alle-20220331

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 March 31, 2022


☐			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

_______________________________

ALLEGION PUBLIC LIMITED COMPANY

(Exact name of registrant as specified in its charter)

_______________________________


Ireland			98-1108930
(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 class	Trading symbol	Name of exchange on which registered
Ordinary shares, par value $0.01 per share	ALLE	New York Stock Exchange
3.500% Senior Notes due 2029	ALLE 3 ½	New 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 ¨

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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 April 21, 2022 was 87,804,920.

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ALLEGION PLC

FORM 10-Q

INDEX



PART I - FINANCIAL INFORMATION		1

Item 1 -	Financial Statements	1

	Condensed and Consolidated Statements of Comprehensive Income for the three months ended March 3 1 , 202 2 and 202 1 (Unaudited)	1

	Condensed and Consolidated Balance Sheets at March 3 1 , 202 2 and December 31, 202 1 (Unaudited)	2

	Condensed and Consolidated Statements of Cash Flows for the three months ended March 3 1 , 202 2 and 202 1 (Unaudited)	3

	Notes to Condensed and Consolidated Financial Statements (Unaudited)	4

Item 2 -	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3 -	Quantitative and Qualitative Disclosures about Market Risk	26

Item 4 -	Controls and Procedures	26

PART II - OTHER INFORMATION		27

Item 1 -	Legal Proceedings	27

Item 1A -	Risk Factors	27

Item 2 -	Unregistered Sales of Equity Securities and Use of Proceeds	27

Item 6 -	Exhibits	28

SIGNATURES		29

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PART I-FINANCIAL INFORMATION

Item 1 – Financial Statements

Allegion plc

Condensed and Consolidated Statements of Comprehensive Income

(Unaudited)


	Three months ended
	March 31,
In millions, except per share amounts		2022		2021
Net revenues		$	723.6	$	694.3
Cost of goods sold		434.9		396.9
Selling and administrative expenses		171.7		166.1
Operating income		117.0		131.3
Interest expense		11.9		12.3

Other income, net		(2.2)		(3.5)
Earnings before income taxes		107.3		122.5
Provision for income taxes		14.2		14.3
Net earnings		93.1		108.2
Less: Net earnings attributable to noncontrolling interests		0.1		0.2
Net earnings attributable to Allegion plc		$	93.0	$	108.0
Earnings per share attributable to Allegion plc ordinary shareholders:
Basic net earnings		$	1.05	$	1.19
Diluted net earnings		$	1.05	$	1.18
Weighted-average shares outstanding:
Basic		88.2		90.7
Diluted		88.6		91.2

Total comprehensive income		$	72.1	$	76.2
Less: Total comprehensive income attributable to noncontrolling interests		0.1		0.2
Total comprehensive income attributable to Allegion plc		$	72.0	$	76.0

See accompanying notes to condensed and consolidated financial statements.

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Allegion plc

Condensed and Consolidated Balance Sheets

(Unaudited)


In millions, except share amounts	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	305.1	$	397.9

Accounts and notes receivable, net	324.3		283.3
Inventories	402.9		380.4
Other current assets	45.0		56.0

Total current assets	1,077.3		1,117.6
Property, plant and equipment, net	280.8		283.7
Goodwill	796.4		803.8
Intangible assets, net	434.0		447.5
Other noncurrent assets	419.1		398.4
Total assets	$	3,007.6	$	3,051.0
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	258.4	$	259.1
Accrued expenses and other current liabilities	310.5		329.5
Short-term borrowings and current maturities of long-term debt	12.6		12.6

Total current liabilities	581.5		601.2

SEC Form 10-Q filed by Allegion plc