Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 10, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-35971 | ||
Entity Central Index Key | 0001579241 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | L2 | ||
Entity Tax Identification Number | 98-1108930 | ||
Entity Address, Address Line One | Block D | ||
Entity Address, Address Line Two | Iveagh Court | ||
Entity Address, Address Line Three | Harcourt Road | ||
Entity Address, City or Town | Dublin 2 | ||
Entity Address, Postal Zip Code | D02 VH94 | ||
Entity Address, Country | IE | ||
Country Region | 353 | ||
City Area Code | 1 | ||
Local Phone Number | 2546200 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12.5 | ||
Entity Registrant Name | Allegion plc | ||
Entity Common Stock, Shares Outstanding | 88,230,442 | ||
Ordinary shares | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Ordinary shares, par value $0.01 per share | ||
Trading Symbol | ALLE | ||
Security Exchange Name | NYSE | ||
3.500% Senior Notes Due 2029 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 3.500% Senior Notes due 2029 | ||
Trading Symbol | ALLE 3 ½ | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | Indianapolis, Indiana |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net revenues | $ 2,867.4 | $ 2,719.9 | $ 2,854 |
Cost of goods sold | 1,662.5 | 1,541.1 | 1,601.7 |
Selling and administrative expenses | 674.7 | 635.7 | 681.3 |
Impairment of goodwill and intangible assets | 0 | 101.7 | 5.9 |
Loss on assets held for sale | 0 | 37.9 | 0 |
Operating income | 530.2 | 403.5 | 565.1 |
Interest expense | 50.2 | 51.1 | 56 |
Loss on divestitures | 0 | 0 | 30.1 |
Other (income) expense, net | (44) | (13) | 3.8 |
Earnings before income taxes | 524 | 365.4 | 475.2 |
Provision for income taxes | 40.7 | 50.9 | 73.1 |
Net earnings | 483.3 | 314.5 | 402.1 |
Less: Net earnings attributable to noncontrolling interests | 0.3 | 0.2 | 0.3 |
Net earnings attributable to Allegion plc | 483 | 314.3 | 401.8 |
Currency translation | (63.3) | 57.3 | 13.4 |
Unrealized net gains arising during period | 2.6 | 3.9 | 0 |
Net gains reclassified into earnings | (0.2) | (5.8) | (7.5) |
Tax (expense) benefit | (0.6) | 0.5 | 1.9 |
Total cash flow hedges, net of tax | 1.8 | (1.4) | (5.6) |
Prior service gains (costs) and net actuarial gains (losses), net | 25.7 | 4.9 | (8.3) |
Amortization reclassified into earnings | 4.8 | 5 | 6.1 |
Settlements/curtailments reclassified into earnings | 0.5 | 0.1 | 2.3 |
Currency translation and other | 1 | (2.1) | (2.7) |
Tax expense | (7.7) | (2) | (0.4) |
Total pension and OPEB adjustments, net of tax | 24.3 | 5.9 | (3) |
Other comprehensive (loss) income, net of tax | (37.2) | 61.8 | 4.8 |
Total comprehensive income, net of tax | 446.1 | 376.3 | 406.9 |
Less: Total comprehensive income attributable to noncontrolling interests | 0.4 | 0.5 | 0.2 |
Total comprehensive income attributable to Allegion plc | $ 445.7 | $ 375.8 | $ 406.7 |
Basic: | |||
Net earnings | $ 5.37 | $ 3.41 | $ 4.29 |
Diluted: | |||
Net earnings | $ 5.34 | $ 3.39 | $ 4.26 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 397.9 | $ 480.4 |
Accounts and notes receivable, net | 283.3 | 321.8 |
Inventories | 380.4 | 283.1 |
Current tax receivable | 29.1 | 25.8 |
Other current assets | 26.9 | 28.1 |
Assets held for sale | 0 | 5.8 |
Total current assets | 1,117.6 | 1,145 |
Property, plant and equipment, net | 283.7 | 294.9 |
Goodwill | 803.8 | 819 |
Intangible assets, net | 447.5 | 487.1 |
Deferred and noncurrent income taxes | 154.5 | 126.7 |
Other noncurrent assets | 243.9 | 196.7 |
Total assets | 3,051 | 3,069.4 |
LIABILITIES AND EQUITY | ||
Accounts payable | 259.1 | 220.4 |
Accrued compensation and benefits | 117.7 | 86.1 |
Accrued expenses and other current liabilities | 199.9 | 189.4 |
Current tax payable | 11.9 | 18.2 |
Short-term borrowings and current maturities of long-term debt | 12.6 | 0.2 |
Liabilities held for sale | 0 | 7.2 |
Total current liabilities | 601.2 | 521.5 |
Long-term debt | 1,429.5 | 1,429.4 |
Postemployment and other benefit liabilities | 69.2 | 79.4 |
Deferred and noncurrent income taxes | 100.8 | 105.7 |
Other noncurrent liabilities | 87.9 | 100.8 |
Total liabilities | 2,288.6 | 2,236.8 |
Equity: | ||
Ordinary shares, $0.01 par value (88,215,625 and 91,212,741 shares issued and outstanding at December 31, 2021 and 2020, respectively) | 0.9 | 0.9 |
Capital in excess of par value | 0 | 0 |
Retained earnings | 952.6 | 985.6 |
Accumulated other comprehensive loss | (194.4) | (157.1) |
Total Allegion plc shareholders’ equity | 759.1 | 829.4 |
Noncontrolling interests | 3.3 | 3.2 |
Total equity | 762.4 | 832.6 |
Total liabilities and equity | $ 3,051 | $ 3,069.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in dollars per share) | $ 0.01 | |
Ordinary shares, issued (in shares) | 88,215,625 | 91,212,741 |
Ordinary shares, outstanding (in shares) | 88,215,625 | 91,212,741 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Ordinary shares | Capital in excess of par value | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interests |
Beginning balance, value at Dec. 31, 2018 | $ 654 | $ 0.9 | $ 0 | $ 873.6 | $ (223.5) | $ 3 |
Beginning balance, shares at Dec. 31, 2018 | 94.6 | |||||
Net earnings | 402.1 | 401.8 | 0.3 | |||
Other comprehensive income (loss), net of tax | 4.8 | 0 | 4.9 | (0.1) | ||
Repurchase of ordinary shares | (226) | $ 0 | (26.5) | (199.5) | ||
Repurchase of ordinary shares | (2.3) | |||||
Share-based compensation | 26.5 | $ 0 | 26.5 | 0 | ||
Share-based compensation, shares | 0.4 | |||||
Dividends to noncontrolling interests | (0.2) | 0 | (0.2) | |||
Cash dividends declared | $ (100.9) | (100.9) | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.08 | |||||
Other | $ 0.1 | 0.1 | 0 | |||
Ending balance, value at Dec. 31, 2019 | 760.4 | $ 0.9 | 0 | 975.1 | (218.6) | 3 |
Ending balance, shares at Dec. 31, 2019 | 92.7 | |||||
Cumulative effect of adoption of ASC 326, Financial Instruments – Credit Losses | (2.2) | (2.2) | ||||
Net earnings | 314.5 | 314.3 | 0.2 | |||
Other comprehensive income (loss), net of tax | 61.8 | 0 | 61.5 | 0.3 | ||
Repurchase of ordinary shares | (208.8) | $ 0 | (24.8) | (184) | ||
Repurchase of ordinary shares | (1.9) | |||||
Share-based compensation | 24.8 | $ 0 | 24.8 | 0 | ||
Share-based compensation, shares | 0.4 | |||||
Dividends to noncontrolling interests | (0.3) | 0 | (0.3) | |||
Cash dividends declared | $ (117.9) | (117.9) | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.28 | |||||
Other | $ 0.3 | 0.3 | ||||
Ending balance, value at Dec. 31, 2020 | 832.6 | $ 0.9 | 0 | 985.6 | (157.1) | 3.2 |
Ending balance, shares at Dec. 31, 2020 | 91.2 | |||||
Net earnings | 483.3 | 483 | 0.3 | |||
Other comprehensive income (loss), net of tax | (37.2) | 0 | (37.3) | 0.1 | ||
Repurchase of ordinary shares | (412.8) | $ 0 | (25.8) | (387) | ||
Repurchase of ordinary shares | (3.3) | |||||
Share-based compensation | 25.8 | $ 0 | 25.8 | 0 | ||
Share-based compensation, shares | 0.3 | |||||
Dividends to noncontrolling interests | (0.3) | 0 | (0.3) | |||
Cash dividends declared | $ (129) | (129) | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 1.44 | |||||
Ending balance, value at Dec. 31, 2021 | $ 762.4 | $ 0.9 | $ 0 | $ 952.6 | $ (194.4) | $ 3.3 |
Ending balance, shares at Dec. 31, 2021 | 88.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net earnings | $ 483.3 | $ 314.5 | $ 402.1 |
Adjustments to arrive at net cash provided by operating activities: | |||
Debt extinguishment costs | 0.5 | 0 | 2.7 |
Depreciation and amortization | 83.1 | 81 | 83 |
Impairment of goodwill and intangible assets | 0 | 101.7 | 5.9 |
Loss on assets held for sale | 0 | 37.3 | 0 |
Loss on divestitures | 0 | 0 | 30.1 |
Share-based compensation | 23.4 | 20.8 | 20.4 |
Unrealized (gains) losses on investments, net | (25.6) | 2 | (3.1) |
Deferred income taxes | (43.8) | (24.4) | (30.2) |
Other items | 7.9 | (6.4) | (0.5) |
Changes in other assets and liabilities | |||
Accounts and notes receivable | 31.7 | (1.9) | (6) |
Inventories | (105.6) | (7.8) | 5.4 |
Other current and noncurrent assets | (38) | (46) | (15) |
Accounts payable | 40 | (1.6) | (11) |
Other current and noncurrent liabilities | 31.7 | 21.1 | 4.4 |
Net cash provided by operating activities | 488.6 | 490.3 | 488.2 |
Cash flows from investing activities: | |||
Capital expenditures | (45.4) | (47.1) | (65.6) |
Acquisition of and equity investments in businesses, net of cash acquired | (6.5) | (12.5) | (7.6) |
Proceeds from sale of equity method investment | 7.6 | 0 | 0 |
Proceeds related to business dispositions, net | 0 | 0 | 3.3 |
Other investing activities, net | 12.7 | 2.9 | (7.7) |
Net cash used in investing activities | (31.6) | (56.7) | (77.6) |
Cash flows from financing activities: | |||
Proceeds from issuance of 2021 Term Facility | 250 | 0 | 0 |
Proceeds from issuance of senior notes | 0 | 0 | 400 |
Payments of short-term borrowings and long-term debt, net | (238.9) | (0.2) | (417.9) |
Proceeds from (repayments of) debt, net | 11.1 | (0.2) | (17.9) |
Debt issuance costs | (1.9) | 0 | (4.2) |
Dividends paid to ordinary shareholders | (129) | (117.3) | (100.6) |
Repurchase of ordinary shares | (412.8) | (208.8) | (226) |
Proceeds from shares issued under incentive plans | 0 | 4.5 | 6.5 |
Other financing activities, net | 3.3 | (0.1) | 0 |
Net cash used in financing activities | (529.3) | (321.9) | (342.2) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10.2) | 10 | (0.3) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (82.5) | 121.7 | 68.1 |
Cash, cash equivalents and restricted cash – beginning of period | 480.4 | 358.7 | 290.6 |
Cash, cash equivalents and restricted cash – end of period | $ 397.9 | $ 480.4 | $ 358.7 |
Description of Company
Description of Company | 12 Months Ended |
Dec. 31, 2021 | |
Description Of Company | |
Description of Company | DESCRIPTION OF COMPANY AND BASIS OF PRESENTATION Allegion plc, an Irish public limited company, and its consolidated subsidiaries ("Allegion" or "the Company") are a leading global company that provides security products and solutions that keep people and assets safe and secure in the places they reside, work and thrive. Allegion creates peace of mind by pioneering safety and security with a vision of seamless access and a safer world. The Company offers an extensive and versatile portfolio of security and access control products and solutions across a range of market-leading brands including CISA®, Interflex®, LCN®, Schlage®, SimonsVoss® and Von Duprin®. Basis of presentation: The Consolidated Financial Statements were prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") as defined by the Financial Accounting Standards Board ("FASB") within the FASB Accounting Standards Codification ("ASC"). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies used in the preparation of the accompanying Consolidated Financial Statements: Principles of Consolidation: The Consolidated Financial Statements include all controlled subsidiaries of the Company. A noncontrolling interest in a subsidiary is considered an ownership interest in a controlled subsidiary that is not attributable to the Company. The Company includes noncontrolling interests as a component of Total equity in the Consolidated Balance Sheets and the Net earnings attributable to noncontrolling interests are presented as an adjustment from Net earnings used to arrive at Net earnings attributable to Allegion plc in the Consolidated Statements of Comprehensive Income. Equity method affiliates represent unconsolidated entities over which the Company demonstrates significant influence but does not have a controlling financial interest. The Company is also required to consolidate variable interest entities in which it bears a majority of the risk to the entity’s potential losses or stands to gain from a majority of the entity’s expected returns. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic conditions and trends and the assessment of the probable future outcome. Some of the more significant estimates include useful lives of property, plant and equipment and intangible assets, purchase price allocations of acquired businesses, valuation of assets and liabilities including goodwill and other intangible assets, product warranties, sales allowances, assets and liabilities related to defined benefit plans, taxes, lease related assets and liabilities, share-based compensation, environmental costs, product liability and other contingencies. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Comprehensive Income in the period they are determined. Currency Translation: Assets and liabilities where the functional currency is not the U.S. dollar have been translated at year-end exchange rates, and income and expense accounts have been translated using average exchange rates throughout the year. Adjustments resulting from the process of translating a subsidiary’s financial statements into the U.S. dollar are recorded to Accumulated other comprehensive loss. Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Transaction gains and losses are recognized in Other income (expense), net, in the Consolidated Statements of Comprehensive Income in the period they are incurred. Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less. Allowance for Doubtful Accounts : The Company provides for an allowance for doubtful accounts and notes receivable, which represents the best estimate of expected lifetime credit losses inherent in the Company’s accounts and notes receivable portfolios. The Company's estimates are influenced by a continuing credit evaluation of customers' financial condition, trade accounts and notes receivable aging and historical loss experience, as well as reasonable and supportable forecasts of future economic conditions. The Company has reserved $5.4 million and $6.2 million for doubtful accounts and notes receivable as of December 31, 2021 and 2020, respectively. Inventories : Inventories are stated at the lower of cost and net realizable value using the first-in, first-out (FIFO) method. Property, Plant and Equipment: Property, plant and equipment are stated at cost, less accumulated depreciation. Assets placed in service are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset except for leasehold improvements, which are depreciated over the shorter of their economic useful life or their lease term. Repair and maintenance costs that do not extend the useful life of the asset are expensed as incurred. Major replacements and significant improvements that increase asset values and extend useful lives are capitalized. The range of useful lives used to depreciate property, plant and equipment is as follows: Buildings 10 to 50 years Machinery and equipment 2 to 12 years Software 2 to 7 years The Company assesses the recoverability of the carrying value of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds its fair value. Investments: The Company periodically invests in debt or equity securities of start-up companies and/or development stage technology or other companies without acquiring a controlling interest. The Company applies the equity method of accounting when the Company has the ability to exercise significant influence over the operating and financial decision making of the investee. Investments in equity method affiliates totaled $11.0 million and $17.4 million as of December 31, 2021 and 2020, respectively. Equity investments that have readily determinable fair values in which the Company does not have significant influence are measured at fair value, with any unrealized holding gains and losses being recorded to earnings. Investments without readily determinable fair values are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer and are qualitatively assessed for impairment indicators each reporting period. Investments in debt and equity securities not accounted for under the equity method of accounting totaled $35.8 million and $13.7 million as of December 31, 2021 and 2020, respectively. The Company's investments are recorded within Other noncurrent assets within the Consolidated Balance Sheets. Leases: The Company records a right-of-use ("ROU") asset and lease liability for substantially all leases for which it is a lessee. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration. Judgment and estimation is also required in determining the lease classification and the amount of the ROU asset and corresponding lease liability for each lease, which includes determining the appropriate lease term and an applicable discount rate. The Company assesses the specific terms and conditions of each lease to determine the appropriate classification as either an operating or finance lease. Substantially all of the Company's leases for which the Company is a lessee are classified as operating leases. In determining the appropriate length of the lease term, both the minimum period over which lease payments are required plus any renewal options that are both within the Company's control to exercise and reasonably certain of being exercised as of lease commencement are considered. If at lease commencement date, a lease has a term of less than 12 months and does not include a purchase option that is reasonably certain to be exercised, the Company does not include the lease as part of its ROU asset or lease liability. If the Company enters into a large number of leases in the same month with the same terms and conditions, these are considered a group (portfolio). There are no material residual value guarantees provided by the Company nor any restrictions or covenants imposed by any leases to which the Company is a party. As a lessee, the Company categorizes its leases into two general categories: real estate leases and equipment leases. The Company's real estate leases include leased production and assembly facilities, warehouses and distribution centers and office space. The Company's equipment leases include vehicles, material handling equipment, other machinery and equipment utilized in the Company's production and assembly facilities, warehouses and distribution centers, laptops and other IT equipment and other miscellaneous leased equipment. The terms and conditions of real estate leases can vary significantly from lease to lease. The Company assesses the specific terms and conditions of each real estate lease to determine the amount of the lease payments and the length of the lease term, which includes the minimum period over which lease payments are required plus any renewal options that are both within the Company's control to exercise and reasonably certain of being exercised upon lease commencement. The Company assesses all relevant factors to determine if sufficient incentives exist as of lease commencement to conclude whether or not renewal is reasonably certain. When available, the Company will utilize the rate implicit in the lease as the discount rate to determine the lease liability. However, as this rate is not available for most leases, the Company will use its incremental borrowing rate for debt instruments with terms approximating the weighted-average term of its real estate or equipment leases to discount the future lease payments over the lease term to present value. The Company does incur variable lease payments for certain of its real estate leases, such as reimbursements of property taxes, maintenance and other operational costs to the lessor. In general, these variable lease payments are not captured as part of the lease liability or ROU asset, but rather are expensed as incurred. Most of the Company's equipment leases are for terms ranging from two to five years, although terms and conditions can vary from lease to lease. The Company applies similar estimates and judgments to its equipment lease portfolio in determining the lease payments, lease term and incremental borrowing rate as it does to its real estate lease portfolio. The Company does not typically incur variable lease payments related to its equipment leases. Goodwill: The Company records as goodwill the excess of the purchase price of an acquired business over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded. Goodwill is tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate the fair value of a reporting unit is more likely than not less than its carrying amount. Recoverability of goodwill is measured at the reporting unit level. The carrying amount of a reporting unit is compared to its estimated fair value. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not impaired. To the extent that the carrying value of the reporting unit exceeds its estimated fair value, a goodwill impairment charge will be recognized for the amount by which the carrying value of the reporting unit exceeds its fair value, not to exceed the carrying amount of the reporting unit's goodwill. Estimated fair value of the Company's reporting units is based on two valuation techniques, a discounted cash flow model (income approach) and a market multiple of earnings (market approach), with each method being weighted in the calculation. Intangible Assets: Indefinite-lived intangible assets other than Goodwill are not amortized, but similar to Goodwill, are also tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate the asset is more likely than not less than its carrying amount. Recoverability of other intangible assets with indefinite useful lives (i.e. Trade names) is determined on a relief from royalty methodology, which is based on the implied royalty paid, at an appropriate discount rate, to license the use of an asset rather than owning the asset. The present value of the after-tax cost savings (i.e. royalty relief) indicates the estimated fair value of the asset. Any excess of the carrying value over the estimated fair value is recognized as an impairment loss equal to that excess. Intangible assets such as completed technologies, patents, customer-related intangible assets and other intangible assets with finite useful lives are amortized on a straight-line basis over their estimated economic lives. The weighted-average useful lives approximate the following: Customer relationships 20 years Trade names (finite-lived) 25 years Completed technologies/patents 10 years Other 7 years Recoverability of intangible assets with finite useful lives is assessed in the same manner as property, plant and equipment, as described above. Business Combinations: The fair value of consideration paid in a business combination is allocated to the tangible and identifiable intangible assets acquired, liabilities assumed and goodwill. Acquired intangible assets primarily include indefinite-lived trade names, customer relationships and completed technologies. The accounting for business combinations involves a considerable amount of judgment and estimation, including the fair value of acquired intangible assets involving projections of future revenues and cash flows that are either discounted at an estimated discount rate or measured at an estimated royalty rate; fair value of other acquired assets and assumed liabilities, including potential contingencies; and the useful lives of the acquired assets. As a result, in the case of significant acquisitions, the Company normally obtains the assistance of a third-party valuation specialist in estimating fair values of acquired tangible and intangible assets and assumed liabilities. An income approach or market approach (or both) is utilized in accordance with accepted valuation models for significant acquired assets to determine fair value. Income Taxes: The calculation of the Company’s income taxes involves considerable judgment and the use of both estimates and allocations. Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. The Company recognizes future tax benefits, such as net operating losses and tax credits, to the extent that realizing these benefits is considered in its judgment to be more likely than not. The Company regularly reviews the recoverability of its deferred tax assets considering its historic profitability, projected future taxable income, timing of the reversals of existing temporary differences and the feasibility of its tax planning strategies. Where appropriate, the Company records a valuation allowance with respect to future tax benefits. Cash paid for income taxes, net of refunds, for the twelve months ended December 31, 2021, 2020 and 2019 was $89.1 million, $82.6 million and $103.0 million, respectively. Product Warranties: The Company offers a standard warranty with most product sales, and the value of such warranty is included in the contractual sales price. Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company regularly assesses the adequacy of its liabilities and makes adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available. Revenue Recognition: Net revenues are recognized based on the satisfaction of performance obligations under the terms of a contract. A performance obligation is a promise in a contract to transfer control of a distinct product or to provide a service, or a bundle of products or services, to a customer. The Company has two principal revenue streams, tangible product sales and services. Approximately 99% of consolidated Net revenues involve contracts with a single performance obligation, the transfer of control of a product or bundle of products to a customer. Transfer of control typically occurs when goods are shipped from the Company's facilities or at other predetermined control transfer points (for instance, destination terms). The Company's remaining Net revenues involve services, including installation and consulting. Unlike the single performance obligation to ship a product or bundle of products, revenue recognition related to services is delayed until the service based performance obligations are satisfied. In some instances, customer acceptance provisions are included in sales arrangements to give the buyer the ability to ensure the service meets any established criteria. In these instances, revenue recognition is deferred until the performance obligations are satisfied, which could include acceptance terms specified in the arrangement being fulfilled through customer acceptance or a demonstration that established criteria have been satisfied. Net revenues are measured as the amount of consideration expected to be received in exchange for transferring control of the products or providing the services and takes into account variable consideration, such as sales incentive programs including discounts and volume rebates. The existence of these programs does not preclude revenue recognition but does require the Company's best estimate of the variable consideration to be made based on expected activity, as these items are reserved for as a deduction to Net revenues based on the Company's historical rates of providing these incentives and annual forecasted sales volumes. Sales returns and customer disputes involving a question of quantity or price are accounted for as variable consideration, and therefore, as a reduction to Net revenues and as a contra receivable. At December 31, 2021 and 2020, the Company had a customer claim accrual (contra receivable) of $47.7 million and $48.6 million, respectively. All other incentives or incentive programs where the customer is required to reach a certain level of purchases, remain a customer for a certain period, provide a rebate form or is subject to additional requirements are also considered variable consideration and are accounted for as a reduction of revenue and a liability. At December 31, 2021 and 2020, the Company had a sales incentive accrual of $38.0 million and $35.0 million, respectively. Each of these accruals represents the Company’s best estimate of the most likely amount expected to be received from customers based on historical experience. These estimates are reviewed regularly for accuracy, and if updated information or actual amounts are different from previous estimates, the revisions are included in the Company’s results for the period in which they become known. As a practical expedient, the Company recognizes incremental costs of obtaining a contract, if any, as an expense when incurred if the amortization period of the asset would have been one year or less. The Company also applies the practical expedients allowed under ASC 606, "Revenue from Contracts with Customers", to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less and for contracts where the Company has the right to invoice for performance completed to date. The transaction price is not adjusted for the effects of a significant financing component, as the time period between control transfer of goods and services is less than one year. Sales, value-added and other similar taxes collected by the Company are excluded from Net revenues. The Company has also elected to account for shipping and handling activities that occur after control of the related goods transfers as fulfillment activities instead of performance obligations. These activities are included in Cost of goods sold in the Consolidated Statements of Comprehensive Income. The Company’s payment terms are generally consistent with the industries in which its businesses operate. Environmental Costs: The Company is subject to laws and regulations relating to protecting the environment and is dedicated to an environmental program to reduce the utilization and generation of hazardous materials during the manufacturing process and to remediate identified environmental concerns. The Company is currently engaged in site investigations and remediation activities to address environmental cleanup from past operations at current and former production facilities. The Company regularly evaluates its remediation programs and considers alternative remediation methods that are in addition to, or in replacement of, those currently utilized by the Company based upon enhanced technology and regulatory changes. Changes to the Company's remediation programs may result in increased expenses and increased environmental reserves. The Company is sometimes a party to environmental lawsuits and claims and has, from time to time, received notices of potential violations of environmental laws and regulations from the U.S. Environmental Protection Agency and similar state authorities. It has also been identified as a potentially responsible party ("PRP") for cleanup costs associated with off-site waste disposal at federal Superfund and state remediation sites for past operations. For all such sites, there are other PRPs and, in most instances, the Company’s involvement is minimal. In estimating its liability, the Company has assumed it will not bear the entire cost of remediation of any site to the exclusion of other PRPs who may be jointly and severally liable. The ability of other PRPs to participate has been taken into account, based on the Company's understanding of the parties’ financial condition and probable contributions on a per site basis. Additional lawsuits and claims involving environmental matters are likely to arise from time to time in the future. Environmental expenditures relating to current operations are expensed or capitalized as appropriate. Expenditures relating to existing conditions caused by past operations, which do not contribute to current or future revenues, are expensed. Liabilities for remediation costs are recorded when they are probable and can be reasonably estimated, generally no later than the completion of feasibility studies or the Company’s commitment to a plan of action. The assessment of this liability, which is calculated based on existing technology, does not reflect any offset for possible recoveries from insurance companies and is not discounted. Research and Development Costs: The Company conducts research and development activities for the purpose of developing and improving new products and services. These costs are expensed when incurred. For the years ended December 31, 2021, 2020 and 2019, expenses related to research and development activities amounted to approximately $73.3 million, $54.4 million and $54.7 million, respectively, and primarily consisted of salaries, wages, benefits, facility costs and other overhead expenses. Defined Benefit Plans: The Company provides a range of defined benefits, including pension, postretirement and postemployment benefits to eligible current and former employees. Determining the costs associated with such benefits is dependent on various actuarial assumptions, including discount rates, expected returns on plan assets, compensation increases, employee mortality and turnover rates. Actuaries perform the required calculations to determine expense in accordance with GAAP. Actual results may differ from the actuarial estimates and are generally recorded to Accumulated other comprehensive loss and amortized into Net earnings over future periods. The Company reviews its actuarial assumptions at each measurement date and makes modifications to the assumptions as appropriate. Refer to Note 12 for further details on defined benefit plans. 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. The 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 Company's Performance Stock Program ("PSP") provides awards for key employees in the form of PSUs based on performance against pre-established objectives. The annual target award level is expressed as a number of the Company's ordinary shares. All PSUs are settled in the form of ordinary shares unless deferred. Loss Contingencies: Liabilities are recorded for various contingencies arising in the normal course of business, including litigation and administrative proceedings, environmental matters, product liabilities, product warranties, worker’s compensation and other claims. The Company has recorded reserves in the financial statements related to these matters, which are developed using inputs derived from actuarial estimates and historical and anticipated experience data depending on the nature of the reserve and, in certain instances, with consultation of legal counsel, internal and external consultants and engineers. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for these types of liabilities, the Company believes its estimated reserves are reasonable and does not believe the final determination of the liabilities with respect to these matters would have a material effect on the financial condition, results of operations, liquidity or cash flows of the Company for any year. Financial Instruments: In the normal course of business, the Company uses various financial instruments, including derivative instruments, to manage the risks associated with interest and currency rate exposures. These financial instruments are not used for trading or speculative purposes. When a derivative contract is entered into, the Company designates the derivative instrument as a cash flow hedge of a forecasted transaction, a cash flow hedge of a recognized asset or liability or as an undesignated derivative. The Company formally documents its hedge relationships, including identification of the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivative instruments that are designated as hedges to specific assets, liabilities or forecasted transactions. The Company assesses at inception and at least quarterly thereafter, whether the derivatives used in cash flow hedging transactions are effective in offsetting the changes in the cash flows of the hedged item. To the extent the derivative is deemed to be an effective hedge, the fair market value changes of the instrument are recorded to Accumulated other comprehensive loss and subsequently reclassified to Net earnings when the hedged transaction affects earnings, while changes in the fair market value of derivatives not deemed to be an effective hedge are recorded in Net earnings in the period of change. The Company recognizes all derivative instruments on the Consolidated Balance Sheets at their fair value as either assets or liabilities. The fair value of derivative instruments is determined through market-based valuations and may not be representative of the actual gains or losses that will be recorded when these instruments mature due to future fluctuations in the markets in which they are traded. If the hedging relationship ceases to be effective subsequent to inception, or it becomes probable that a forecasted transaction will no longer occur, the hedging relationship will be undesignated and any future gains or losses on the derivative instrument will be recorded in Net earnings. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements: In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." The new guidance was intended to simplify the accounting for income taxes by removing certain exceptions and by updating accounting requirements around franchise taxes, goodwill recognized for tax purposes, the allocation of current and deferred tax expense among legal entities, among other minor changes. This ASU became effective for fiscal years beginning after December 15, 2020, and interim periods within those annual periods. Accordingly, the Company adopted ASU 2019-12 on January 1, 2021, and the adoption did not have a material impact to the Consolidated Financial Statements. In January 2020, the FASB issued ASU 2020-01, "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815." The amendments in ASU 2020-01 clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting. This ASU became effective for fiscal years beginning after December 15, 2020, and interim periods within those annual periods. Accordingly, the Company adopted ASU 2020-01 on January 1, 2021, and the adoption did not have a material impact to the Consolidated Financial Statements. Recently Issued Accounting Pronouncements: In October 2021, the FASB issued ASU No. 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." This ASU requires contract assets and contract liabilities (e.g. deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers". Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in purchase accounting. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The Company elected to early adopt ASU 2021-08 on January 1, 2022, and will apply to all business combinations consummated subsequent to this date. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of cost and net realizable value using the first-in, first-out (FIFO) method. At December 31, the major classes of Inventories were as follows: In millions 2021 2020 Raw materials $ 144.4 $ 114.0 Work-in-process 42.2 42.3 Finished goods 193.8 126.8 Total $ 380.4 $ 283.1 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT At December 31, the major classes of property, plant and equipment were as follows: In millions 2021 2020 Land $ 16.5 $ 17.2 Buildings 177.0 179.8 Machinery and equipment 451.1 455.2 Software 152.6 157.7 Construction in progress 30.5 20.2 Total property, plant and equipment 827.7 830.1 Accumulated depreciation (544.0) (535.2) Property, plant and equipment, net $ 283.7 $ 294.9 Depreciation expense for the years ended December 31, 2021, 2020 and 2019, was $45.2 million, $46.5 million and $47.1 million, which includes amounts for software amortization of $11.5 million, $13.5 million and $14.5 million, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill Abstract | |
Goodwill | GOODWILL The changes in the carrying amount of Goodwill were as follows: In millions Allegion Americas Allegion International Total December 31, 2019 (gross) $ 485.0 $ 873.8 $ 1,358.8 Accumulated impairment — (485.5) (485.5) December 31, 2019 (net) 485.0 388.3 873.3 Acquisitions 16.1 — 16.1 Impairment charge — (88.1) (88.1) Currency translation — 17.7 17.7 December 31, 2020 (net) 501.1 317.9 819.0 Acquisitions and adjustments 0.1 4.6 4.7 Currency translation — (19.9) (19.9) December 31, 2021 (net) $ 501.2 $ 302.6 $ 803.8 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The following table sets forth the gross amount and related accumulated amortization of the Company’s intangible assets at December 31: 2021 2020 In millions Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Completed technologies/patents $ 57.9 $ (28.8) $ 29.1 $ 59.9 $ (25.1) $ 34.8 Customer relationships 395.9 (141.6) 254.3 415.5 (130.2) 285.3 Trade names (finite-lived) 84.0 (56.9) 27.1 90.2 (57.4) 32.8 Other 45.8 (22.7) 23.1 27.0 (11.1) 15.9 Total finite-lived intangible assets 583.6 $ (250.0) 333.6 592.6 $ (223.8) 368.8 Trade names (indefinite-lived) 113.9 113.9 118.3 118.3 Total $ 697.5 $ 447.5 $ 710.9 $ 487.1 Intangible asset amortization expense for the years ended December 31, 2021, 2020 and 2019, was $34.0 million, $31.5 million and $31.2 million, respectively. Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $29.0 million for 2022, $28.8 million for 2023, $28.8 million for 2024, $27.9 million for 2025 and $25.7 million for 2026. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions Disclosure | ACQUISITIONS In July 2021, the Company acquired, through its subsidiaries, certain assets of Astrum Benelux B.V. ("Astum Benelux") and 100% of the equity of WorkforceIT B.V. in the Netherlands ("WorkforeceIT"), both of which were previously held under common control and offer workforce management technology products and solutions in the Benelux region of Europe. Neither the assets from Astrum Benelux nor the acquisition of WorkforceIT had a material impact on the Consolidated Financial Statements. Both Workforce IT and the assets acquired from Astrum Benelux were accounted for as a business combination and have been integrated into the Allegion International segment. In December 2020, the Company acquired the remaining interest of Yonomi, Inc. ("Yonomi"), a U.S. based smart home integration platform provider and innovation leader in IoT Cloud platforms, through one of its subsidiaries. Prior to acquisition, the Company held a noncontrolling interest in Yonomi that was considered an equity method investment. This acquisition was accounted for as a business combination and did not have a material impact on the Consolidated Financial Statements. Yonomi has been integrated into the Allegion Americas segment. |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | |
Divestitures | DIVESTITURESAs previously disclosed, during the fourth quarter of 2020, the net assets of the Company's Qatar Metal Industries ("QMI") business, met the criteria to be classified as held for sale, and accordingly, were written down to fair value, resulting in a Loss on assets held for sale in 2020 of $37.9 million. On February 28, 2021, the Company completed its divestiture of QMI. The completion of the divestiture did not have a material impact to the Consolidated Financial Statements for the year ended December 31, 2021.In 2019, the Company closed its production facility in Turkey and sold certain of the production assets thereof. Total proceeds from the sale were approximately $4.1 million, and the Company recorded a loss on divestiture of $24.2 million ($25.5 million, net of tax), primarily driven by the reclassification of $25.0 million of accumulated foreign currency translation adjustments to earnings upon sale. The Company also sold its interests in its Colombia operations in 2019 for a nominal amount, recording a net loss on divestiture of $5.9 million, of which $1.2 million relates to the reclassification of accumulated foreign currency translation adjustments to earnings upon sale. These losses are included within Loss on divestitures in the Consolidated Statements of Comprehensive Income for the year ended December 31, 2019. |
Debt and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | DEBT AND CREDIT FACILITIES At December 31, long-term debt and other borrowings consisted of the following: In millions 2021 2020 2021 Term Facility $ 250.0 $ — Term Facility — 238.8 2021 Revolving Facility — — Revolving Facility — — 3.200% Senior Notes due 2024 400.0 400.0 3.550% Senior Notes due 2027 400.0 400.0 3.500% Senior Notes due 2029 400.0 400.0 Other debt 0.3 0.6 Total borrowings outstanding 1,450.3 1,439.4 Less discounts and debt issuance costs, net (8.2) (9.8) Total debt 1,442.1 1,429.6 Less current portion of long-term debt 12.6 0.2 Total long-term debt $ 1,429.5 $ 1,429.4 Unsecured Credit Facilities On November 18, 2021, the Company entered into a new unsecured credit agreement (the “2021 Credit Agreement”), which refinanced in full the Company's previously outstanding unsecured Credit Facilities. The 2021 Credit Agreement consists of a $250.0 million term loan facility (the “2021 Term Facility”) and a $500.0 million revolving credit facility (the “2021 Revolving Facility” and, together with the 2021 Term Facility, the “2021 Credit Facilities”). The 2021 Credit Facilities mature on November 18, 2026, and are unconditionally guaranteed jointly and severally on an unsecured basis by the Company and Allegion US Holding Company Inc. ("Allegion US Hold Co"), the Company's wholly-owned subsidiary. All obligations under the previously outstanding Credit Agreement were satisfied, all commitments thereunder were terminated, and all guarantees that had been granted in connection therewith were released. The full amount of the 2021 Term Facility was drawn at closing, with the initial proceeds of $250.0 million primarily used to repay in full the outstanding borrowings under the previously outstanding Term Facility. The 2021 Term Facility will amortize in quarterly installments at the following rates: 1.25% per quarter starting March 31, 2022 through March 31, 2025, 2.5% per quarter starting June 30, 2025 through September 30, 2026, with the balance due on November 18, 2026. The Company may voluntarily prepay outstanding amounts under the 2021 Term Facility at any time without premium or penalty, subject to customary breakage costs. Amounts borrowed under the 2021 Term Facility that are repaid may not be reborrowed. The 2021 Revolving Facility provides aggregate commitments of up to $500.0 million, which includes up to $100.0 million for the issuance of letters of credit. At December 31, 2021, there were no borrowings outstanding on the 2021 Revolving Facility and the Company had $8.7 million of letters of credit outstanding. Commitments under the 2021 Revolving Facility may be reduced at any time without premium or penalty, and amounts repaid may be reborrowed. The Company pays certain fees with respect to the 2021 Revolving Facility, including an unused commitment fee on the undrawn portion of the 2021 Revolving Facility of between 0.090% and 0.200% per year, depending on the Company's credit rating, as well as certain other fees. Outstanding borrowings under the 2021 Credit Facilities accrue interest at the option of the Company of (i) a Bloomberg Short-Term Bank Yield Index (“BSBY”) rate plus the applicable margin or (ii) a base rate plus the applicable margin. The applicable margin ranges from 0.875% to 1.375% depending on the Company's credit ratings. At December 31, 2021, the outstanding borrowings under the 2021 Term Facility accrue interest at BSBY plus a margin of 1.125%, resulting in an interest rate of 1.271%. The 2021 Credit Facilities also contain negative and affirmative covenants and events of default that, among other things, limit or restrict the Company’s ability to enter into certain transactions. In addition, the 2021 Credit Facilities require the Company to comply with a maximum leverage ratio as defined within the agreement. As of December 31, 2021, the Company was in compliance with all covenants. Senior Notes As of December 31, 2021, Allegion US Hold Co has $400.0 million outstanding of its 3.200% Senior Notes due 2024 (the “3.200% Senior Notes”) and $400.0 million outstanding of its 3.550% Senior Notes due 2027 (the “3.550% Senior Notes”), while Allegion plc has $400.0 million outstanding of its 3.500% Senior Notes due 2029 (the “3.500% Senior Notes”). The 3.200% Senior Notes, 3.550% Senior Notes and 3.500% Senior Notes (collectively, the "Senior Notes") all require semi-annual interest payments on April 1 and October 1 of each year, and will mature on October 1, 2024, October 1, 2027, and October 1, 2029, respectively. The 3.200% Senior Notes and the 3.550% Senior Notes are senior unsecured obligations of Allegion US Hold Co and rank equally with all of Allegion US Hold Co’s existing and future senior unsecured and unsubordinated indebtedness. The guarantee of the 3.200% Senior Notes and the 3.550% Senior Notes is the senior unsecured obligation of the Company and ranks equally with all of the Company's existing and future senior unsecured and unsubordinated indebtedness. The 3.500% Senior Notes are senior unsecured obligations of Allegion plc, are guaranteed by Allegion US Hold Co and rank equally with all of the Company's existing and future senior unsecured indebtedness. Future Repayments Scheduled principal repayments on indebtedness as of December 31, 2021 were as follows: In millions 2022 $ 12.6 2023 12.6 2024 412.6 2025 21.9 2026 190.6 Thereafter 800.0 Total $ 1,450.3 Cash paid for interest for the years ended December 31, 2021, 2020 and 2019 was $45.1 million, $47.3 million and $48.8 million, respectively. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial instruments | FINANCIAL INSTRUMENTS Currency Derivatives The gross notional amount of the Company’s currency derivatives was $164.9 million and $218.9 million at December 31, 2021 and 2020, respectively. The fair values of currency derivatives included within the Consolidated Balance Sheets as of December 31, 2021 and 2020 were not material, nor were either the balances included in Accumulated other comprehensive loss or the amount expected to be reclassified into Net earnings over the next twelve months related to currency derivatives designated as cash flow hedges, although the actual amounts that will be reclassified to Net earnings may vary as a result of future changes in market conditions. The amounts associated with currency derivatives designated as hedges affecting Net earnings and Accumulated other comprehensive loss for the years ended December 31 were as follows: Amount of gain 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 2021 2020 2019 2021 2020 2019 Currency derivatives $ 2.6 $ 4.1 $ 1.9 Cost of goods sold $ 0.2 $ 5.3 $ 4.4 Gains and losses associated with the Company's non-designated currency derivatives, which are offset by changes in the fair value of the underlying transactions, are included within Other (income) expense, net in the Consolidated Statements of Comprehensive Income. At December 31, 2021, the maximum term of the Company’s currency derivatives, both those that are designated as cash flow hedges and those that are not, was less than one year. Concentration of Credit Risk The counterparties to the Company’s forward contracts consist of a number of investment grade major international financial institutions. The Company could be exposed to losses in the event of nonperformance by the counterparties. However, the credit ratings and the concentration of risk in these financial institutions are monitored on a continuous basis and present no significant credit risk to the Company. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES Total rental expense for the years ended December 31, 2021, 2020 and 2019, was $45.4 million, $44.2 million and $43.2 million, respectively, and is classified within Cost of goods sold and Selling and administrative expenses within the Consolidated Statements of Comprehensive Income. Rental expense related to short-term leases, variable lease payments or other leases or lease components not included within the ROU asset or lease liability totaled $8.2 million, $9.1 million and $8.1 million, respectively, for the years ended December 31, 2021, 2020 and 2019. No material lease costs have been capitalized on the Consolidated Balance Sheets as of December 31, 2021 or 2020. Amounts included within the Consolidated Balance Sheets related to the Company's ROU asset and lease liability were as follows: December 31, 2021 December 31, 2020 In millions Balance Sheet classification Real estate Equipment Total Real estate Equipment Total ROU asset Other noncurrent assets $ 58.2 $ 31.7 $ 89.9 $ 59.5 $ 32.5 $ 92.0 Lease liability - current Accrued expenses and other current liabilities 15.5 13.6 29.1 14.7 12.9 27.6 Lease liability - noncurrent Other noncurrent liabilities 45.1 18.2 63.3 46.5 19.8 66.3 Other information: Weighted-average remaining term (years) 6.5 2.8 7.0 3.2 Weighted-average discount rate 3.4 % 2.1 % 3.9 % 2.7 % The following table summarizes additional information related to the Company's leases for the years ended December 31: 2021 2020 In millions Real estate Equipment Total Real estate Equipment Total Cash paid for amounts included in the measurement of lease liabilities $ 19.1 $ 17.4 $ 36.5 $ 19.0 $ 15.0 $ 34.0 ROU assets obtained in exchange for new lease liabilities 16.7 12.8 29.5 19.2 22.0 41.2 The Company frequently enters into both real estate and equipment leases in the normal course of business. While there have been lease agreements entered into that have not yet commenced as of December 31, 2021, none of these leases provide new rights or obligations to the Company that are material individually or in the aggregate. Future Repayments Scheduled minimum lease payments required under non-cancellable operating leases for both the real estate and equipment lease portfolios for the next five years and thereafter as of December 31, 2021, were as follows: In millions 2022 2023 2024 2025 2026 Thereafter Total Real estate leases $ 17.3 $ 12.9 $ 9.5 $ 8.0 $ 4.8 $ 16.2 $ 68.7 Equipment leases 14.1 9.9 5.7 2.6 0.3 — 32.6 Total $ 31.4 $ 22.8 $ 15.2 $ 10.6 $ 5.1 $ 16.2 $ 101.3 The difference between the total undiscounted minimum lease payments and the combined current and noncurrent lease liabilities as of December 31, 2021, is due to imputed interest of $8.9 million. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits, Description [Abstract] | |
Pensions and Postretirement Benefits Other Than Pensions | PENSIONS AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS The Company sponsors several U.S. defined benefit and defined contribution plans covering substantially all U.S. employees. Additionally, the Company has non-U.S. defined benefit and defined contribution plans covering eligible non-U.S. employees. Postretirement benefits, other than pensions, provide healthcare benefits, and in some instances, life insurance benefits for certain eligible employees. Pension Plans The noncontributory defined benefit pension plans covering non-collectively bargained U.S. employees provide benefits on an average pay formula, while most plans for collectively bargained U.S. employees provide benefits on a flat dollar benefit formula. The non-U.S. pension plans generally provide benefits based on earnings and years of service. The Company also maintains additional other supplemental plans for officers and other key employees. The following table details information regarding the Company’s pension plans at December 31: U.S. NON-U.S. In millions 2021 2020 2021 2020 Change in benefit obligations: Benefit obligation at beginning of year $ 361.4 $ 341.0 $ 455.7 $ 404.5 Service cost 6.7 6.7 2.0 1.7 Interest cost 6.8 9.6 5.1 6.6 Employee contributions — — 0.3 0.3 Amendments — — (0.1) 0.2 Actuarial (gains) losses (18.7) 22.5 (21.9) 43.4 Benefits paid (20.0) (19.0) (14.8) (16.3) Foreign exchange rate changes — — (5.4) 15.9 Curtailments and settlements — — (3.0) (0.6) Divestitures — — (0.8) — Other, including expenses paid (0.3) 0.6 — — Benefit obligation at end of year $ 335.9 $ 361.4 $ 417.1 $ 455.7 Change in plan assets: Fair value at beginning of year $ 333.0 $ 301.5 $ 463.9 $ 409.0 Actual return on plan assets 8.9 45.2 3.7 52.1 Company contributions 6.2 6.3 6.0 5.1 Employee contributions — — 0.3 0.3 Benefits paid (20.0) (19.0) (14.8) (16.3) Foreign exchange rate changes — — (4.8) 15.9 Curtailment and settlements — — (3.0) (0.6) Other, including expenses paid (1.6) (1.0) (1.9) (1.6) Fair value of assets at end of year $ 326.5 $ 333.0 $ 449.4 $ 463.9 Funded status: Plan assets (less than) exceeding benefit obligations $ (9.4) $ (28.4) $ 32.3 $ 8.2 Amounts included in the balance sheet: Other noncurrent assets $ 13.9 $ — $ 55.9 $ 37.4 Accrued compensation and benefits (0.5) (0.2) (0.7) (0.8) Postemployment and other benefit liabilities (22.8) (28.2) (22.9) (27.6) Liabilities held for sale — — — (0.8) Net amount recognized $ (9.4) $ (28.4) $ 32.3 $ 8.2 It is the Company’s objective to contribute to the pension plans to ensure adequate funds are available in the plans to make benefit payments to plan participants and beneficiaries when required. However, certain plans are not funded due to either legal, accounting or tax requirements in certain jurisdictions. As of December 31, 2021, approximately 6% of the Company's projected benefit obligation relates to plans that are not funded, of which the majority are non-U.S. plans. The pretax amounts recognized in Accumulated other comprehensive loss were as follows: U.S. In millions Prior service cost Net actuarial losses Total December 31, 2019 $ (1.2) $ (69.1) $ (70.3) Current year changes recorded to Accumulated other comprehensive loss — 8.1 8.1 Amortization reclassified to earnings 0.2 3.6 3.8 December 31, 2020 $ (1.0) $ (57.4) $ (58.4) Current year changes recorded to Accumulated other comprehensive loss — 13.5 13.5 Amortization reclassified to earnings 0.3 3.4 3.7 December 31, 2021 $ (0.7) $ (40.5) $ (41.2) NON-U.S. In millions Prior service cost Net actuarial losses Total December 31, 2019 $ (3.8) $ (69.8) $ (73.6) Current year changes recorded to Accumulated other comprehensive loss (0.3) (4.0) (4.3) Amortization reclassified to earnings 0.1 1.3 1.4 Settlements/curtailments reclassified to earnings — 0.1 0.1 Currency translation and other (0.1) (2.6) (2.7) December 31, 2020 $ (4.1) $ (75.0) $ (79.1) Current year changes recorded to Accumulated other comprehensive loss 0.1 11.8 11.9 Amortization reclassified to earnings 0.1 1.4 1.5 Settlements/curtailments reclassified to earnings — 0.5 0.5 Currency translation and other 0.1 2.0 2.1 December 31, 2021 $ (3.8) $ (59.3) $ (63.1) Weighted-average assumptions used: Benefit obligations at December 31, 2021 2020 Discount rate: U.S. plans 2.8 % 2.5 % Non-U.S. plans 1.9 % 1.3 % Rate of compensation increase: U.S. plans 3.0 % 3.0 % Non-U.S. plans 3.4 % 3.0 % The accumulated benefit obligation for all U.S. defined benefit pension plans was $333.4 million and $354.9 million at December 31, 2021 and 2020, respectively. The accumulated benefit obligation for all non-U.S. defined benefit pension plans was $410.2 million and $446.0 million at December 31, 2021 and 2020, respectively. Information regarding pension plans with accumulated benefit obligations more than plan assets were: U.S. NON-U.S. In millions 2021 2020 2021 2020 Projected benefit obligation $ 23.3 $ 24.0 $ 33.7 $ 40.3 Accumulated benefit obligation 23.0 23.3 28.2 34.0 Fair value of plan assets $ — $ — $ 10.1 $ 11.1 Future pension benefit payments are expected to be paid as follows: In millions U.S. NON-U.S. 2022 $ 19.5 $ 15.6 2023 30.0 16.1 2024 28.2 17.0 2025 19.8 17.8 2026 21.2 18.6 2027 - 2031 93.4 104.8 The components of the Company’s net periodic pension benefit cost (income) for the years ended December 31 were as follows: U.S. In millions 2021 2020 2019 Service cost $ 6.7 $ 6.7 $ 6.5 Interest cost 6.8 9.6 11.7 Expected return on plan assets (14.0) (14.5) (12.5) Administrative costs and other 1.2 1.6 1.7 Net amortization of: Prior service costs 0.3 0.2 0.3 Plan net actuarial losses 3.4 3.6 4.7 Net periodic pension benefit cost $ 4.4 $ 7.2 $ 12.4 NON-U.S. In millions 2021 2020 2019 Service cost $ 2.0 $ 1.7 $ 1.7 Interest cost 5.1 6.6 8.8 Expected return on plan assets (13.8) (12.7) (13.0) Administrative costs and other 1.9 1.6 1.3 Net amortization of: Prior service costs 0.1 0.1 0.2 Plan net actuarial losses 1.4 1.3 1.4 Net curtailment and settlement losses 0.5 0.1 2.3 Net periodic pension benefit (income) cost $ (2.8) $ (1.3) $ 2.7 The Service cost component of Net periodic pension benefit cost (income) is recorded in Cost of goods sold and Selling and administrative expenses, while the remaining components are recorded within Other (income) expense, net within the Consolidated Statements of Comprehensive Income. Net periodic pension benefit income for 2022 is projected to be approximately $1.7 million, utilizing the assumptions for calculating the pension benefit obligations at the end of 2021. Weighted-average assumptions used: Net periodic pension benefit cost (income) for the year ended December 31, 2021 2020 2019 Discount rate: U.S. plans 2.5 % 3.3 % 4.3 % Non-U.S. plans 1.3 % 1.9 % 2.8 % Rate of compensation increase: U.S. plans 3.0 % 3.0 % 3.0 % Non-U.S. plans 3.0 % 3.0 % 3.3 % Expected return on plan assets: U.S. plans 4.3 % 5.0 % 5.0 % Non-U.S. plans 3.0 % 3.3 % 3.8 % The Company estimates the service and interest cost components of net periodic benefit cost utilizing a full yield-curve approach. Under this approach, the Company applies discounting using the applicable spot rates derived from the yield curve to discount the cash flows used to measure the benefit obligation. These spot rates align to each of the projected benefit obligations and service cost cash flows. The expected return on plan assets reflects the average rate of returns expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation and is based on what is achievable given the plan’s investment policy, the types of assets held and target asset allocations. The expected long-term rate of return is determined as of the measurement date. Each plan is reviewed, along with its historical returns and target asset allocations, to determine the appropriate expected return on plan assets to be used. The Company's overall objective in managing defined benefit plan assets is to ensure that all present and future benefit obligations are met as they come due. The goal is to achieve this while trying to mitigate volatility in plan funded status, contributions and expense by better matching the characteristics of the plan assets to that of the plan liabilities. Each plan’s funded status and asset allocation is monitored regularly in addition to investment manager performance. The fair values of the Company’s U.S. pension plan assets at December 31, 2021, by asset category were as follows: Fair value measurements Total In millions Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs (Level 3) Assets measured at NAV Cash, cash equivalents and short-term investments $ — $ — $ — $ 4.5 $ 4.5 Common collective trusts — — — 252.3 252.3 Other (a) — — — 69.7 69.7 Total U.S. pension plan assets $ — $ — $ — $ 326.5 $ 326.5 (a) Includes group trust diversified credit and real asset funds. The fair values of the Company’s U.S. pension plan assets at December 31, 2020, by asset category were as follows: Fair value measurements Total In millions Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs (Level 3) Assets measured at NAV Cash, cash equivalents and short-term investments $ — $ — $ — $ 2.1 $ 2.1 Common collective trusts — — — 288.4 288.4 Other (a) — — — 42.5 42.5 Total U.S. pension plan assets $ — $ — $ — $ 333.0 $ 333.0 (a) Includes a group trust diversified credit fund and real estate investment trust. No material transfers in or out of Level 3 occurred during the years ended December 31, 2021 or 2020. The Company's U.S. pension plan assets are valued using the following methodologies: • Cash, cash equivalents and short-term investments – Short-term investments are valued at their daily net asset value (NAV) per share or the equivalent based upon the fair value of the underlying investments. NAV per share or the equivalent is used for fair value purposes as a practical expedient and is calculated by the investment manager or sponsor of the fund. These investments primarily consist of short-term investment funds. • Common collective trusts - Common collective trust ("CCT") funds are not publicly traded and are valued at NAV per share or the equivalent based upon the fair value of the underlying investments. NAV per share or the equivalent is used for fair value purposes as a practical expedient and is calculated by the investment manager or sponsor of the applicable fund. CCT funds consist of a variety of publicly traded securities, including equity mutual funds, U.S. government and agency obligations, corporate and non-U.S. bonds, securitized credit and emerging market debt. There are no unfunded commitments, redemption frequency restrictions or other redemption restrictions related to such investments. The fair values of the Company’s non-U.S. pension plan assets at December 31, 2021, by asset category were as follows: Fair value measurements Total In millions Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs (Level 3) Assets measured at NAV Cash, cash equivalents and short-term investments $ 0.3 $ — $ — $ 103.9 $ 104.2 Equity mutual funds — 3.1 — 112.5 115.6 Corporate and non-U.S. bonds — 3.0 — 166.4 169.4 Other (a) — 0.5 3.8 55.9 60.2 Total non-U.S. pension plan assets $ 0.3 $ 6.6 $ 3.8 $ 438.7 $ 449.4 (a) Primarily includes a core diversified credit fund, a credit opportunity fund and derivative contracts. The fair values of the Company’s non-U.S. pension plan assets at December 31, 2020, by asset category were as follows: Fair value measurements Total In millions Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs (Level 3) Assets measured at NAV Cash, cash equivalents and short-term investments $ 1.6 $ — $ — $ 92.5 $ 94.1 Equity mutual funds — 3.3 — 110.0 113.3 Corporate and non-U.S. bonds — 3.5 — 203.8 207.3 Other (a) — 0.5 4.2 44.5 49.2 Total non-U.S. pension plan assets $ 1.6 $ 7.3 $ 4.2 $ 450.8 $ 463.9 (a) Primarily includes a core diversified credit fund and derivative contracts. No material transfers in or out of Level 3 occurred during the years ended December 31, 2021 or 2020. The Company's non-U.S. pension plan assets are valued using the following methodologies: • Cash, cash equivalents and short-term investments – Cash equivalents are valued using a market approach with inputs including quoted market prices for either identical or similar instruments. Short-term investments are valued at the closing price or amount held on deposit by the custodian bank, at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer, or at their NAV per share or the equivalent based upon the fair value of the underlying investments. NAV per share or the equivalent is used for fair value purposes as a practical expedient and is calculated by the investment manager or sponsor of the fund. These investments primarily consist of short-term investment funds. • Equity mutual funds – Equity mutual funds are primarily valued at their NAV per share or the equivalent. NAV per share or the equivalent is used for fair value purposes as a practical expedient. NAV is calculated by the investment manager or sponsor of the fund. • Corporate and non-U.S. bonds – Quoted market prices are not available for these securities. Fair values are either estimated using pricing models and/or quoted prices of securities with similar characteristics or discounted cash flows, in which instances such securities are classified as Level 2 or valued at their NAV per share or the equivalent. NAV per share or the equivalent is used for fair value purposes as a practical expedient and are calculated by the investment manager or sponsor of the fund. The Company made employer contributions of $6.2 million, $6.3 million and $6.0 million to the U.S. pension plans in 2021, 2020 and 2019, respectively. The Company made required and discretionary contributions to its non-U.S. pension plans of $6.0 million, $5.1 million and $10.6 million in 2021, 2020 and 2019, respectively. The Company currently projects that approximately $5 million will be contributed to its plans worldwide in 2022. The Company’s policy allows it to fund an amount, which could be in excess of or less than the pension cost expensed, subject to the limitations imposed by current tax regulations. The Company anticipates funding the plans in 2022 in accordance with contributions required by funding regulations or the laws of each jurisdiction. Most of the Company’s U.S. employees are covered by defined contribution plans. Employer contributions are determined based on criteria specific to the individual plans and amounted to approximately $18.3 million, $17.9 million and $15.6 million in 2021, 2020 and 2019, respectively. The Company’s contributions relating to non-U.S. defined contribution plans and other non-U.S. benefit plans were $8.6 million, $7.0 million and $6.0 million in 2021, 2020 and 2019, respectively. Deferred Compensation Plan The Company maintains an Executive Deferred Compensation Plan ("EDCP"), which is an unfunded, nonqualified plan that, prior to 2019, permitted certain employees to defer up to 50% of their annual salary and up to 100% of their annual bonus awards, performance stock plan awards and restricted stock units earned until conclusion of their employment with the Company. As of December 31, 2021 and 2020, the deferred compensation liability balance was $18.2 million and $18.1 million, respectively, which was recorded within Postemployment and other benefit liabilities in the Consolidated Balance Sheets. Postretirement Benefits Other Than Pensions 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, 2021 and 2020 was $4.4 million and $5.2 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, 2021, 2020 or 2019, nor is it projected to be material for 2022. 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. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on a framework that utilizes the inputs market participants use to determine the fair value of an asset or liability and establishes a fair value hierarchy to prioritize those inputs. The fair value hierarchy is comprised of 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 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, 2021, were as follows: Fair value measurements Total 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 $ — $ 24.5 $ — $ 24.5 Derivative instruments — 0.5 — 0.5 Total asset recurring fair value measurements $ — $ 25.0 $ — $ 25.0 Liabilities: Derivative instruments $ — $ 0.4 $ — $ 0.4 Deferred compensation and other retirement plans — 25.9 — 25.9 Total liability recurring fair value measurements $ — $ 26.3 $ — $ 26.3 Financial instruments not carried at fair value Total debt $ — $ 1,510.4 $ — $ 1,510.4 Total financial instruments not carried at fair value $ — $ 1,510.4 $ — $ 1,510.4 Assets and liabilities measured at fair value at December 31, 2020, were as follows: Fair value measurements Total 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 $ — $ 23.5 $ — $ 23.5 Derivative instruments — 1.6 — 1.6 Total asset recurring fair value measurements $ — $ 25.1 $ — $ 25.1 Liabilities: Derivative instruments $ — $ 3.4 $ — $ 3.4 Deferred compensation and other retirement plans — 25.1 — 25.1 Total liability recurring fair value measurements $ — $ 28.5 $ — $ 28.5 Financial instruments not carried at fair value Total debt $ — $ 1,541.4 $ — $ 1,541.4 Total financial instruments not carried at fair value $ — $ 1,541.4 $ — $ 1,541.4 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. 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. • 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 maturing through 2029. The fair value of the long-term debt instruments is obtained based on observable market prices quoted on public exchanges for similar instruments. The carrying values of Cash and cash equivalents, 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 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. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | EQUITY Ordinary Shares The changes in Ordinary shares for the year ended December 31, 2021 were as follows: In millions Total December 31, 2020 91.2 Shares issued under incentive plans 0.3 Repurchase of ordinary shares (3.3) December 31, 2021 88.2 Allegion had 400.0 million ordinary shares authorized and 10.0 million $0.001 par value preferred shares authorized (with none outstanding) at December 31, 2021. In February 2020, the Company's Board of Directors approved a share repurchase authorization of up to, and including, $800 million of the Company's ordinary shares (the "2020 Share Repurchase Authorization"). The 2020 Share Repurchase Authorization does not have a prescribed expiration date. During the year ended December 31, 2021, the Company paid $412.8 million to repurchase 3.3 million ordinary shares on the open market under the 2020 Share Repurchase Authorization. As of December 31, 2021, the Company has approximately $201.4 million still available to be repurchased under the 2020 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, 2018 $ 6.1 $ (123.2) $ (106.4) $ (223.5) Other comprehensive (loss) income, net of tax (a) (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 (b) (1.4) 5.9 57.0 61.5 December 31, 2020 (0.9) (120.3) (35.9) (157.1) Other comprehensive income (loss), net of tax 1.8 24.3 (63.4) (37.3) December 31, 2021 $ 0.9 $ (96.0) $ (99.3) $ (194.4) (a) 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. (b) During 2020, the Company reclassified $12.8 million of accumulated foreign currency translation adjustments to earnings upon the liquidation of two legal entities in the Company's former EMEA segment, which is included in Foreign currency items in the table above. All amounts of Other comprehensive income (loss), net attributable to noncontrolling interests on the Consolidated Statements of Equity relate to foreign currency items. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Disclosure [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Under the Company's incentive stock plan, the total number of ordinary shares authorized by the shareholders is 8.0 million, of w hich 2.6 million rem ain available as of December 31, 2021 for future incentive awards. 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 2021 2020 2019 Stock options $ 3.9 $ 3.8 $ 3.5 RSUs 13.6 11.4 10.0 PSUs 5.9 5.6 6.9 Deferred compensation 2.1 2.4 3.2 Pre-tax expense 25.5 23.2 23.6 Tax benefit (a) (3.0) (2.9) (3.0) After-tax expense $ 22.5 $ 20.3 $ 20.6 (a) Tax benefit reflected in the table above does not include the excess benefit from exercises and vesting of share-based compensati on of $2.1 million , $4.5 million and $2.8 million f or the years ended December 31, 2021, 2020 and 2019, respectively. Stock Options / RSUs The average fair value of the stock options granted for the years ended December 31, 2021, 2020 and 2019, was estimated to be $24.99, $25.62 and $19.58 per share, respectively, using the Black-Scholes option-pricing model. The weighted-average assumptions used were as follows: 2021 2020 2019 Dividend yield 1.32 % 0.99 % 1.23 % Volatility 27.14 % 20.70 % 21.44 % Risk-free rate of return 0.75 % 1.41 % 2.53 % Expected life 6.0 years 6.0 years 6.0 years Volatility is based on the Company's historic volatility. The risk-free rate of return is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. The expected life of the Company’s stock option awards is derived from the simplified approach based on the weighted-average time to vest and the remaining contractual term and represents the period of time that awards are expected to be outstanding. Changes in options outstanding under the plans for the years ended December 31, 2021, 2020 and 2019, were as follows: Shares Weighted- average exercise price (a) Aggregate Weighted-average December 31, 2018 957,198 $ 56.71 Granted 195,675 88.07 Exercised (272,003) 42.97 Canceled (17,248) 85.22 December 31, 2019 863,622 67.57 Granted 161,600 129.26 Exercised (256,704) 52.89 Canceled (8,376) 107.23 December 31, 2020 760,142 85.18 Granted 179,743 109.14 Exercised (156,063) 66.98 Canceled (26,042) 109.36 Outstanding December 31, 2021 757,780 $ 93.76 $ 29.3 6.6 Exercisable December 31, 2021 439,997 $ 80.83 $ 22.7 5.4 (a) The weighted-average exercise price of awards represents the exercise price of the awards on the grant date converted to ordinary shares of the Company. The following table summarizes information concerning currently outstanding and exercisable options: Options outstanding Options exercisable Range of Number Weighted- Weighted- Number Weighted- Weighted- $ 0.01 — $ 25.00 1,275 0.2 $ 24.95 1,275 0.2 $ 24.95 25.01 — 50.00 14,242 1.1 33.77 14,242 1.1 33.77 50.01 — 75.00 179,313 4.2 64.62 179,313 4.2 64.62 75.01 — 100.00 253,153 6.4 87.61 196,802 6.3 87.47 100.01 — 125.00 162,848 9.1 109.12 130 8.4 100.68 125.01 — 150.00 146,949 7.8 129.33 48,235 7.7 129.33 757,780 6.6 $ 93.76 439,997 5.4 $ 80.83 At December 31, 2021, there was $1.5 million of total unrecognized compensation cost from stock option arrangements granted under the plan, which is primarily related to unvested shares of non-retirement eligible employees. The aggregate intrinsic value of the Company's options exercised during the years ended December 31, 2021 and 2020, was $10.5 million and $18.8 million, respectively. Generally, stock options expire ten years from their date of grant. The following table summarizes RSU activity for the years ended December 31, 2021, 2020 and 2019: RSUs Weighted-average grant date fair value (a) Outstanding and unvested at December 31, 2018 244,347 $ 76.51 Granted 134,518 91.75 Vested (118,060) 73.52 Canceled (24,286) 79.53 Outstanding and unvested at December 31, 2019 236,519 86.37 Granted 81,796 124.91 Vested (113,776) 85.40 Canceled (9,249) 91.73 Outstanding and unvested at December 31, 2020 195,290 102.52 Granted 134,543 112.75 Vested (124,347) 100.52 Canceled (10,083) 109.31 Outstanding and unvested at December 31, 2021 195,403 $ 112.35 (a) The weighted-average grant date fair value represents the fair value of the awards on the grant date converted to ordinary shares of the Company. At December 31, 2021, there was $6.5 million of total unrecognized compensation cost from RSU arrangements granted under the plan, which is primarily related to unvested shares of non-retirement eligible employees. Performance Stock In February 2019, 2020 and 2021, the Company's Compensation Committee granted PSUs that were earned based 50% upon a performance condition, measured at each reporting period by earnings per share ("EPS") performance in relation to pre-established targets set by the Compensation Committee, and 50% upon a market condition, measured by the Company’s relative total shareholder return ("TSR") against the S&P 400 Capital Goods Index over a three-year performance period. The fair values of the market conditions are estimated using a Monte Carlo simulation approach in a risk-neutral framework to model future stock price movements based upon historical volatility, risk-free rates of return and correlation matrix. The following table summarizes PSU activity for the maximum number of shares that may be issued for the years ended December 31, 2021, 2020 and 2019: PSUs Weighted-average grant date fair value (a) Outstanding and unvested at December 31, 2018 156,041 $ 65.07 Granted 68,125 87.02 Vested (56,773) 61.00 Forfeited (10,045) 68.63 Outstanding and unvested at December 31, 2019 157,348 75.82 Granted 92,913 113.54 Vested (101,638) 83.16 Forfeited (2,647) 121.43 Outstanding and unvested at December 31, 2020 145,976 93.89 Granted 92,717 109.53 Vested (80,194) 100.26 Forfeited (13,332) 115.92 Outstanding and unvested at December 31, 2021 145,167 $ 98.34 (a) The weighted-average grant date fair value represents the fair value of the awards on the grant date converted to ordinary shares of the Company. At December 31, 2021, there was $6.3 million of total unrecognized compensation cost from the PSP based on current performance, which is related to unvested shares. This compensation will be recognized over the required service period, which is generally the three-year vesting period. Deferred Compensation Prior to 2019, the Company allowed key employees to defer a portion of their eligible granted PSUs and/or compensation into a number of investment choices including its ordinary share equivalents. Any amounts invested in ordinary share equivalents will be settled in ordinary shares of the Company at the time of distribution. |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring Activities | RESTRUCTURING ACTIVITIES During the years ended December 31, 2021, 2020 and 2019, the Company recorded $4.3 million, $25.6 million and $16.5 million, respectively, of expenses associated with restructuring activities. Restructuring activities in each period were primarily associated with the Allegion International segment and related to workforce reductions intended to optimize and simplify operations and cost structure, although approximately $9 million of the restructuring charges incurred during the year ended December 31, 2020, related to the Allegion Americas segment and Corporate. Restructuring expenses for each of the three years ended December 31, 2021, 2020 and 2019, are primarily included within Cost of goods sold and Selling and administrative expenses, although $1.9 million of the 2019 restructuring charges related to pension curtailment costs and are included within Other (income) expense, net within the Consolidated Statements of Comprehensive Income. The changes in the restructuring reserve during the years ended December 31, 2021 and 2020, were as follows: In millions Total December 31, 2019 $ 1.2 Additions, net of reversals 25.0 Cash payments (21.3) Currency translation 0.4 December 31, 2020 5.3 Additions, net of reversals 3.8 Cash payments (8.6) Currency translation (0.1) December 31, 2021 $ 0.4 The majority of the costs accrued as of December 31, 2021, will be paid within one year. The Company also incurred other non-qualified restructuring charges of $0.8 million, $1.2 million and $5.7 million during the years ended December 31, 2021, 2020 and 2019, respectively, which represent costs directly attributable to restructuring activities, but that do not fall into the severance, exit or disposal category. Non-qualified restructuring charges are included within Cost of goods sold and Selling and administrative expenses within the Consolidated Statements of Comprehensive Income. |
Other, Net
Other, Net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other, Net | OTHER (INCOME) EXPENSE, NET At December 31, the components of Other (income) expense, net were as follows: In millions 2021 2020 2019 Interest income $ (0.4) $ (0.9) $ (1.8) Foreign currency exchange loss 2.7 0.7 1.8 (Earnings and gains from the sale of) losses from equity method investments, net (6.4) (0.3) 0.1 Net periodic pension and postretirement benefit (income) cost, less service cost (7.1) (2.2) 6.8 Other (32.8) (10.3) (3.1) Other (income) expense, net $ (44.0) $ (13.0) $ 3.8 Other (income) expense, net for the year ended December 31, 2021, included unrealized gains related to the Company's investments in debt and equity securities of $25.6 million, the largest of which was a gain of $20.7 million related to the fair value remeasurement of the Company's investment in VergeSense, Inc. upon an observable price change in an orderly external |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Earnings before income taxes for the years ended December 31 were taxed within the following jurisdictions: In millions 2021 2020 2019 U.S. $ 74.5 $ 151.4 $ 211.1 Non-U.S. 449.5 214.0 264.1 Total $ 524.0 $ 365.4 $ 475.2 The jurisdictional mix of earnings, which includes the impact of the location of earnings as well as the tax cost on the Company's international operations, can vary as a result of operating fluctuations in the normal course of business, the impact of internal restructurings and as a result of the extent and location of other income and expense items, such as restructuring charges, asset impairments and gains or losses on strategic business decisions. The components of the Provision for income taxes for the years ended December 31 were as follows: In millions 2021 2020 2019 Current tax expense: U.S. $ 57.4 $ 55.0 $ 87.1 Non-U.S. 27.1 20.3 16.2 Total: 84.5 75.3 103.3 Deferred tax benefit: U.S. (38.3) (13.4) (25.2) Non-U.S. (5.5) (11.0) (5.0) Total: (43.8) (24.4) (30.2) Total tax expense: U.S. 19.1 41.6 61.9 Non-U.S. 21.6 9.3 11.2 Total $ 40.7 $ 50.9 $ 73.1 The Provision for income taxes differs from the amount of income taxes determined by applying the applicable U.S. statutory income tax rate to pretax income, as a result of the following differences: Percent of pretax income 2021 2020 2019 Statutory U.S. rate 21.0 % 21.0 % 21.0 % Increase (decrease) in rates resulting from: Non-U.S. tax rate differential (1) (14.1) (17.5) (10.6) State and local income taxes (1) 1.1 2.4 3.0 Reserves for uncertain tax positions 0.3 1.1 0.5 Tax on unremitted earnings (0.1) (0.1) 0.1 Trade incentives — — 0.2 Impairment of goodwill and intangible assets — 7.3 — Impact of divestitures — — 1.6 Other adjustments (0.4) (0.3) (0.4) Effective tax rate 7.8 % 13.9 % 15.4 % (1) Net of changes in valuation allowances The majority of the Company's earnings are considered permanently reinvested, and therefore, the Company has not recorded any incremental withholding or income tax liabilities on earnings of its non-U.S. subsidiaries. At December 31, a summary of the deferred tax accounts was as follows: In millions 2021 2020 Deferred tax assets: Inventory and accounts receivable $ 6.5 $ 6.5 Fixed assets and intangibles 3.2 2.6 Lease liabilities 21.6 22.0 Postemployment and other benefit liabilities 24.9 29.9 Other reserves and accruals 12.9 16.4 Net operating losses, tax credits and other carryforwards 446.0 386.1 Other 0.6 1.8 Gross deferred tax assets 515.7 465.3 Less: deferred tax valuation allowances (265.5) (259.7) Deferred tax assets net of valuation allowances $ 250.2 $ 205.6 Deferred tax liabilities: Fixed assets and intangibles $ (110.6) $ (112.0) Right of use assets (21.0) (21.7) Postemployment and other benefit liabilities (13.9) (6.8) Unremitted earnings of foreign subsidiaries (1.9) (1.4) Other (10.3) (5.6) Gross deferred tax liabilities (157.7) (147.5) Net deferred tax assets $ 92.5 $ 58.1 At December 31, 2021, $1.9 million of deferred taxes were recorded for certain undistributed earnings of non-U.S. subsidiaries. Historically, no deferred taxes have been provided for any portion of the remaining undistributed earnings of the Company's subsidiaries since these earnings have been, and will continue to be, permanently reinvested in these subsidiaries. For many reasons, including the number of legal entities and jurisdictions involved, the complexity of the Company's legal entity structure, the complexity of tax laws in the relevant jurisdictions and the impact of projections of income for future years to any calculations, the Company believes it is not practicable to estimate, within any reasonable range, the amount of additional taxes which may be payable upon the distribution of earnings. At December 31, 2021, the Company had the following tax losses and tax credit carryforwards available to offset taxable income in prior and future years: In millions Amount Expiration U.S. Federal tax loss carryforwards $ 17.7 2027-Unlimited U.S. Federal and State credit carryforwards 23.4 2025-2037 U.S. State tax loss carryforwards 52.1 2022-Unlimited Non-U.S. tax loss carryforwards $ 1,013.7 2025-Unlimited The U.S. state loss carryforwards were incurred in various jurisdictions. The non-U.S. loss carryforwards were incurred in various jurisdictions, predominantly in China, Ireland, Italy, Luxembourg and the United Kingdom. The Company evaluates its deferred income tax assets to determine if valuation allowances are required or should be adjusted. GAAP requires that companies assess whether valuation allowances should be established against their deferred tax assets based on consideration of all available evidence, both positive and negative, using a "more likely than not" standard. This assessment considers the nature, frequency and amount of recent losses, the duration of statutory carryforward periods and tax planning strategies. In making such judgments, significant weight is given to evidence that can be objectively verified. Activity associated with the Company’s valuation allowance is as follows: In millions 2021 2020 2019 Beginning balance $ 259.7 $ 241.0 $ 357.1 Increase to valuation allowance 8.4 21.1 2.8 Decrease to valuation allowance (2.0) (2.8) (118.6) Foreign exchange translation (0.6) 0.4 (0.3) Ending balance $ 265.5 $ 259.7 $ 241.0 During the year ended December 31, 2021, the valuation allowance increased by $5.8 million, while during the year ended December 31, 2020, the valuation allowance increased by $18.7 million. The increases for the years ended December 31, 2021 and 2020, are the result of changes in country specific tax laws, internal restructurings, jurisdictional profitability and changes in judgments and facts regarding the realizability of deferred tax assets. The Company has total unrecognized tax benefits of $41.5 million and $41.2 million as of December 31, 2021 and 2020, respectively. The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $40.4 million as of December 31, 2021. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: In millions 2021 2020 2019 Beginning balance $ 41.2 $ 37.3 $ 42.0 Additions based on tax positions related to the current year 8.8 6.0 5.7 Additions based on tax positions related to prior years 3.6 4.1 1.7 Reductions based on tax positions related to prior years (2.2) (1.5) (7.0) Reductions related to settlements with tax authorities (3.6) (0.3) (4.0) Reductions related to lapses of statute of limitations (5.6) (5.2) (0.8) Translation (gain)/loss (0.7) 0.8 (0.3) Ending balance $ 41.5 $ 41.2 $ 37.3 The Company records interest and penalties associated with the uncertain tax positions within its provision for income taxes. The Company had reserves associated with interest and penalties, net of tax, of $7.5 million and $7.6 million at December 31, 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, the Company recognized $0.5 million and $1.9 million in interest and penalties, net of tax, related to these uncertain tax positions. The total amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing audits and/or the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits, excluding interest and penalties, could potentially be reduced by up to approximately $8.7 million during the next 12 months. The provision for income taxes involves a significant amount of management judgment regarding interpretation of relevant facts and laws in the jurisdictions in which the Company operates. Future changes in applicable laws, projected levels of taxable income and tax planning could change the effective tax rate and tax balances recorded by the Company. In addition, tax authorities periodically review income tax returns filed by the Company and can raise issues regarding its filing positions, timing and amount of income or deductions and the allocation of income among the jurisdictions in which the Company operates. A significant period of time may elapse between the filing of an income tax return and the ultimate resolution of an issue raised by a tax authority with respect to that return. In the normal course of business, the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Australia, Canada, France, Germany, Italy, Mexico, the Netherlands, Poland and the U.S. In general, the examination of the material tax returns of subsidiaries of the Company is complete for the years prior to 2009, with certain matters being resolved through appeals and litigation. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share (EPS) | EARNINGS PER SHARE (EPS)Basic EPS is calculated by dividing Net earnings attributable to Allegion plc by the weighted-average number of ordinary shares outstanding for the applicable period. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potentially dilutive ordinary shares, which in the Company’s case, includes shares issuable under share-based compensation plans. The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations: In millions 2021 2020 2019 Weighted-average number of basic shares 89.9 92.3 93.6 Shares issuable under share-based compensation plans 0.6 0.5 0.7 Weighted-average number of diluted shares 90.5 92.8 94.3 |
Net Revenues
Net Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | NET REVENUES The following table shows the Company's Net revenues related to both tangible product sales and services for the years ended December 31, 2021, 2020 and 2019, respectively, disaggregated by business segment. Net revenues are shown by tangible product sales and services, as contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar within each of the two principal revenue streams: 2021 In millions Allegion Americas Allegion International Consolidated Net revenues Products $ 2,070.4 $ 763.1 $ 2,833.5 Services 1.8 32.1 33.9 Total Net revenues $ 2,072.2 $ 795.2 $ 2,867.4 2020 In millions Allegion Americas Allegion International Consolidated Net revenues Products $ 2,016.7 $ 672.2 $ 2,688.9 Services — 31.0 31.0 Total Net revenues $ 2,016.7 $ 703.2 $ 2,719.9 2019 In millions Allegion Americas Allegion International Consolidated Net revenues Products $ 2,114.5 $ 704.9 $ 2,819.4 Services — 34.6 34.6 Total Net revenues $ 2,114.5 $ 739.5 $ 2,854.0 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company is involved in various litigation, claims and administrative proceedings, including those related to environmental and product warranty matters. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for contingent liabilities, except as expressly set forth in this note, management believes that any liability which may result from these legal matters would not have a material adverse effect on the financial condition, results of operations, liquidity or cash flows of the Company. Environmental Matters The Company incurred $0.9 million, $7.1 million and $1.7 million of expenses during the years ended December 31, 2021, 2020 and 2019, respectively, for environmental remediation at sites presently or formerly owned or leased by the Company. Environmental remediation costs are recorded in Costs of goods sold within the Consolidated Statements of Comprehensive Income. As of December 31, 2021 and 2020, the Company has recorded reserves for environmental matters of $16.4 million and $21.1 million, respectively. The total reserve at December 31, 2021 and 2020, included $4.3 million and $4.4 million, respectively, related to remediation of sites previously disposed by the Company. Environmental reserves are classified as Accrued expenses and other current liabilities or Other noncurrent liabilities within the Consolidated Balance Sheets based on the timing of their expected future payment. The Company's total current environmental reserve at December 31, 2021 and 2020, was $3.7 million and $6.1 million, respectively, and the remainder is classified as noncurrent. Given the evolving nature of environmental laws, regulations and technology, the ultimate cost of future compliance is uncertain. Warranty Liability The changes in the standard product warranty liability for the years ended December 31, were as follows: In millions 2021 2020 2019 Balance at beginning of period $ 16.5 $ 15.9 $ 14.5 Reductions for payments (10.6) (7.3) (8.4) Accruals for warranties issued during the current period 11.9 8.2 10.3 Changes to accruals related to preexisting warranties — (0.6) (0.4) Translation (0.1) 0.3 (0.1) Balance at end of period $ 17.7 $ 16.5 $ 15.9 |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION The Company classifies its business into the following two reportable segments based on industry and market focus: Allegion Americas and Allegion International. The Company largely evaluates performance based on Segment operating income and Segment operating margins. Segment operating income is the measure of profit and loss that the Company’s chief operating decision maker uses to evaluate the financial performance of the business and as the basis for resource allocation, performance reviews and compensation. For these reasons, the Company believes that Segment operating income represents the most relevant measure of segment profit and loss. The Company’s chief operating decision maker may exclude certain charges or gains, such as corporate charges and other special charges, from Operating income to arrive at a Segment operating income that is a more meaningful measure of profit and loss upon which to base operating decisions. The Company defines Segment operating margin as Segment operating income (loss) as a percentage of the segment's Net revenues. As previously announced, effective January 1, 2021, the Company combined its previous operations in Europe, the Middle East and Africa ("EMEA") and Asia Pacific into a new segment named Allegion International, in addition to renaming its Americas segment "Allegion Americas". Business segment information for EMEA and Asia Pacific for the years ended December 31, 2020 and 2019, has been combined in the table below to reflect this change in reportable segments. A summary of operations and balance sheet information by reportable segments as of and for the years ended December 31 were as follows: Dollar amounts in millions 2021 2020 2019 Allegion Americas Net revenues $ 2,072.2 $ 2,016.7 $ 2,114.5 Segment operating income 525.0 580.2 611.6 Segment operating margin 25.3 % 28.8 % 28.9 % Depreciation and amortization 34.8 34.5 35.7 Capital expenditures 30.7 26.9 32.1 Total segment assets 1,309.6 1,249.0 1,239.0 Allegion International Net revenues 795.2 703.2 739.5 Segment operating income (loss) 82.4 (102.1) 34.8 Segment operating margin 10.4 % (14.5) % 4.7 % Depreciation and amortization 40.4 39.0 38.0 Capital expenditures 11.4 15.6 28.3 Total segment assets 1,276.9 1,343.5 1,338.7 Total Net revenues $ 2,867.4 $ 2,719.9 $ 2,854.0 Reconciliation to earnings before income taxes Segment operating income from reportable segments $ 607.4 $ 478.1 $ 646.4 Unallocated corporate expense 77.2 74.6 81.3 Interest expense 50.2 51.1 56.0 Loss on divestitures — — 30.1 Other (income) expense, net (44.0) (13.0) 3.8 Total earnings before income taxes $ 524.0 $ 365.4 $ 475.2 Depreciation and amortization from reportable segments $ 75.2 $ 73.5 $ 73.7 Unallocated depreciation and amortization 4.0 4.5 4.4 Total depreciation and amortization $ 79.2 $ 78.0 $ 78.1 Capital expenditures from reportable segments $ 42.1 $ 42.5 $ 60.4 Corporate capital expenditures 3.3 4.6 5.2 Total capital expenditures $ 45.4 $ 47.1 $ 65.6 Assets from reportable segments $ 2,586.5 $ 2,592.5 $ 2,577.7 Unallocated assets (a) 464.5 476.9 389.5 Total assets $ 3,051.0 $ 3,069.4 $ 2,967.2 (a) Unallocated assets consist primarily of investments in unconsolidated affiliates, property, plant and equipment, net, ROU assets, deferred income taxes and cash. Net revenues by destination and product type for the years ended December 31, were as follows: In millions 2021 2020 2019 Net revenues U.S. $ 1,948.9 $ 1,905.5 $ 1,988.9 Non-U.S. 918.5 814.4 865.1 Total $ 2,867.4 $ 2,719.9 $ 2,854.0 In millions 2021 2020 2019 Net revenues Mechanical products $ 2,249.2 $ 2,146.1 $ 2,247.0 All other 618.2 573.8 607.0 Total $ 2,867.4 $ 2,719.9 $ 2,854.0 In fiscal year 2021, 2020 and 2019, no customer exceeded 10% of consolidated Net revenues. At December 31, long-lived assets by geographic area were as follows: In millions 2021 2020 Long-lived assets U.S. $ 231.7 $ 236.8 Non-U.S. 385.6 426.9 Total $ 617.3 $ 663.7 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSOn February 4, 2022, the Company's Board of Directors declared a quarterly dividend of $0.41 cents per ordinary share. The dividend is payable March 31, 2022 to shareholders of record on March 16, 2022. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II ALLEGION PLC VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019 (Amounts in millions) Allowances for Doubtful Accounts: Balance December 31, 2018 $ 3.3 Additions charged to costs and expenses 2.4 Currency translation (0.1) Balance December 31, 2019 5.6 Adoption of ASC 326, Financial Instruments – Credit Losses 1.9 Additions charged to costs and expenses 2.4 Deductions* (3.9) Currency translation 0.2 Balance December 31, 2020 6.2 Additions charged to costs and expenses 0.1 Deductions* (0.7) Currency translation (0.2) Balance December 31, 2021 $ 5.4 * "Deductions" include accounts and advances written off, less recoveries. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation, Policy | Principles of Consolidation: The Consolidated Financial Statements include all controlled subsidiaries of the Company. A noncontrolling interest in a subsidiary is considered an ownership interest in a controlled subsidiary that is not attributable to the Company. The Company includes noncontrolling interests as a component of Total equity in the Consolidated Balance Sheets and the Net earnings attributable to noncontrolling interests are presented as an adjustment from Net earnings used to arrive at Net earnings attributable to Allegion plc in the Consolidated Statements of Comprehensive Income. Equity method affiliates represent unconsolidated entities over which the Company demonstrates significant influence but does not have a controlling financial interest. The Company is also required to consolidate variable interest entities in which it bears a majority of the risk to the entity’s potential losses or stands to gain from a majority of the entity’s expected returns. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are based on several factors including the facts and circumstances available at the time the estimates are made, historical experience, risk of loss, general economic conditions and trends and the assessment of the probable future outcome. Some of the more significant estimates include useful lives of property, plant and equipment and intangible assets, purchase price allocations of acquired businesses, valuation of assets and liabilities including goodwill and other intangible assets, product warranties, sales allowances, assets and liabilities related to defined benefit plans, taxes, lease related assets and liabilities, share-based compensation, environmental costs, product liability and other contingencies. Actual results could differ from those estimates. Estimates and assumptions are reviewed periodically, and the effects of changes, if any, are reflected in the Consolidated Statements of Comprehensive Income in the period they are determined. |
Currency Translation | Currency Translation: Assets and liabilities where the functional currency is not the U.S. dollar have been translated at year-end exchange rates, and income and expense accounts have been translated using average exchange rates throughout the year. Adjustments resulting from the process of translating a subsidiary’s financial statements into the U.S. dollar are recorded to Accumulated other comprehensive loss. Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Transaction gains and losses are recognized in Other income (expense), net, in the Consolidated Statements of Comprehensive Income in the period they are incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents include cash on hand, demand deposits and all highly liquid investments with original maturities at the time of purchase of three months or less. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts : The Company provides for an allowance for doubtful accounts and notes receivable, which represents the best estimate of expected lifetime credit losses inherent in the Company’s accounts and notes receivable portfolios. The Company's estimates are influenced by a continuing credit evaluation of customers' financial condition, trade accounts and notes receivable aging and historical loss experience, as well as reasonable and supportable forecasts of future economic conditions. The Company has reserved $5.4 million and $6.2 million for doubtful accounts and notes receivable as of December 31, 2021 and 2020, respectively. |
Inventories | Inventories: Inventories are stated at the lower of cost and net realizable value using the first-in, first-out (FIFO) method. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are stated at cost, less accumulated depreciation. Assets placed in service are recorded at cost and depreciated using the straight-line method over the estimated useful life of the asset except for leasehold improvements, which are depreciated over the shorter of their economic useful life or their lease term. Repair and maintenance costs that do not extend the useful life of the asset are expensed as incurred. Major replacements and significant improvements that increase asset values and extend useful lives are capitalized. The range of useful lives used to depreciate property, plant and equipment is as follows: Buildings 10 to 50 years Machinery and equipment 2 to 12 years Software 2 to 7 years The Company assesses the recoverability of the carrying value of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable. Recoverability is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If the undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized for the amount by which the carrying value of the asset exceeds its fair value. |
Investments | Investments: The Company periodically invests in debt or equity securities of start-up companies and/or development stage technology or other companies without acquiring a controlling interest. The Company applies the equity method of accounting when the Company has the ability to exercise significant influence over the operating and financial decision making of the investee. Investments in equity method affiliates totaled $11.0 million and $17.4 million as of December 31, 2021 and 2020, respectively. Equity investments that have readily determinable fair values in which the Company does not have significant influence are measured at fair value, with any unrealized holding gains and losses being recorded to earnings. Investments without readily determinable fair values are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer and are qualitatively assessed for impairment indicators each reporting period. Investments in debt and equity securities not accounted for under the equity method of accounting totaled $35.8 million and $13.7 million as of December 31, 2021 and 2020, respectively. The Company's investments are recorded within Other noncurrent assets within the Consolidated Balance Sheets. |
Leases | Leases: The Company records a right-of-use ("ROU") asset and lease liability for substantially all leases for which it is a lessee. At inception of a contract, the Company considers all relevant facts and circumstances to assess whether or not the contract represents a lease by determining whether or not the contract conveys the right to control the use of an identified asset, either explicit or implicit, for a period of time in exchange for consideration. Judgment and estimation is also required in determining the lease classification and the amount of the ROU asset and corresponding lease liability for each lease, which includes determining the appropriate lease term and an applicable discount rate. The Company assesses the specific terms and conditions of each lease to determine the appropriate classification as either an operating or finance lease. Substantially all of the Company's leases for which the Company is a lessee are classified as operating leases. In determining the appropriate length of the lease term, both the minimum period over which lease payments are required plus any renewal options that are both within the Company's control to exercise and reasonably certain of being exercised as of lease commencement are considered. If at lease commencement date, a lease has a term of less than 12 months and does not include a purchase option that is reasonably certain to be exercised, the Company does not include the lease as part of its ROU asset or lease liability. If the Company enters into a large number of leases in the same month with the same terms and conditions, these are considered a group (portfolio). There are no material residual value guarantees provided by the Company nor any restrictions or covenants imposed by any leases to which the Company is a party. As a lessee, the Company categorizes its leases into two general categories: real estate leases and equipment leases. The Company's real estate leases include leased production and assembly facilities, warehouses and distribution centers and office space. The Company's equipment leases include vehicles, material handling equipment, other machinery and equipment utilized in the Company's production and assembly facilities, warehouses and distribution centers, laptops and other IT equipment and other miscellaneous leased equipment. The terms and conditions of real estate leases can vary significantly from lease to lease. The Company assesses the specific terms and conditions of each real estate lease to determine the amount of the lease payments and the length of the lease term, which includes the minimum period over which lease payments are required plus any renewal options that are both within the Company's control to exercise and reasonably certain of being exercised upon lease commencement. The Company assesses all relevant factors to determine if sufficient incentives exist as of lease commencement to conclude whether or not renewal is |
Goodwill and Intangible Assets, Goodwill, Policy | Goodwill: The Company records as goodwill the excess of the purchase price of an acquired business over the fair value of the net assets acquired. Once the final valuation has been performed for each acquisition, adjustments may be recorded. Goodwill is tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate the fair value of a reporting unit is more likely than not less than its carrying amount. |
Goodwill and Intangible Assets, Intangible Assets, Policy | Intangible Assets: Indefinite-lived intangible assets other than Goodwill are not amortized, but similar to Goodwill, are also tested and reviewed annually for impairment during the fourth quarter or whenever there is a significant change in events or circumstances that indicate the asset is more likely than not less than its carrying amount. Recoverability of other intangible assets with indefinite useful lives (i.e. Trade names) is determined on a relief from royalty methodology, which is based on the implied royalty paid, at an appropriate discount rate, to license the use of an asset rather than owning the asset. The present value of the after-tax cost savings (i.e. royalty relief) indicates the estimated fair value of the asset. Any excess of the carrying value over the estimated fair value is recognized as an impairment loss equal to that excess. Intangible assets such as completed technologies, patents, customer-related intangible assets and other intangible assets with finite useful lives are amortized on a straight-line basis over their estimated economic lives. The weighted-average useful lives approximate the following: Customer relationships 20 years Trade names (finite-lived) 25 years Completed technologies/patents 10 years Other 7 years Recoverability of intangible assets with finite useful lives is assessed in the same manner as property, plant and equipment, as described above. |
Business Combinations Policy | Business Combinations: The fair value of consideration paid in a business combination is allocated to the tangible and identifiable intangible assets acquired, liabilities assumed and goodwill. Acquired intangible assets primarily include indefinite-lived trade names, customer relationships and completed technologies. The accounting for business combinations involves a considerable amount of judgment and estimation, including the fair value of acquired intangible assets involving projections of future revenues and cash flows that are either discounted at an estimated discount rate or measured at an estimated royalty rate; fair value of other acquired assets and assumed liabilities, including potential contingencies; and the useful lives of the acquired assets. As a result, in the case of significant acquisitions, the Company normally obtains the assistance of a third-party valuation specialist in estimating fair values of acquired tangible and intangible assets and assumed liabilities. An income approach or market approach (or both) is utilized in accordance with accepted valuation models for significant acquired assets to determine fair value. |
Income Taxes | Income Taxes: The calculation of the Company’s income taxes involves considerable judgment and the use of both estimates and allocations. Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse. The Company recognizes future tax benefits, such as net operating losses and tax credits, to the extent |
Product Warranties | Product Warranties: The Company offers a standard warranty with most product sales, and the value of such warranty is included in the contractual sales price. Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company regularly assesses the adequacy of its liabilities and makes adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available. |
Revenue Recognition | Revenue Recognition: Net revenues are recognized based on the satisfaction of performance obligations under the terms of a contract. A performance obligation is a promise in a contract to transfer control of a distinct product or to provide a service, or a bundle of products or services, to a customer. The Company has two principal revenue streams, tangible product sales and services. Approximately 99% of consolidated Net revenues involve contracts with a single performance obligation, the transfer of control of a product or bundle of products to a customer. Transfer of control typically occurs when goods are shipped from the Company's facilities or at other predetermined control transfer points (for instance, destination terms). The Company's remaining Net revenues involve services, including installation and consulting. Unlike the single performance obligation to ship a product or bundle of products, revenue recognition related to services is delayed until the service based performance obligations are satisfied. In some instances, customer acceptance provisions are included in sales arrangements to give the buyer the ability to ensure the service meets any established criteria. In these instances, revenue recognition is deferred until the performance obligations are satisfied, which could include acceptance terms specified in the arrangement being fulfilled through customer acceptance or a demonstration that established criteria have been satisfied. Net revenues are measured as the amount of consideration expected to be received in exchange for transferring control of the products or providing the services and takes into account variable consideration, such as sales incentive programs including discounts and volume rebates. The existence of these programs does not preclude revenue recognition but does require the Company's best estimate of the variable consideration to be made based on expected activity, as these items are reserved for as a deduction to Net revenues based on the Company's historical rates of providing these incentives and annual forecasted sales volumes. Sales returns and customer disputes involving a question of quantity or price are accounted for as variable consideration, and therefore, as a reduction to Net revenues and as a contra receivable. At December 31, 2021 and 2020, the Company had a customer claim accrual (contra receivable) of $47.7 million and $48.6 million, respectively. All other incentives or incentive programs where the customer is required to reach a certain level of purchases, remain a customer for a certain period, provide a rebate form or is subject to additional requirements are also considered variable consideration and are accounted for as a reduction of revenue and a liability. At December 31, 2021 and 2020, the Company had a sales incentive accrual of $38.0 million and $35.0 million, respectively. Each of these accruals represents the Company’s best estimate of the most likely amount expected to be received from customers based on historical experience. These estimates are reviewed regularly for accuracy, and if updated information or actual amounts are different from previous estimates, the revisions are included in the Company’s results for the period in which they become known. |
Environmental Costs | Environmental Costs: The Company is subject to laws and regulations relating to protecting the environment and is dedicated to an environmental program to reduce the utilization and generation of hazardous materials during the manufacturing process and to remediate identified environmental concerns. The Company is currently engaged in site investigations and remediation activities to address environmental cleanup from past operations at current and former production facilities. The Company regularly evaluates its remediation programs and considers alternative remediation methods that are in addition to, or in replacement of, those currently utilized by the Company based upon enhanced technology and regulatory changes. Changes to the Company's remediation programs may result in increased expenses and increased environmental reserves. The Company is sometimes a party to environmental lawsuits and claims and has, from time to time, received notices of potential violations of environmental laws and regulations from the U.S. Environmental Protection Agency and similar state authorities. It has also been identified as a potentially responsible party ("PRP") for cleanup costs associated with off-site waste disposal at federal Superfund and state remediation sites for past operations. For all such sites, there are other PRPs and, in most instances, the Company’s involvement is minimal. In estimating its liability, the Company has assumed it will not bear the entire cost of remediation of any site to the exclusion of other PRPs who may be jointly and severally liable. The ability of other PRPs to participate has been taken into account, based on the Company's understanding of the parties’ financial condition and probable contributions on a per site basis. Additional lawsuits and claims involving environmental matters are likely to arise from time to time in the future. |
Research and Development Costs | Research and Development Costs: The Company conducts research and development activities for the purpose of developing and improving new products and services. These costs are expensed when incurred. For the years ended December 31, 2021, 2020 and 2019, expenses related to research and development activities amounted to approximately $73.3 million, $54.4 million and $54.7 million, respectively, and primarily consisted of salaries, wages, benefits, facility costs and other overhead expenses. |
Defined Benefit Plans | Defined Benefit Plans: The Company provides a range of defined benefits, including pension, postretirement and postemployment benefits to eligible current and former employees. Determining the costs associated with such benefits is dependent on various actuarial assumptions, including discount rates, expected returns on plan assets, compensation increases, employee mortality and turnover rates. Actuaries perform the required calculations to determine expense in accordance with GAAP. Actual results may differ from the actuarial estimates and are generally recorded to Accumulated other comprehensive loss and amortized into Net earnings over future periods. The Company reviews its actuarial assumptions at each measurement date and makes modifications to the assumptions as appropriate. Refer to Note 12 for further details on defined benefit plans. |
Share-Based Compensation | 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. The 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 Company's Performance Stock Program ("PSP") provides awards for key employees in the form of PSUs based on performance against pre-established objectives. The annual target award level is expressed as a number of the Company's ordinary shares. All PSUs are settled in the form of ordinary shares unless deferred. |
Loss Contingencies | Loss Contingencies: Liabilities are recorded for various contingencies arising in the normal course of business, including litigation and administrative proceedings, environmental matters, product liabilities, product warranties, worker’s compensation and other claims. The Company has recorded reserves in the financial statements related to these matters, which are developed using inputs derived from actuarial estimates and historical and anticipated experience data depending on the nature of the reserve and, in certain instances, with consultation of legal counsel, internal and external consultants and engineers. Amounts recorded for identified contingent liabilities are estimates, which are reviewed periodically and adjusted to reflect additional information when it becomes available. Subject to the uncertainties inherent in estimating future costs for these types of liabilities, the Company believes its estimated reserves are reasonable and does not believe the final determination of the liabilities with respect to these matters would have a material effect on the financial condition, results of operations, liquidity or cash flows of the Company for any year. |
Derivative Instruments | Financial Instruments: In the normal course of business, the Company uses various financial instruments, including derivative instruments, to manage the risks associated with interest and currency rate exposures. These financial instruments are not used for trading or speculative purposes. When a derivative contract is entered into, the Company designates the derivative instrument as a cash flow hedge of a forecasted transaction, a cash flow hedge of a recognized asset or liability or as an |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes." The new guidance was intended to simplify the accounting for income taxes by removing certain exceptions and by updating accounting requirements around franchise taxes, goodwill recognized for tax purposes, the allocation of current and deferred tax expense among legal entities, among other minor changes. This ASU became effective for fiscal years beginning after December 15, 2020, and interim periods within those annual periods. Accordingly, the Company adopted ASU 2019-12 on January 1, 2021, and the adoption did not have a material impact to the Consolidated Financial Statements. In January 2020, the FASB issued ASU 2020-01, "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815." The amendments in ASU 2020-01 clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting. This ASU became effective for fiscal years beginning after December 15, 2020, and interim periods within those annual periods. Accordingly, the Company adopted ASU 2020-01 on January 1, 2021, and the adoption did not have a material impact to the Consolidated Financial Statements. Recently Issued Accounting Pronouncements: In October 2021, the FASB issued ASU No. 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." This ASU requires contract assets and contract liabilities (e.g. deferred revenue) acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, "Revenue from Contracts with Customers". Generally, this new guidance will result in the acquirer recognizing contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in purchase accounting. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The Company elected to early adopt ASU 2021-08 on January 1, 2022, and will apply to all business combinations consummated subsequent to this date. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Depreciation Range of Useful Lives | The range of useful lives used to depreciate property, plant and equipment is as follows: Buildings 10 to 50 years Machinery and equipment 2 to 12 years Software 2 to 7 years At December 31, the major classes of property, plant and equipment were as follows: In millions 2021 2020 Land $ 16.5 $ 17.2 Buildings 177.0 179.8 Machinery and equipment 451.1 455.2 Software 152.6 157.7 Construction in progress 30.5 20.2 Total property, plant and equipment 827.7 830.1 Accumulated depreciation (544.0) (535.2) Property, plant and equipment, net $ 283.7 $ 294.9 |
Schedule of Intangible Assets Weighted-Average Useful Lives | The weighted-average useful lives approximate the following: Customer relationships 20 years Trade names (finite-lived) 25 years Completed technologies/patents 10 years Other 7 years |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory, Net [Abstract] | |
Schedule of Inventory | At December 31, the major classes of Inventories were as follows: In millions 2021 2020 Raw materials $ 144.4 $ 114.0 Work-in-process 42.2 42.3 Finished goods 193.8 126.8 Total $ 380.4 $ 283.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The range of useful lives used to depreciate property, plant and equipment is as follows: Buildings 10 to 50 years Machinery and equipment 2 to 12 years Software 2 to 7 years At December 31, the major classes of property, plant and equipment were as follows: In millions 2021 2020 Land $ 16.5 $ 17.2 Buildings 177.0 179.8 Machinery and equipment 451.1 455.2 Software 152.6 157.7 Construction in progress 30.5 20.2 Total property, plant and equipment 827.7 830.1 Accumulated depreciation (544.0) (535.2) Property, plant and equipment, net $ 283.7 $ 294.9 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill Abstract | |
Changes in Goodwill Carrying Amounts | The changes in the carrying amount of Goodwill were as follows: In millions Allegion Americas Allegion International Total December 31, 2019 (gross) $ 485.0 $ 873.8 $ 1,358.8 Accumulated impairment — (485.5) (485.5) December 31, 2019 (net) 485.0 388.3 873.3 Acquisitions 16.1 — 16.1 Impairment charge — (88.1) (88.1) Currency translation — 17.7 17.7 December 31, 2020 (net) 501.1 317.9 819.0 Acquisitions and adjustments 0.1 4.6 4.7 Currency translation — (19.9) (19.9) December 31, 2021 (net) $ 501.2 $ 302.6 $ 803.8 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Assets | The following table sets forth the gross amount and related accumulated amortization of the Company’s intangible assets at December 31: 2021 2020 In millions Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Completed technologies/patents $ 57.9 $ (28.8) $ 29.1 $ 59.9 $ (25.1) $ 34.8 Customer relationships 395.9 (141.6) 254.3 415.5 (130.2) 285.3 Trade names (finite-lived) 84.0 (56.9) 27.1 90.2 (57.4) 32.8 Other 45.8 (22.7) 23.1 27.0 (11.1) 15.9 Total finite-lived intangible assets 583.6 $ (250.0) 333.6 592.6 $ (223.8) 368.8 Trade names (indefinite-lived) 113.9 113.9 118.3 118.3 Total $ 697.5 $ 447.5 $ 710.9 $ 487.1 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | At December 31, long-term debt and other borrowings consisted of the following: In millions 2021 2020 2021 Term Facility $ 250.0 $ — Term Facility — 238.8 2021 Revolving Facility — — Revolving Facility — — 3.200% Senior Notes due 2024 400.0 400.0 3.550% Senior Notes due 2027 400.0 400.0 3.500% Senior Notes due 2029 400.0 400.0 Other debt 0.3 0.6 Total borrowings outstanding 1,450.3 1,439.4 Less discounts and debt issuance costs, net (8.2) (9.8) Total debt 1,442.1 1,429.6 Less current portion of long-term debt 12.6 0.2 Total long-term debt $ 1,429.5 $ 1,429.4 |
Schedule of Maturities of Long-term Debt | Scheduled principal repayments on indebtedness as of December 31, 2021 were as follows: In millions 2022 $ 12.6 2023 12.6 2024 412.6 2025 21.9 2026 190.6 Thereafter 800.0 Total $ 1,450.3 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Designated as Hedges Affecting Net Earning and AOCL | The amounts associated with currency derivatives designated as hedges affecting Net earnings and Accumulated other comprehensive loss for the years ended December 31 were as follows: Amount of gain 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 2021 2020 2019 2021 2020 2019 Currency derivatives $ 2.6 $ 4.1 $ 1.9 Cost of goods sold $ 0.2 $ 5.3 $ 4.4 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Lease Asset and Liability | Amounts included within the Consolidated Balance Sheets related to the Company's ROU asset and lease liability were as follows: December 31, 2021 December 31, 2020 In millions Balance Sheet classification Real estate Equipment Total Real estate Equipment Total ROU asset Other noncurrent assets $ 58.2 $ 31.7 $ 89.9 $ 59.5 $ 32.5 $ 92.0 Lease liability - current Accrued expenses and other current liabilities 15.5 13.6 29.1 14.7 12.9 27.6 Lease liability - noncurrent Other noncurrent liabilities 45.1 18.2 63.3 46.5 19.8 66.3 Other information: Weighted-average remaining term (years) 6.5 2.8 7.0 3.2 Weighted-average discount rate 3.4 % 2.1 % 3.9 % 2.7 % |
Lessee, Operating leases, Other information | The following table summarizes additional information related to the Company's leases for the years ended December 31: 2021 2020 In millions Real estate Equipment Total Real estate Equipment Total Cash paid for amounts included in the measurement of lease liabilities $ 19.1 $ 17.4 $ 36.5 $ 19.0 $ 15.0 $ 34.0 ROU assets obtained in exchange for new lease liabilities 16.7 12.8 29.5 19.2 22.0 41.2 |
Lessee, Operating Lease, Liability, Maturity | Scheduled minimum lease payments required under non-cancellable operating leases for both the real estate and equipment lease portfolios for the next five years and thereafter as of December 31, 2021, were as follows: In millions 2022 2023 2024 2025 2026 Thereafter Total Real estate leases $ 17.3 $ 12.9 $ 9.5 $ 8.0 $ 4.8 $ 16.2 $ 68.7 Equipment leases 14.1 9.9 5.7 2.6 0.3 — 32.6 Total $ 31.4 $ 22.8 $ 15.2 $ 10.6 $ 5.1 $ 16.2 $ 101.3 |
Pensions and Postretirement B_2
Pensions and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Projected Benefit Obligations and Plan Assets | The following table details information regarding the Company’s pension plans at December 31: U.S. NON-U.S. In millions 2021 2020 2021 2020 Change in benefit obligations: Benefit obligation at beginning of year $ 361.4 $ 341.0 $ 455.7 $ 404.5 Service cost 6.7 6.7 2.0 1.7 Interest cost 6.8 9.6 5.1 6.6 Employee contributions — — 0.3 0.3 Amendments — — (0.1) 0.2 Actuarial (gains) losses (18.7) 22.5 (21.9) 43.4 Benefits paid (20.0) (19.0) (14.8) (16.3) Foreign exchange rate changes — — (5.4) 15.9 Curtailments and settlements — — (3.0) (0.6) Divestitures — — (0.8) — Other, including expenses paid (0.3) 0.6 — — Benefit obligation at end of year $ 335.9 $ 361.4 $ 417.1 $ 455.7 Change in plan assets: Fair value at beginning of year $ 333.0 $ 301.5 $ 463.9 $ 409.0 Actual return on plan assets 8.9 45.2 3.7 52.1 Company contributions 6.2 6.3 6.0 5.1 Employee contributions — — 0.3 0.3 Benefits paid (20.0) (19.0) (14.8) (16.3) Foreign exchange rate changes — — (4.8) 15.9 Curtailment and settlements — — (3.0) (0.6) Other, including expenses paid (1.6) (1.0) (1.9) (1.6) Fair value of assets at end of year $ 326.5 $ 333.0 $ 449.4 $ 463.9 Funded status: Plan assets (less than) exceeding benefit obligations $ (9.4) $ (28.4) $ 32.3 $ 8.2 Amounts included in the balance sheet: Other noncurrent assets $ 13.9 $ — $ 55.9 $ 37.4 Accrued compensation and benefits (0.5) (0.2) (0.7) (0.8) Postemployment and other benefit liabilities (22.8) (28.2) (22.9) (27.6) Liabilities held for sale — — — (0.8) Net amount recognized $ (9.4) $ (28.4) $ 32.3 $ 8.2 |
Schedule of Pension Plan Assets | The fair values of the Company’s U.S. pension plan assets at December 31, 2021, by asset category were as follows: Fair value measurements Total In millions Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs (Level 3) Assets measured at NAV Cash, cash equivalents and short-term investments $ — $ — $ — $ 4.5 $ 4.5 Common collective trusts — — — 252.3 252.3 Other (a) — — — 69.7 69.7 Total U.S. pension plan assets $ — $ — $ — $ 326.5 $ 326.5 (a) Includes group trust diversified credit and real asset funds. The fair values of the Company’s U.S. pension plan assets at December 31, 2020, by asset category were as follows: Fair value measurements Total In millions Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs (Level 3) Assets measured at NAV Cash, cash equivalents and short-term investments $ — $ — $ — $ 2.1 $ 2.1 Common collective trusts — — — 288.4 288.4 Other (a) — — — 42.5 42.5 Total U.S. pension plan assets $ — $ — $ — $ 333.0 $ 333.0 The fair values of the Company’s non-U.S. pension plan assets at December 31, 2021, by asset category were as follows: Fair value measurements Total In millions Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs (Level 3) Assets measured at NAV Cash, cash equivalents and short-term investments $ 0.3 $ — $ — $ 103.9 $ 104.2 Equity mutual funds — 3.1 — 112.5 115.6 Corporate and non-U.S. bonds — 3.0 — 166.4 169.4 Other (a) — 0.5 3.8 55.9 60.2 Total non-U.S. pension plan assets $ 0.3 $ 6.6 $ 3.8 $ 438.7 $ 449.4 (a) Primarily includes a core diversified credit fund, a credit opportunity fund and derivative contracts. The fair values of the Company’s non-U.S. pension plan assets at December 31, 2020, by asset category were as follows: Fair value measurements Total In millions Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs Significant unobservable inputs (Level 3) Assets measured at NAV Cash, cash equivalents and short-term investments $ 1.6 $ — $ — $ 92.5 $ 94.1 Equity mutual funds — 3.3 — 110.0 113.3 Corporate and non-U.S. bonds — 3.5 — 203.8 207.3 Other (a) — 0.5 4.2 44.5 49.2 Total non-U.S. pension plan assets $ 1.6 $ 7.3 $ 4.2 $ 450.8 $ 463.9 |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The pretax amounts recognized in Accumulated other comprehensive loss were as follows: U.S. In millions Prior service cost Net actuarial losses Total December 31, 2019 $ (1.2) $ (69.1) $ (70.3) Current year changes recorded to Accumulated other comprehensive loss — 8.1 8.1 Amortization reclassified to earnings 0.2 3.6 3.8 December 31, 2020 $ (1.0) $ (57.4) $ (58.4) Current year changes recorded to Accumulated other comprehensive loss — 13.5 13.5 Amortization reclassified to earnings 0.3 3.4 3.7 December 31, 2021 $ (0.7) $ (40.5) $ (41.2) NON-U.S. In millions Prior service cost Net actuarial losses Total December 31, 2019 $ (3.8) $ (69.8) $ (73.6) Current year changes recorded to Accumulated other comprehensive loss (0.3) (4.0) (4.3) Amortization reclassified to earnings 0.1 1.3 1.4 Settlements/curtailments reclassified to earnings — 0.1 0.1 Currency translation and other (0.1) (2.6) (2.7) December 31, 2020 $ (4.1) $ (75.0) $ (79.1) Current year changes recorded to Accumulated other comprehensive loss 0.1 11.8 11.9 Amortization reclassified to earnings 0.1 1.4 1.5 Settlements/curtailments reclassified to earnings — 0.5 0.5 Currency translation and other 0.1 2.0 2.1 December 31, 2021 $ (3.8) $ (59.3) $ (63.1) |
Schedule of Assumptions Used | Weighted-average assumptions used: Benefit obligations at December 31, 2021 2020 Discount rate: U.S. plans 2.8 % 2.5 % Non-U.S. plans 1.9 % 1.3 % Rate of compensation increase: U.S. plans 3.0 % 3.0 % Non-U.S. plans 3.4 % 3.0 % Weighted-average assumptions used: Net periodic pension benefit cost (income) for the year ended December 31, 2021 2020 2019 Discount rate: U.S. plans 2.5 % 3.3 % 4.3 % Non-U.S. plans 1.3 % 1.9 % 2.8 % Rate of compensation increase: U.S. plans 3.0 % 3.0 % 3.0 % Non-U.S. plans 3.0 % 3.0 % 3.3 % Expected return on plan assets: U.S. plans 4.3 % 5.0 % 5.0 % Non-U.S. plans 3.0 % 3.3 % 3.8 % |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Information regarding pension plans with accumulated benefit obligations more than plan assets were: U.S. NON-U.S. In millions 2021 2020 2021 2020 Projected benefit obligation $ 23.3 $ 24.0 $ 33.7 $ 40.3 Accumulated benefit obligation 23.0 23.3 28.2 34.0 Fair value of plan assets $ — $ — $ 10.1 $ 11.1 |
Schedule of Expected Future Benefit Payments | Future pension benefit payments are expected to be paid as follows: In millions U.S. NON-U.S. 2022 $ 19.5 $ 15.6 2023 30.0 16.1 2024 28.2 17.0 2025 19.8 17.8 2026 21.2 18.6 2027 - 2031 93.4 104.8 |
Schedule of Net Periodic Pension Benefit Costs | The components of the Company’s net periodic pension benefit cost (income) for the years ended December 31 were as follows: U.S. In millions 2021 2020 2019 Service cost $ 6.7 $ 6.7 $ 6.5 Interest cost 6.8 9.6 11.7 Expected return on plan assets (14.0) (14.5) (12.5) Administrative costs and other 1.2 1.6 1.7 Net amortization of: Prior service costs 0.3 0.2 0.3 Plan net actuarial losses 3.4 3.6 4.7 Net periodic pension benefit cost $ 4.4 $ 7.2 $ 12.4 NON-U.S. In millions 2021 2020 2019 Service cost $ 2.0 $ 1.7 $ 1.7 Interest cost 5.1 6.6 8.8 Expected return on plan assets (13.8) (12.7) (13.0) Administrative costs and other 1.9 1.6 1.3 Net amortization of: Prior service costs 0.1 0.1 0.2 Plan net actuarial losses 1.4 1.3 1.4 Net curtailment and settlement losses 0.5 0.1 2.3 Net periodic pension benefit (income) cost $ (2.8) $ (1.3) $ 2.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | Assets and liabilities measured at fair value at December 31, 2021, were as follows: Fair value measurements Total 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 $ — $ 24.5 $ — $ 24.5 Derivative instruments — 0.5 — 0.5 Total asset recurring fair value measurements $ — $ 25.0 $ — $ 25.0 Liabilities: Derivative instruments $ — $ 0.4 $ — $ 0.4 Deferred compensation and other retirement plans — 25.9 — 25.9 Total liability recurring fair value measurements $ — $ 26.3 $ — $ 26.3 Financial instruments not carried at fair value Total debt $ — $ 1,510.4 $ — $ 1,510.4 Total financial instruments not carried at fair value $ — $ 1,510.4 $ — $ 1,510.4 Assets and liabilities measured at fair value at December 31, 2020, were as follows: Fair value measurements Total 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 $ — $ 23.5 $ — $ 23.5 Derivative instruments — 1.6 — 1.6 Total asset recurring fair value measurements $ — $ 25.1 $ — $ 25.1 Liabilities: Derivative instruments $ — $ 3.4 $ — $ 3.4 Deferred compensation and other retirement plans — 25.1 — 25.1 Total liability recurring fair value measurements $ — $ 28.5 $ — $ 28.5 Financial instruments not carried at fair value Total debt $ — $ 1,541.4 $ — $ 1,541.4 Total financial instruments not carried at fair value $ — $ 1,541.4 $ — $ 1,541.4 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Reconciliation of ordinary shares | The changes in Ordinary shares for the year ended December 31, 2021 were as follows: In millions Total December 31, 2020 91.2 Shares issued under incentive plans 0.3 Repurchase of ordinary shares (3.3) December 31, 2021 88.2 |
Schedule of 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, 2018 $ 6.1 $ (123.2) $ (106.4) $ (223.5) Other comprehensive (loss) income, net of tax (a) (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 (b) (1.4) 5.9 57.0 61.5 December 31, 2020 (0.9) (120.3) (35.9) (157.1) Other comprehensive income (loss), net of tax 1.8 24.3 (63.4) (37.3) December 31, 2021 $ 0.9 $ (96.0) $ (99.3) $ (194.4) (a) 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. (b) During 2020, the Company reclassified $12.8 million of accumulated foreign currency translation adjustments to earnings upon the liquidation of two legal entities in the Company's former EMEA segment, which is included in Foreign currency items in the table above. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Disclosure [Abstract] | |
Schedule of compensation expense by plan | The following table summarizes the expenses recognized for the years ended December 31: In millions 2021 2020 2019 Stock options $ 3.9 $ 3.8 $ 3.5 RSUs 13.6 11.4 10.0 PSUs 5.9 5.6 6.9 Deferred compensation 2.1 2.4 3.2 Pre-tax expense 25.5 23.2 23.6 Tax benefit (a) (3.0) (2.9) (3.0) After-tax expense $ 22.5 $ 20.3 $ 20.6 (a) Tax benefit reflected in the table above does not include the excess benefit from exercises and vesting of share-based compensati on of $2.1 million , $4.5 million and $2.8 million f or the years ended December 31, 2021, 2020 and 2019, respectively. |
Schedule of weighted-average assumptions used for stock options | The weighted-average assumptions used were as follows: 2021 2020 2019 Dividend yield 1.32 % 0.99 % 1.23 % Volatility 27.14 % 20.70 % 21.44 % Risk-free rate of return 0.75 % 1.41 % 2.53 % Expected life 6.0 years 6.0 years 6.0 years |
Stock option activity | Changes in options outstanding under the plans for the years ended December 31, 2021, 2020 and 2019, were as follows: Shares Weighted- average exercise price (a) Aggregate Weighted-average December 31, 2018 957,198 $ 56.71 Granted 195,675 88.07 Exercised (272,003) 42.97 Canceled (17,248) 85.22 December 31, 2019 863,622 67.57 Granted 161,600 129.26 Exercised (256,704) 52.89 Canceled (8,376) 107.23 December 31, 2020 760,142 85.18 Granted 179,743 109.14 Exercised (156,063) 66.98 Canceled (26,042) 109.36 Outstanding December 31, 2021 757,780 $ 93.76 $ 29.3 6.6 Exercisable December 31, 2021 439,997 $ 80.83 $ 22.7 5.4 (a) The weighted-average exercise price of awards represents the exercise price of the awards on the grant date converted to ordinary shares of the Company. |
Options outstanding and exercisable activity | The following table summarizes information concerning currently outstanding and exercisable options: Options outstanding Options exercisable Range of Number Weighted- Weighted- Number Weighted- Weighted- $ 0.01 — $ 25.00 1,275 0.2 $ 24.95 1,275 0.2 $ 24.95 25.01 — 50.00 14,242 1.1 33.77 14,242 1.1 33.77 50.01 — 75.00 179,313 4.2 64.62 179,313 4.2 64.62 75.01 — 100.00 253,153 6.4 87.61 196,802 6.3 87.47 100.01 — 125.00 162,848 9.1 109.12 130 8.4 100.68 125.01 — 150.00 146,949 7.8 129.33 48,235 7.7 129.33 757,780 6.6 $ 93.76 439,997 5.4 $ 80.83 |
Restricted stock units activity | The following table summarizes RSU activity for the years ended December 31, 2021, 2020 and 2019: RSUs Weighted-average grant date fair value (a) Outstanding and unvested at December 31, 2018 244,347 $ 76.51 Granted 134,518 91.75 Vested (118,060) 73.52 Canceled (24,286) 79.53 Outstanding and unvested at December 31, 2019 236,519 86.37 Granted 81,796 124.91 Vested (113,776) 85.40 Canceled (9,249) 91.73 Outstanding and unvested at December 31, 2020 195,290 102.52 Granted 134,543 112.75 Vested (124,347) 100.52 Canceled (10,083) 109.31 Outstanding and unvested at December 31, 2021 195,403 $ 112.35 (a) The weighted-average grant date fair value represents the fair value of the awards on the grant date converted to ordinary shares of the Company. |
Performance stock units activity | The following table summarizes PSU activity for the maximum number of shares that may be issued for the years ended December 31, 2021, 2020 and 2019: PSUs Weighted-average grant date fair value (a) Outstanding and unvested at December 31, 2018 156,041 $ 65.07 Granted 68,125 87.02 Vested (56,773) 61.00 Forfeited (10,045) 68.63 Outstanding and unvested at December 31, 2019 157,348 75.82 Granted 92,913 113.54 Vested (101,638) 83.16 Forfeited (2,647) 121.43 Outstanding and unvested at December 31, 2020 145,976 93.89 Granted 92,717 109.53 Vested (80,194) 100.26 Forfeited (13,332) 115.92 Outstanding and unvested at December 31, 2021 145,167 $ 98.34 (a) The weighted-average grant date fair value represents the fair value of the awards on the grant date converted to ordinary shares of the Company. |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring Charges [Abstract] | |
Schedule of Changes in Restructuring Reserve | The changes in the restructuring reserve during the years ended December 31, 2021 and 2020, were as follows: In millions Total December 31, 2019 $ 1.2 Additions, net of reversals 25.0 Cash payments (21.3) Currency translation 0.4 December 31, 2020 5.3 Additions, net of reversals 3.8 Cash payments (8.6) Currency translation (0.1) December 31, 2021 $ 0.4 |
Other, Net (Tables)
Other, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other, Net | At December 31, the components of Other (income) expense, net were as follows: In millions 2021 2020 2019 Interest income $ (0.4) $ (0.9) $ (1.8) Foreign currency exchange loss 2.7 0.7 1.8 (Earnings and gains from the sale of) losses from equity method investments, net (6.4) (0.3) 0.1 Net periodic pension and postretirement benefit (income) cost, less service cost (7.1) (2.2) 6.8 Other (32.8) (10.3) (3.1) Other (income) expense, net $ (44.0) $ (13.0) $ 3.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Earnings before income taxes for the years ended December 31 were taxed within the following jurisdictions: In millions 2021 2020 2019 U.S. $ 74.5 $ 151.4 $ 211.1 Non-U.S. 449.5 214.0 264.1 Total $ 524.0 $ 365.4 $ 475.2 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the Provision for income taxes for the years ended December 31 were as follows: In millions 2021 2020 2019 Current tax expense: U.S. $ 57.4 $ 55.0 $ 87.1 Non-U.S. 27.1 20.3 16.2 Total: 84.5 75.3 103.3 Deferred tax benefit: U.S. (38.3) (13.4) (25.2) Non-U.S. (5.5) (11.0) (5.0) Total: (43.8) (24.4) (30.2) Total tax expense: U.S. 19.1 41.6 61.9 Non-U.S. 21.6 9.3 11.2 Total $ 40.7 $ 50.9 $ 73.1 |
Schedule of Effective Income Tax Rate Reconciliation | The Provision for income taxes differs from the amount of income taxes determined by applying the applicable U.S. statutory income tax rate to pretax income, as a result of the following differences: Percent of pretax income 2021 2020 2019 Statutory U.S. rate 21.0 % 21.0 % 21.0 % Increase (decrease) in rates resulting from: Non-U.S. tax rate differential (1) (14.1) (17.5) (10.6) State and local income taxes (1) 1.1 2.4 3.0 Reserves for uncertain tax positions 0.3 1.1 0.5 Tax on unremitted earnings (0.1) (0.1) 0.1 Trade incentives — — 0.2 Impairment of goodwill and intangible assets — 7.3 — Impact of divestitures — — 1.6 Other adjustments (0.4) (0.3) (0.4) Effective tax rate 7.8 % 13.9 % 15.4 % (1) Net of changes in valuation allowances |
Schedule of Deferred Tax Assets and Liabilities | At December 31, a summary of the deferred tax accounts was as follows: In millions 2021 2020 Deferred tax assets: Inventory and accounts receivable $ 6.5 $ 6.5 Fixed assets and intangibles 3.2 2.6 Lease liabilities 21.6 22.0 Postemployment and other benefit liabilities 24.9 29.9 Other reserves and accruals 12.9 16.4 Net operating losses, tax credits and other carryforwards 446.0 386.1 Other 0.6 1.8 Gross deferred tax assets 515.7 465.3 Less: deferred tax valuation allowances (265.5) (259.7) Deferred tax assets net of valuation allowances $ 250.2 $ 205.6 Deferred tax liabilities: Fixed assets and intangibles $ (110.6) $ (112.0) Right of use assets (21.0) (21.7) Postemployment and other benefit liabilities (13.9) (6.8) Unremitted earnings of foreign subsidiaries (1.9) (1.4) Other (10.3) (5.6) Gross deferred tax liabilities (157.7) (147.5) Net deferred tax assets $ 92.5 $ 58.1 |
Summary of Tax Credit Carryforwards | At December 31, 2021, the Company had the following tax losses and tax credit carryforwards available to offset taxable income in prior and future years: In millions Amount Expiration U.S. Federal tax loss carryforwards $ 17.7 2027-Unlimited U.S. Federal and State credit carryforwards 23.4 2025-2037 U.S. State tax loss carryforwards 52.1 2022-Unlimited Non-U.S. tax loss carryforwards $ 1,013.7 2025-Unlimited |
Summary of Valuation Allowance | Activity associated with the Company’s valuation allowance is as follows: In millions 2021 2020 2019 Beginning balance $ 259.7 $ 241.0 $ 357.1 Increase to valuation allowance 8.4 21.1 2.8 Decrease to valuation allowance (2.0) (2.8) (118.6) Foreign exchange translation (0.6) 0.4 (0.3) Ending balance $ 265.5 $ 259.7 $ 241.0 |
Summary of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: In millions 2021 2020 2019 Beginning balance $ 41.2 $ 37.3 $ 42.0 Additions based on tax positions related to the current year 8.8 6.0 5.7 Additions based on tax positions related to prior years 3.6 4.1 1.7 Reductions based on tax positions related to prior years (2.2) (1.5) (7.0) Reductions related to settlements with tax authorities (3.6) (0.3) (4.0) Reductions related to lapses of statute of limitations (5.6) (5.2) (0.8) Translation (gain)/loss (0.7) 0.8 (0.3) Ending balance $ 41.5 $ 41.2 $ 37.3 |
Earnings Per Share (EPS) (Table
Earnings Per Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Weighted-Average Shares Outstanding for EPS | The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations: In millions 2021 2020 2019 Weighted-average number of basic shares 89.9 92.3 93.6 Shares issuable under share-based compensation plans 0.6 0.5 0.7 Weighted-average number of diluted shares 90.5 92.8 94.3 |
Net Revenues (Tables)
Net Revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table shows the Company's Net revenues related to both tangible product sales and services for the years ended December 31, 2021, 2020 and 2019, respectively, disaggregated by business segment. Net revenues are shown by tangible product sales and services, as contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar within each of the two principal revenue streams: 2021 In millions Allegion Americas Allegion International Consolidated Net revenues Products $ 2,070.4 $ 763.1 $ 2,833.5 Services 1.8 32.1 33.9 Total Net revenues $ 2,072.2 $ 795.2 $ 2,867.4 2020 In millions Allegion Americas Allegion International Consolidated Net revenues Products $ 2,016.7 $ 672.2 $ 2,688.9 Services — 31.0 31.0 Total Net revenues $ 2,016.7 $ 703.2 $ 2,719.9 2019 In millions Allegion Americas Allegion International Consolidated Net revenues Products $ 2,114.5 $ 704.9 $ 2,819.4 Services — 34.6 34.6 Total Net revenues $ 2,114.5 $ 739.5 $ 2,854.0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The changes in the standard product warranty liability for the years ended December 31, were as follows: In millions 2021 2020 2019 Balance at beginning of period $ 16.5 $ 15.9 $ 14.5 Reductions for payments (10.6) (7.3) (8.4) Accruals for warranties issued during the current period 11.9 8.2 10.3 Changes to accruals related to preexisting warranties — (0.6) (0.4) Translation (0.1) 0.3 (0.1) Balance at end of period $ 17.7 $ 16.5 $ 15.9 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | A summary of operations and balance sheet information by reportable segments as of and for the years ended December 31 were as follows: Dollar amounts in millions 2021 2020 2019 Allegion Americas Net revenues $ 2,072.2 $ 2,016.7 $ 2,114.5 Segment operating income 525.0 580.2 611.6 Segment operating margin 25.3 % 28.8 % 28.9 % Depreciation and amortization 34.8 34.5 35.7 Capital expenditures 30.7 26.9 32.1 Total segment assets 1,309.6 1,249.0 1,239.0 Allegion International Net revenues 795.2 703.2 739.5 Segment operating income (loss) 82.4 (102.1) 34.8 Segment operating margin 10.4 % (14.5) % 4.7 % Depreciation and amortization 40.4 39.0 38.0 Capital expenditures 11.4 15.6 28.3 Total segment assets 1,276.9 1,343.5 1,338.7 Total Net revenues $ 2,867.4 $ 2,719.9 $ 2,854.0 Reconciliation to earnings before income taxes Segment operating income from reportable segments $ 607.4 $ 478.1 $ 646.4 Unallocated corporate expense 77.2 74.6 81.3 Interest expense 50.2 51.1 56.0 Loss on divestitures — — 30.1 Other (income) expense, net (44.0) (13.0) 3.8 Total earnings before income taxes $ 524.0 $ 365.4 $ 475.2 Depreciation and amortization from reportable segments $ 75.2 $ 73.5 $ 73.7 Unallocated depreciation and amortization 4.0 4.5 4.4 Total depreciation and amortization $ 79.2 $ 78.0 $ 78.1 Capital expenditures from reportable segments $ 42.1 $ 42.5 $ 60.4 Corporate capital expenditures 3.3 4.6 5.2 Total capital expenditures $ 45.4 $ 47.1 $ 65.6 Assets from reportable segments $ 2,586.5 $ 2,592.5 $ 2,577.7 Unallocated assets (a) 464.5 476.9 389.5 Total assets $ 3,051.0 $ 3,069.4 $ 2,967.2 (a) Unallocated assets consist primarily of investments in unconsolidated affiliates, property, plant and equipment, net, ROU assets, deferred income taxes and cash. |
Schedule of Revenue from External Customer by Geographical Areas | Net revenues by destination and product type for the years ended December 31, were as follows: In millions 2021 2020 2019 Net revenues U.S. $ 1,948.9 $ 1,905.5 $ 1,988.9 Non-U.S. 918.5 814.4 865.1 Total $ 2,867.4 $ 2,719.9 $ 2,854.0 |
Revenue from External Customers by Products and Services | In millions 2021 2020 2019 Net revenues Mechanical products $ 2,249.2 $ 2,146.1 $ 2,247.0 All other 618.2 573.8 607.0 Total $ 2,867.4 $ 2,719.9 $ 2,854.0 |
Long-lived Assets by Geographic Areas | At December 31, long-lived assets by geographic area were as follows: In millions 2021 2020 Long-lived assets U.S. $ 231.7 $ 236.8 Non-U.S. 385.6 426.9 Total $ 617.3 $ 663.7 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II ALLEGION PLC VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2021, 2020 AND 2019 (Amounts in millions) Allowances for Doubtful Accounts: Balance December 31, 2018 $ 3.3 Additions charged to costs and expenses 2.4 Currency translation (0.1) Balance December 31, 2019 5.6 Adoption of ASC 326, Financial Instruments – Credit Losses 1.9 Additions charged to costs and expenses 2.4 Deductions* (3.9) Currency translation 0.2 Balance December 31, 2020 6.2 Additions charged to costs and expenses 0.1 Deductions* (0.7) Currency translation (0.2) Balance December 31, 2021 $ 5.4 * "Deductions" include accounts and advances written off, less recoveries. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts receivable, current | $ 5.4 | $ 6.2 | |
Equity method investments | 11 | 17.4 | |
Investments in debt and equity securities not accounted for under equity method | 35.8 | 13.7 | |
Income taxes paid | 89.1 | 82.6 | $ 103 |
Research and development expense | 73.3 | 54.4 | $ 54.7 |
Customer claim accrual | |||
Other accrued liabilities, current | 47.7 | 48.6 | |
Sales incentive accrual | |||
Other accrued liabilities, current | $ 38 | $ 35 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | Buildings | |
Property, plant and equipment, useful life | 10 years |
Minimum | Machinery and equipment | |
Property, plant and equipment, useful life | 2 years |
Minimum | Software | |
Property, plant and equipment, useful life | 2 years |
Maximum | Buildings | |
Property, plant and equipment, useful life | 50 years |
Maximum | Machinery and equipment | |
Property, plant and equipment, useful life | 12 years |
Maximum | Software | |
Property, plant and equipment, useful life | 7 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Weighted-Average) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Customer relationships | |
Weighted-average useful life | 20 years |
Trade names | |
Weighted-average useful life | 25 years |
Completed technologies/patents | |
Weighted-average useful life | 10 years |
Other | |
Weighted-average useful life | 7 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Raw materials | $ 144.4 | $ 114 |
Work-in-process | 42.2 | 42.3 |
Finished goods | 193.8 | 126.8 |
Total | $ 380.4 | $ 283.1 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 45.2 | $ 46.5 | $ 47.1 |
Software amortization | $ 11.5 | $ 13.5 | $ 14.5 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 827.7 | $ 830.1 |
Accumulated depreciation | (544) | (535.2) |
Property, plant and equipment, net | 283.7 | 294.9 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 16.5 | 17.2 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 177 | 179.8 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 451.1 | 455.2 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 152.6 | 157.7 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 30.5 | $ 20.2 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement [Line Items] | |||
Goodwill, gross | $ 1,358.8 | ||
Accumulated impairment | $ 485.5 | ||
Acquisitions and adjustments | $ 4.7 | 16.1 | |
Impairment charge | (88.1) | ||
Currency translation | (19.9) | 17.7 | |
Goodwill, net | 803.8 | 819 | 873.3 |
Allegion Americas | |||
Statement [Line Items] | |||
Goodwill, gross | 485 | ||
Accumulated impairment | 0 | ||
Acquisitions and adjustments | 0.1 | 16.1 | |
Impairment charge | 0 | ||
Currency translation | 0 | 0 | |
Goodwill, net | 501.2 | 501.1 | 485 |
Allegion International | |||
Statement [Line Items] | |||
Goodwill, gross | 873.8 | ||
Accumulated impairment | 485.5 | ||
Acquisitions and adjustments | 4.6 | 0 | |
Impairment charge | (88.1) | ||
Currency translation | (19.9) | 17.7 | |
Goodwill, net | $ 302.6 | $ 317.9 | $ 388.3 |
Intangible Assets Table (Detail
Intangible Assets Table (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-lived intangible assets, gross | $ 583.6 | $ 592.6 |
Accumulated amortization | (250) | (223.8) |
Total net finite-lived intangible assets | 333.6 | 368.8 |
Total intangible assets, excluding goodwill, gross | 697.5 | 710.9 |
Intangible assets, net | 447.5 | 487.1 |
Completed technologies/patents | ||
Finite-lived intangible assets, gross | 57.9 | 59.9 |
Accumulated amortization | (28.8) | (25.1) |
Total net finite-lived intangible assets | 29.1 | 34.8 |
Customer relationships | ||
Finite-lived intangible assets, gross | 395.9 | 415.5 |
Accumulated amortization | (141.6) | (130.2) |
Total net finite-lived intangible assets | 254.3 | 285.3 |
Trade names | ||
Finite-lived intangible assets, gross | 84 | 90.2 |
Accumulated amortization | (56.9) | (57.4) |
Total net finite-lived intangible assets | 27.1 | 32.8 |
Other | ||
Finite-lived intangible assets, gross | 45.8 | 27 |
Accumulated amortization | (22.7) | (11.1) |
Total net finite-lived intangible assets | 23.1 | 15.9 |
Trade Names [Member] | ||
Trade names, indefinite lived | $ 113.9 | $ 118.3 |
Intangible Assets Narrative (De
Intangible Assets Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization of intangible assets | $ 34 | $ 31.5 | $ 31.2 |
Trade name impairment | 8.2 | $ 5.9 | |
Impairment of intangible assets | $ 5.4 | ||
Intangible amortization expense, year one | 29 | ||
Intangible amortization expense, year two | 28.8 | ||
Intangible amortization expense, year three | 28.8 | ||
Intangible amortization expense, year four | 27.9 | ||
Intangible amortization expense, year five | $ 25.7 |
Acquisitions Narrative (Details
Acquisitions Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Combinations [Abstract] | |||
Acquisition and integration related expenses | $ 4.4 | $ 2.3 | $ 2 |
Divestitures (Details)
Divestitures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss on assets held for sale | $ 0 | $ 37.9 | $ 0 |
Currency translation adjustment losses, reclassified to earnings, net of tax | $ (12.8) | 26.2 | |
Turkey | |||
Proceeds from divestiture of businesses | 4.1 | ||
Loss on divestitures | (24.2) | ||
Loss on divestitures, net of tax | (25.5) | ||
Currency translation adjustment losses, reclassified to earnings, net of tax | (25) | ||
Colombia | |||
Loss on divestitures | (5.9) | ||
Currency translation adjustment losses, reclassified to earnings, net of tax | $ (1.2) |
Debt and Credit Facilities (Sum
Debt and Credit Facilities (Summary of Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Total borrowings outstanding | $ 1,450.3 | $ 1,439.4 |
Less discounts and debt issuance costs, net | (8.2) | (9.8) |
Total debt | 1,442.1 | 1,429.6 |
Less current portion of long-term debt | 12.6 | 0.2 |
Total long-term debt | 1,429.5 | 1,429.4 |
2021 Term Facility | Term Facility | ||
Unsecured debt | 250 | 0 |
Term Facility | Term Facility | ||
Unsecured debt | 0 | 238.8 |
2021 Revolving Credit Facility | ||
Long-term line of credit | 0 | 0 |
Revolving Credit Facility | ||
Long-term line of credit | 0 | 0 |
3.200% Senior Note due 2024 | Senior Notes | ||
Unsecured debt | 400 | 400 |
3.550% Senior Notes due 2027 | Senior Notes | ||
Unsecured debt | 400 | 400 |
3.500% Senior Notes due 2029 | Senior Notes | ||
Unsecured debt | 400 | 400 |
Other debt | ||
Other debt | $ 0.3 | $ 0.6 |
Debt and Credit Facilities (Nar
Debt and Credit Facilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for interest | $ 45.1 | $ 47.3 | $ 48.8 |
2021 Term Facility | Term Facility | |||
Unsecured debt | 250 | 0 | |
Term Facility | Term Facility | |||
Unsecured debt | 0 | 238.8 | |
2021 Revolving Credit Facility | |||
Line of credit facility, maximum borrowing capacity | 500 | ||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 100 | ||
Long-term line of credit | 0 | 0 | |
Letters of Credit Outstanding, Amount | 8.7 | ||
Revolving Credit Facility | |||
Long-term line of credit | $ 0 | 0 | |
Credit Facility Due 2026 | |||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | ||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.271% | ||
3.200% Senior Note due 2024 | Senior Notes | |||
Unsecured debt | $ 400 | 400 | |
Debt instrument, interest rate | 3.20% | ||
3.550% Senior Notes due 2027 | Senior Notes | |||
Unsecured debt | $ 400 | 400 | |
Debt instrument, interest rate | 3.55% | ||
3.500% Senior Notes due 2029 | Senior Notes | |||
Unsecured debt | $ 400 | $ 400 | |
Debt instrument, interest rate | 3.50% | ||
Maximum | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
Maximum | Credit Facility Due 2026 | |||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | ||
Minimum | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.09% | ||
Minimum | Credit Facility Due 2026 | |||
Debt Instrument, Basis Spread on Variable Rate | 0.875% | ||
3/31/22 through 3/31/25 [Domain] | 2021 Term Facility | |||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.25% | ||
6/30/25 through 11/18/26 [Domain] | 2021 Term Facility | |||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.50% |
Debt and Credit Facilities (Lon
Debt and Credit Facilities (Long-Term Debt Maturities and Repayment of Principle) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Long-term Debt, Maturities, Repayments of Principal in Year One | $ 12.6 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 12.6 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 412.6 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 21.9 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | 190.6 | |
Long-term Debt, Maturities, Repayments of Principal after Year Five | 800 | |
Total | $ 1,450.3 | $ 1,439.4 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Currency derivatives | ||
Derivative, Notional Amount | $ 164.9 | $ 218.9 |
Financial Instruments Schedule
Financial Instruments Schedule of Derivatives Designated as Hedges Affecting Income Statement and Accumulated Other Comprehensive Income (Details) - Currency derivatives - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | $ 2.6 | $ 4.1 | $ 1.9 |
Cost of goods sold | |||
Derivative instruments, gain (loss) reclassified from Accumulated OCI into Income, effective portion, net | $ 0.2 | $ 5.3 | $ 4.4 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating Lease, Expense | $ 45.4 | $ 44.2 | $ 43.2 |
Short-term Lease Payments | 8.2 | $ 9.1 | $ 8.1 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 8.9 |
Operating Lease Asset and Liabi
Operating Lease Asset and Liability, and Other Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Right-of-Use Asset | $ 89.9 | $ 92 |
Lease liability - current | 29.1 | 27.6 |
Lease liability - noncurrent | $ 63.3 | $ 66.3 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other noncurrent assets | Other noncurrent assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other noncurrent liabilities | Other noncurrent liabilities |
Real Estate | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-Use Asset | $ 58.2 | $ 59.5 |
Lease liability - current | 15.5 | 14.7 |
Lease liability - noncurrent | $ 45.1 | $ 46.5 |
Weighted-average remaining lease term (years) | 6 years 6 months | 7 years |
Weighted-average discount rate | 3.40% | 3.90% |
Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-Use Asset | $ 31.7 | $ 32.5 |
Lease liability - current | 13.6 | 12.9 |
Lease liability - noncurrent | $ 18.2 | $ 19.8 |
Weighted-average remaining lease term (years) | 2 years 9 months 18 days | 3 years 2 months 12 days |
Weighted-average discount rate | 2.10% | 2.70% |
Leases Operating Leases, Additi
Leases Operating Leases, Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 36.5 | $ 34 |
Right-of-use assets obtained in exchange for new lease liabilities | 29.5 | 41.2 |
Real Estate | ||
Lessee, Lease, Description [Line Items] | ||
Cash paid for amounts included in the measurement of lease liabilities | 19.1 | 19 |
Right-of-use assets obtained in exchange for new lease liabilities | 16.7 | 19.2 |
Equipment | ||
Lessee, Lease, Description [Line Items] | ||
Cash paid for amounts included in the measurement of lease liabilities | 17.4 | 15 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 12.8 | $ 22 |
Leases Operating Lease Liabilit
Leases Operating Lease Liability Maturity (Details) $ in Millions | Dec. 31, 2021USD ($) |
Lessee, Lease, Description [Line Items] | |
Payments, Due Next Twelve Months | $ 31.4 |
Payments, Due Year Two | 22.8 |
Payments, Due Year Three | 15.2 |
Payments, Due Year Four | 10.6 |
Payments, Due Year Five | 5.1 |
Payments, Due after Year Five | 16.2 |
Total Payments Due | 101.3 |
Real Estate | |
Lessee, Lease, Description [Line Items] | |
Payments, Due Next Twelve Months | 17.3 |
Payments, Due Year Two | 12.9 |
Payments, Due Year Three | 9.5 |
Payments, Due Year Four | 8 |
Payments, Due Year Five | 4.8 |
Payments, Due after Year Five | 16.2 |
Total Payments Due | 68.7 |
Equipment | |
Lessee, Lease, Description [Line Items] | |
Payments, Due Next Twelve Months | 14.1 |
Payments, Due Year Two | 9.9 |
Payments, Due Year Three | 5.7 |
Payments, Due Year Four | 2.6 |
Payments, Due Year Five | 0.3 |
Payments, Due after Year Five | 0 |
Total Payments Due | $ 32.6 |
Pensions and Postretirement B_3
Pensions and Postretirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Percent of our projected benefit obligation relates to plans that are not funded | 6.00% | ||
Deferred compensation and other retirement plans | $ 18.2 | $ 18.1 | |
Postemployment Benefits Obligation | 4.4 | 5.2 | |
Pension Plans | |||
Projected pension expense | 1.7 | ||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 5 | ||
Postemployment Retirement Benefits | |||
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 1 | ||
U.S. | |||
Accumulated benefit obligation for all defined benefit pension plans | 333.4 | 354.9 | |
Defined Contribution Plan, Cost | 18.3 | 17.9 | $ 15.6 |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 19.5 | ||
U.S. | Pension Plans | |||
Company contributions | 6.2 | 6.3 | 6 |
Non-US | |||
Accumulated benefit obligation for all defined benefit pension plans | 410.2 | 446 | |
Defined Contribution Plan, Cost | 8.6 | 7 | 6 |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 15.6 | ||
Non-US | Pension Plans | |||
Company contributions | $ 6 | $ 5.1 | $ 10.6 |
Pensions (Schedule of Company's
Pensions (Schedule of Company's Pension Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other noncurrent assets | $ 243.9 | $ 196.7 | |
Liabilities held for sale | 0 | 7.2 | |
U.S. | |||
Service cost | 6.7 | 6.7 | $ 6.5 |
Interest cost | 6.8 | 9.6 | 11.7 |
Fair value at beginning of year | 333 | ||
Fair value at end of year | 326.5 | 333 | |
Non-US | |||
Service cost | 2 | 1.7 | 1.7 |
Interest cost | 5.1 | 6.6 | 8.8 |
Fair value at beginning of year | 463.9 | ||
Fair value at end of year | 449.4 | 463.9 | |
Pension Plans | U.S. | |||
Benefit obligation at beginning of year | 361.4 | 341 | |
Service cost | 6.7 | 6.7 | |
Interest cost | 6.8 | 9.6 | |
Employee contributions | 0 | 0 | |
Amendments | 0 | 0 | |
Actuarial losses (gains) | (18.7) | 22.5 | |
Benefits paid | (20) | (19) | |
Foreign exchange rate changes | 0 | 0 | |
Curtailments and settlements | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Divestiture | 0 | 0 | |
Other, including expenses paid | (0.3) | 0.6 | |
Benefit obligation at end of year | 335.9 | 361.4 | 341 |
Fair value at beginning of year | 333 | 301.5 | |
Actual return on plan assets | 8.9 | 45.2 | |
Company contributions | 6.2 | 6.3 | 6 |
Employee contributions | 0 | 0 | |
Benefits paid | (20) | (19) | |
Foreign exchange rate changes | 0 | 0 | |
Curtailments and settlements | 0 | 0 | |
Other, including expenses paid | (1.6) | (1) | |
Fair value at end of year | 326.5 | 333 | 301.5 |
Other noncurrent assets | 13.9 | 0 | |
Accrued compensation and benefits | (0.5) | (0.2) | |
Postemployment and other benefit liabilities | (22.8) | (28.2) | |
Liabilities held for sale | 0 | 0 | |
Funded (Unfunded) Status of Plan | (9.4) | (28.4) | |
Pension Plans | Non-US | |||
Benefit obligation at beginning of year | 455.7 | 404.5 | |
Service cost | 2 | 1.7 | |
Interest cost | 5.1 | 6.6 | |
Employee contributions | 0.3 | 0.3 | |
Amendments | (0.1) | 0.2 | |
Actuarial losses (gains) | (21.9) | 43.4 | |
Benefits paid | (14.8) | (16.3) | |
Foreign exchange rate changes | (5.4) | 15.9 | |
Curtailments and settlements | (3) | (0.6) | |
Defined Benefit Plan, Benefit Obligation, Divestiture | (0.8) | 0 | |
Other, including expenses paid | 0 | 0 | |
Benefit obligation at end of year | 417.1 | 455.7 | 404.5 |
Fair value at beginning of year | 463.9 | 409 | |
Actual return on plan assets | 3.7 | 52.1 | |
Company contributions | 6 | 5.1 | 10.6 |
Employee contributions | 0.3 | 0.3 | |
Benefits paid | (14.8) | (16.3) | |
Foreign exchange rate changes | (4.8) | 15.9 | |
Curtailments and settlements | 3 | 0.6 | |
Other, including expenses paid | (1.9) | (1.6) | |
Fair value at end of year | 449.4 | 463.9 | $ 409 |
Other noncurrent assets | 55.9 | 37.4 | |
Accrued compensation and benefits | (0.7) | (0.8) | |
Postemployment and other benefit liabilities | (22.9) | (27.6) | |
Liabilities held for sale | 0 | 0.8 | |
Funded (Unfunded) Status of Plan | $ 32.3 | $ 8.2 |
Pensions (Schedule of Pretax Am
Pensions (Schedule of Pretax Amounts Recognized in Accumulated Other Comprehensive Income or (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Currency translation and other | $ 1 | $ (2.1) | $ (2.7) |
U.S. | |||
Balance at beginning of year | (58.4) | (70.3) | |
Current year changes recorded to Accumulated other comprehensive loss | 13.5 | 8.1 | |
Amortization reclassified to earnings | 3.7 | 3.8 | |
Balance at end of year | (41.2) | (58.4) | (70.3) |
Non-US | |||
Balance at beginning of year | (79.1) | (73.6) | |
Current year changes recorded to Accumulated other comprehensive loss | 11.9 | (4.3) | |
Amortization reclassified to earnings | 1.5 | 1.4 | |
Settlements/curtailments reclassified to earnings | 0.5 | 0.1 | |
Currency translation and other | 2.1 | (2.7) | |
Balance at end of year | (63.1) | (79.1) | (73.6) |
Prior Service Cost | U.S. | |||
Balance at beginning of year | (1) | (1.2) | |
Current year changes recorded to Accumulated other comprehensive loss | 0 | 0 | |
Amortization reclassified to earnings | 0.3 | 0.2 | |
Balance at end of year | (0.7) | (1) | (1.2) |
Prior Service Cost | Non-US | |||
Balance at beginning of year | (4.1) | (3.8) | |
Current year changes recorded to Accumulated other comprehensive loss | 0.1 | (0.3) | |
Amortization reclassified to earnings | 0.1 | 0.1 | |
Settlements/curtailments reclassified to earnings | 0 | 0 | |
Currency translation and other | 0.1 | (0.1) | |
Balance at end of year | (3.8) | (4.1) | (3.8) |
Net Actuarial Losses | U.S. | |||
Balance at beginning of year | (57.4) | (69.1) | |
Current year changes recorded to Accumulated other comprehensive loss | 13.5 | 8.1 | |
Amortization reclassified to earnings | 3.4 | 3.6 | |
Balance at end of year | (40.5) | (57.4) | (69.1) |
Net Actuarial Losses | Non-US | |||
Balance at beginning of year | (75) | (69.8) | |
Current year changes recorded to Accumulated other comprehensive loss | 11.8 | (4) | |
Amortization reclassified to earnings | 1.4 | 1.3 | |
Settlements/curtailments reclassified to earnings | 0.5 | 0.1 | |
Currency translation and other | 2 | (2.6) | |
Balance at end of year | $ (59.3) | $ (75) | $ (69.8) |
Pensions (Schedule of Assumptio
Pensions (Schedule of Assumptions Used for Benefit Obligations) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. | ||
Discount rate | 2.80% | 2.50% |
Rate of compensation increase | 3.00% | 3.00% |
Non-US | ||
Discount rate | 1.90% | 1.30% |
Rate of compensation increase | 3.40% | 3.00% |
Pensions and Postretirement B_4
Pensions and Postretirement Benefits Other Than Pensions Pensions (Pension Plans with Accumulated Plan Benefits in excess of Plan Assets (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. | ||
Projected benefit obligation | $ 23.3 | $ 24 |
Accumulated benefit obligation | 23 | 23.3 |
Fair value of plan assets | 0 | 0 |
Non-US | ||
Projected benefit obligation | 33.7 | 40.3 |
Accumulated benefit obligation | 28.2 | 34 |
Fair value of plan assets | $ 10.1 | $ 11.1 |
Pensions (Schedule of Defined B
Pensions (Schedule of Defined Benefit Plan Pension Benefit Payments) (Details) $ in Millions | Dec. 31, 2021USD ($) |
U.S. | |
2022 | $ 19.5 |
2023 | 30 |
2024 | 28.2 |
2025 | 19.8 |
2026 | 21.2 |
2027 - 2031 | 93.4 |
Non-US | |
2022 | 15.6 |
2023 | 16.1 |
2024 | 17 |
2025 | 17.8 |
2026 | 18.6 |
2027 - 2031 | $ 104.8 |
Pensions (Schedule of Net Perio
Pensions (Schedule of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. | |||
Service cost | $ 6.7 | $ 6.7 | $ 6.5 |
Interest cost | 6.8 | 9.6 | 11.7 |
Expected return on plan assets | (14) | (14.5) | (12.5) |
Administrative costs and other | 1.2 | 1.6 | 1.7 |
Prior service costs | 0.3 | 0.2 | 0.3 |
Plan net actuarial losses | 3.4 | 3.6 | 4.7 |
Net periodic pension benefit cost (income) | 4.4 | 7.2 | 12.4 |
Non-US | |||
Service cost | 2 | 1.7 | 1.7 |
Interest cost | 5.1 | 6.6 | 8.8 |
Expected return on plan assets | (13.8) | (12.7) | (13) |
Administrative costs and other | 1.9 | 1.6 | 1.3 |
Prior service costs | 0.1 | 0.1 | 0.2 |
Plan net actuarial losses | 1.4 | 1.3 | 1.4 |
Net curtailment and settlement losses | 0.5 | 0.1 | 2.3 |
Net periodic pension benefit cost (income) | (2.8) | (1.3) | $ 2.7 |
Pension Plans | U.S. | |||
Service cost | 6.7 | 6.7 | |
Interest cost | 6.8 | 9.6 | |
Pension Plans | Non-US | |||
Service cost | 2 | 1.7 | |
Interest cost | $ 5.1 | $ 6.6 |
Pensions (Schedule of Assumpt_2
Pensions (Schedule of Assumptions Used for Net Periodic Pension Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. | |||
Discount rate | 2.50% | 3.30% | 4.30% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Expected return on plan assets | 4.30% | 5.00% | 5.00% |
Non-US | |||
Discount rate | 1.30% | 1.90% | 2.80% |
Rate of compensation increase | 3.00% | 3.00% | 3.30% |
Expected return on plan assets | 3.00% | 3.30% | 3.80% |
Pensions (Schedule of Pension P
Pensions (Schedule of Pension Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. | ||
Defined benefit plan, fair value of pension plan assets | $ 326.5 | $ 333 |
Non-US | ||
Defined benefit plan, fair value of pension plan assets | 449.4 | 463.9 |
Quoted prices in active markets for identical assets (Level 1) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0.3 | 1.6 |
Significant other observable inputs (Level 2) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Significant other observable inputs (Level 2) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 6.6 | 7.3 |
Significant unobservable inputs (Level 3) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Significant unobservable inputs (Level 3) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 3.8 | 4.2 |
Assets valued using NAV | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 326.5 | 333 |
Assets valued using NAV | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 438.7 | 450.8 |
Cash, cash equivalents and short-term investments | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 4.5 | 2.1 |
Cash, cash equivalents and short-term investments | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 104.2 | 94.1 |
Cash, cash equivalents and short-term investments | Quoted prices in active markets for identical assets (Level 1) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Cash, cash equivalents and short-term investments | Quoted prices in active markets for identical assets (Level 1) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0.3 | 1.6 |
Cash, cash equivalents and short-term investments | Significant other observable inputs (Level 2) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Cash, cash equivalents and short-term investments | Significant other observable inputs (Level 2) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Cash, cash equivalents and short-term investments | Significant unobservable inputs (Level 3) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Cash, cash equivalents and short-term investments | Significant unobservable inputs (Level 3) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Cash, cash equivalents and short-term investments | Assets valued using NAV | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 4.5 | 2.1 |
Cash, cash equivalents and short-term investments | Assets valued using NAV | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 103.9 | 92.5 |
Common collective trusts | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 252.3 | 288.4 |
Common collective trusts | Quoted prices in active markets for identical assets (Level 1) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Common collective trusts | Significant other observable inputs (Level 2) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Common collective trusts | Significant unobservable inputs (Level 3) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Common collective trusts | Assets valued using NAV | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 252.3 | 288.4 |
Equity mutual funds | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 115.6 | 113.3 |
Equity mutual funds | Quoted prices in active markets for identical assets (Level 1) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Equity mutual funds | Significant other observable inputs (Level 2) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 3.1 | 3.3 |
Equity mutual funds | Significant unobservable inputs (Level 3) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Equity mutual funds | Assets valued using NAV | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 112.5 | 110 |
Corporate and Non-U.S. Bonds | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 169.4 | 207.3 |
Corporate and Non-U.S. Bonds | Quoted prices in active markets for identical assets (Level 1) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Corporate and Non-U.S. Bonds | Significant other observable inputs (Level 2) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 3 | 3.5 |
Corporate and Non-U.S. Bonds | Significant unobservable inputs (Level 3) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Corporate and Non-U.S. Bonds | Assets valued using NAV | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 166.4 | 203.8 |
Other investments | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 69.7 | 42.5 |
Other investments | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 60.2 | 49.2 |
Other investments | Quoted prices in active markets for identical assets (Level 1) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Other investments | Quoted prices in active markets for identical assets (Level 1) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Other investments | Significant other observable inputs (Level 2) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Other investments | Significant other observable inputs (Level 2) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 0.5 | 0.5 |
Other investments | Significant unobservable inputs (Level 3) | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 0 | 0 |
Other investments | Significant unobservable inputs (Level 3) | Non-US | ||
Defined benefit plan, fair value of pension plan assets | 3.8 | 4.2 |
Other investments | Assets valued using NAV | U.S. | ||
Defined benefit plan, fair value of pension plan assets | 69.7 | 42.5 |
Other investments | Assets valued using NAV | Non-US | ||
Defined benefit plan, fair value of pension plan assets | $ 55.9 | $ 44.5 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 24.5 | $ 23.5 |
Derivative instruments | 0.5 | 1.6 |
Total asset recurring fair value measurements | 25 | 25.1 |
Derivative instruments | 0.4 | 3.4 |
Deferred compensation and other retirement plans | 25.9 | 25.1 |
Total liability recurring fair value measurements | 26.3 | 28.5 |
Total debt | 1,510.4 | 1,541.4 |
Total financial instruments not carried at fair value | 1,510.4 | 1,541.4 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total asset recurring fair value measurements | 0 | 0 |
Derivative instruments | 0 | 0 |
Deferred compensation and other retirement plans | 0 | 0 |
Total liability recurring fair value measurements | 0 | 0 |
Total debt | 0 | 0 |
Total financial instruments not carried at fair value | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 24.5 | 23.5 |
Derivative instruments | 0.5 | 1.6 |
Total asset recurring fair value measurements | 25 | 25.1 |
Derivative instruments | 0.4 | 3.4 |
Deferred compensation and other retirement plans | 25.9 | 25.1 |
Total liability recurring fair value measurements | 26.3 | 28.5 |
Total debt | 1,510.4 | 1,541.4 |
Total financial instruments not carried at fair value | 1,510.4 | 1,541.4 |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total asset recurring fair value measurements | 0 | 0 |
Derivative instruments | 0 | 0 |
Deferred compensation and other retirement plans | 0 | 0 |
Total liability recurring fair value measurements | 0 | 0 |
Total debt | 0 | 0 |
Total financial instruments not carried at fair value | $ 0 | $ 0 |
Equity (Reconciliation of Ordin
Equity (Reconciliation of Ordinary Shares) (Details) - Ordinary shares - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning balance, shares | 91.2 | 92.7 | 94.6 |
Shares issued under incentive plans | 0.3 | 0.4 | 0.4 |
Repurchase of ordinary shares | (3.3) | (1.9) | (2.3) |
Ending balance, shares | 88.2 | 91.2 | 92.7 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Ordinary shares authorized | 400 | ||
Preferred shares authorized | 10 | ||
Preference shares, par value, in dollars per share | $ 0.001 | ||
Repurchase of ordinary shares | $ 412.8 | $ 208.8 | $ 226 |
2020 Share Repurchase Authorization [Member] | |||
Stock Repurchase Program, Authorized Amount | 800 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 201.4 | ||
Ordinary shares | |||
Repurchase of ordinary shares | $ 0 | $ 0 | $ 0 |
Equity (Changes In Accumulated
Equity (Changes In Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated other comprehensive income (loss), beginning of year | $ (157.1) | $ (218.6) | $ (223.5) |
Other comprehensive income (loss), net of tax | (37.2) | 61.8 | 4.8 |
Accumulated other comprehensive income (loss), end of year | (194.4) | (157.1) | (218.6) |
Accumulated foreign currency translation adjustments reclassified to earnings, net of tax | 12.8 | (26.2) | |
AOCI attributable to Parent, Cash flow hedges | |||
Accumulated other comprehensive income (loss), beginning of year | (0.9) | 0.5 | 6.1 |
Other comprehensive income (loss), net of tax | 1.8 | (1.4) | (5.6) |
Accumulated other comprehensive income (loss), end of year | 0.9 | (0.9) | 0.5 |
AOCI attributable to Parent, Pension and OPEB items | |||
Accumulated other comprehensive income (loss), beginning of year | (120.3) | (126.2) | (123.2) |
Other comprehensive income (loss), net of tax | 24.3 | 5.9 | (3) |
Accumulated other comprehensive income (loss), end of year | (96) | (120.3) | (126.2) |
AOCI attributable to Parent, Foreign currency items | |||
Accumulated other comprehensive income (loss), beginning of year | (35.9) | (92.9) | (106.4) |
Other comprehensive income (loss), net of tax | (63.4) | 57 | 13.5 |
Accumulated other comprehensive income (loss), end of year | (99.3) | (35.9) | (92.9) |
AOCI Attributable to Parent | |||
Other comprehensive income (loss), net of tax | $ (37.3) | $ 61.5 | $ 4.9 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total number of shares authorized by the shareholders | 8 | ||
Remains available for future incentive awards | 2.6 | ||
Average fair value of stock options granted, in dollars per share | $ 24.99 | $ 25.62 | $ 19.58 |
Aggregate intrinsic value of options exercised | $ 10.5 | $ 18.8 | |
Stock Options | |||
Total unrecognized compensation cost from share-based compensation arrangements granted under the plan | 1.5 | ||
Restricted Stock Units (RSUs) | |||
Total unrecognized compensation cost from share-based compensation arrangements granted under the plan | 6.5 | ||
Performance Share Units (PSUs) | |||
Total unrecognized compensation cost from share-based compensation arrangements granted under the plan | $ 6.3 |
Share-Based Compensation (Compe
Share-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 25.5 | $ 23.2 | $ 23.6 |
Tax benefit | (3) | (2.9) | (3) |
Share-based compensation expense, net of tax | 22.5 | 20.3 | 20.6 |
Excess benefit from exercises and vesting of share based compensation | 2.1 | 4.5 | 2.8 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 3.9 | 3.8 | 3.5 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 13.6 | 11.4 | 10 |
Performance Share Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 5.9 | 5.6 | 6.9 |
Deferred compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 2.1 | $ 2.4 | $ 3.2 |
Share-Based Compensation (Fair
Share-Based Compensation (Fair Value of Stock Options Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Dividend yield | 1.32% | 0.99% | 1.23% |
Volatility | 27.14% | 20.70% | 21.44% |
Risk free rate of return | 0.75% | 1.41% | 2.53% |
Expected life | 6 years | 6 years | 6 years |
Share-Based Compensation (Chang
Share-Based Compensation (Changes in Options Outstanding Under the Plans) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted average remaining life, Exercisable, in years | 5 years 4 months 24 days | ||
Stock Options | |||
Shares subject to options, Beginning balance | 760,142 | 863,622 | 957,198 |
Shares subject to options, Granted | 179,743 | 161,600 | 195,675 |
Shares subject to options, Exercised | (156,063) | (256,704) | (272,003) |
Shares subject to options, Cancelled | (26,042) | (8,376) | (17,248) |
Shares subject to options, Ending balance | 757,780 | 760,142 | 863,622 |
Shares subject to options, Exercisable | 439,997 | ||
Weighted average exercise price, Beginning balance, in dollars per share | $ 85.18 | $ 67.57 | $ 56.71 |
Weighted average exercise price, Granted, in dollars per share | 109.14 | 129.26 | 88.07 |
Weighted average exercise price, Exercised, in dollars per share | 66.98 | 52.89 | 42.97 |
Weighted average exercise price, Cancelled, in dollars per share | 109.36 | 107.23 | 85.22 |
Weighted average exercise price, Ending Balance, in dollars per share | 93.76 | $ 85.18 | $ 67.57 |
Weighted average exercise price, Exercisable, in dollars per share | $ 80.83 | ||
Aggregate intrinsic value, Outstanding, in USD | $ 29.3 | ||
Aggregate intrinsic value, Exercisable, in USD | $ 22.7 | ||
Weighted average remaining life, Outstanding, in years | 6 years 7 months 6 days | ||
Weighted average remaining life, Exercisable, in years | 5 years 4 months 24 days |
Share-Based Compensation (Infor
Share-Based Compensation (Information Concerning Currently Outstanding and Exercisable Options) (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Number of options outstanding, in shares | shares | 757,780 |
Weighted average remaining life, Outstanding, in years | 6 years 7 months 6 days |
Weighted average exercise price, options outstanding, in dollars per share | $ / shares | $ 93.76 |
Number of options exercisable, in shares | shares | 439,997 |
Weighted average remaining life, Exercisable, in years | 5 years 4 months 24 days |
Weighted average exercise price, option exercisable, in dollars per share | $ / shares | $ 80.83 |
Stock Options | |
Weighted average remaining life, Exercisable, in years | 5 years 4 months 24 days |
0.01 - 25.00 | |
Number of options outstanding, in shares | shares | 1,275 |
Weighted average remaining life, Outstanding, in years | 2 months 12 days |
Weighted average exercise price, options outstanding, in dollars per share | $ / shares | $ 24.95 |
Number of options exercisable, in shares | shares | 1,275 |
Weighted average remaining life, Exercisable, in years | 2 months 12 days |
Weighted average exercise price, option exercisable, in dollars per share | $ / shares | $ 24.95 |
25.01 - 50.00 | |
Number of options outstanding, in shares | shares | 14,242 |
Weighted average remaining life, Outstanding, in years | 1 year 1 month 6 days |
Weighted average exercise price, options outstanding, in dollars per share | $ / shares | $ 33.77 |
Number of options exercisable, in shares | shares | 14,242 |
Weighted average remaining life, Exercisable, in years | 1 year 1 month 6 days |
Weighted average exercise price, option exercisable, in dollars per share | $ / shares | $ 33.77 |
50.01 - 75.00 | |
Number of options outstanding, in shares | shares | 179,313 |
Weighted average remaining life, Outstanding, in years | 4 years 2 months 12 days |
Weighted average exercise price, options outstanding, in dollars per share | $ / shares | $ 64.62 |
Number of options exercisable, in shares | shares | 179,313 |
Weighted average remaining life, Exercisable, in years | 4 years 2 months 12 days |
Weighted average exercise price, option exercisable, in dollars per share | $ / shares | $ 64.62 |
75.01 - 100.00 | |
Number of options outstanding, in shares | shares | 253,153 |
Weighted average remaining life, Outstanding, in years | 6 years 4 months 24 days |
Weighted average exercise price, options outstanding, in dollars per share | $ / shares | $ 87.61 |
Number of options exercisable, in shares | shares | 196,802 |
Weighted average remaining life, Exercisable, in years | 6 years 3 months 18 days |
Weighted average exercise price, option exercisable, in dollars per share | $ / shares | $ 87.47 |
100.01 - 125.00 | |
Number of options outstanding, in shares | shares | 162,848 |
Weighted average remaining life, Outstanding, in years | 9 years 1 month 6 days |
Weighted average exercise price, options outstanding, in dollars per share | $ / shares | $ 109.12 |
Number of options exercisable, in shares | shares | 130 |
Weighted average remaining life, Exercisable, in years | 8 years 4 months 24 days |
Weighted average exercise price, option exercisable, in dollars per share | $ / shares | $ 100.68 |
125.01 - 150.00 | |
Number of options outstanding, in shares | shares | 146,949 |
Weighted average remaining life, Outstanding, in years | 7 years 9 months 18 days |
Weighted average exercise price, options outstanding, in dollars per share | $ / shares | $ 129.33 |
Number of options exercisable, in shares | shares | 48,235 |
Weighted average remaining life, Exercisable, in years | 7 years 8 months 12 days |
Weighted average exercise price, option exercisable, in dollars per share | $ / shares | $ 129.33 |
Share-Based Compensation (RSU A
Share-Based Compensation (RSU Activity During the Year) (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Outstanding and unvested, beginning balance, in shares | 195,290 | 236,519 | 244,347 |
RSUs, granted, in shares | 134,543 | 81,796 | 134,518 |
RSUs, vested, in shares | (124,347) | (113,776) | (118,060) |
RSUs, cancelled, in shares | (10,083) | (9,249) | (24,286) |
Outstanding and unvested, ending balance, in shares | 195,403 | 195,290 | 236,519 |
Weighted average grant date fair value, beginning of Period, in dollars per share | $ 102.52 | $ 86.37 | $ 76.51 |
Weighted average grant date fair value, granted, in dollars per share | 112.75 | 124.91 | 91.75 |
Weighted average grant date fair value, vested, in dollars per share | 100.52 | 85.40 | 73.52 |
Weighted average grant date fair value, cancelled, in dollars per share | 109.31 | 91.73 | 79.53 |
Weighted average grant date fair value, end of Period, in dollars per share | $ 112.35 | $ 102.52 | $ 86.37 |
Share-Based Compensation (Perfo
Share-Based Compensation (Performance Shares Rollforward) (Details) - Performance Share Units (PSUs) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding and unvested, beginning balance, in shares | 145,976 | 157,348 | 156,041 |
Share based compensation (SARs or Performance shares), granted, in shares | 92,717 | 92,913 | 68,125 |
Performance shares, vested in period, in shares | (80,194) | (101,638) | (56,773) |
Share based compensation (SARs or Performance shares), cancelled, in shares | (13,332) | (2,647) | (10,045) |
Outstanding and unvested, ending balance, in shares | 145,167 | 145,976 | 157,348 |
Weighted average grant date fair value, beginning of Period, in dollars per share | $ 93.89 | $ 75.82 | $ 65.07 |
Weighted average grant date fair value, granted, in dollars per share | 109.53 | 113.54 | 87.02 |
Performance shares, vested, weighted average grant date fair value | 100.26 | 83.16 | 61 |
Weighted average grant date fair value, cancelled, in dollars per share | 115.92 | 121.43 | 68.63 |
Weighted average grant date fair value, end of Period, in dollars per share | $ 98.34 | $ 93.89 | $ 75.82 |
Restructuring Activities (Restr
Restructuring Activities (Restructuring Reserve) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Charges [Abstract] | ||
Restructuring reserve, beginning balance | $ 5.3 | $ 1.2 |
Additions, net of reversals | 3.8 | 25 |
Cash payments | (8.6) | (21.3) |
Currency translation | (0.1) | 0.4 |
Restructuring reserve, ending balance | $ 0.4 | $ 5.3 |
Restructuring Activities (Narra
Restructuring Activities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring and related cost, incurred cost | $ 3.8 | $ 25 | |
Qualified restructuring | |||
Restructuring and related cost, incurred cost | 4.3 | 25.6 | $ 16.5 |
Qualified restructuring | Allegion Americas | |||
Restructuring and related cost, incurred cost | 9 | ||
Non-qualified restructuring | |||
Restructuring and related cost, incurred cost | $ 0.8 | $ 1.2 | $ 5.7 |
Other, Net (Details)
Other, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ (0.4) | $ (0.9) | $ (1.8) |
Foreign currency exchange loss | 2.7 | 0.7 | 1.8 |
(Earnings and gains from the sale of) losses from equity method investments, net | (6.4) | (0.3) | 0.1 |
Net periodic pension and postretirement benefit (income) cost, less service cost | (7.1) | (2.2) | 6.8 |
Other | (32.8) | (10.3) | (3.1) |
Other (income) expense, net | (44) | (13) | 3.8 |
Accumulated foreign currency translation adjustments reclassified to earnings, net of tax | 12.8 | (26.2) | |
Equity Method Investment, Realized Gain (Loss) on Disposal | 6.4 | ||
Unrealized Gain (Loss) on Investments | 25.6 | $ (2) | $ 3.1 |
Corporate and Other | |||
Unrealized Gain (Loss) on Investments | $ 20.7 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Undistributed foreign earnings, deferred tax liability | $ 1.9 | $ 1.4 | ||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 5.8 | 18.7 | ||
Unrecognized tax benefits | 41.5 | 41.2 | $ 37.3 | $ 42 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 40.4 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 7.5 | 7.6 | ||
Interest and penalties, net of tax, related to uncertain tax positions | 0.5 | $ 1.9 | ||
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | $ 8.7 |
Income Taxes Schedule of Earnin
Income Taxes Schedule of Earnings (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings before income taxes | $ 524 | $ 365.4 | $ 475.2 |
U.S. | |||
Earnings before income taxes, U.S. | 74.5 | 151.4 | 211.1 |
Non-U.S. | |||
Earnings before income taxes, Non-U.S. | $ 449.5 | $ 214 | $ 264.1 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Provision for Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current tax expense: | $ 84.5 | $ 75.3 | $ 103.3 |
Deferred tax benefit: | (43.8) | (24.4) | (30.2) |
Total tax expense: | 40.7 | 50.9 | 73.1 |
United States | |||
Current tax expense: | 57.4 | 55 | 87.1 |
Deferred tax benefit: | (38.3) | (13.4) | (25.2) |
Total tax expense: | 19.1 | 41.6 | 61.9 |
Non-U.S. | |||
Current tax expense: | 27.1 | 20.3 | 16.2 |
Deferred tax benefit: | (5.5) | (11) | (5) |
Total tax expense: | $ 21.6 | $ 9.3 | $ 11.2 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory U.S. rate | 21.00% | 21.00% | 21.00% |
Non US tax rate differential | (14.10%) | (17.50%) | (10.60%) |
State and local income taxes | 1.10% | 2.40% | 3.00% |
Reserves for uncertain tax positions | 0.30% | 1.10% | 0.50% |
Tax on unremitted earnings | (0.10%) | (0.10%) | (0.10%) |
Trade incentives | 0.00% | 0.00% | 0.20% |
Impairment of goodwill and intangible assets | 0.00% | (7.30%) | 0.00% |
Impact of divestitures | 0.00% | 0.00% | 1.60% |
Other adjustments | (0.40%) | (0.30%) | (0.40%) |
Effective tax rate | 7.80% | 13.90% | 15.40% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Accounts) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||
Inventory and accounts receivable | $ 6.5 | $ 6.5 | ||
Fixed assets and intangibles | 3.2 | 2.6 | ||
Lease liabilities | 21.6 | 22 | ||
Postemployment and other benefit liabilities | 24.9 | 29.9 | ||
Other reserves and accruals | 12.9 | 16.4 | ||
Net operating losses, tax credits and other carryforwards | 446 | 386.1 | ||
Other | 0.6 | 1.8 | ||
Gross deferred tax assets | 515.7 | 465.3 | ||
Less: deferred tax valuation allowances | (265.5) | (259.7) | $ (241) | $ (357.1) |
Deferred tax assets net of valuation allowances | 250.2 | 205.6 | ||
Fixed assets and intangibles | (110.6) | (112) | ||
Right of use assets | (21) | (21.7) | ||
Postemployment and other benefit liabilities | (13.9) | (6.8) | ||
Unremitted earnings of foreign subsidiaries | (1.9) | (1.4) | ||
Other | (10.3) | (5.6) | ||
Gross deferred tax liabilities | (157.7) | (147.5) | ||
Net deferred tax assets | $ 92.5 | $ 58.1 |
Income Taxes (Operating Loss an
Income Taxes (Operating Loss and Tax Credit Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
U.S. Federal tax loss carryforwards | $ 446 | $ 386.1 |
United States | ||
U.S. Federal tax loss carryforwards | 17.7 | |
U.S. Federal and State credit carryforwards | 23.4 | |
State and Local Jurisdiction | ||
U.S. State tax loss carryforwards | 52.1 | |
Non-U.S. | ||
Non-U.S. tax loss carryforwards | $ 1,013.7 |
Income Taxes (Valuation Allowan
Income Taxes (Valuation Allowance) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning balance | $ 259.7 | $ 241 | $ 357.1 |
Valuation Allowance, Deferred Tax Asset, Change in Amount | (5.8) | (18.7) | |
Ending balance | 265.5 | 259.7 | 241 |
Increase to valuation allowance | |||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 8.4 | 21.1 | 2.8 |
Decrease to valuation allowance | |||
Valuation Allowance, Deferred Tax Asset, Change in Amount | (2) | (2.8) | (118.6) |
Foreign exchange translation | |||
Valuation Allowance, Deferred Tax Asset, Change in Amount | $ (0.6) | $ 0.4 | $ (0.3) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 41.2 | $ 37.3 | $ 42 |
Additions based on tax positions related to the current year | 8.8 | 6 | 5.7 |
Additions based on tax positions related to prior years | 3.6 | 4.1 | 1.7 |
Reductions based on tax positions related to prior years | (2.2) | (1.5) | (7) |
Reductions related to settlements with tax authorities | (3.6) | (0.3) | (4) |
Reductions related to lapses of statute of limitations | (5.6) | (5.2) | (0.8) |
Translation (gain)/loss | (0.7) | 0.8 | (0.3) |
Ending balance | $ 41.5 | $ 41.2 | $ 37.3 |
Earnings Per Share (EPS) (Detai
Earnings Per Share (EPS) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Weighted-average number of basic shares | 89.9 | 92.3 | 93.6 |
Shares issuable under share-based compensation plans | 0.6 | 0.5 | 0.7 |
Weighted-average number of diluted shares | 90.5 | 92.8 | 94.3 |
Anti-dilutive shares | 0.1 |
Net Revenues (Details)
Net Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | |||
Net revenues | $ 2,867.4 | $ 2,719.9 | $ 2,854 |
Allegion Americas | |||
Disaggregation of Revenue | |||
Net revenues | 2,072.2 | 2,016.7 | 2,114.5 |
Allegion International | |||
Disaggregation of Revenue | |||
Net revenues | 795.2 | 703.2 | 739.5 |
Products | |||
Disaggregation of Revenue | |||
Net revenues | 2,833.5 | 2,688.9 | 2,819.4 |
Products | Allegion Americas | |||
Disaggregation of Revenue | |||
Net revenues | 2,070.4 | 2,016.7 | 2,114.5 |
Products | Allegion International | |||
Disaggregation of Revenue | |||
Net revenues | 763.1 | 672.2 | 704.9 |
Services | |||
Disaggregation of Revenue | |||
Net revenues | 33.9 | 31 | 34.6 |
Services | Allegion Americas | |||
Disaggregation of Revenue | |||
Net revenues | 1.8 | 0 | 0 |
Services | Allegion International | |||
Disaggregation of Revenue | |||
Net revenues | $ 32.1 | $ 31 | $ 34.6 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expense for environmental remediation | $ 0.9 | $ 7.1 | $ 1.7 |
Reserves for environmental matters | 16.4 | 21.1 | |
Reserve for environmental matters, current | 3.7 | 6.1 | |
Segment, Discontinued Operations | |||
Reserves for environmental matters | $ 4.3 | $ 4.4 |
Commitments and Contingencies_3
Commitments and Contingencies (Standard Product Warranty Liability) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance at beginning of period | $ 16.5 | $ 15.9 | $ 14.5 |
Reductions for payments | (10.6) | (7.3) | (8.4) |
Accruals for warranties issued during the current period | 11.9 | 8.2 | 10.3 |
Changes to accruals related to preexisting warranties | 0 | (0.6) | (0.4) |
Translation | (0.1) | 0.3 | (0.1) |
Balance at end of period | $ 17.7 | $ 16.5 | $ 15.9 |
Business Segment Information (S
Business Segment Information (Summary of Operations by Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net revenues | $ 2,867.4 | $ 2,719.9 | $ 2,854 |
Operating income (loss) | 530.2 | 403.5 | 565.1 |
Depreciation and amortization | 79.2 | 78 | 78.1 |
Capital expenditures | 45.4 | 47.1 | 65.6 |
Assets | 3,051 | 3,069.4 | 2,967.2 |
Interest expense | 50.2 | 51.1 | 56 |
Loss on divestitures | 0 | 0 | (30.1) |
Other (income) expense, net | (44) | (13) | 3.8 |
Total earnings before income taxes | 524 | 365.4 | 475.2 |
Segment Reconciling Items | |||
Depreciation and amortization | 4 | 4.5 | 4.4 |
Capital expenditures | 3.3 | 4.6 | 5.2 |
Assets | 464.5 | 476.9 | 389.5 |
Unallocated corporate expense | 77.2 | 74.6 | 81.3 |
Operating Segments | |||
Operating income (loss) | 607.4 | 478.1 | 646.4 |
Depreciation and amortization | 75.2 | 73.5 | 73.7 |
Capital expenditures | 42.1 | 42.5 | 60.4 |
Assets | 2,586.5 | 2,592.5 | 2,577.7 |
Allegion Americas | |||
Net revenues | 2,072.2 | 2,016.7 | 2,114.5 |
Operating income (loss) | $ 525 | $ 580.2 | $ 611.6 |
Segment operating margin | 25.30% | 28.80% | 28.90% |
Depreciation and amortization | $ 34.8 | $ 34.5 | $ 35.7 |
Capital expenditures | 30.7 | 26.9 | 32.1 |
Assets | 1,309.6 | 1,249 | 1,239 |
Allegion International | |||
Net revenues | 795.2 | 703.2 | 739.5 |
Operating income (loss) | $ 82.4 | $ (102.1) | $ 34.8 |
Segment operating margin | 10.40% | (14.50%) | 4.70% |
Depreciation and amortization | $ 40.4 | $ 39 | $ 38 |
Capital expenditures | 11.4 | 15.6 | 28.3 |
Assets | $ 1,276.9 | $ 1,343.5 | $ 1,338.7 |
Business Segment Information _2
Business Segment Information (Schedule of Revenues by Destination) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | |||
Net revenues | $ 2,867.4 | $ 2,719.9 | $ 2,854 |
U.S. | |||
Disaggregation of Revenue | |||
Net revenues | 1,948.9 | 1,905.5 | 1,988.9 |
Non-U.S. | |||
Disaggregation of Revenue | |||
Net revenues | $ 918.5 | $ 814.4 | $ 865.1 |
Business Segment Information _3
Business Segment Information (Schedule of Revenue by Product) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | |||
Net revenues | $ 2,867.4 | $ 2,719.9 | $ 2,854 |
Mechanical products | |||
Disaggregation of Revenue | |||
Net revenues | 2,249.2 | 2,146.1 | 2,247 |
All other | |||
Disaggregation of Revenue | |||
Net revenues | $ 618.2 | $ 573.8 | $ 607 |
Business Segment Information _4
Business Segment Information (Schedule of Long-Lived Asset by Geographic Area) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Long-lived assets | $ 617.3 | $ 663.7 |
U.S. | ||
Long-lived assets | 231.7 | 236.8 |
Non-U.S. | ||
Long-lived assets | $ 385.6 | $ 426.9 |
Business Segment Information Bu
Business Segment Information Business Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Subsequent Events (Details)
Subsequent Events (Details) | Feb. 04, 2022$ / shares |
Subsequent Event | |
Subsequent Event [Line Items] | |
Common stock, dividends, in dollars per share, declared | $ 0.41 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts (Details) - Allowances for Doubtful Accounts [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance at the beginning of period | $ 6.2 | $ 5.6 | $ 3.3 |
Adoption of ASC 326 | 1.9 | ||
Additions charged to costs and expenses | 0.1 | 2.4 | 2.4 |
Deductions | (0.7) | (3.9) | |
Currency translation | (0.2) | 0.2 | (0.1) |
Balance at the end of period | $ 5.4 | $ 6.2 | $ 5.6 |