~~Disruptions in our global supply chain, including product manufacturing and logistical services provided by supplier partners, may negatively impact our business.~~

Our ability to meet our customers' needs and achieve cost targets depends on our ability to maintain key manufacturing and supply arrangements, including execution of supply chain optimizations and certain sole supplier or sole manufacturing arrangements. The loss or disruption of such manufacturing and supply arrangements could interrupt product supply and, if not effectively managed and remedied, have an adverse impact on our business.

We procure certain products, components and logistical services from supplier partners located throughout the world. Our reliance on these third parties reduces our control over the manufacturing and delivery process, exposing us to risks including reduced control over quality assurance, product costs, product supply and delivery delays. If we are unable to effectively manage these relationships, or if these third parties experience delays, disruptions, capacity constraints, regulatory issues or quality control problems in their operations or otherwise fail to meet our future requirements for timely delivery, our ability to ship and deliver certain of our products to our customers could be impaired and our business could be harmed.

The effects of global climate change or other unexpected events, including global health crises, may disrupt our operations and have a negative impact on our business.

The effects of global climate change, such as extreme weather conditions and natural disasters occurring more frequently or with more intense effects, or the occurrence of unexpected events including wildfires, tornadoes, hurricanes, earthquakes, floods, tsunamis and other severe hazards ~~or global health crises, such as the outbreak of Ebola or the global COVID-19 pandemic, or other actual or threatened epidemic, pandemic, outbreak and spread of a communicable disease or virus,~~ in the countries where we operate or sell products and ~~provide~~ services, could adversely affect our business, financial condition, results of operations and ~~financial performance. Extreme weather, natural disasters, power outages, global health crises or other unexpected~~cash flows. These events could disrupt our operations by impacting the availability and cost of materials needed for manufacturing, ~~causing~~cause physical damage ~~and partial~~ or ~~complete~~ closure of our manufacturing sites or distribution centers, lead to loss of human capital and/or cause temporary or long-term disruption in the manufacturing ~~and supply~~or delivery of ~~products and services and disruption in our ability to deliver~~ products and services to customers. These events and disruptions could also adversely affect our customers’ and suppliers’ financial condition or ability to operate, resulting in reduced customer demand, delays in payments received or supply chain disruptions. Further, these events and disruptions could increase insurance and other operating costs, including impacting our decisions regarding construction of new facilities to select areas less prone to climate change risks and natural disasters, which could result in indirect financial risks passed through the supply chain or other price modifications to our products and services.

Many governmental and other regulatory bodies worldwide are enacting regulations to mitigate the impacts of climate change. If we or others in our supply chain are required to comply with these laws and regulations, or if we choose to take voluntary steps to reduce or mitigate our impact on the climate, we may experience increased costs for energy, production, transportation, and raw materials, increased capital expenditures, or increased insurance premiums and deductibles, each of which could adversely impact our operations. In addition, inconsistent regulations among jurisdictions may also affect our cost to comply with such laws and regulations. Any assessment of the potential impact of future climate change legislation, regulations, or industry standards, as well as any international treaties and accords, is uncertain given the wide scope of potential regulatory change in the countries in which we operate.

Global health crises, such as the COVID-19 pandemic or any other actual or threatened epidemic, pandemic, or outbreak and spread of a communicable disease or virus in the countries where we operate or sell products and provide services, could adversely affect our operations and financial performance. Further, any national, state or local government mandates or other orders taken to minimize the spread of a global health crisis could restrict our ability to conduct business as usual, as well as the business activities of our key customers and suppliers, including the potential for labor shortages. In particular, the ultimate extent of the impact of any epidemic, pandemic or other global health crisis on our business, financial condition and results of operations will depend on future developments which are highly uncertain and cannot be ~~predicted,~~

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including new information that may emerge concerning the duration and severity of such epidemic, pandemic or other global health crisis, actions taken to contain or prevent their further spread and the pace of global economic recovery following containment of the spread.

predicted.

We may be subject to risks relating to our information technology and operational technology systems.

We rely extensively on information technology and operational technology systems, networks and services including hardware, software, firmware and technological applications and platforms (collectively, "IT Systems") to manage and operate our business from end-to-end, including ordering and managing materials from suppliers, design and development, manufacturing, marketing, selling and shipping to customers, invoicing and billing, managing our banking and cash liquidity systems, managing our enterprise resource planning and other accounting and financial systems and complying with regulatory, legal and tax requirements. There can be no assurance that our current IT Systems will function properly. We have invested and will continue to invest in improving our IT Systems. Some of these investments are significant and impact many important operational processes and procedures. There is no assurance that ~~any~~ newly implemented IT Systems will improve our current systems, improve our operations or yield the expected returns on the investments. In addition, the implementation of new IT Systems may be more difficult, costly or time consuming than expected and cause disruptions in our operations and, if not properly implemented and maintained, negatively impact our business. If our IT Systems cease to function properly or if these systems do not provide the anticipated benefits, our ability to manage our operations could be impaired.

We currently rely on third-party ~~vendors~~service providers for many of the critical elements of our global information and operational technology infrastructure, and their failure to provide effective support for such infrastructure could increase our cybersecurity risk or otherwise negatively impact our business and financial results.

We have outsourced many of the critical elements of our global information and operational technology infrastructure to third-party service providers in order to achieve efficiencies. If such service providers experience a disruption due to a cyberattack or other internal or external factors, or they do not perform or ~~do not~~ perform effectively, we may not be able to achieve the expected efficiencies and may have to incur additional costs to address failures in providing service by the service providers. Depending on the function involved, such non-performance, ineffective performance or failures of service may lead to business disruptions, processing inefficiencies or security breaches.

Disruptions or breaches of our information systems could adversely affect us.

Despite our implementation of cybersecurity measures, which have focused on prevention, mitigation, resilience and recovery, our network and products, including access solutions, may be vulnerable to cybersecurity attacks, computer viruses, malicious codes, malware, ransomware, phishing, social engineering, denial of service, hacking, break-ins and similar disruptions. Cybersecurity attacks and intrusion efforts are continuous and evolving, and in certain cases they have been successful at the

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most robust institutions. The scope and severity of risks that cyber threats present have increased dramatically and include, but are not limited to, malicious software, ransomware attacks, attempts to gain unauthorized access to data or premises, exploiting weaknesses related to vendors or other third parties that could be exploited to attack our systems, denials of service and other electronic security breaches that could lead to disruptions in systems, unauthorized release of confidential or otherwise protected information and corruption of data. Any such event could have a material adverse effect on our business, ~~operating~~financial condition, results of operations and ~~financial condition,~~cash flows as we face regulatory, reputational and litigation risks resulting from potential cyber incidents, as well as the potential of incurring significant remediation costs.

Further, while we maintain insurance coverage that may, subject to policy terms and exclusions, cover certain aspects of our cyber risks, such insurance coverage may be insufficient to cover our losses or all types of claims that may arise in the continually evolving area of cyber risk.

Our daily business operations also require us to collect and/or retain sensitive data such as intellectual property, proprietary business information and data related to customers, employees, suppliers and business partners within our networking infrastructure including data from individuals subject to the European Union's General Data Protection Regulation, that is subject to privacy and security laws, regulations and/or customer-imposed controls. Despite our efforts to protect such data, the loss or breach of such data due to various causes including material security breaches, catastrophic events, extreme weather, natural disasters, power outages, system failures, computer viruses, improper data handling, programming errors, unauthorized access and employee error or malfeasance could result in wide reaching negative impacts to our ~~business, and as~~business. As such, the ongoing maintenance and security of this information is pertinent to the success of our business operations and our strategic goals.

In addition, we operate in an environment where there are different and potentially conflicting data privacy laws and regulations in effect or expected to go into effect in the future, including regulations related to devices connected through IoT, in the various jurisdictions in which we operate, and we must understand and comply with such laws and regulations while ensuring our data is secure.

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Our networking infrastructure and related assets may be subject to unauthorized access by hackers, employee error or malfeasance or other unforeseen activities. Such issues could result in the disruption of business processes, network degradation and system downtime, along with the potential that a third party will exploit our critical assets such as intellectual property, proprietary business information and data related to our customers, suppliers and business partners. To the extent that such disruptions occur, and our business continuity plans do not effectively address these disruptions in a timely manner, they may cause delays in the manufacture or shipment of our products and the cancellation of customer orders and, as a result, our business operating results and financial condition could be materially and adversely affected, resulting in a possible loss of business or brand reputation.

Finally, the regulatory environment around cybersecurity is increasingly challenging, with additional reporting requirements around cybersecurity, risk management, strategy and governance, as well as increased disclosure obligations around the occurrence of material cybersecurity incidents. These requirements may present material obligations and risks to our business, including significantly expanded compliance burdens, costs and enforcement risks. We may also be obligated to report a cybersecurity incident before we have been able to fully assess its impact or remediate the underlying issue, and it could potentially reveal system vulnerabilities to threat actors. Failure to timely report incidents under these or other similar rules could also result in monetary fines, sanctions, or subject us to other forms of liability.

Our ability to successfully grow and expand our business depends on our ability to recruit and retain a highly qualified and diverse workforce.

Our ability to successfully grow and expand our business ~~depends on~~is dependent upon our ability to recruit and retain a workforce with the ~~contributions~~skills necessary to develop, manufacture and ~~abilities of~~deliver the products and services desired by our ~~employees~~customers. We need highly skilled and ~~key management,~~qualified personnel in multiple areas, including ~~for example, the ability of our~~engineering, sales, ~~force to adapt to any changes made in the sales organization~~manufacturing, information technology, cybersecurity, business development, strategy and ~~achieve adequate customer coverage.~~management. We must therefore continue to effectively recruit, retain and motivate ~~key management, sales and other~~ highly qualified, skilled and diverse personnel to maintain our current business and support our projected growth. A shortage of these ~~key~~ employees for various reasons, including intense competition for skilled employees, labor shortages, increased labor costs, candidates’ preference to work remotely, changes in laws and policies regarding immigration and work authorizations or any government or public health mandates in jurisdictions where we have operations ~~might~~that may result in workforce attrition and difficulty with recruiting, may jeopardize our ability to grow and expand our business.

~~Economic, Market~~In recent years, we have experienced labor shortages and ~~Financial Risks~~

~~Our global operations subject us~~increased turnover rates that have led to, ~~economic risks.~~

~~We are incorporated in Ireland~~ and ~~operate in countries worldwide. Our global operations depend on products manufactured, purchased and sold~~could in the ~~U.S.~~future lead to, increased costs, such as increased overtime to meet customer demand and ~~internationally, including in Australia, Canada, China, Europe, Korea, Mexico, New Zealand~~increased wage rates to attract and ~~the Middle East. The political, economic~~retain employees and ~~regulatory environments in which we operate are becoming increasingly volatile and uncertain. Accordingly, we are subject to risks that are inherent in operating globally, including:~~

•~~Changes to trade agreements, sanctions, import and export regulations, including imposition of burdensome tariffs and quotas, and customs duties;~~

•~~Changes in applicable tax regulations and interpretations;~~

•~~Economic downturns and social and political instability;~~

•~~Changes in laws and regulations or imposition of currency restrictions and other restraints in various jurisdictions;~~

•~~Limitation of ownership rights, including expropriation of assets by a local government, and limitation on the ability to repatriate earnings;~~

•~~Sovereign debt crises and currency instability in developed and developing countries;~~

•~~Difficulty in staffing and managing global operations;~~

•~~Difficulty in enforcing agreements, collecting receivables and protecting assets through non-U.S. legal systems; and~~

•~~Political unrest, national and international conflict, including war, border closures, civil disturbances and terrorist acts.~~

~~These risks~~ could increase our cost of doing business in the U.S. and internationally, increase our counterparty risk, disrupt our operations, disrupt the ability of suppliers and customers to fulfill their obligations, increase our effective tax rate, increase the cost of our products, limitnegatively affect our ability to ~~sell products in certain markets, reduce~~efficiently operate our ~~operating margin, reduce cash flow and negatively impact our ability to compete.~~

~~Our business relies on the institutional, commercial and residential construction and remodeling markets.~~

Demand for our security products and solutions relies on the institutional, commercial and residential construction and remodeling markets, which are marked by cyclicality based on overall economic conditions, including consumer confidence and disposable income, corporate and government spending, work-from-home trends, availability of credit and demand for new housing and infrastructure. Weakness or instability in one or more of these markets may cause current and potential customers to delay or cancel major capital projects,production facilities or otherwise ~~choose not to make purchases, which~~operate at full capacity. An overall or prolonged labor shortage, lack of skilled labor, increased turnover or sustained level of wage inflation could ~~negatively~~have a material adverse impact ~~the demand for~~on our ~~products~~business, financial position, results of operations and ~~solutions and erode average selling prices.~~cash flows.

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~~Currency exchange rate fluctuations~~Disruptions in our global supply chain, including product manufacturing and logistical services provided by our supplier partners, may ~~adversely affect~~negatively impact our ~~results.~~

business.

We ~~are exposed to a variety of market risks,~~procure certain products, including ~~the effects of changes in currency exchange rates. See "Management’s Discussion~~raw materials and ~~Analysis of Financial Condition and Results of Operations - Quantitative and Qualitative Disclosure About Market Risk."~~

Approximately 30% of our 2020 Net revenues were derived outside the U.S., and we expect sales to non-U.S. customers to continue to represent a significant portion of our consolidated Net revenues. Although we may enter into currency exchange contracts to reduce our risk related to currency exchange fluctuations, changes in the relative fair values of currencies occur from time to time and may, in some instances, have a material impact on our results of operations. We do not hedge against all of our currency exposure and therefore, our business will continue to be susceptible to currency fluctuations.

We also translate assets, liabilities, revenues and expenses denominated in non-U.S. dollar currencies into U.S. dollars for our Consolidated Financial Statements based on applicable exchange rates. Consequently, fluctuations in the value of the U.S. dollar compared to other ~~currencies may have a material impact on the value of these items in our Consolidated Financial Statements, even if their value has not changed in their original currency.~~

~~Commodity shortages, price increases and higher energy prices could negatively affect our financial results.~~

~~We rely on suppliers to secure~~ commodities, including steel, zinc, brass and other non-ferrous metals, ~~required for~~as well as parts, components (including electronic components) and logistical services from supplier partners located throughout the ~~manufacture of~~world. Our ability to meet our ~~products. A disruption of deliveries from our suppliers or decreased availability of commodities could have an adverse effect~~customers' needs and achieve cost targets depends on our ability to ~~meet~~maintain key manufacturing and supply arrangements, including supplier execution and certain sole supplier or sole manufacturing arrangements. Our reliance on these third parties reduces our ~~commitments~~control over the manufacturing and delivery process, exposing us to customers or increase our operating costs. We believe that available sources of supply will generally be sufficient for our needs for the foreseeable future. Nonetheless, the unavailability of some commodities could have a material adverse impact on our business.

~~Volatility in the prices of these commodities could increase the~~risks including reduced control over product costs and delivery. Additionally, because not all of our ~~products~~supply arrangements provide for guaranteed supply and ~~services,~~some key parts and wecomponents may ~~not~~ be able to pass on these costs to our customers. We do not currently use financial derivatives to hedge against this volatility; however, we utilize firm purchase commitments to mitigate risk. The pricingavailable only from a single supplier or a limited group of ~~some commodities we use is based on market prices. To mitigate this exposure, we may use annual price contracts to minimize the impact of inflation and to benefit from deflation.~~

~~Additionally,~~suppliers, we are ~~exposed~~also subject to ~~fluctuations in energy prices due to the instability of current market prices. Higher energy costs increase~~supply and pricing risks, which could negatively impact our operating costs and the cost of shipping our products and supplying services to our customers around the world. Consequently, sharp price increases, the imposition of taxes or an interruption of supply could cause us to lose the ability to effectively manage the risk of rising energy prices and may have an adverse impact on ourmargin performance, results of operations, inventory levels and cash flows.

~~We may be required to recognize impairment charges for our goodwill, indefinite-lived intangible assets and other long-lived assets.~~

At December 31, 2020, the net carrying value of our goodwill and other indefinite-lived intangible assets totaled approximately $819.0 million and $118.3 million, respectively. Pursuant to U.S. generally accepted accounting principles ("GAAP"), we are required to annually assess our goodwill and indefinite-lived intangible assets for impairment. In addition, interim assessments must be performed for these and other long-lived assets whenever events or changes in circumstances indicate that an impairment may have occurred. Significant disruptions to our business or end market conditions, protracted economic weakness, unexpected significant declines in operating results of reporting units, divestitures or market capitalization declines may result in recognition of impairment charges to our goodwill, indefinite-lived intangible or other long-lived assets. Specifically, an unanticipated deterioration in Net revenues and/or operating margins generated by our newly created Allegion International segment could trigger future impairments. Any charges relating to such impairments could have a material adverse impact on our results of operations in the periods when recognized.

~~The capital and credit markets are important to our business.~~

Instability in U.S. and global capital and credit markets, including market disruptions, limited liquidity and interest rate volatility or reductions in the credit ratings assigned to us by independent ratings agencies, could reduce our access to capital markets or increase the cost of funding our short and long-term credit requirements. In particular, ifIf we are unable to ~~access capital~~effectively manage these relationships, or if these third parties experience delays, disruptions, shortages of materials, labor, electronic and ~~credit markets on terms that are acceptable~~other components, capacity constraints, regulatory issues or quality control problems in their operations, freight delays and other supply chain constraints and disruptions, or otherwise fail to ~~us, we may not be able~~meet our future requirements for timely delivery, our ability to ~~make~~ship and deliver certain ~~investments or fully execute our business plans and strategy.~~

Our suppliers and customers are also dependent upon the capital and credit markets. Limitations on the ability of customers, suppliers or financial counterparties to access credit could lead to insolvencies of key suppliers and customers, limit or prevent

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~~customers from obtaining credit to finance purchases~~ of our products to our customers could be impaired and ~~services and cause delays in the delivery of key products from suppliers.~~

~~There are risks associated with~~ our ~~outstanding and future indebtedness.~~

We have approximately $1.4 billion of outstanding indebtedness at December 31, 2020. In addition, we have a senior unsecured revolving credit facility (the "Revolving Facility") that permits borrowings of up to an additional $500 million. Volatility in the credit marketsbusiness could ~~adversely impact our ability to obtain favorable financing terms in the future. A portion of our cash flows from operations is dedicated to servicing our indebtedness and will not~~ be ~~available for other purposes, including our operations, capital expenditures, payment of dividends, share repurchases or future business opportunities.~~

Our ability to make scheduled payments or to refinance our debt obligations depends on our financial and operating performance, which is subject to prevailing economic and competitive conditions and to certain financial, business and other factors beyond our control. If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or delay capital expenditures, reduce or eliminate the payment of dividends, sell assets, seek additional capital or seek to restructure or refinance our indebtedness. These alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations. In such event, we could face substantial liquidity problems and might be required to sell material assets or operations to attempt to meet our debt service and other obligations.

Additionally, at December 31, 2020, our borrowings included a variable rate term loan facility indexed to LIBOR (the "Term Facility", and together with the Revolving Facility, the "Credit Facilities") with an outstanding balance of $238.8 million, which exposes us to variable interest rate risk. We are also exposed to the risk of rising interest rates to the extent that we fund our operations with short-term or variable-rate borrowings under our Revolving Facility. If LIBOR or other applicable base rates under our Credit Facilities increase in the future, our Interest expense could increase. Additionally, the regulator that oversees LIBOR has announced that it cannot guarantee LIBOR's availability after 2021. In the event LIBOR is discontinued, replaced, significantly changed or ceases to be recognized as an acceptable benchmark, there may be uncertainty or differences in the calculation of our applicable interest rate or required payment amounts for our Credit Facilities. This could also require different hedging strategies and require renegotiation of our existing Credit Facilities. While we do not currently anticipate the transition from LIBOR and the risks thereto to have a material adverse effect on us, it remains uncertain at this time.harmed.

Legal and Compliance Risks

We are subject to risks related to corporate social responsibility and reputational matters.

Our reputation and the reputation of our brands, including the perception held by our customers, end-users, business partners, investors, other key stakeholders and the communities in which we do business are influenced by various factors. There is an increased focus from our stakeholders, as well as regulatory authorities both within the U.S. and internationally, on ~~environmental, social and governance ("ESG")~~ESG practices and ~~disclosure – and if~~disclosure. If we fail, or are perceived to have failed, in any number of ESG matters, such as environmental stewardship, ~~inclusion and diversity,~~DEI, good corporate governance, workplace conduct and support for local communities, or to effectively respond to changes in, or new, legal, regulatory or reporting requirements concerning climate change or other sustainability concerns, we may be subject to regulatory fines and penalties, and our reputation or the reputation of our brands may suffer. Further, we have made several public commitments regarding our intended reduction of carbon emissions, including a commitment to achieve carbon neutral emissions by 2050. Although we intend to meet these commitments, we may be required to expend significant resources to do so, which could increase our operational costs. Further, there can be no assurance of the extent to which any of our commitments will be achieved, or that any future investments we make to achieve such commitments will meet investor, legal and/or any other regulatory expectations and requirements. Moreover, we may determine that it is in the best interest of our Company and our stockholders to prioritize other business, social, governance or sustainable investments over the achievement of our current commitments based on economic, technological developments, regulatory and social factors, business strategy or pressure from investors, activist groups or other stakeholders. If we are unable to meet our commitments, we could incur adverse publicity and reaction from investors, advocacy groups or other stakeholders, which could adversely impact our reputation and brand perception. Such damage to our reputation and the reputation of our brands may negatively impact our business, demand for our products and services, our financial condition and results of operations.

In addition, negative or inaccurate postings or comments on social media or networking websites about ~~the Company~~our company or our brands could generate adverse publicity that could damage our reputation or the reputation of our brands. If we are unable to effectively manage real or perceived issues, including concerns about product quality, safety, corporate social responsibility or other matters, sentiments toward the Company or our products could be negatively impacted, and our financial results could suffer.

Our brands are important assets of our businesses, and violation of our trademark rights by imitators could negatively impact revenues and brand reputation.

Our brands and trademarks enjoy a reputation for quality and value and are important to our success and competitive position. Unauthorized use of our trademarks may not only erode sales of our products but may also cause significant damage to our brand name and reputation, interfere with relationships with our customers and increase litigation costs. There can be no assurance that our on-going effort to protect our brand and trademark rights will prevent all violations.

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Material ~~adverse~~ legal judgments, fines, penalties or settlements imposed against us or our assets could adversely affect our ~~business.~~

business, financial condition, results of operations and cash flows.

We are currently, and may in the future become, involved in legal proceedings, claims and disputes incidental to the operation of our ~~business.~~business in the ordinary course. Our business may be adversely affected by the outcome of these proceedings and other contingencies (including, without limitation, environmental, product and warranty liability, claims for property damage, physical harm or bodily injury, antitrust, intellectual property, data protection, privacy and labor and employment matters) that cannot be predicted with certainty. As required by GAAP, we establish reserves based on our assessment of ~~contingencies.~~the probability of contingencies and whether we are able to reasonably estimate the expected range of loss. Subsequent developments in legal

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proceedings and other contingencies may affect our assessment and estimates of the loss contingency recorded as a reserve, and we may incur additional costs or be required to make ~~additional~~ material ~~payments.~~

payments beyond our previously recorded reserves.

Allegations that we have infringed the intellectual property rights of third parties could negatively affect us.

We may be subject to claims of infringement of intellectual property rights by third parties. In particular, we often compete in areas having extensive intellectual property rights owned by others, and we have become subject to claims alleging infringement of intellectual property rights of others. In general, if it is determined that one or more of our technologies, products or services infringes the intellectual property rights owned by others, we may be required to cease marketing those products or services, to obtain licenses from the holders of the intellectual property at a material cost or to take other actions to avoid infringing such intellectual property rights. The litigation process is costly and subject to inherent uncertainties, and we may not prevail in litigation matters regardless of the merits of our position. Adverse intellectual property litigation or claims of infringement against us may become extremely disruptive if the plaintiffs succeed in blocking the trade of our products and services and may have a material adverse effect on our business.

Our reputation, ability to do business and results of operations could be impaired by ~~adverse publicity or~~ improper conduct by any of our employees, agents or business partners.

We are subject to regulation under a variety of U.S. federal and state and non-U.S. laws, regulations and policies including laws related to anti-bribery and anti-corruption, export and import compliance, ~~anti-trust~~competition and ~~money~~anti-money laundering due to our global operations. We provide compliance training for our employees and have other controls and procedures in these areas. We cannot provide assurance that our internal controls will always protect us from the improper conduct of our employees, agents and business partners. Any improper conduct could damage our reputation and subject us to, among other things, civil and criminal penalties, material fines, equitable remedies (including profit disgorgement and injunctions on future conduct), securities litigation, adverse publicity and a general loss of investor or public confidence.

Our operations are subject to regulatory risks.

Our U.S. and non-U.S. operations are subject to a number of laws and regulations, including fire and building codes and ~~environmental, health and safety~~EHS standards. We have incurred, and will be required to continue to incur, significant expenditures to comply with these laws and regulations. Changes to, or changes in interpretations of, current laws and regulations, including climate change legislation or other environmental mandates, could require us to increase our compliance expenditures, cause us to significantly alter or discontinue offering existing products and services or cause us to develop new products and services. Altering current products and services or developing new products and services to comply with changes in the applicable laws and regulations could require significant research and development investments, increase the cost of providing the products and services and adversely affect the demand for our products and services.

In the event a regulatory authority concludes that we are not or have not at all times been in full compliance with these laws or regulations, we could be fined, criminally charged or otherwise sanctioned.

Certain environmental laws assess liability on current or previous owners of real property or operators of manufacturing facilities for the costs of investigation, removal or remediation of hazardous substances or materials at such properties or at properties at which parties have disposed of hazardous substances. Liability for investigative, removal and remedial costs under certain U.S. federal and state laws and certain non-U.S. laws are retroactive, strict and joint and several. In addition to cleanup actions brought by governmental authorities, private parties could bring personal injury or other claims due to the presence of, or exposure to, hazardous substances. We have received ~~notification~~notifications from U.S. and non-U.S. governmental agencies, including the EPA and similar state environmental agencies, that conditions at a number of current and formerly owned sites where we and others have disposed of hazardous substances require investigation, cleanup and other possible remedial action. These agencies may require that we reimburse the government for its costs incurred at these sites or otherwise pay for the costs of investigation and cleanup of these sites, including by providing compensation for natural resource damage claims from such sites. For more information, see "Item 1. Business -– Regulatory Matters."

While we have planned for future capital and operating expenditures to maintain compliance with environmental laws and have accrued for costs related to current remedial efforts, our costs of compliance, or our liabilities arising from past or future

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releases of, or exposures to, hazardous substances, may exceed our estimates. We may also be subject to additional environmental claims for personal injury or cost recovery actions for remediation of facilities in the future based on our past, present or future business activities.

As a global business, we have a relatively complex tax structure, and there is a risk that tax authorities will disagree with our tax positions.

Since we conduct operations worldwide through our subsidiaries, we are subject to complex transfer pricing regulations in the countries in which we operate. Transfer pricing regulations generally require that, for tax purposes, transactions between us and our affiliates be priced on a basis that would be comparable to an arm's length transaction and that contemporaneous documentation be maintained to support the tax allocation. Although uniform transfer pricing standards are emerging in many of the countries in which we operate, there is still a relatively high degree of uncertainty and inherent subjectivity in complying

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with these rules. To the extent that any tax authority disagrees with our transfer pricing policies, we could become subject to significant tax liabilities and penalties. Our tax returns are subject to review by taxing authorities in the jurisdictions in which we operate. Although we believe ~~that~~ we have provided for all tax exposures, the ultimate outcome of a tax review could differ materially from our provisions.

We could be subject to changes in tax rates, the adoption of new tax legislation or exposure to additional tax liabilities.

Our future effective tax rate and cash tax obligations could be adversely affected by shifts in our mix of earnings in countries with varying statutory tax rates, changes in the valuation of our deferred tax assets or liabilities or changes in tax laws, regulations, interpretations or accounting principles, as well as certain discrete items. In addition, we are subject to regular review and audit by tax authorities. As a result, we have received, and may in the future receive, assessments in multiple jurisdictions on various tax-related assertions. Any adverse outcome of such a review or audit could have a negative effect on our operating results and financial condition. In addition, the determination of our worldwide provision for income taxes and other tax liabilities requires significant judgment, and there are many transactions and calculations where the ultimate tax determination is uncertain. Although we believe our estimates are reasonable, the ultimate tax outcome may differ from the amounts recorded in our ~~financial statements~~Consolidated Financial Statements and may materially affect our financial results in the period or periods for which such determination is made. Furthermore, due to shifting economic and political conditions, tax policies, laws, interpretations and rates in various jurisdictions may be subject to significant change, which could materially affect our financial position and results of operations. For example, many countries in Europe, as well as a number of other countries and organizations, have recently proposed, recommended or implemented changes to existing tax laws or have enacted new laws that could significantly increase our effective tax rate or cash tax obligations in countries where we do business or require us to change the manner in which we operate our business. Additionally, the European Commission has been investigating whether various tax regimes or private tax rulings provided by a country to a particular taxpayer may constitute State Aid. We continue to examine the impact the above items may have on our business and the amount of tax we must pay.

The implementation of global tax reforms could negatively impact our financial results.

In recent years, the Organization for Economic Cooperation and Development (“OECD”) has led international efforts to implement various international tax reforms, including the introduction of a global minimum effective corporate tax (“GMT”) rate of 15%, applied on a jurisdiction-by-jurisdiction basis. Over 130 countries agreed to the general framework of the GMT rules and approximately 25 countries have implemented the GMT rules. Further, on December 15, 2022, the European Union adopted a Council Directive which requires GMT rules to be transposed into member states’ national laws starting in 2024.

On December 18, 2023, Ireland, the location of our incorporation, enacted legislation which includes provisions regarding the implementation of GMT. We are currently assessing the impact of the legislation, but we expect our effective income tax rate to increase beginning in 2024. Further, we anticipate the continued and ongoing release of OECD GMT interpretive guidance. We are continuing to evaluate the potential impact of this interpretative guidance and the release of GMT-implementation legislation in other countries, and such guidance or legislation could result in a material increase in our effective tax rate.

Risks Related to Our Incorporation in Ireland

Irish law differs from the laws in effect in the United States and may afford less protection to holders of our securities.

The U.S. currently does not have a treaty with Ireland providing for the reciprocal recognition and enforcement of judgments in civil and commercial matters. As such, there is some uncertainty as to whether the courts of Ireland would recognize or enforce judgments of U.S. courts obtained against us or our directors or officers based on U.S. federal or state civil liability laws, including the civil liability provisions of the U.S. federal or state securities laws, or hear actions against us or those persons based on those laws.

As an Irish company, we are governed by the Companies Act 2014 of Ireland, as amended, which differs in some material respects from laws generally applicable to U.S. corporations and shareholders, including, among others, differences relating to interested director and officer transactions and shareholder lawsuits. Likewise, the duties of directors and officers of an Irish company generally are owed to the company only. Shareholders of Irish companies generally do not have a personal right of action against directors or officers of the company and may exercise such rights of action on behalf of the company only in limited circumstances. Accordingly, holders of our securities may have more difficulty protecting their interests than would holders of securities of a corporation incorporated in a jurisdiction of the U.S.

In addition, Irish law allows shareholders to authorize share capital which then can be issued by a board of directors without shareholder approval. Also, subject to specified exceptions, Irish law grants statutory preemptive rights to existing shareholders to subscribe for new issuances of shares for cash. At our annual general meeting of shareholders, our shareholders authorized our Board of Directors to issue up to 33% of our issued ordinary shares and further authorized our Board of Directors to issue up to 5% of such shares for cash without first offering them to our existing shareholders. Both of these authorizations will expire after a certain period unless renewed by our shareholders, and we cannot guarantee that the renewal of these authorizations will always

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be approved. If the Directors' authority to issue ordinary shares is not renewed, then we may be limited in our ability to use our shares, for example, as consideration for acquisitions.

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Changes in tax laws, regulations or treaties, changes in our status under the tax laws of many jurisdictions or adverse determinations by taxing authorities could increase our tax burden or otherwise affect our financial condition or operating results, as well as subject our shareholders to additional taxes.

The realization of any tax benefit related to our incorporation and tax residence in Ireland could be impacted by changes in tax laws, tax treaties or tax regulations or the interpretation or enforcement thereof by the tax authorities of many jurisdictions. From time to time, proposals have been made and/or legislation introduced to change the tax laws of various jurisdictions or limit tax treaty benefits that if enacted could materially increase our tax burden and/or our effective tax rate. Moreover, other legislative proposals could have a material adverse impact on us by overriding certain tax treaties and limiting the treaty benefits on certain payments, which could increase our tax liability. We cannot predict the outcome of any specific legislation in any jurisdiction.

While we monitor proposals that would materially impact our tax burden and/or our effective tax rate and investigate our options, we could still be subject to increased taxation on a going forward basis no matter what action we undertake if certain proposals are enacted, certain tax treaties are amended and/or our interpretation of applicable tax law is challenged and determined to be incorrect. In particular, any changes and/or differing interpretations of applicable tax law that have the effect of disregarding our incorporation in Ireland, limiting our ability to take advantage of tax treaties between jurisdictions, modifying or eliminating the deductibility of various currently deductible payments or increasing the tax burden of operating or being resident in a particular country, could subject us to increased taxation.

Dividends received by our shareholders may be subject to Irish dividend withholding tax.

In certain circumstances, we are required to deduct Irish dividend withholding tax of 25% from dividends paid to our shareholders. In the majority of cases, shareholders residing in the U.S. will not be subject to Irish withholding tax, and shareholders resident in a number of other countries will not be subject to Irish withholding tax provided that they complete certain Irish dividend withholding tax forms. However, some shareholders may be subject to withholding tax, which could discourage the investment in our stock and adversely impact the price of our shares.

Dividends received by our shareholders may be subject to Irish income tax.

Dividends paid in respect of our shares generally are not subject to Irish income tax where the beneficial owner of these dividends is exempt from Irish dividend withholding tax, unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in Allegion.

Our shareholders who receive their dividends subject to Irish dividend withholding tax will generally have no further liability to Irish income tax on the dividends unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in Allegion.

Certain provisions in our Memorandum and Articles of Association, among other things, could prevent or delay an acquisition of us, which could decrease the trading price of our ordinary shares.

Our Memorandum and Articles of Association contains provisions to deter takeover practices, inadequate takeover bids and unsolicited offers. These provisions include, amongst others:

•A provision of our Articles of Association which generally prohibits us from engaging in a business combination with an interested shareholder (being (i) the beneficial owner, directly or indirectly, of 10% or more of our voting shares or (ii) an affiliate or associate of us that has at any time within the last five years been the beneficial owner, directly or indirectly, of 10% or more of our voting shares), subject to certain exceptions;

•Rules regarding how shareholders may present proposals or nominate directors for election at shareholder meetings;

•The right of our Board of Directors to issue preferred shares without shareholder approval in certain circumstances, subject to applicable law; and

•The ability of our Board of Directors to set the number of directors and to fill vacancies on our Board of Directors.

We believe these provisions will provide some protection to our shareholders from coercive or otherwise unfair takeover tactics. These provisions are not intended to make us immune from takeovers. However, these provisions will apply even if the offer may be considered beneficial by some shareholders and could delay or prevent an acquisition that our Board of Directors

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determines is in our best interests and our shareholders' best interests. These provisions may also prevent or discourage attempts to remove and replace incumbent directors.

In addition, several mandatory provisions of Irish law could prevent or delay an acquisition of us. For example, Irish law does not permit shareholders of an Irish public limited company to take action by written consent with less than unanimous consent. We also will be subject to various provisions of Irish law relating to mandatory bids, voluntary bids, requirements to make a cash offer and minimum price requirements, as well as substantial acquisition rules and rules requiring the disclosure of interests in our shares in certain circumstances. Also, Irish companies, including us, may alter their Memorandum of Association and Articles of Association only with the approval of at least 75% of the votes of the company’s shareholders cast in person or by proxy at a general meeting of the company.

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Item 1B. UNRESOLVED STAFF COMMENTS

None.

Item 1C. CYBERSECURITY

Risk Management and Strategy

Allegion plc recognizes the significance of developing, implementing, and maintaining cybersecurity measures to safeguard our information systems and products and protect the confidentiality, integrity, and availability of our data.

Managing Material Risks & Integrated Overall Risk Management

Cybersecurity is a critical part of our enterprise risk management. To address cybersecurity threats, we leverage a multi-layer approach, with our Chief Information Security Officer (“CISO”) leading a team that is responsible for forming our enterprise-wide information security strategy, training, policy, standards, architecture and processes to protect us against cybersecurity risks. Our risk management group works with our cybersecurity team to continuously evaluate and address cybersecurity risks. Further, we have an employee security awareness program in place and a security training program for technical personnel that provides mandatory and on-demand training.

Engage Third Parties on Risk Management

We engage a range of external experts, including cybersecurity consultants and auditors to evaluate and test our risk management systems. Our collaboration with these third parties includes regular audits, threat assessments, and consultation on security enhancements. Our cybersecurity programs generally align with the NIST Cybersecurity Framework, and third party audits on portions of our cybersecurity program or processes apply the NIST Cybersecurity Framework controls. These partnerships provide expert knowledge and insights, which are designed to ensure our cybersecurity strategies and processes are consistent with industry best practices.

Oversee Third-party Risk

We rely on our information technology systems and networks in connection with many of our business activities. Some of these networks and systems are managed by third-party service providers and are not under our direct control.

The Company has implemented processes designed to manage the cybersecurity risks associated with its use of third-party service providers.

Risks from Cybersecurity Threats

Despite the security measures we have implemented, certain cyber incidents could materially disrupt operational systems; result in loss of trade secrets or other proprietary or competitively sensitive information; compromise personally identifiable information regarding customers or employees; delay our ability to deliver products to customers; and/or jeopardize the security of our facilities. These risks are further described in the risk factors within Item 1A, particularly under the headings “We may be subject to risks relating to our information technology and operational technology systems”, “We currently rely on third-party service providers for many of the critical elements of our global information and operational technology infrastructure, and their failure to provide effective support for such infrastructure could increase our cybersecurity risk or otherwise negatively impact our business and financial results”, and “Disruptions or breaches of our information systems could adversely affect us.”

We have not encountered any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition.

Governance

The Board of Directors has established oversight mechanisms designed to ensure effective governance in managing risks associated with cybersecurity threats.

Board of Directors Oversight

Due to the importance of cybersecurity to the Company, the full Board is charged with oversight responsibility for our risk management and security strategy and policy. The Board is composed of members with diverse expertise including, risk management, information technology, engineering, manufacturing, innovation and finance, equipping them to oversee cybersecurity risks effectively. The Boardreceives updates from the CISO and management at its quarterly board meeting, which updates cover the Company's cybersecurity strategy, current cybersecurity risk assessment, key risk areas, current cyber trends, and any significant cyber incidents that have occurred or are reasonably likely to occur.

Management’s Role

Management is responsible for assessing and managing cybersecurity risk. Specifically, the CISO is responsible for the prevention, mitigation, detection, and remediation of cybersecurity incidents. The CISO regularly meets with the Chief Executive Officer (“CEO”) and Executive Leadership Team to inform them on cybersecurity risks. These briefings encompass a broad range of topics, including:

•Threat intelligence;

•Risk updates with regional vice presidents;

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•Third-party assessments and results of tabletop exercises;

•Training programs for employees;

•Results of phishing simulations;

•Cybersecurity technologies and best practices; and

•Significant cybersecurity incidents and/or trends (if any).

Risk Management Personnel

Primary responsibility for assessing, monitoring and managing our cybersecurity risks rests with the CISO. With over 20 years of experience in the field of information technology, the CISO brings a wealth of expertise to the role. The CISO’s education includes a Master’s in Cybersecurity Management. The CISO has in-depth knowledge and experience in developing and executing our cybersecurity strategies. The CISO oversees our governance programs, tests our compliance with standards, remediates known risks, and leads our comprehensive employee security awareness program. The CISO is also responsible for building and overseeing a cybersecurity team, including internal and external resources, who provide subject matter expertise and operational talents to achieve our cybersecurity objectives.

Monitor Cybersecurity Incidents

The CISO and the cybersecurity team are continually informed about the latest developments in cybersecurity, including potential threats and innovative risk management techniques, which is an important component in designing programs to prevent, detect, mitigate, and remediate cybersecurity incidents. The CISO implements and oversees processes for the regular monitoring of our information systems. This includes the deployment of advanced security measures and regular system audits to identify potential vulnerabilities. In the event of a cybersecurity incident, we have a well-defined incident response plan. This plan includes immediate actions to mitigate the impact and long-term strategies for remediation and prevention of future incidents and informing the board of significant cyber incidents in accordance with the Company’s incident response plan.

Item 2. PROPERTIES

We operate through a broad network of sales offices, engineering centers, 3031 principal production and assembly facilities and several distribution centers throughout the world. Our active properties represent about ~~6.3~~7.6 million square feet, of which approximately ~~37%~~48% is leased.

We own 16 of our production and assembly facilities, with the remainder under long-term lease arrangements. We believe that our plants have been well maintained, are generally in good condition and are suitable for the conduct of our business.

Item 3. 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, employment matters, product liability claims, environmental liabilities, 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.

This item should be read in conjunction with the ~~Company's~~ Risk Factors set forth in Part I,I. Item 1A ~~for additional information.~~of this Form 10-K.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

~~INFORMATION ABOUT OUR EXECUTIVE OFFICERS~~

~~The following is a list of executive officers of the Company as of February 16, 2021.~~

~~David D. Petratis, age 63, has served as our Chairman, President and Chief Executive Officer since 2013.~~

~~Patrick S. Shannon, age 58, has served as our Senior Vice President and Chief Financial Officer since 2013.~~

~~Jeffrey N. Braun, age 61, has served as our Senior Vice President and General Counsel since 2014. Mr. Braun also served as Secretary from 2018 to 2020.~~

~~Timothy P. Eckersley, age 59, has served as our Senior Vice President – Allegion International since 2021. Mr. Eckersley served as our Senior Vice President – Americas from 2013 to 2020.~~

~~Cynthia D. Farrer,~~ ~~age 58, has served as our Vice President~~ – Global Operations and Integrated Supply Chain since October 2020. Ms. Farrer served as our Vice President, Global Supply Management from 2017 to 2020 and as our Vice President, Operations – Americas from 2013 to 2017.

~~Tracy L. Kemp~~, age 52, has served as our Senior Vice President – Chief Information and Digital Officer since December 2020. Ms. Kemp served as our Senior Vice President – Chief Customer and Digital Officer from 2019 to December 2020. Ms. Kemp also served as our Senior Vice President and Chief Information Officer from 2015 to 2019.

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~~Robert C. Martens~~, age 50, has served as our Senior Vice President – Chief Innovation and Design Officer since 2019 and Futurist and President of Allegion Ventures since 2017. Mr. Martens served as Futurist of the Americas region and Director of Connectivity Platforms from 2014 to 2017.

~~Shelley A. Meador, age 49, has served as our Senior Vice President – Human Resources and Communications since 2016. Ms. Meador served as our Vice President – Tax from 2013 to 2016.~~

~~Luis J. Orbegoso~~, age 50, has served as our Senior Vice President – Allegion Americas since February 2021. Mr. Orbegoso previously served as President and Chief Operating Officer at American Residential Services (ARS, a residential HVAC and plumbing company) from 2017 to 2020 and as President, ADT Business at ADT Corporation (currently ADT Inc., a leading provider of security, automation and smart home solutions) from 2013-2016.

~~Douglas P. Ranck, age 62, has served as our Vice President, Controller and Chief Accounting Officer since 2013.~~

~~Vincent Wenos,~~ age 54, has served as our Senior Vice President – Chief Technology Officer since 2019. Mr. Wenos served as our Vice President – Global Technology and Engineering from 2018 to 2019 and served as both our Vice President – Americas Engineering and Vice President – Global Mechanical Products from 2016 to 2018. Mr. Wenos previously served as Vice President – Product Development and Technology at Stanley Black & Decker, Inc. (a global diversified consumer and industrial products company).

All above-listed officers except for Mr. Orbegoso and Mr. Wenos have been employed by the Company for more than the past five years. No family relationship exists between any of the above-listed executive officers of the Company. All officers are elected to hold office for one year or until their successors are elected and qualified or their earlier death, resignation or removal from office by the Board of Directors of the Company.

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PART II

Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND

ISSUER PURCHASES OF EQUITY SECURITIES

~~Information regarding the principal market for our ordinary shares and related shareholder matters is as follows:~~

Our ordinary shares are traded on the ~~NYSE~~New York Stock Exchange under the symbol ALLE. As of February ~~11, 2021,~~14, 2024, the number of record holders of ordinary shares was ~~2,301. Information regarding equity compensation plans required to be disclosed pursuant to this Item is incorporated by reference from our Proxy Statement.~~1,920.

Dividend Policy

Our Board of Directors declared dividends of ~~$0.32~~$0.45 per ordinary share on February ~~6, 2020,~~9, 2023, April ~~8, 2020,~~13, 2023, September ~~1, 2020~~7, 2023 and December ~~2, 2020.~~7, 2023. On February ~~5, 2021,~~7, 2024, our Board of Directors declared a dividend of ~~$0.36~~$0.48 per ordinary share payable on March ~~31, 2021.~~29, 2024, to shareholders of record on March 15, 2024. We paid a total of ~~$117.3~~$158.7 million in cash for dividends to ordinary shareholders during the year ended December 31, ~~2020.~~2023. Future dividends on our ordinary shares, if any, will be at the discretion of our Board of Directors and will depend on, among other things, our results of operations, cash requirements and surplus, financial condition, contractual restrictions (including under the agreements governing our indebtedness) and other factors that the Board of Directors may deem relevant, as well as our ability to pay dividends in compliance with the Irish Companies Act. Under the Irish Companies Act, dividends and distributions may only be made from distributable reserves. Distributable reserves, broadly, means the accumulated realized profits of Allegion plc ~~(ALLE-Ireland) and~~("ALLE-Ireland") which are unrelated to any ~~U.S.~~ GAAP ~~reporting amount~~reported amounts (e.g., retained earnings). As of December 31, ~~2020,~~2023, we had distributable reserves of ~~$3.8~~$3.9 billion. In addition, no distribution or dividend may be made unless the net assets of ALLE-Ireland are equal to, or in excess of, the aggregate of ALLE-Ireland’s called up share capital plus undistributable reserves, and the distribution or dividend does not reduce ALLE-Ireland’s net assets below such aggregate.

Issuer Purchases of Equity Securities

Period Total number of shares purchased (000s) Average price paid per share Total number of shares purchased as part of the Authorization (000s) Approximate dollar value of shares still available to be purchased under the 2020 Share Repurchase Authorization (000s)
October 1 - October 31 382 $ 102.51 382 $ 689,782
November 1 - November 30 313 108.09 313 655,907
December 1 - December 31 370 112.81 370 614,192
Total 1,065 $ 107.73 1,065 $ 614,192


Period	Total number of shares purchased (000s)	Average price paid per share		Total number of shares purchased as part of the Share Repurchase Authorization (000s)	Approximate dollar value of shares still available to be purchased under the Share Repurchase Authorization (000s)
October 1 - October 31	—	$	—	—	$	500,000
November 1 - November 30	—	—		—	500,000
December 1 - December 31	342	116.85		342	460,024
Total	342	$	116.85	342	$	460,024

In February ~~2017, our Board of Directors approved a stock repurchase authorization of up to $500 million of the Company’s ordinary shares (the "2017 Share Repurchase Authorization"). On February 6,~~ 2020, our Board of Directors approved a ~~new~~ share repurchase authorization of up to, and including, $800 million of the Company’s ordinary shares (the ~~"2020 Share~~"Share Repurchase Authorization")~~, replacing~~. On June 8, 2023, our Board of Directors reauthorized the Company's existing ~~2017 Share Repurchase Authorization.~~share repurchase program and, as a result, authorized the repurchase of up to, and including, $500 million of the Company's ordinary shares. The ~~2020~~ Share Repurchase Authorization does not have a prescribed expiration date. Based on market conditions, share repurchases ~~are~~may be made from time to time in the open market at the discretion of management.

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Performance Graph

The annual changes for the five-year period shown below are based on the assumption that $100 had been invested in Allegion plc ordinary shares, the Standard & Poor’s 500 Stock Index ("S&P 500") and the Standard & Poor's 400 Capital Goods Index ("S&P 400 Capital Goods") on December 31, ~~2015,~~2018, and that all quarterly dividends were reinvested. The total cumulative dollar returns shown on the graph represent the value that such investments would have had on December 31, ~~2020.~~2023.


		December 31, 2015	December 31, 2016	December 31, 2017	December 31, 2018	December 31, 2019	December 31, 2020
	December 31, 2018										December 31, 2018		December 31, 2019		December 31, 2020		December 31, 2021		December 31, 2022	December 31, 2023
Allegion plc	Allegion plc	100.00	97.80	122.55	124.00	195.77	185.22	Allegion plc	100.00	157.88		149.38		171.86		138.78		169.74
S&P 500	S&P 500	100.00	111.96	136.40	130.42	171.49	203.04	S&P 500	100.00	131.49		155.68		200.37		164.08		207.21
S&P 400 Capital Goods	S&P 400 Capital Goods	100.00	131.93	164.51	141.46	187.79	225.05	S&P 400 Capital Goods	100.00	132.75		159.09		203.10		182.76		251.41

~~Postretirement Benefits Other Than Pensions~~

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The Company sponsors a postretirement ("OPEB") plan that provides for healthcare benefits, and in some instances, life insurance benefits, that cover certain eligible retired employees. The Company funds postretirement benefit obligations principally on a pay-as-you-go basis. Generally, postretirement health benefits are contributory with contributions adjusted annually. Life insurance plans for retirees are primarily noncontributory. Net periodic postretirement benefit income is included within Other (income) expense, net within the Consolidated Statements of Comprehensive Income.

The benefit obligation related to the Company's postretirement plans as of December 31, 2020 and 2019 was $5.2 million and $6.8 million, respectively, and is classified as Accrued compensation and benefits and Postemployment and other benefit liabilities within the Consolidated Balance Sheets. Net periodic postretirement benefit income was not material for any of the years ended December 31, 2020, 2019 or 2018, nor is it projected to be material for 2021. Benefit payments for postretirement benefits, which are net of expected plan participant contributions and Medicare Part D subsidies, are expected to be less than $1 million per year for the foreseeable future.

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NOTE 13 – 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 the three levels 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

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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 at December 31, 2023, 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	$	—	$	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

Assets and liabilities measured at fair value at December 31, ~~2020,~~2022, were as follows:


		Fair value measurements						Total fair value		Fair value measurements	Total fair value
In millions	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	Recurring fair value measurements
Recurring fair value measurements
Recurring fair value measurements
Assets:
Assets:
Assets:	Assets:
Investments	Investments	$	0	$	23.5	$	0	$	23.5
Derivative instruments		0		1.6		0		1.6
Investments
Investments
Total asset recurring fair value measurements	Total asset recurring fair value measurements	$	0	$	25.1	$	0	$	25.1
Liabilities:	Liabilities:
Derivative instruments		$	0	$	3.4	$	0	$	3.4
Deferred compensation and other retirement plans
Deferred compensation and other retirement plans
Deferred compensation and other retirement plans	Deferred compensation and other retirement plans	0		25.1		0		25.1
Total liability recurring fair value measurements	Total liability recurring fair value measurements	$	0	$	28.5	$	0	$	28.5
Financial instruments not carried at fair value	Financial instruments not carried at fair value
Total debt	Total debt	$	0	$	1,541.4	$	0	$	1,541.4
Total debt
Total debt
Total financial instruments not carried at fair value	Total financial instruments not carried at fair value	$	0	$	1,541.4	$	0	$	1,541.4

~~Assets and liabilities measured at fair value at December 31, 2019, 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 $ 0 $ 17.4 $ 0 $ 17.4
Derivative instruments 0 1.1 0 1.1
Total asset recurring fair value measurements $ 0 $ 18.5 $ 0 $ 18.5
Liabilities:
Derivative instruments $ 0 $ 1.5 $ 0 $ 1.5
Deferred compensation and other retirement plans 0 23.1 0 23.1
Total liability recurring fair value measurements $ 0 $ 24.6 $ 0 $ 24.6
Financial instruments not carried at fair value
Total debt $ 0 $ 1,474.0 $ 0 $ 1,474.0
Total financial instruments not carried at fair value $ 0 $ 1,474.0 $ 0 $ 1,474.0

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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.

•~~Derivative instruments~~ – These instruments include foreign currency contracts for non-functional currency balance sheet exposures, including both those that are and are not designated as cash flow hedges. As of December 31, 2019, these instruments also included interest rate swap contracts, which expired in September 2020, related to the Company’s variable rate Term Facility. The fair value of the foreign currency contracts is determined based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily accessible and observable. The fair value of the interest rate swap contracts was determined based on quoted prices for the Company’s swaps, which was not considered an active market.

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•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 ~~senior notes~~the 2021 Credit Facilities and Senior Notes maturing through ~~2029.~~2032. The fair value of ~~the long-term~~these debt instruments is obtained based on observable market prices quoted on public exchanges for similar instruments.

The carrying values of Cash and cash equivalents, ~~Restricted cash,~~ Accounts and notes receivable, net, Accounts payable, Accrued compensation and benefits and Accrued expenses and other current liabilities are a reasonable estimate of their fair ~~value~~values due to the short-term nature of these instruments. As discussed in Note 2, the Company also has investments in debt and equity securities without readily determinable fair values, which are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer and are qualitatively assessed for impairment indicators at each reporting period. As these investments are considered to be nonrecurring fair value measurements, they are not included in the fair value tables above.

The methodologies used by the Company to determine the fair value of its financial assets and liabilities at December 31, ~~2020,~~2023, are the same as those used at December 31, ~~2019.~~2022.

NOTE 14 – EQUITY

Ordinary Shares

The changes in ~~Ordinary~~ordinary shares outstanding for the year ended December 31, ~~2020 are~~2023, were as follows:


In millions			Total
December 31, ~~2019~~2022			~~92.7~~87.9
Shares issued under equity incentive plans			~~0.4~~0.1

Repurchase of ordinary shares			~~(1.9)~~(0.5)
December 31, ~~2020~~2023			~~91.2~~87.5

Allegion had 400.0 million ordinary shares authorized and 10.0 million preferred shares, $0.001 par value ~~preferred shares~~per share, authorized (with none outstanding) at December 31, ~~2020.~~

2023.

In ~~February 2017,~~June 2023, the Company's Board of Directors ~~approved a~~reauthorized the Company's existing share repurchase ~~authorization~~program and, as a result, authorized the repurchase of up to, and including $500 million of the Company's ordinary shares (the ~~"2017 Share~~"Share Repurchase Authorization"). On February 6, 2020, the Company's Board of Directors approved a new share repurchase authorization of up to, and including, $800 million of the Company's ordinary shares (the "2020 Share Repurchase Authorization"), replacing the existing 2017 Share Repurchase Authorization. The 2020 Share Repurchase Authorization does not have a prescribed expiration date. During the year ended December 31, ~~2020,~~2023, the Company paid ~~$208.8~~$59.9 million to repurchase ~~1.9~~0.5 million ordinary shares on the open market under ~~these share repurchase authorizations.~~

the Share Repurchase Authorization. As of December 31, 2023, the Company has approximately $460.0 million still available to be repurchased under the Share Repurchase Authorization.

Accumulated Other Comprehensive Loss

The changes in Accumulated other comprehensive loss were as follows:

In millions Cash flow hedges Pension and OPEB items Foreign currency items Total
December 31, 2017 $ 3.8 $ (107.6) $ (49.1) $ (152.9)
Other comprehensive income (loss), net of tax 1.8 (5.4) (57.3) (60.9)
Reclassification to Retained earnings upon adoption of ASU 2018-02(a)
0.5 (10.2) — (9.7)
December 31, 2018 6.1 (123.2) (106.4) (223.5)
Other comprehensive (loss) income, net of tax(b)
(5.6) (3.0) 13.5 4.9
December 31, 2019 0.5 (126.2) (92.9) (218.6)
Other comprehensive (loss) income, net of tax(c)
(1.4) 5.9 57.0 61.5
December 31, 2020 $ (0.9) $ (120.3) $ (35.9) $ (157.1)

~~F-26~~

~~Table of Contents~~

~~(a)~~In February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income," allowing entities to reclassify tax effects stranded in AOCI as a result of the 2017 U.S. Tax Cuts and Jobs Act (the "Tax Reform Act"). The Company adopted ASU 2018-02 in 2018, the impact of which is reflected in the reclassification presented above.

~~(b)~~During 2019, the Company reclassified $26.2 million of accumulated foreign currency translation adjustments to earnings upon the sale of the Company's business operations in Colombia and Turkey, which is included in Foreign currency items in the table above. See Note 8 for further information on these divestitures.

~~(c)~~During 2020, the Company reclassified $12.8 million of accumulated foreign currency translation adjustments to earnings upon the liquidation of two legal entities in EMEA, which is included in Foreign currency items in the table above.


In millions	Cash flow hedges		Defined benefit plan items		Foreign currency items		Total
December 31, 2020	$	(0.9)	$	(120.3)	$	(35.9)	$	(157.1)
Other comprehensive (loss) income, net of tax	1.8		24.3		(63.4)		(37.3)
December 31, 2021	0.9		(96.0)		(99.3)		(194.4)
Other comprehensive income (loss), net of tax	5.2		(21.1)		(75.5)		(91.4)
December 31, 2022	6.1		(117.1)		(174.8)		(285.8)
Other comprehensive income (loss), net of tax	(0.5)		(8.8)		33.6		24.3
December 31, 2023	$	5.6	$	(125.9)	$	(141.2)	$	(261.5)

All amounts of Other comprehensive ~~income (loss),~~loss, net attributable to noncontrolling interests on the Consolidated Statements of Equity relate to foreign currency items.

NOTE 15 – SHARE-BASED COMPENSATION

The Company records share-based compensation awards using a fair value method and recognizes compensation expense for an amount equal to the fair value of the share-based payment issued in its financial statements. The Company’s share-based compensation plans include programs for stock options, restricted stock units ("RSUs"), performance stock units ("PSUs") and deferred compensation.

Under the Company's shareholder-approved equity incentive ~~stock~~ plan, ~~the total number~~a maximum of 2.7 million ordinary shares are authorized ~~by the shareholders is 8.0~~for issuance, of which 2.7 million ~~of which 2.9 million remain~~remained available for issuance as of December 31, ~~2020~~2023, for future equity incentive awards.

F-23

Table of Contents

Compensation Expense

Share-based compensation expense is included in Cost of goods sold and Selling and administrative expenses within the Consolidated Statements of Comprehensive Income. The following table summarizes the expenses recognized for the years ended December 31:

In millions 2020 2019 2018
Stock options $ 3.8 $ 3.5 $ 4.3
RSUs 11.4 10.0 9.6
PSUs 5.6 6.9 5.7
Deferred compensation 2.4 3.2 (0.8)
Pre-tax expense 23.2 23.6 18.8
Tax benefit(a)
(2.9) (3.0) (1.9)
After-tax expense $ 20.3 $ 20.6 $ 16.9

~~(a)Tax benefit reflected in the table above does not include the excess benefit from exercises and vesting of share-based compensation of $4.5 million, $2.8 million and $1.5 million for the years ended December 31, 2020, 2019 and 2018, respectively.~~


In millions	2023		2022		2021
Stock options	$	4.3	$	4.4	$	3.9
RSUs	14.6		14.2		13.6
PSUs	7.5		5.9		5.9

Pre-tax expense	26.4		24.5		23.4
Tax benefit	(2.7)		(2.7)		(2.6)
After-tax expense	$	23.7	$	21.8	$	20.8

Stock Options / RSUs

~~Eligible participants may receive (i) stock options, (ii) RSUs or (iii) a combination of both stock options and RSUs.~~ The weighted-average fair value of each of the Company’s stock option and RSU awards is expensed on a straight-line basis over the required service period, which is generally the 3-year vesting period. However, for stock options and RSUs granted to retirement eligible employees, the Company recognizes expense for the fair value at the grant date.

~~The average fair value of the~~ stock options granted for the years ended December 31, ~~2020, 2019~~2023, 2022 and ~~2018,~~2021, was estimated to be ~~$25.62, $19.58~~$33.66, $28.24 and ~~$21.29~~$24.99 per share, respectively, using the Black-Scholes option-pricing model. The weighted-average assumptions used were as follows:

~~F-27~~

~~Table of Contents~~


			2020		2019		2018
		2023										2023				2022			2021
Dividend yield	Dividend yield		0.99	%	1.23	%	0.97	%	Dividend yield	1.60	%		1.46	%			1.32	%
Volatility	Volatility		20.70	%	21.44	%	22.38	%	Volatility	28.47	%		27.12	%			27.14	%
Risk-free rate of return	Risk-free rate of return		1.41	%	2.53	%	2.75	%	Risk-free rate of return	4.10	%		2.13	%			0.75	%
Expected life	Expected life		6.0 years		6.0 years		6.0 years		Expected life						6.0 years


Ireland						98-1108930
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading symbols	Name of each 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


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐


Allegion Principal Products and Services
Door ~~closers~~controls and ~~controls~~systems			~~Doors~~Locks, locksets, portable locks and ~~door systems~~
~~Electronic security products~~			~~Electronic, biometric and mobile access control~~key systems
Exit devices			~~Locks, locksets, portable locks, key systems and services~~Electronic security products
Software-enabled access control systems			Time, attendance and workforce productivity systems
~~Other~~Doors, accessories and other			Services and software


	First Quarter	Second Quarter	Third Quarter	Fourth Quarter
2020	25%	21%	27%	27%
2019	23%	26%	26%	25%
2018	22%	26%	26%	26%


☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


As of and for the years ended December 31,	2020			2019			2018			2017			2016

Net revenues	$	2,719.9		$	2,854.0		$	2,731.7		$	2,408.2		$	2,238.0

Net earnings attributable to Allegion plc ordinary shareholders	314.3		(a)	401.8		(b)	434.9		(c)	273.3		(d)	229.1		(e)

Total assets	3,069.4			2,967.2			2,810.2			2,542.0			2,247.4

Total debt	1,429.6			1,427.7			1,444.8			1,477.3			1,463.8

Total Allegion plc shareholders’ equity	829.4			757.4			651.0			401.6			113.3

Earnings per share attributable to Allegion plc ordinary shareholders:
Basic:	$	3.41		$	4.29		$	4.58		$	2.87		$	2.39
Diluted:	$	3.39		$	4.26		$	4.54		$	2.85		$	2.36

Dividends declared per ordinary share	$	1.28		$	1.08		$	0.84		$	0.64		$	0.48


Dollar amounts in millions, except per share amounts	Dollar amounts in millions, except per share amounts	2020		% of Net revenues		2019		% of Net revenues
Dollar amounts in millions, except per share amounts
Dollar amounts in millions, except per share amounts
Net revenues
Net revenues
Net revenues	Net revenues	$	2,719.9			$	2,854.0
Cost of goods sold	Cost of goods sold	1,541.1		56.7	%	1,601.7		56.1	%
Cost of goods sold
Cost of goods sold
Selling and administrative expenses	Selling and administrative expenses	635.7		23.4	%	681.3		23.9	%
Impairment of goodwill and intangible assets		101.7		3.7	%	5.9		0.2	%
Loss on assets held for sale		37.9		1.4	%	—		—	%
Selling and administrative expenses
Selling and administrative expenses
Impairment of intangible assets
Impairment of intangible assets
Impairment of intangible assets

Operating income

Operating income

Operating income	Operating income	403.5		14.8	%	565.1		19.8	%
Interest expense	Interest expense	51.1				56.0
Interest expense
Interest expense
Loss on divestitures	Loss on divestitures	—				30.1
Other (income) expense, net		(13.0)				3.8
Loss on divestitures
Loss on divestitures
Other income, net
Other income, net
Other income, net
Earnings before income taxes
Earnings before income taxes
Earnings before income taxes	Earnings before income taxes	365.4				475.2
Provision for income taxes	Provision for income taxes	50.9				73.1
Provision for income taxes
Provision for income taxes
Net earnings
Net earnings
Net earnings	Net earnings	314.5				402.1
Less: Net earnings attributable to noncontrolling interests	Less: Net earnings attributable to noncontrolling interests	0.2				0.3
Less: Net earnings attributable to noncontrolling interests
Less: Net earnings attributable to noncontrolling interests
Net earnings attributable to Allegion plc
Net earnings attributable to Allegion plc
Net earnings attributable to Allegion plc	Net earnings attributable to Allegion plc	$	314.3			$	401.8

Diluted net earnings per ordinary share attributable to Allegion plc ordinary shareholders:	Diluted net earnings per ordinary share attributable to Allegion plc ordinary shareholders:	$	3.39			$	4.26

Diluted net earnings per ordinary share attributable to Allegion plc ordinary shareholders:

Diluted net earnings per ordinary share attributable to Allegion plc ordinary shareholders:


Pricing	~~1.0~~7.5	%
Volume	~~(5.8)~~(2.3)	%
~~Divestitures~~Acquisitions / divestitures	~~(0.3)~~6.2	%
Currency exchange rates	~~0.4~~0.2	%
Total	~~(4.7)~~11.6	%


~~Inflation~~Pricing and productivity in excess of ~~pricing~~inflation and ~~productivity~~investment spending	~~0.2~~ (3.8)	%
Volume / product mix	~~0.8~~0.3	%
~~Divestitures~~Acquisitions / divestitures	~~(0.1)~~0.5	%

Currency exchange rates	0.3	%
Restructuring / integration / acquisition expenses	(0.2)	%
~~Restructuring expenses~~	~~(0.1)~~	%
Total	~~0.6~~ (2.9)	%


~~Productivity~~Inflation in excess of ~~inflation~~productivity and investment spending	~~(2.3)~~0.7	%
Volume leverage	~~1.4~~0.5	%

~~Investment spending~~Acquisitions / divestitures	~~0.1~~ (0.3)	%
~~Currency exchange rates~~	~~(0.1)~~		%
Restructuring / integration / acquisition expenses	~~0.4~~0.3	%
Total	~~(0.5)~~1.2	%


In millions	Operating Income		Operating Margin
December 31, 2022	$	586.4	17.9	%
Pricing and productivity in excess of inflation and investment spending	154.9		3.1	%
Volume / product mix	(40.3)		(0.8)	%
Currency exchange rates	(10.8)		(0.3)	%
Acquisitions/ divestitures	29.7		(0.2)	%
Impairment of intangible assets	(7.5)		(0.2)	%
Restructuring / integration / acquisition expenses	(4.0)		(0.1)	%

December 31, 2023	$	708.4	19.4	%


Pricing	~~1.1~~8.3	%
Volume	~~(5.3)~~(0.9)	%
~~Divestitures~~Acquisitions	~~(0.4)~~7.9	%
Currency exchange rates	(0.2)	%
Total	~~(4.6)~~15.1	%


Pricing	~~0.9~~4.9	%
Volume	~~(6.0)~~(7.4)	%
~~Divestitures~~Acquisitions / divestitures	~~(0.2)~~0.7	%
Currency exchange rates	~~2.2~~1.3	%
Total	~~(3.1)~~(0.5)	%


In millions	2020			2019			% Change
Net revenues
Americas	$	2,016.7		$	2,114.5		(4.6)	%
EMEA	554.6			572.5			(3.1)	%
Asia Pacific	148.6			167.0			(11.0)	%
Total	$	2,719.9		$	2,854.0

Segment operating income (loss)
Americas	$	580.2		$	611.6		(5.1)	%
EMEA	(5.4)			34.3			(115.7)	%
Asia Pacific	(96.7)			0.5			N/M
Total	$	478.1		$	646.4

Segment operating margin
Americas	28.8		%	28.9		%
EMEA	(1.0)		%	6.0		%
Asia Pacific	(65.1)		%	0.3		%


~~Pricing~~	~~(0.7)~~	%
~~Volume~~	~~(9.9)~~	%

~~Currency exchange rates~~	~~(0.4)~~	%
~~Total~~	~~(11.0)~~	%


In millions	2021		2022-2023		2024-2025		Thereafter		Total

Long-term debt (including current maturities)	$	0.2	$	239.1	$	400.1	$	800.0	$	1,439.4
Interest payments on long-term debt	45.6		85.4		66.0		77.3		274.3
Purchase obligations	462.5		—		—		—		462.5
Operating leases	30.4		38.2		16.8		19.5		104.9
Total contractual cash obligations	$	538.7	$	362.7	$	482.9	$	896.8	$	2,281.1


In millions	Operating Income (Loss)		Operating Margin
December 31, 2019	$	34.3	6.0	%
Pricing and productivity in excess of inflation	15.0		2.6	%
Volume / product mix	(22.4)		(3.8)	%
Currency exchange rates	2.8		0.4	%
Investment spending	(0.3)		(0.1)	%
Divestitures	(0.1)		—	%
Restructuring / acquisition expenses	3.1		0.5	%
Impairment of intangible assets	0.1		—	%
Loss on assets held for sale	(37.9)		(6.6)	%
December 31, 2020	$	(5.4)	(1.0)	%


	Year ended December 31, 2020
In millions	Allegion plc		Allegion US Hold Co
Net revenues	$	—	$	—
Gross profit	—		—
Operating loss	(7.5)		(0.2)
Equity earnings in affiliates, net of tax	358.8		216.5
Transactions with related parties and subsidiaries(a)	(15.3)		(39.3)
Net earnings	314.3		164.7
Net earnings attributable to the entity	314.3		164.7


	Year ended December 31, 2023
In millions	Allegion plc		Allegion US Hold Co
Net revenues	$	—	$	—
Gross profit	—		—
Operating loss	(7.4)		(0.5)
Equity earnings in affiliates, net of tax	606.5		330.6
Transactions with related parties and subsidiaries(a)	(30.8)		(77.0)
Net earnings	540.4		232.6
Net earnings attributable to the entity	540.4		232.6


In millions, except per share amounts	2020
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net revenues	$	674.7	$	589.5	$	728.4	$	727.3
Cost of goods sold	381.6		342.9		409.2		407.4
Operating income	28.9		96.5		160.4		117.7
Net earnings	0.5		73.7		146.9		93.4
Net earnings attributable to Allegion plc	0.4		73.7		146.9		93.3
Earnings per share attributable to Allegion plc ordinary shareholders:
Basic	$	—	$	0.80	$	1.59	$	1.02
Diluted	$	—	$	0.80	$	1.58	$	1.01


	2019
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Net revenues	$	655.0	$	731.2	$	748.3	$	719.5
Cost of goods sold	378.1		410.5		412.8		400.3
Operating income	108.0		145.7		168.1		143.3
Net earnings	80.3		109.4		131.7		80.7
Net earnings attributable to Allegion plc	80.2		109.3		131.6		80.7
Earnings per share attributable to Allegion plc ordinary shareholders:
Basic	$	0.85	$	1.17	$	1.41	$	0.87
Diluted	$	0.84	$	1.16	$	1.40	$	0.86


(b)			Management's Report on Internal Control Over Financial Reporting


(a) 1. and 2.			Financial statements and financial statement schedule See Item 8.

3.			Exhibits
			The exhibits listed on the accompanying index to exhibits are filed as part of this Annual Report on Form 10-K.


By:						/s/ ~~David D. Petratis~~John H. Stone
						~~David D. Petratis~~John H. Stone
						Chief Executive Officer
Date:						February ~~16, 2021~~20, 2024


Report of Independent Registered Public Accounting Firm			F-1

Consolidated Statements of Comprehensive Income			F-3

Consolidated Balance Sheets			F-4

Consolidated Statements of Equity			F-5

Consolidated Statements of Cash Flows			F-6

Notes to Consolidated Financial Statements			F-7

Financial Statement Schedule: Schedule II – Valuation and Qualifying Accounts for the years ended December 31, 20 20 ~~, 201~~9 2023, 2022 and 20 182021			F-4034


For the years ended December 31,	For the years ended December 31,	2020		2019		2018		For the years ended December 31,	2023	2022	2021
Net revenues	Net revenues	$	2,719.9	$	2,854.0	$	2,731.7
Cost of goods sold	Cost of goods sold	1,541.1		1,601.7		1,558.4
Selling and administrative expenses	Selling and administrative expenses	635.7		681.3		647.5
Impairment of goodwill and intangible assets		101.7		5.9		0
Loss on assets held for sale		37.9		0		0
Impairment of intangible assets

Operating income
Operating income
Operating income	Operating income	403.5		565.1		525.8
Interest expense	Interest expense	51.1		56.0		54.0
Loss on divestitures	Loss on divestitures	0		30.1		0
Other (income) expense, net		(13.0)		3.8		(3.4)
Other income, net
Earnings before income taxes	Earnings before income taxes	365.4		475.2		475.2
Provision for income taxes	Provision for income taxes	50.9		73.1		39.8
Net earnings	Net earnings	314.5		402.1		435.4
Less: Net earnings attributable to noncontrolling interests	Less: Net earnings attributable to noncontrolling interests	0.2		0.3		0.5
Net earnings attributable to Allegion plc	Net earnings attributable to Allegion plc	$	314.3	$	401.8	$	434.9
Amounts attributable to Allegion plc ordinary shareholders:	Amounts attributable to Allegion plc ordinary shareholders:
Earnings per share attributable to Allegion plc ordinary shareholders:	Earnings per share attributable to Allegion plc ordinary shareholders:
Earnings per share attributable to Allegion plc ordinary shareholders:
Earnings per share attributable to Allegion plc ordinary shareholders:
Basic net earnings:
Basic net earnings:
Basic net earnings:	Basic net earnings:	$	3.41	$	4.29	$	4.58
Diluted net earnings:	Diluted net earnings:	$	3.39	$	4.26	$	4.54

Net earnings	Net earnings	$	314.5	$	402.1	$	435.4
Net earnings
Net earnings
Other comprehensive income (loss), net of tax:	Other comprehensive income (loss), net of tax:
Currency translation	Currency translation	57.3		13.4		(56.9)
Currency translation
Currency translation
Cash flow hedges:	Cash flow hedges:
Unrealized net gains arising during period
Unrealized net gains arising during period
Unrealized net gains arising during period	Unrealized net gains arising during period	3.9		0		4.6
Net gains reclassified into earnings	Net gains reclassified into earnings	(5.8)		(7.5)		(2.3)
Tax benefit (expense)	Tax benefit (expense)	0.5		1.9		(0.5)
Total cash flow hedges, net of tax	Total cash flow hedges, net of tax	(1.4)		(5.6)		1.8
Pension and OPEB adjustments:
Prior service gains (costs) and net actuarial gains (losses), net		4.9		(8.3)		(16.6)
Defined benefit plan adjustments:
Prior service (costs) gains and net actuarial (losses) gains, net
Prior service (costs) gains and net actuarial (losses) gains, net
Prior service (costs) gains and net actuarial (losses) gains, net
Amortization reclassified into earnings	Amortization reclassified into earnings	5.0		6.1		4.5
Settlements/curtailments reclassified into earnings	Settlements/curtailments reclassified into earnings	0.1		2.3		0
Currency translation and other	Currency translation and other	(2.1)		(2.7)		5.1
Tax (expense) benefit		(2.0)		(0.4)		1.6
Total pension and OPEB adjustments, net of tax		5.9		(3.0)		(5.4)
Tax benefit (expense)
Total defined benefit plan adjustments, net of tax
Other comprehensive income (loss), net of tax	Other comprehensive income (loss), net of tax	61.8		4.8		(60.5)
Total comprehensive income, net of tax	Total comprehensive income, net of tax	376.3		406.9		374.9
Less: Total comprehensive income attributable to noncontrolling interests		0.5		0.2		0.9
Less: Total comprehensive (loss) income attributable to noncontrolling interests
Total comprehensive income attributable to Allegion plc	Total comprehensive income attributable to Allegion plc	$	375.8	$	406.7	$	374.0


As of December 31,	As of December 31,	2020		2019		As of December 31,	2023	2022
ASSETS	ASSETS
Current assets:	Current assets:
Current assets:
Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	480.4	$	355.3
Restricted cash		0		3.4
Cash and cash equivalents
Cash and cash equivalents

Accounts and notes receivable, net
Accounts and notes receivable, net
Accounts and notes receivable, net	Accounts and notes receivable, net	321.8		329.8
Inventories	Inventories	283.1		269.9
Current tax receivable	Current tax receivable	25.8		14.2
Other current assets	Other current assets	28.1		29.2
Assets held for sale	Assets held for sale	5.8		0
Total current assets	Total current assets	1,145.0		1,001.8
Property, plant and equipment, net	Property, plant and equipment, net	294.9		291.4
Goodwill	Goodwill	819.0		873.3
Intangible assets, net	Intangible assets, net	487.1		510.9
Deferred and noncurrent income taxes	Deferred and noncurrent income taxes	126.7		112.5
Other noncurrent assets	Other noncurrent assets	196.7		177.3
Total assets	Total assets	$	3,069.4	$	2,967.2
LIABILITIES AND EQUITY	LIABILITIES AND EQUITY
Current liabilities:	Current liabilities:
Current liabilities:
Current liabilities:
Accounts payable
Accounts payable
Accounts payable	Accounts payable	$	220.4	$	221.0
Accrued compensation and benefits	Accrued compensation and benefits	86.1		98.4
Accrued expenses and other current liabilities	Accrued expenses and other current liabilities	189.4		174.7
Current tax payable	Current tax payable	18.2		12.8
Short-term borrowings and current maturities of long-term debt	Short-term borrowings and current maturities of long-term debt	0.2		0.1
Liabilities held for sale		7.2		0

Total current liabilities
Total current liabilities
Total current liabilities	Total current liabilities	521.5		507.0
Long-term debt	Long-term debt	1,429.4		1,427.6
Postemployment and other benefit liabilities	Postemployment and other benefit liabilities	79.4		87.7
Deferred and noncurrent income taxes	Deferred and noncurrent income taxes	105.7		107.8
Other noncurrent liabilities	Other noncurrent liabilities	100.8		76.7
Total liabilities	Total liabilities	2,236.8		2,206.8
Equity:	Equity:
Allegion plc shareholders’ equity	Allegion plc shareholders’ equity
Ordinary shares, $0.01 par value (91,212,741 and 92,723,682 shares issued and outstanding at December 31, 2020 and 2019, respectively)		0.9		0.9
Allegion plc shareholders’ equity
Allegion plc shareholders’ equity
Ordinary shares, $0.01 par value (87,504,673 and 87,852,777 shares issued and outstanding at December 31, 2023 and 2022, respectively)
Ordinary shares, $0.01 par value (87,504,673 and 87,852,777 shares issued and outstanding at December 31, 2023 and 2022, respectively)
Ordinary shares, $0.01 par value (87,504,673 and 87,852,777 shares issued and outstanding at December 31, 2023 and 2022, respectively)
Capital in excess of par value	Capital in excess of par value	0		0
Retained earnings	Retained earnings	985.6		975.1
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(157.1)		(218.6)
Total Allegion plc shareholders’ equity	Total Allegion plc shareholders’ equity	829.4		757.4
Noncontrolling interests	Noncontrolling interests	3.2		3.0
Total equity	Total equity	832.6		760.4
Total liabilities and equity	Total liabilities and equity	$	3,069.4	$	2,967.2


					Allegion plc shareholders' equity
		Total equity

				Total equity																								Total equity	Ordinary Shares	Capital in excess of par value	Retained earnings	Accumulated other comprehensive loss	Noncontrolling interests

Balance at December 31, 2020
Balance at December 31, 2020
Balance at December 31, 2020
						Allegion plc shareholders' equity
		Total equity						Ordinary Shares						Capital in excess of par value				Retained earnings				Accumulated other comprehensive loss				Noncontrolling interests
				Amount				Shares
Balance at December 31, 2017				$	405.5			$	1.0		95.1			$	9.1			$	544.4			$	(152.9)			$	3.9

Net earnings
Net earnings
Net earnings	Net earnings	435.4				—				—		—				434.9				—				0.5
Other comprehensive (loss) income, net	Other comprehensive (loss) income, net	(60.5)				—				—		—				0				(60.9)				0.4
Repurchase of ordinary shares	Repurchase of ordinary shares	(67.3)				(0.1)				(0.9)		(31.5)				(35.7)				—				—
Share-based compensation activity	Share-based compensation activity	22.4				0				0.4		22.4				0				—				—

Dividends declared to noncontrolling interests	Dividends declared to noncontrolling interests	(1.8)				—				—		—				0				—				(1.8)
Cash dividends declared ($0.84 per share)		(79.7)				—				—		—				(79.7)				—				—
Reclassification due to adoption of ASU 2018-02 (see Note 14)		0				—				—		—				9.7				(9.7)				—
Balance at December 31, 2018		654.0				0.9				94.6		0				873.6				(223.5)				3.0
Dividends declared to noncontrolling interests
Dividends declared to noncontrolling interests
Cash dividends declared ($1.44 per share)

Balance at December 31, 2021
Balance at December 31, 2021
Balance at December 31, 2021

Net earnings	Net earnings	402.1				—				—		—				401.8				—				0.3
Other comprehensive income (loss), net		4.8				—				—		—				0				4.9				(0.1)
Net earnings
Net earnings
Other comprehensive loss, net
Repurchase of ordinary shares	Repurchase of ordinary shares	(226.0)				0				(2.3)		(26.5)				(199.5)				—				—
Share-based compensation activity	Share-based compensation activity	26.5				0				0.4		26.5				0				—				—

Dividends declared to noncontrolling interests	Dividends declared to noncontrolling interests	(0.2)				—				—		—				0				—				(0.2)
Cash dividends declared ($1.08 per share)		(100.9)				—				—		—				(100.9)				—				—
Other		0.1				—				—		—				0.1				—				—
Balance at December 31, 2019		760.4				0.9				92.7		0				975.1				(218.6)				3.0
Dividends declared to noncontrolling interests
Dividends declared to noncontrolling interests
Cash dividends declared ($1.64 per share)

Cumulative effect of adoption of ASC 326 (see Note 2)		(2.2)				—				—		—				(2.2)				—				—
Balance at December 31, 2022
Balance at December 31, 2022
Balance at December 31, 2022

Net earnings
Net earnings
Net earnings	Net earnings	314.5				—				—		—				314.3				—				0.2
Other comprehensive income, net	Other comprehensive income, net	61.8				—				—		—				0				61.5				0.3
Repurchase of ordinary shares	Repurchase of ordinary shares	(208.8)				0				(1.9)		(24.8)				(184.0)				—				—
Share-based compensation activity	Share-based compensation activity	24.8				0				0.4		24.8				0				—				—
Acquisition/divestiture of noncontrolling interest and other
Dividends declared to noncontrolling interests
Cash dividends declared ($1.80 per share)

Dividends declared to noncontrolling interests		(0.3)				—				—		—				0				—				(0.3)
Cash dividends declared ($1.28 per share)		(117.9)				—				—		—				(117.9)				—				—
Other		0.3				—				—		—				0.3				—				—
Balance at December 31, 2020		$	832.6			$	0.9			91.2		$	0			$	985.6			$	(157.1)			$	3.2
Balance at December 31, 2023
Balance at December 31, 2023
Balance at December 31, 2023


Buildings	10	to	50	years
Machinery and equipment	2	to	12	years
Software	2	to	7	years


Customer relationships	20	years
Trade names (finite-lived)	2515	years
Completed technologies/patents	10	years
Other	75	years


In millions
Accounts receivable, net	$	69.7
Inventories	50.8
Other current assets	0.4
Property, plant and equipment	14.6
Goodwill	628.2
Intangible assets	222.5
Other noncurrent assets	13.7
Accounts payable	(21.3)
Accrued expenses and other current liabilities	(36.2)
Other noncurrent liabilities	(27.2)
Total net assets acquired and liabilities assumed	$	915.2


	Value (in millions)		Useful life (in years)
Completed technologies/patents	$	6.2	5
Customer relationships	137.4		23
Trade names (finite-lived)	56.8		5
Backlog revenue	22.1		2


In millions	Allegion Americas		Allegion International		Total
December 31, 2021 (gross)	$	501.2	$	876.2	$	1,377.4
Accumulated impairment	—		(573.6)		(573.6)
December 31, 2021 (net)	501.2		302.6		803.8
Acquisitions and adjustments	631.5		—		631.5

Currency translation	(4.6)		(17.6)		(22.2)
December 31, 2022 (net)	1,128.1		285.0		1,413.1
Acquisitions and adjustments	(3.7)		23.0		19.3

Currency translation	2.3		8.4		10.7
December 31, 2023 (net)	$	1,126.7	$	316.4	$	1,443.1


~~Business~~						~~Date~~
~~Technical Glass Products, Inc. ("TGP")~~						~~January 2018~~
~~Hammond Enterprises, Inc. ("Hammond")~~						~~January 2018~~
~~Qatar Metal Industries LLC ("QMI")~~						~~February 2018~~
~~AD Systems, Inc. ("AD Systems")~~						~~March 2018~~
~~Gainsborough Hardware and API Locksmiths ("Door and Access Systems")~~						~~July 2018~~
~~ISONAS Security Systems, Inc. ("ISONAS")~~						~~July 2018~~


In millions
2024	$	412.6
2025	21.9
2026	190.6
2027	400.0
2028	—
Thereafter	1,000.0
Total	$	2,025.1


	Amount of gain (loss) recognized in Accumulated other comprehensive loss						Location of gain recognized in Net earnings	Amount of gain reclassified from Accumulated other comprehensive loss and recognized into Net earnings
In millions	2020		2019		2018			2020		2019		2018
Currency derivatives	$	4.1	$	1.9	$	4.3	Cost of goods sold	$	5.3	$	4.4	$	2.3
Interest rate swaps	(0.2)		(1.9)		2.5		Interest expense	0.5		3.1		2.2
Total	$	3.9	$	0	$	6.8		$	5.8	$	7.5	$	4.5


			U.S.				NON-U.S.
		U.S.												U.S.			NON-U.S.
In millions	In millions		2020		2019		2020		2019		In millions	2023	2022		2023	2022
Change in benefit obligations:	Change in benefit obligations:
Benefit obligation at beginning of year
Benefit obligation at beginning of year
Benefit obligation at beginning of year	Benefit obligation at beginning of year		$	341.0	$	293.3	$	404.5	$	356.8
Service cost	Service cost		6.7		6.5		1.7		1.7
Interest cost	Interest cost		9.6		11.7		6.6		8.8
Employee contributions	Employee contributions		0		0		0.3		0.3
Amendments	Amendments		0		0		0.2		(0.8)
Actuarial losses			22.5		42.2		43.4		45.7
Actuarial losses (gains)(a)
Benefits paid	Benefits paid		(19.0)		(13.0)		(16.3)		(16.9)
Foreign exchange rate changes			0		0		15.9		13.9
Foreign currency exchange rate changes
Curtailments and settlements	Curtailments and settlements		0		0		(0.6)		(5.0)

Other, including expenses paid

Other, including expenses paid

Other, including expenses paid	Other, including expenses paid		0.6		0.3		0		0
Benefit obligation at end of year	Benefit obligation at end of year		$	361.4	$	341.0	$	455.7	$	404.5
Change in plan assets:	Change in plan assets:
Fair value at beginning of year	Fair value at beginning of year		$	301.5	$	259.4	$	409.0	$	352.2
Fair value at beginning of year
Fair value at beginning of year
Actual return on plan assets	Actual return on plan assets		45.2		50.4		52.1		55.2
Company contributions	Company contributions		6.3		6.0		5.1		10.6
Employee contributions	Employee contributions		0		0		0.3		0.3
Benefits paid	Benefits paid		(19.0)		(13.0)		(16.3)		(16.9)
Foreign exchange rate changes			0		0		15.9		15.2
Foreign currency exchange rate changes
Curtailment and settlements	Curtailment and settlements		0		0		(0.6)		(6.2)

Other, including expenses paid	Other, including expenses paid		(1.0)		(1.3)		(1.6)		(1.4)
Other, including expenses paid
Other, including expenses paid
Fair value of assets at end of year	Fair value of assets at end of year		$	333.0	$	301.5	$	463.9	$	409.0
Funded status:	Funded status:
Plan assets (less than) exceeding benefit obligations			$	(28.4)	$	(39.5)	$	8.2	$	4.5
Plan assets exceeding (less than) benefit obligations
Plan assets exceeding (less than) benefit obligations
Plan assets exceeding (less than) benefit obligations
Amounts included in the balance sheet:	Amounts included in the balance sheet:
Other noncurrent assets
Other noncurrent assets
Other noncurrent assets	Other noncurrent assets		$	0	$	0	$	37.4	$	29.3
Accrued compensation and benefits	Accrued compensation and benefits		(0.2)		(0.5)		(0.8)		(0.8)
Postemployment and other benefit liabilities	Postemployment and other benefit liabilities		(28.2)		(39.0)		(27.6)		(24.0)
Liabilities held for sale			0		0		(0.8)		0

Net amount recognized	Net amount recognized		$	(28.4)	$	(39.5)	$	8.2	$	4.5
Net amount recognized
Net amount recognized