8 9.1 46.9 118.0 21.7 139.7 
Total Net revenues$782.4 $184.7 $967.1 $2,262.4 $564.2 $2,826.6 
Three months ended September 30, 2023Nine months ended September 30, 2023
In millionsAllegion AmericasAllegion InternationalTotalAllegion AmericasAllegion InternationalTotal
Net revenues
Products$703.4 $167.1 $870.5 $2,090.5 $521.8 $2,612.3 
Services37.5 9.9 47.4 118.5 22.6 141.1 
Total Net revenues$740.9 $177.0 $917.9 $2,209.0 $544.4 $2,753.4 
v3.24.3
Commitments and Contingencies (Tables)
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Product Warranty Liability
The changes in the standard product warranty liability for the nine months ended September 30 were as follows:
In millions20242023
Balance at beginning of period$20.7 $18.2 
Reductions for payments(10.4)(6.8)
Accruals for warranties issued during the current period11.6 8.9 
Changes to accruals related to preexisting warranties(0.6)(0.5)
Currency translation0.1 (0.2)
Balance at end of period$21.4 $19.6 
v3.24.3
Business Segment Information (Tables)
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Summary of Operations by Reportable Segments
A summary of operations by reportable segment for the three and nine months ended September 30 was as follows:
Three months endedNine months ended
In millions2024202320242023
Net revenues
Allegion Americas$782.4 $740.9 $2,262.4 $2,209.0 
Allegion International184.7 177.0 564.2 544.4 
     Total$967.1 $917.9 $2,826.6 $2,753.4 
Segment operating income
Allegion Americas$221.1 $200.2 $622.4 $582.2 
Allegion International17.9 15.7 48.6 40.2 
Total239.0 215.9 671.0 622.4 
Reconciliation to Operating income
Unallocated corporate expense(24.0)(22.8)(74.9)(73.7)
Operating income215.0 193.1 596.1 548.7 
Reconciliation to earnings before income taxes
Interest expense28.8 22.9 76.8 70.2 
Other (income) expense, net
(8.4)0.1 (17.2)(1.8)
Earnings before income taxes$194.6 $170.1 $536.5 $480.3 
v3.24.3
Acquisitions (Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Goodwill $ 1,505.8 $ 1,443.1
Boss , Dorcas, Unicel and Krieger    
Business Combinations, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Working Capital 8.7  
Property, plant and equipment, net 3.0  
Goodwill 61.0  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles 69.2  
Other noncurrent liabilities 13.5  
Net tangible assets and liabilities $ 128.4  
v3.24.3
Acquisitions (Finite-Lived Intangible Assets Acquired as Part of Business Combination) (Details) - Boss , Dorcas, Unicel and Krieger
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles $ 69.2
Completed technologies/patents  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles $ 14.3
Finite-lived intangible assets acquired, weighted-average useful life 15 years
Customer relationships  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles $ 29.3
Finite-lived intangible assets acquired, weighted-average useful life 18 years
Trademarks and Trade Names  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles $ 15.3
Finite-lived intangible assets acquired, weighted-average useful life 15 years
Order or Production Backlog  
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles $ 10.3
Finite-lived intangible assets acquired, weighted-average useful life 1 year
v3.24.3
Acquisitions - Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Jan. 03, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Goodwill   $ 1,505.8   $ 1,443.1
Amortization of intangible assets   48.0 $ 46.6  
plano        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles $ 17.5      
Goodwill $ 23.0      
Finite-lived intangible assets acquired, weighted-average useful life 15 years      
Business Combination, Consideration Transferred $ 36.6      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities $ 3.9      
Boss , Dorcas, Unicel and Krieger        
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles   69.2    
Goodwill   61.0    
Business Combination, Consideration Transferred   $ 121.2    
v3.24.3
Inventories (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Inventory, Net [Abstract]    
Raw materials $ 205.5 $ 218.4
Work-in-process 51.7 41.6
Finished goods 192.7 178.5
Total inventories $ 449.9 $ 438.5
v3.24.3
Goodwill (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Goodwill [Roll Forward]  
Goodwill, net beginning balance $ 1,443.1
Goodwill, Acquired During Period 61.0
Currency translation 1.7
Goodwill, net ending balance 1,505.8
Allegion Americas  
Goodwill [Roll Forward]  
Goodwill, net beginning balance 1,126.7
Goodwill, Acquired During Period 56.2
Currency translation (1.6)
Goodwill, net ending balance 1,181.3
Allegion International  
Goodwill [Roll Forward]  
Goodwill, net beginning balance 316.4
Goodwill, Acquired During Period 4.8
Currency translation 3.3
Goodwill, net ending balance 324.5
Goodwill, Impaired, Accumulated Impairment Loss $ (573.6)
v3.24.3
Intangible Assets (Schedule of Intangible Assets, net of Goodwill) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Finite-lived intangible assets, gross $ 899.8 $ 817.3
Finite-lived intangible assets, accumulated amortization (399.8) (348.9)
Finite-lived intangible assets, net 500.0 468.4
Intangible assets, gross 1,004.6 921.7
Intangible assets, net 604.8 572.8
Completed technologies/patents    
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Finite-lived intangible assets, gross 79.3 64.5
Finite-lived intangible assets, accumulated amortization (42.0) (36.9)
Finite-lived intangible assets, net 37.3 27.6
Customer relationships    
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Finite-lived intangible assets, gross 569.1 535.3
Finite-lived intangible assets, accumulated amortization (206.8) (185.2)
Finite-lived intangible assets, net 362.3 350.1
Trade names (finite-lived)    
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Finite-lived intangible assets, gross 158.3 142.2
Finite-lived intangible assets, accumulated amortization (92.0) (79.3)
Finite-lived intangible assets, net 66.3 62.9
Other    
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Finite-lived intangible assets, gross 93.1 75.3
Finite-lived intangible assets, accumulated amortization (59.0) (47.5)
Finite-lived intangible assets, net 34.1 27.8
Trade Names (indefinite-lived)    
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items]    
Indefinite-lived intangible assets $ 104.8 $ 104.4
v3.24.3
Intangible Assets (Narrative) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Amortization of intangible assets $ 48.0 $ 46.6
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
Intangible amortization expense, year one 64.0  
Intangible amortization expense, year two 60.5  
Intangible amortization expense, year three 51.5  
Intangible amortization expense, year four 44.7  
Intangible amortization expense year five $ 35.4  
v3.24.3
Debt and Credit Facilities (Summary of Debt) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Total borrowings outstanding $ 2,415.7 $ 2,025.1
Discounts and debt issuance costs, net (13.6) (10.1)
Total debt 2,402.1 2,015.0
Less current portion of long-term debt 418.9 412.6
Total long-term debt 1,983.2 1,602.4
Other debt    
Debt Instrument [Line Items]    
Total borrowings outstanding 0.1 0.1
Line of Credit | Term Loan    
Debt Instrument [Line Items]    
Total borrowings outstanding $ 215.6 225.0
Senior Notes | 3.200% Senior Note due 2024    
Debt Instrument [Line Items]    
Stated interest rate 3.20%  
Total borrowings outstanding $ 400.0 400.0
Senior Notes | 3.550% Senior Note due 2027    
Debt Instrument [Line Items]    
Stated interest rate 3.55%  
Total borrowings outstanding $ 400.0 400.0
Senior Notes | 3.500% Senior Notes Due 2029    
Debt Instrument [Line Items]    
Stated interest rate 3.50%  
Total borrowings outstanding $ 400.0 400.0
Senior Notes | 5.411% Senior Notes Due 2032    
Debt Instrument [Line Items]    
Stated interest rate 5.411%  
Total borrowings outstanding $ 600.0 600.0
Senior Notes | 5.600% Senior Notes Due 2034    
Debt Instrument [Line Items]    
Stated interest rate 5.60%  
Total borrowings outstanding $ 400.0 $ 0.0
v3.24.3
Debt and Credit Facilities (Narrative) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Total borrowings outstanding $ 2,415.7 $ 2,025.1
Line of Credit    
Debt Instrument [Line Items]    
Interest rate 6.07%  
Investment, Basis Spread, Variable Rate 1.225%  
Line of Credit | Minimum    
Debt Instrument [Line Items]    
Variable rate 0.875%  
Line of Credit | Maximum    
Debt Instrument [Line Items]    
Variable rate 1.375%  
Line of Credit | Term Loan    
Debt Instrument [Line Items]    
Principal amount $ 250.0  
Total borrowings outstanding 215.6 225.0
Repayment of debt 9.4  
Long-Term Debt, Maturity, Remainder of Fiscal Year 3.1  
Long-Term Debt, Maturity, Year One 21.9  
Long-Term Debt, Maturity, Year Two 190.6  
Line of Credit | Revolving Facility    
Debt Instrument [Line Items]    
Line of credit facility, borrowing capacity 750.0  
Line of Credit Facility, Capacity available for issuance of letters of credit 100.0  
Letters of credit outstanding amount 18.5  
Senior Notes | 3.200% Senior Note due 2024    
Debt Instrument [Line Items]    
Principal amount 400.0  
Total borrowings outstanding $ 400.0 400.0
Stated interest rate 3.20%  
Senior Notes | 3.550% Senior Note due 2027    
Debt Instrument [Line Items]    
Principal amount $ 400.0  
Total borrowings outstanding $ 400.0 400.0
Stated interest rate 3.55%  
Senior Notes | 3.500% Senior Notes Due 2029    
Debt Instrument [Line Items]    
Principal amount $ 400.0  
Total borrowings outstanding $ 400.0 400.0
Stated interest rate 3.50%  
Senior Notes | 5.411% Senior Notes Due 2032    
Debt Instrument [Line Items]    
Principal amount $ 600.0  
Total borrowings outstanding $ 600.0 600.0
Stated interest rate 5.411%  
Senior Notes | 5.600% Senior Notes Due 2034    
Debt Instrument [Line Items]    
Principal amount $ 400.0  
Total borrowings outstanding $ 400.0 $ 0.0
Stated interest rate 5.60%  
v3.24.3
Financial Instruments (Narrative) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Currency derivatives    
Derivative [Line Items]    
Derivatives, notional amount $ 221.8 $ 175.4
v3.24.3
Leases - Operating Lease Asset and Liability, and Other Information (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Lessee, Lease, Description    
ROU Asset $ 152.8 $ 148.1
Lease liability - current 37.3 33.7
Lease liability - noncurrent 119.2 117.3
Real estate    
Lessee, Lease, Description    
ROU Asset 112.2 114.7
Lease liability - current 20.1 18.7
Lease liability - noncurrent $ 95.9 $ 98.9
Weighted-average remaining term (years) 11 years 1 month 6 days 11 years 7 months 6 days
Weighted-average discount rate 5.20% 5.00%
Equipment    
Lessee, Lease, Description    
ROU Asset $ 40.6 $ 33.4
Lease liability - current 17.2 15.0
Lease liability - noncurrent $ 23.3 $ 18.4
Weighted-average remaining term (years) 2 years 9 months 18 days 2 years 8 months 12 days
Weighted-average discount rate 5.60% 4.40%
v3.24.3
Leases - Operating Leases, Additional Information (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Lessee, Lease, Description    
Cash paid for amounts included in the measurement of lease liabilities $ 36.0 $ 32.6
ROU assets obtained in exchange for new lease liabilities 25.6 68.1
Real estate    
Lessee, Lease, Description    
Cash paid for amounts included in the measurement of lease liabilities 18.9 18.0
ROU assets obtained in exchange for new lease liabilities 11.0 57.3
Equipment    
Lessee, Lease, Description    
Cash paid for amounts included in the measurement of lease liabilities 17.1 14.6
ROU assets obtained in exchange for new lease liabilities $ 14.6 $ 10.8
v3.24.3
Leases - Operating Lease Liability Maturity (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Lessee, Lease, Description  
Remainder of 2024 $ 11.6
2025 42.7
2026 32.6
2027 23.3
2028 14.5
Thereafter 77.6
Total 202.3
Real estate  
Lessee, Lease, Description  
Remainder of 2024 6.4
2025 25.2
2026 21.2
2027 17.0
2028 11.4
Thereafter 77.2
Total 158.4
Equipment  
Lessee, Lease, Description  
Remainder of 2024 5.2
2025 17.5
2026 11.4
2027 6.3
2028 3.1
Thereafter 0.4
Total $ 43.9
v3.24.3
Leases - Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Leases [Abstract]      
Total rental expense $ 48.3 $ 47.6  
Rental expense related to short-term leases, variable lease payments, or other leases not included in lease liability 12.3 15.0  
Imputed interest 46.0    
ROU Asset 152.8   $ 148.1
ROU assets obtained in exchange for new lease liabilities 25.6 68.1  
Real estate      
ROU Asset 112.2   $ 114.7
ROU assets obtained in exchange for new lease liabilities $ 11.0 $ 57.3  
v3.24.3
Defined Benefit Plans (Components of Net Periodic Pension Costs) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Employer contributions expected during the remainder of the year $ 3.7   $ 3.7  
U.S.        
Service cost 0.2 $ 0.2 0.6 $ 0.6
Interest cost 2.9 3.1 8.7 9.0
Expected return on plan assets (3.7) (3.7) (11.3) (11.2)
Administrative costs and other 0.2 0.3 0.8 0.8
Prior service costs 0.0 0.0 0.1 0.1
Plan net actuarial losses 0.3 0.3 0.7 0.6
Net periodic pension benefit cost (income) (0.1) 0.2 (0.4) (0.1)
Non-U.S.        
Service cost 0.4 0.2 1.3 1.0
Interest cost 3.0 3.0 9.0 9.0
Expected return on plan assets (4.0) (3.8) (12.1) (11.6)
Administrative costs and other 0.4 0.5 1.3 1.3
Prior service costs 0.1 0.1 0.1 0.1
Plan net actuarial losses 0.8 0.7 2.6 2.5
Net periodic pension benefit cost (income) $ 0.7 $ 0.7 $ 2.2 $ 2.3
v3.24.3
Defined Benefit Plans (Narrative) (Details)
$ in Millions
Sep. 30, 2024
USD ($)
Retirement Benefits, Description [Abstract]  
Employer contributions expected during the remainder of the year $ 3.7
v3.24.3
Fair Value Measurements (Tables) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Assets, fair value measurements [Abstract]    
Investments $ 17.1 $ 18.0
Total asset recurring fair value measurements 17.1 18.0
Liabilities, fair value measurements [Abstract]    
Deferred compensation and other retirement plans 17.1 18.2
Total liability recurring fair value measurements 17.1 18.2
Fair Value Measurements, Nonrecurring Value Measurement [Abstract]    
Total debt 2,432.4 1,984.9
Total financial instruments not carried at fair value 2,432.4 1,984.9
Quoted prices in active markets for identical assets (Level 1)    
Assets, fair value measurements [Abstract]    
Investments 0.0 0.0
Total asset recurring fair value measurements 0.0 0.0
Liabilities, fair value measurements [Abstract]    
Deferred compensation and other retirement plans 0.0 0.0
Total liability recurring fair value measurements 0.0 0.0
Fair Value Measurements, Nonrecurring Value Measurement [Abstract]    
Total debt 0.0 0.0
Total financial instruments not carried at fair value 0.0 0.0
Significant other observable inputs (Level 2)    
Assets, fair value measurements [Abstract]    
Investments 17.1 18.0
Total asset recurring fair value measurements 17.1 18.0
Liabilities, fair value measurements [Abstract]    
Deferred compensation and other retirement plans 17.1 18.2
Total liability recurring fair value measurements 17.1 18.2
Fair Value Measurements, Nonrecurring Value Measurement [Abstract]    
Total debt 2,432.4 1,984.9
Total financial instruments not carried at fair value 2,432.4 1,984.9
Significant unobservable inputs (Level 3)    
Assets, fair value measurements [Abstract]    
Investments 0.0 0.0
Total asset recurring fair value measurements 0.0 0.0
Liabilities, fair value measurements [Abstract]    
Deferred compensation and other retirement plans 0.0 0.0
Total liability recurring fair value measurements 0.0 0.0
Fair Value Measurements, Nonrecurring Value Measurement [Abstract]    
Total debt 0.0 0.0
Total financial instruments not carried at fair value $ 0.0 $ 0.0
v3.24.3
Fair Value Measurements (Narrative) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Fair Value Disclosures [Abstract]    
Debt and equity investments without readily determinable fair values $ 66.8 $ 65.8
v3.24.3
Equity (Components of Shareholders' Equity Rollforward) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2024
Sep. 30, 2023
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Beginning balance $ 1,425.3 $ 1,350.9 $ 1,318.3 $ 1,140.5 $ 1,044.6 $ 944.5 $ 1,318.3 $ 944.5
Net earnings 174.2 155.4 123.8 156.4 142.0 123.6 453.4 422.0
Other comprehensive income (loss), net of tax 41.3 (5.1) (24.0) (29.2) 7.9 10.3    
Repurchase of ordinary shares (40.0) (40.0) (40.0)   (19.9)   (120.0) (19.9)
Share-based compensation activity 12.0 5.9 14.8 6.1 5.6 5.7    
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests       (3.0)        
Dividends to noncontrolling interests         (0.1)      
Dividends to ordinary shareholders ($0.48 per share) (41.8) (41.8) (42.0) (39.4) (39.6) (39.5)    
Ending balance $ 1,571.0 $ 1,425.3 $ 1,350.9 $ 1,231.4 $ 1,140.5 $ 1,044.6 1,571.0 1,231.4
Dividends per share (in dollars per share) $ 0.48 $ 0.48 $ 0.48 $ 0.45 $ 0.45 $ 0.45    
Ordinary shares                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Beginning balance $ 0.9 $ 0.9 $ 0.9 $ 0.9 $ 0.9 $ 0.9 $ 0.9 $ 0.9
Beginning balance (in shares) 87.1 87.4 87.5 87.8 87.9 87.9 87.5 87.9
Repurchase of ordinary shares $ 0.0   $ 0.0          
Repurchase of ordinary shares (in shares) (0.3) (0.3) (0.3)   (0.2)      
Share-based compensation activity $ 0.0       $ 0.0      
Share-based compensation activity, shares (in shares) 0.1 0.0 0.2   0.1 0.0    
Ending balance $ 0.9 $ 0.9 $ 0.9 $ 0.9 $ 0.9 $ 0.9 $ 0.9 $ 0.9
Ending balance (in shares) 86.9 87.1 87.4 87.8 87.8 87.9 86.9 87.8
Capital in excess of par value                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Beginning balance $ 1.8 $ 0.0 $ 0.0 $ 5.3 $ 19.6 $ 13.9 $ 0.0 $ 13.9
Repurchase of ordinary shares (13.8) (4.1) (14.8)   (19.9)      
Share-based compensation activity 12.0 5.9 14.8 6.1 5.6 5.7    
Noncontrolling Interest, Increase from Business Combination       0.4        
Ending balance 0.0 1.8 0.0 11.8 5.3 19.6 0.0 11.8
Retained earnings                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Beginning balance 1,713.2 1,635.5 1,578.9 1,399.2 1,296.8 1,212.8 1,578.9 1,212.8
Net earnings 174.2 155.4 123.8 156.3 142.0 123.5    
Repurchase of ordinary shares (26.2) (35.9) (25.2)   0.0      
Dividends to ordinary shareholders ($0.48 per share) (41.8) (41.8) (42.0) (39.4) (39.6) (39.5)    
Ending balance 1,819.4 1,713.2 1,635.5 1,516.1 1,399.2 1,296.8 1,819.4 1,516.1
Accumulated other comprehensive loss                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Beginning balance (290.6) (285.5) (261.5) (266.8) (275.6) (285.8) (261.5) (285.8)
Other comprehensive income (loss), net of tax 41.3 (5.1) (24.0) (29.9) 8.8 10.2    
Ending balance $ (249.3) $ (290.6) $ (285.5) (296.7) (266.8) (275.6) $ (249.3) (296.7)
Noncontrolling interests                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Beginning balance       1.9 2.9 2.7   2.7
Net earnings       0.1 0.0 0.1    
Other comprehensive income (loss), net of tax       0.7 (0.9) 0.1    
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests       (3.4)        
Dividends to noncontrolling interests         (0.1)      
Ending balance       $ (0.7) $ 1.9 $ 2.9   $ (0.7)
v3.24.3
Equity (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Accumulated Other Comprehensive Loss Roll Forward    
Beginning balance $ (261.5) $ (285.8)
Other comprehensive income (loss) before reclassifications 9.4 (13.6)
Amounts reclassified from accumulated other comprehensive loss 2.7 2.4
Tax (expense) benefit 0.1 0.3
Ending balance (249.3) (296.7)
Cash flow hedges    
Accumulated Other Comprehensive Loss Roll Forward    
Beginning balance 5.6 6.1
Other comprehensive income (loss) before reclassifications 0.8 0.7
Amounts reclassified from accumulated other comprehensive loss (0.8) (0.5)
Tax (expense) benefit (0.2) 0.2
Ending balance 5.4 6.5
Defined benefit items    
Accumulated Other Comprehensive Loss Roll Forward    
Beginning balance (125.9) (117.1)
Other comprehensive income (loss) before reclassifications (4.8) (0.7)
Amounts reclassified from accumulated other comprehensive loss 3.5 2.9
Tax (expense) benefit 0.3 0.1
Ending balance (126.9) (114.8)
Foreign currency items    
Accumulated Other Comprehensive Loss Roll Forward    
Beginning balance (141.2) (174.8)
Other comprehensive income (loss) before reclassifications 13.4 (13.6)
Amounts reclassified from accumulated other comprehensive loss 0.0 0.0
Tax (expense) benefit 0.0 0.0
Ending balance $ (127.8) $ (188.4)
v3.24.3
Equity (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Equity, Class of Treasury Stock [Line Items]            
Payments for repurchase of ordinary shares $ 40.0 $ 40.0 $ 40.0 $ 19.9 $ 120.0 $ 19.9
Stock Repurchase Program, Remaining authorized repurchase amount 340.0       340.0  
2020 Share Repurchase Authorization            
Equity, Class of Treasury Stock [Line Items]            
Authorized repurchase amount $ 500.0       $ 500.0  
v3.24.3
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share based compensation expense (benefit) $ 6.0 $ 5.9 $ 22.1 $ 20.3
Tax benefit (0.6) (0.6) (2.2) (2.5)
After-tax expense 5.4 5.3 19.9 17.8
Stock options        
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share based compensation expense (benefit) 0.9 0.8 4.0 3.6
Restricted Stock Units (RSUs)        
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share based compensation expense (benefit) 3.1 3.1 12.1 11.2
Performance Share Units (PSUs)        
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Share based compensation expense (benefit) $ 2.0 $ 2.0 $ 6.0 $ 5.5
v3.24.3
Share-Based Compensation (Grants of Stock Options and RSUs) (Details) - $ / shares
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Stock options    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Equity awards, granted, in shares 135,906 156,929
Weighted-average fair value per award, in dollars per share $ 40.92 $ 33.66
Restricted Stock Units (RSUs)    
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]    
Equity awards, granted, in shares 103,564 131,386
Weighted-average fair value per award, in dollars per share $ 129.48 $ 112.72
v3.24.3
Share-Based Compensation (Average Fair Value of Stock Options Granted, Assumptions) (Details)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]    
Dividend yield 1.47% 1.60%
Volatility 29.29% 28.47%
Risk-free rate of return 4.29% 4.10%
Expected life (years) 6 years 6 years
v3.24.3
Share-Based Compensation (Narrative) (Details)
shares in Millions
 9 Months Ended
Sep. 30, 2024
shares
Performance Share Units (PSUs)  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Maximum award level for eligible employees (in shares) 0.1
v3.24.3
Other Income, Net (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Other Income and Expenses [Abstract]        
Interest income $ (8.3) $ (1.5) $ (16.9) $ (3.4)
Foreign currency exchange (gain) loss (0.5) 1.1 0.3 2.8
Net periodic pension and postretirement benefit cost, less service cost 0.0 0.4 0.0 0.5
Other expense (income) 0.4 0.1 (0.6) (1.7)
Other (income) expense, net $ (8.4) $ 0.1 $ (17.2) $ (1.8)
v3.24.3
Income Taxes (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Income Tax Disclosure [Abstract]        
Effective income tax rate (percent) 10.50% 8.10% 15.50% 12.10%
v3.24.3
Earnings Per Share (EPS) (Details) - shares
shares in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Earnings Per Share [Abstract]        
Weighted-average number of basic shares (in shares) 87.1 87.9 87.3 87.9
Shares issuable under share-based compensation plans (in shares) 0.5 0.3 0.5 0.4
Weighted-average number of diluted shares (in shares) 87.6 88.2 87.8 88.3
v3.24.3
Earnings Per Share (EPS) (Narrative) (Details) - shares
shares in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Earnings Per Share [Abstract]    
Antidilutive stock options excluded from computation of weighted-average diluted shares outstanding (in shares) 0.3 0.6
v3.24.3
Net Revenues (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]        
Net revenues $ 967.1 $ 917.9 $ 2,826.6 $ 2,753.4
Allegion Americas | Operating Segments        
Disaggregation of Revenue [Line Items]        
Net revenues 782.4 740.9 2,262.4 2,209.0
Allegion International | Operating Segments        
Disaggregation of Revenue [Line Items]        
Net revenues 184.7 177.0 564.2 544.4
Products        
Disaggregation of Revenue [Line Items]        
Net revenues 920.2 870.5 2,686.9 2,612.3
Products | Allegion Americas        
Disaggregation of Revenue [Line Items]        
Net revenues 744.6 703.4 2,144.4 2,090.5
Products | Allegion International        
Disaggregation of Revenue [Line Items]        
Net revenues 175.6 167.1 542.5 521.8
Services        
Disaggregation of Revenue [Line Items]        
Net revenues 46.9 47.4 139.7 141.1
Services | Allegion Americas        
Disaggregation of Revenue [Line Items]        
Net revenues 37.8 37.5 118.0 118.5
Services | Allegion International        
Disaggregation of Revenue [Line Items]        
Net revenues $ 9.1 $ 9.9 $ 21.7 $ 22.6
v3.24.3
Net Revenues (Narrative) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Deferred Revenue $ 34.2 $ 27.2
v3.24.3
Commitments and Contingencies (Narrative) (Details) - USD ($)
$ in Millions
Sep. 30, 2024
Dec. 31, 2023
Environmental Remediation Obligations [Line Items]    
Reserves for environmental matters $ 18.2 $ 20.2
Reserves for environmental matters, current 2.0 3.6
Segment, Discontinued Operations    
Environmental Remediation Obligations [Line Items]    
Reserves for environmental matters $ 10.1 $ 11.2
v3.24.3
Commitments and Contingencies (Product Warranty Liability) (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Movement in Standard Product Warranty Liability [Roll Forward]    
Balance at beginning of period $ 20.7 $ 18.2
Reductions for payments (10.4) (6.8)
Accruals for warranties issued during the current period 11.6 8.9
Changes to accruals related to preexisting warranties (0.6) (0.5)
Currency translation 0.1 (0.2)
Balance at end of period $ 21.4 $ 19.6
v3.24.3
Business Segment Information (Summary of Operations by Reportable Segments) (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Segment Reporting Information [Line Items]        
Net revenues $ 967.1 $ 917.9 $ 2,826.6 $ 2,753.4
Operating income (loss) 215.0 193.1 596.1 548.7
Interest expense 28.8 22.9 76.8 70.2
Other (income) expense, net (8.4) 0.1 (17.2) (1.8)
Earnings before income taxes 194.6 170.1 536.5 480.3
Operating Segments        
Segment Reporting Information [Line Items]        
Operating income (loss) 239.0 215.9 671.0 622.4
Operating Segments | Allegion Americas        
Segment Reporting Information [Line Items]        
Net revenues 782.4 740.9 2,262.4 2,209.0
Operating income (loss) 221.1 200.2 622.4 582.2
Operating Segments | Allegion International        
Segment Reporting Information [Line Items]        
Net revenues 184.7 177.0 564.2 544.4
Operating income (loss) 17.9 15.7 48.6 40.2
Corporate, Non-Segment        
Segment Reporting Information [Line Items]        
Operating income (loss) $ (24.0) $ (22.8) $ (74.9) $ (73.7)
v3.24.3
Business Segment Information Narrative (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2024
USD ($)
segment
Sep. 30, 2023
USD ($)
Segment Reporting [Abstract]        
Number of reportable segments | segment     2  
Net revenues $ 967.1 $ 917.9 $ 2,826.6 $ 2,753.4
Operating Income (Loss) 215.0 193.1 596.1 548.7
Operating Segments        
Operating Income (Loss) 239.0 215.9 671.0 622.4
Operating Segments | Allegion Americas        
Net revenues 782.4 740.9 2,262.4 2,209.0
Operating Income (Loss) 221.1 200.2 622.4 582.2
Operating Segments | Allegion International        
Net revenues 184.7 177.0 564.2 544.4
Operating Income (Loss) $ 17.9 $ 15.7 $ 48.6 $ 40.2
v3.24.3
Subsequent Events (Details)
$ in Millions
Oct. 01, 2024
USD ($)
Subsequent Event  
Subsequent Event [Line Items]  
Repayments on Term Facility $ 400.0
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