alle-20260331

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, 2026


☐			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.)

Unit No. 233
The Capel Building
Mary’s Abbey
Dublin 7
Ireland			D07 X324
(Address of principal executive offices)			(Zip Code)

+(353) (1) 6833399

(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 24, 2026 was 85,935,861.

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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 31, 2026 and 2025 (Unaudited)	1

	Condensed and Consolidated Balance Sheets at March 31, 2026 and December 31, 2025 (Unaudited)	2

	Condensed and Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (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, Use of Proceeds and Issuer Purchases of Equity Securities	27

Item 5 -	Other Information	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	2026		2025
Net revenues	$	1,033.6	$	941.9
Cost of goods sold	579.1		519.4
Selling and administrative expenses	259.2		226.1
Operating income	195.3		196.4
Interest expense	24.2		24.7

Other income, net	(0.4)		(3.5)
Earnings before income taxes	171.5		175.2
Provision for income taxes	33.4		27.0
Net earnings	$	138.1	$	148.2


Earnings per share:
Basic net earnings	$	1.60	$	1.72
Diluted net earnings	$	1.59	$	1.71
Weighted-average shares outstanding:
Basic	86.1		86.3
Diluted	86.6		86.7



Total comprehensive income	$	116.2	$	184.8

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, 2026		December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	308.9	$	356.2

Accounts and notes receivable, net	512.3		437.7
Inventories	537.2		519.0

Other current assets	64.6		78.9
Total current assets	1,423.0		1,391.8
Property, plant and equipment, net	450.1		444.6
Goodwill	1,930.6		1,912.4
Intangible assets, net	836.5		826.0
Other noncurrent assets	671.9		648.9
Total assets	$	5,312.1	$	5,223.7
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	271.7	$	244.8
Accrued expenses and other current liabilities	473.8		510.4
Short-term borrowings and current maturities of long-term debt	0.3		0.2

Total current liabilities	745.8		755.4
Long-term debt	2,030.4		1,979.9
Other noncurrent liabilities	434.7		420.8
Total liabilities	3,210.9		3,156.1
Equity:

Ordinary shares, $0.01 par value (85,935,755 and 86,066,997 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively)	0.9		0.9
Capital in excess of par value	—		34.2
Retained earnings	2,327.8		2,238.1
Accumulated other comprehensive loss	(227.5)		(205.6)


Total equity	2,101.2		2,067.6
Total liabilities and equity	$	5,312.1	$	5,223.7

See accompanying notes to condensed and consolidated financial statements.

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Allegion plc

Condensed and Consolidated Statements of Cash Flows

(Unaudited)


	Three months ended
	March 31,
In millions	2026		2025
Cash flows from operating activities:
Net earnings	$	138.1	$	148.2
Adjustments to arrive at net cash provided by operating activities:
Depreciation and amortization	35.6		30.0


Changes in assets and liabilities and other non-cash items	(72.4)		(73.7)
Net cash provided by operating activities	101.3		104.5
Cash flows from investing activities:
Capital expenditures	(21.0)		(21.1)
Acquisition of businesses, net of cash acquired	(75.7)		(10.5)

Other investing activities, net	(0.2)		3.6
Net cash used in investing activities	(96.9)		(28.0)
Cash flows from financing activities:
Debt repayments	—		(3.1)
Proceeds from Revolving Facility	131.0		—
Repayments of Revolving Facility	(81.0)		—



Net proceeds (repayments) from debt	50.0		(3.1)


Dividends paid to ordinary shareholders	(47.4)		(43.6)



Repurchase of ordinary shares	(40.6)		(40.0)
Other financing activities, net	(10.7)		(4.6)
Net cash used in financing activities	(48.7)		(91.3)
Effect of exchange rate changes on cash and cash equivalents	(3.0)		5.5
Net decrease in cash and cash equivalents	(47.3)		(9.3)
Cash and cash equivalents - beginning of period	356.2		503.8
Cash and cash equivalents - end of period	$	308.9	$	494.5

See accompanying notes to condensed and consolidated financial statements.

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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, 2025. 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 - RECENT ACCOUNTING PRONOUNCEMENTS

Recently Issued Accounting Pronouncements

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”, which requires disaggregated disclosures of certain categories of expenses that are included in expense line items on the face of the consolidated statements of comprehensive income. This guidance will be effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. This ASU is to be applied prospectively, but retrospective application is permitted. This ASU will result in additional required disclosures in the Company’s Consolidated Financial Statements once adopted.

In September 2025, the FASB issued ASU No. 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software”, which removes references to prescriptive and sequential software development stages, and requires entities to start capitalizing software costs when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. This guidance will be effective for annual and interim periods beginning after December 15, 2027. This ASU is to be applied prospectively, but retrospective application is permitted. The Company is currently evaluating the impact this ASU will have on the Company’s Consolidated Financial Statements.

NOTE 3 - ACQUISITIONS

2026

On March 2, 2026, the Company, through its subsidiaries, acquired 100% of Door Components, Inc. (“DCI”), a manufacturer of custom, quick ship hollow metal doors and frames for industrial, commercial and institutional markets based in the United States. DCI is reported in the Company’s Allegion Americas segment. The purchase consideration, net of cash acquired, was approximately $69.9 million. This acquisition was accounted for as a business combination and was funded with available cash on hand and borrowings under the Revolving Facility.

2025

The following acquisitions were made during the three months ended March 31, 2025:

Next Door

On February 4, 2025, the Company, through its subsidiaries, acquired Next Door Company (“Next Door”), a global provider of security products and solutions based in the United States. Next Door is reported in the Company’s Allegion Americas segment.

Lemaar

On March 1, 2025, the Company, through its subsidiaries, acquired Lemaar Pty Ltd (“Lemaar”), a global provider of security products and solutions based in Australia. Lemaar is reported in the Company’s Allegion International segment.

The aggregate purchase consideration for these 2025 acquisitions, net of cash acquired, was approximately $11.5 million. These acquisitions were accounted for as business combinations and were funded with available cash on hand.

Unaudited pro forma financial information for these 2026 and 2025 acquisitions and Net revenues and Earnings before income tax generated by them since the acquisition dates are not material to the Condensed and Consolidated Financial Statements.

ALLEGION PLC

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

NOTE 4 - 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 millions	March 31, 2026		December 31, 2025
Raw materials	$	253.5	$	237.9
Work-in-process	59.4		55.1
Finished goods	224.3		226.0
Total	$	537.2	$	519.0

NOTE 5 - GOODWILL

The changes in the carrying amount of goodwill for the three months ended March 31, 2026, were as follows:


In millions	Allegion Americas		Allegion International		Total(a)
December 31, 2025	$	1,281.1	$	631.3	$	1,912.4
Acquisitions and adjustments	28.8		0.3		29.1


Currency translation	(1.9)		(9.0)		(10.9)
March 31, 2026	$	1,308.0	$	622.6	$	1,930.6

(a) Accumulated impairment for the International segment was $573.6 million as of March 31, 2026 and December 31, 2025. There are no accumulated impairment losses for the Americas segment.

There was no impairment of goodwill for the three months ended March 31, 2026 and 2025.

NOTE 6 - INTANGIBLE ASSETS

The gross amount of the Company’s intangible assets and related accumulated amortization were as follows:


	March 31, 2026						December 31, 2025
In millions	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Completed technologies/patents	$	120.2	$	(53.7)	$	66.5	$	121.2	$	(52.1)	$	69.1
Customer relationships	795.4		(261.4)		534.0		776.3		(254.2)		522.1
Trade names (finite-lived)	216.2		(123.5)		92.7		210.8		(119.6)		91.2
Other	79.6		(42.9)		36.7		78.4		(42.0)		36.4
Total finite-lived intangible assets	1,211.4		$	(481.5)	729.9		1,186.7		$	(467.9)	718.8
Trade names (indefinite-lived)	106.6				106.6		107.2				107.2
Total	$	1,318.0			$	836.5	$	1,293.9			$	826.0

Intangible asset amortization expense was $18.5 million and $16.2 million for the three months ended March 31, 2026 and 2025, respectively. Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $75.6 million for full year 2026, $68.8 million for 2027, $59.5 million for 2028, $56.5 million for 2029 and $45.9 million for 2030.

ALLEGION PLC

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

NOTE 7 - DEBT AND CREDIT FACILITIES

Long-term debt and other borrowings consisted of the following:


In millions	March 31, 2026		December 31, 2025
Revolving Facility	$	240.6	$	190.6
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		400.0
Other debt	0.3		0.2
Total borrowings outstanding	2,040.9		1,990.8
Discounts and debt issuance costs, net	(10.2)		(10.7)
Total debt	2,030.7		1,980.1
Less current portion of long-term debt	0.3		0.2
Total long-term debt	$	2,030.4	$	1,979.9

Unsecured Credit Facilities

The Company has an unsecured revolving credit facility (the “Revolving Facility”) that matures on May 20, 2030 and provides aggregate commitments of up to $1.0 billion, which includes up to $100.0 million for the issuance of letters of credit. As of March 31, 2026, the Company had outstanding borrowings of $240.6 million and letters of credit of $25.2 million. The Revolving Facility is 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.

Borrowings under the Revolving Facility are due upon its maturity but may be repaid at any time without premium or penalty and amounts repaid may be reborrowed. The Company pays certain fees with respect to the Revolving Facility, including an unused commitment fee on the undrawn portion of between 0.080% and 0.200% per year, depending on the Company’s credit ratings, as well as certain other fees.

Outstanding borrowings under the Revolving Facility 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 (as defined in the credit agreement) plus the applicable margin. The applicable margin ranges from 0.875% to 1.375% depending on the Company’s credit ratings. At March 31, 2026, the Company’s outstanding borrowings under the Revolving Facility accrued interest at SOFR plus a margin of 1.125%, resulting in an interest rate of 4.798%. The credit agreement also contains 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 Revolving Facility requires the Company to comply with a maximum leverage ratio as defined in the credit agreement. As of March 31, 2026, the Company was in compliance with all applicable covenants under the credit agreement.

Senior Notes

As of March 31, 2026, Allegion US Hold Co has $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 has $400.0 million outstanding of its 3.500% Senior Notes due 2029 (the “3.500% Senior Notes”, and all four senior notes collectively, the “Senior Notes”). The 3.550% Senior Notes and 3.500% Senior Notes both require semi-annual interest payments on April 1 and October 1 of each year and 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 mature on July 1, 2032. The 5.600% Senior Notes require semi-annual interest payments on May 29 and November 29 of each year and mature on May 29, 2034.

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, 5.411% Senior Notes and 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 March 31, 2026, the Company was in compliance with all applicable covenants under the Senior Notes.

ALLEGION PLC

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

NOTE 8 - FINANCIAL INSTRUMENTS

Currency Hedging Instruments

The gross notional amount of the Company’s currency derivatives was $343.4 million and $320.1 million at March 31, 2026 and December 31, 2025, 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 11), nor the balances included in Accumulated other comprehensive loss were material as of March 31, 2026 or December 31, 2025. Currency derivatives designated as cash flow hedges did not have a material impact to Net earnings, Other comprehensive income, or the Condensed and Consolidated Statements of Cash Flows during the three months ended March 31, 2026 and 2025, nor is the amount to be reclassified into Net earnings over the next twelve months expected to be material. At March 31, 2026, 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 9 - LEASES

Total rental expense for the three months ended March 31, 2026 and 2025, was $18.6 million and $16.4 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 $3.8 million and $4.1 million for the three months ended March 31, 2026 and 2025. No material lease costs have been capitalized on the Condensed and Consolidated Balance Sheets as of March 31, 2026 or December 31, 2025.

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:


		March 31, 2026								December 31, 2025
In millions	Balance Sheet classification	Real estate			Equipment			Total		Real estate			Equipment			Total
ROU asset	Other noncurrent assets	$	131.2		$	58.2		$	189.4	$	116.5		$	49.9		$	166.4
Lease liability - current	Accrued expenses and other current liabilities	24.1			22.9			47.0		22.5			19.2			41.7
Lease liability - noncurrent	Other noncurrent liabilities	111.7			35.0			146.7		98.0			30.5			128.5

Other information:
Weighted-average remaining term (years)		10.3			2.9					10.9			3.0
Weighted-average discount rate		5.3		%	5.7		%			5.3		%	5.9		%

The following table summarizes additional information related to the Company’s leases for the three months ended March 31:


	2026						2025
In millions	Real estate		Equipment		Total		Real estate		Equipment		Total
Cash paid for amounts included in the measurement of lease liabilities	$	7.6	$	7.2	$	14.8	$	6.5	$	5.8	$	12.3
ROU assets obtained in exchange for new lease liabilities	10.7		13.4		24.1		0.9		2.1		3.0

ALLEGION PLC

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

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 2026 and for each of the years thereafter as of March 31, 2026, are as follows:


In millions	Remainder of 2026		2027		2028		2029		2030		Thereafter		Total
Real estate leases	$	23.4	$	28.0	$	20.2	$	15.5	$	12.7	$	80.3	$	180.1
Equipment leases	19.7		21.2		14.4		5.3		1.7		0.2		62.5
Total	$	43.1	$	49.2	$	34.6	$	20.8	$	14.4	$	80.5	$	242.6

The difference between the total undiscounted minimum lease payments and the combined current and noncurrent lease liabilities as of March 31, 2026, is due to imputed interest of $48.9 million.

NOTE 10 - 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 months ended March 31 were as follows:


	U.S.

In millions	2026		2025
Service cost	$	0.2	$	0.2
Interest cost	2.7		2.9
Expected return on plan assets	(3.5)		(3.8)
Administrative costs and other	0.3		0.3
Net amortization of:

Plan net actuarial losses	0.3		0.3
Net periodic pension benefit income	$	—	$	(0.1)


	Non-U.S.

In millions	2026		2025
Service cost	$	0.6	$	0.5
Interest cost	3.1		3.0
Expected return on plan assets	(4.2)		(4.1)
Administrative costs and other	0.6		0.5
Net amortization of:

Plan net actuarial losses	0.9		0.9

Net periodic pension benefit cost	$	1.0	$	0.8

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 three months ended March 31, 2026 or 2025. Employer contributions totaling approximately $3.9 million are expected to be made during the remainder of 2026.

NOTE 11 - 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.

ALLEGION PLC

NOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

•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 March 31, 2026, were as follows:


	Fair value measurements						Total fair value
In millions	Quoted 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	$	—	$	17.3	$	—	$	17.3

Total asset recurring fair value measurements	$	—	$	17.3	$	—	$	17.3
Liabilities:

Deferred compensation and other retirement plans	$	—	$	15.5	$	—	$	15.5
Total liability recurring fair value measurements	$	—	$	15.5	$	—	$	15.5
Financial instruments not carried at fair value
Total debt	$	—	$	2,041.8	$	—	$	2,041.8
Total financial instruments not carried at fair value	$	—	$	2,041.8	$	—	$	2,041.8

Assets and liabilities measured at fair value as of December 31, 2025, were as follows:


	Fair value measurements						Total fair value
In millions	Quoted 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	$	—	$	17.4	$	—	$	17.4

Total asset recurring fair value measurements	$	—	$	17.4	$	—	$	17.4
Liabilities:

Deferred compensation and other retirement plans	$	—	$	18.1	$	—	$	18.1
Total liability recurring fair value measurements

SEC Form 10-Q filed by Allegion plc