Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 23, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Allegion plc | |
Entity Central Index Key | 1,579,241 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 95,042,640 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net revenues | $ 609.4 | $ 581.1 | $ 1,785.1 | $ 1,668.3 |
Cost of goods sold | (335.5) | (317.6) | (989.3) | (921.1) |
Selling and administrative expenses | (147.8) | (142) | (436.8) | (418.9) |
Operating income | 126.1 | 121.5 | 359 | 328.3 |
Interest expense | (17.8) | (15.6) | (49.7) | (48.4) |
Disposal Group, Not Discontinued Operation, (Gain) Loss on Disposal | 0 | 84.4 | 0 | 84.4 |
Other (income) expense, net | (3.7) | 0.4 | (8.2) | (17) |
Earnings before income taxes | 112 | 21.1 | 317.5 | 212.5 |
Provision for income taxes | (21.9) | (19.1) | (52.9) | (56.3) |
Net earnings | 90.1 | 2 | 264.6 | 156.2 |
Less: Net (earnings) loss attributable to noncontrolling interests | (0.3) | (0.4) | (0.9) | (1.9) |
Net earnings attributable to Allegion plc | $ 89.8 | $ 1.6 | $ 263.7 | $ 154.3 |
Basic: | ||||
Net earnings (loss) (in dollars per share) | $ 0.95 | $ 0.02 | $ 2.77 | $ 1.61 |
Diluted: | ||||
Net earnings (loss) (in dollars per share) | $ 0.94 | $ 0.02 | $ 2.75 | $ 1.59 |
Weighted-average shares outstanding | ||||
Basic (in shares) | 95 | 96 | 95.2 | 95.9 |
Diluted (in shares) | 95.8 | 96.9 | 96 | 96.8 |
Dividends declared per ordinary share (in dollars per share) | $ 0.16 | $ 0.12 | $ 0.48 | $ 0.36 |
Total comprehensive income | $ 112.7 | $ 16.2 | $ 347.5 | $ 172.1 |
Less: Total comprehensive income attributable to noncontrolling interests | 0.8 | 0.2 | 2 | 2.4 |
Total comprehensive income attributable to Allegion plc | $ 111.9 | $ 16 | $ 345.5 | $ 169.7 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 334.9 | $ 312.4 |
Accounts and notes receivable, net | 302.8 | 260 |
Inventories | 257.1 | 220.6 |
Other current assets | 29.8 | 36.3 |
Total current assets | 924.6 | 829.3 |
Property, plant and equipment, net | 246.1 | 226.6 |
Goodwill | 755.9 | 716.8 |
Intangible assets, net | 393.2 | 357.4 |
Other noncurrent assets | 127.5 | 117.3 |
Total assets | 2,447.3 | 2,247.4 |
LIABILITIES AND EQUITY | ||
Accounts payable | 177.7 | 179.9 |
Accrued expenses and other current liabilities | 219.5 | 201.5 |
Short-term borrowings and current maturities of long-term debt | 35 | 48.2 |
Total current liabilities | 432.2 | 429.6 |
Long-term debt | 1,412 | 1,415.6 |
Other noncurrent liabilities | 231 | 285.8 |
Total liabilities | 2,075.2 | 2,131 |
Equity: | ||
Ordinary shares, $0.01 par value (95,025,612 and 95,273,927 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively) | 1 | 1 |
Capital in excess of par value | 5.2 | 0 |
Retained earnings | 543.5 | 376.6 |
Accumulated other comprehensive loss | (182.5) | (264.3) |
Total Allegion plc shareholders’ equity | 367.2 | 113.3 |
Noncontrolling interests | 4.9 | 3.1 |
Total equity | 372.1 | 116.4 |
Total liabilities and equity | $ 2,447.3 | $ 2,247.4 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets Parenthetical ordinary shares - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 95,038,866 | 95,273,927 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net earnings | $ 264.6 | $ 156.2 |
Adjustments to arrive at net cash provided by operating activities: | ||
Loss on divestitures | 0 | 84.4 |
Depreciation and amortization | 49.9 | 50.7 |
Discretionary pension plan contribution | (50) | 0 |
Changes in assets and liabilities and other non-cash items | (94.5) | (112.9) |
Net cash provided by operating activities | 170 | 178.4 |
Cash flows from investing activities: | ||
Capital expenditures | (33.7) | (26.4) |
Acquisition of and equity investments in businesses, net of cash acquired | (20.8) | (31.4) |
Proceeds from sale of marketable securities | 0 | 14.1 |
Proceeds from sale of equity investment | 15.5 | 0 |
Other investing activities, net | 2.9 | (5.6) |
Net cash used in investing activities | (36.1) | (49.3) |
Cash flows from financing activities: | ||
Short-term borrowings, net | (1.3) | 0 |
Borrowings from revolving facility | 165 | 0 |
Issuance of term facility | 700 | 0 |
Settlement of second amended credit facility | (856.3) | 0 |
Payments of long-term debt | 23.5 | 53.6 |
Debt repayments, net | (16.1) | (53.6) |
Debt issuance costs | (3) | (0.3) |
Dividends paid to ordinary shareholders | (45.6) | (34.5) |
Acquisition/divestiture of noncontrolling interests | 0 | 0.4 |
Repurchase of ordinary shares | (60) | (30) |
Other financing activities, net | 6 | 2.8 |
Net cash used in financing activities | (118.7) | (116) |
Effect of exchange rate changes on cash and cash equivalents | 7.3 | 1.7 |
Net increase in cash and cash equivalents | 22.5 | 14.8 |
Cash and cash equivalents - beginning of period | 312.4 | 199.7 |
Cash and cash equivalents - end of period | $ 334.9 | $ 214.5 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed and consolidated financial statements of Allegion plc, an Irish public limited company, and its consolidated subsidiaries ("Allegion" or the "Company"), reflect the consolidated operations of the Company and have been prepared in accordance with United States Securities and Exchange Commission ("SEC") interim reporting requirements. Accordingly, the accompanying condensed and consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP") for full financial statements and should be read in conjunction with the consolidated financial statements included in the Allegion Annual Report on Form 10-K for the year ended December 31, 2016 . In the opinion of management, the accompanying condensed and consolidated financial statements contain all adjustments, which include normal recurring adjustments, necessary to state fairly the consolidated unaudited results for the interim periods presented. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." ASU 2015-11 changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. The standard defines net realizable value as estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The Company adopted the provisions of ASU 2015-11 on January 1, 2017. The adoption of ASU 2015-11 did not have a material impact on the condensed and consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." This update addresses the income tax consequences of intra-entity transfers of assets other than inventory. Previously, GAAP prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. In addition, interpretations of this guidance have developed in practice over the years for transfers of certain intangible and tangible assets. The amendments in the update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company elected to early adopt on January 1, 2017. As a result, during the first quarter of 2017, the Company recognized a cumulative effect within retained earnings of $5.0 million with an offset to other current assets and other noncurrent assets. In January 2017, the FASB issued ASU 2017-04, "Intangibles– Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment." The amended guidance simplifies the accounting for goodwill impairment for all entities by eliminating the requirement to perform a hypothetical purchase price allocation. A goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. The ASU will be effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for any impairment tests after January 1, 2017. The Company elected to early adopt on October 1, 2017 and will apply the new standard, if applicable, to our annual impairment test on goodwill as of October 1, 2017. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (ASC 606). ASC 606 is a single, comprehensive revenue recognition model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or perform a service). Revenue is recognized based on the satisfaction of performance obligations, which occurs when control of a good or service transfers to a customer. ASC 606 contains expanded disclosure requirements relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption ("modified retrospective method"). This guidance will be effective for the Company January 1, 2018. The FASB has also issued the following standards which clarify ASU 2014-09 and have the same effective date as the original standard: ASU 2016-20, Revenue from Contracts with Customers: Technical Corrections and Improvements, ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. The Company has completed an assessment of the new standard’s impact and a technical assessment of material customer contracts. The Company will choose the modified retrospective method upon adoption in 2018. The adoption of the new standard will not have a material impact on the Company's condensed and consolidated statements of comprehensive income, balance sheets or statements of cash flows. The Company will expand the condensed and consolidated financial statement disclosures in order to comply with ASU 2014-09. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements will be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, although we currently plan to adopt this ASU on January 1, 2019. ASU 2016-02 is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. The Company is continuing to assess what impact ASU 2016-02 will have on the condensed and consolidated financial statements; however, the Company anticipates that this adoption will result in a significant gross-up of assets and liabilities on its condensed and consolidated balance sheets and will require changes to its systems and processes. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. The ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is assessing what impact ASU 2016-13 will have on the condensed and consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments." ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. The ASU will be effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update will be applied retrospectively to all periods presented, unless deemed impracticable, in which case, prospective application is permitted. The Company is assessing what impact ASU 2016-15 will have on the condensed and consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." ASU 2017-07 requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the statement of comprehensive income separately from the service cost component and outside a subtotal of operating income. ASU 2017-07 also allows only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). The ASU is effective for annual periods beginning after December 15, 2017. The ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The amendments allow a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. Upon adoption, the Company intends to apply these practical expedients for prior period presentation. The Company does not believe the adoption of the new standard will not have a material impact on the Company's condensed and consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." ASU 2017-12 addresses previous limitations on how an entity can designate the hedged risk in certain cash flow and fair value hedging relationships by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The ASU is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The amendments in this update should be applied to hedging relationships existing on the date of adoption, which includes a cumulative-effect adjustment to eliminate any ineffectiveness recorded to accumulated other comprehensive income or loss with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year in which adoption occurred. Presentation and disclosure amendments are required to be applied prospectively. The Company is assessing what impact ASU 2017-12 will have on the condensed and consolidated financial statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. The major classes of inventory were as follows: In millions September 30, December 31, Raw materials $ 71.3 $ 56.7 Work-in-process 30.5 23.6 Finished goods 155.3 140.3 Total $ 257.1 $ 220.6 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 were as follows: In millions Americas EMEIA Asia Pacific Total December 31, 2016 (gross) $ 372.9 $ 736.1 $ 93.3 $ 1,202.3 Accumulated impairment — (478.6 ) (6.9 ) (485.5 ) December 31, 2016 (net) 372.9 257.5 86.4 716.8 Acquisitions and settlements 3.1 (1.7 ) 1.3 2.7 Currency translation — 31.1 5.3 36.4 September 30, 2017 (net) $ 376.0 $ 286.9 $ 93.0 $ 755.9 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The gross amount of the Company’s intangible assets and related accumulated amortization were as follows: September 30, 2017 December 31, 2016 In millions Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Completed technologies/patents $ 32.4 $ (9.3 ) $ 23.1 $ 48.0 $ (25.3 ) $ 22.7 Customer relationships 319.0 (69.1 ) 249.9 278.9 (51.6 ) 227.3 Trademarks (finite-lived) 87.7 (44.5 ) 43.2 78.5 (37.3 ) 41.2 Other 7.1 (4.5 ) 2.6 11.0 (9.4 ) 1.6 Total finite-lived intangible assets 446.2 $ (127.4 ) 318.8 416.4 $ (123.6 ) 292.8 Trademarks (indefinite-lived) 74.4 74.4 64.6 64.6 Total $ 520.6 $ 393.2 $ 481.0 $ 357.4 Intangible asset amortization expense was $16.4 million and $15.5 million for the nine months ended September 30, 2017 and 2016 . Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $ 22.3 million for full year 2017 , $ 22.3 million for 2018 , $ 21.4 million for 2019 , $ 21.4 million for 2020 , and $ 21.4 million for 2021 . |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On January 3, 2017, the Company acquired Republic Doors & Frames, LLC through one of its subsidiaries. In 2016, we completed one business acquisition (Trelock GmbH) . These acquisitions did not have a material impact on the condensed and consolidated financial statements. |
Divestitures Divestitures
Divestitures Divestitures | 9 Months Ended |
Sep. 30, 2017 | |
Divestitures [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Divestitures On April 5, 2017, iDevices LLC, including the Company's equity investment, was acquired by a third party. The Company recorded a $4.9 million gain in the second quarter of 2017 within Other (income) expense, net. As previously disclosed, the Company sold a majority stake of Bocom Wincent Technologies Co., Ltd. ("Systems Integration") in the fourth quarter of 2015, retaining 15% of the shares. Under the terms of the transaction, the Company was to receive consideration of up to $75 million based on the future cash collection performance of Systems Integration and additional payments of approximately $8.3 million related to working capital transferred with the sale. In the three months ended September 30, 2016, the Company recorded a charge of $84.4 million to write the carrying value of Systems Integration's assets and liabilities down to their estimated fair value less costs to complete the transaction. As of September 30, 2017, the Company currently estimates the fair value of the consideration to be $2.7 million , which is classified within Other noncurrent assets within the Condensed and Consolidated Balance Sheets. The Company does not expect to incur any material charges in future periods related to Systems Integration. |
Debt and Credit Facilities
Debt and Credit Facilities | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities Long-term debt and other borrowings consisted of the following: In millions September 30, December 31, Term Loan A Facility $ — $ 879.8 Term Facility 700.0 — Revolving Facility 165.0 — 5.75% Senior notes due 2021 300.0 300.0 5.875% Senior notes due 2023 300.0 300.0 Other debt, including capital leases, maturing in various amounts through 2024 1.0 2.3 Unamortized debt issuance costs, net (19.0 ) (18.3 ) Total debt 1,447.0 1,463.8 Less current portion of long-term debt 35.0 48.2 Total long-term debt $ 1,412.0 $ 1,415.6 Unsecured Credit Facilities On September 12, 2017, the Company entered into a new Credit Agreement (the “Credit Agreement”), which refinanced in full the Company's previously outstanding credit facility, the Second Amended and Restated Credit Agreement, dated as of September 30, 2015 (the “Second Amended Credit Agreement”). The Credit Agreement provides for $1,200.0 million in unsecured financing, consisting of a $700.0 million term loan facility maturing on September 12, 2022 (the “Term Facility”) and a $500.0 million revolving credit facility maturing on September 12, 2022 (the “Revolving Facility” and, together with the Term Facility, the “Credit Facilities”). All obligations under the Second Amended Credit Agreement were satisfied, all commitments thereunder were terminated, and all guarantees and security interests that had been granted in connection therewith were released. The full amount of the Term Facility was drawn at closing. Amounts borrowed under the Term Facility that are repaid or prepaid may not be reborrowed. The proceeds from the Term Facility along with the initial borrowings of $165.0 million under the Revolving Facility were used primarily to repay the then outstanding borrowing under the Second Amended Credit Agreement. The Term Facility will amortize in quarterly installments at the following rates: 1.25% per quarter starting December 31, 2017 through December 31, 2020, 2.5% per quarter from March, 31, 2021 through June 30, 2022, with the balance due on September 12, 2022. The Revolving Facility consists of a five-year revolving credit facility with aggregate commitments in an amount equal to $500.0 million , of which up to $100.0 million is available for the issuance of letters of credit, and including a swingline facility in an amount equal to $50.0 million . Certain of the commitments under the Revolving Facility are available to be drawn in currencies other than US dollars, including euros and pounds sterling. Amounts repaid under the Revolving Facility may be reborrowed. As discussed further below, the Company repaid in full the outstanding borrowings under the Revolving Facility on October 2, 2017, with proceeds from the issuance of Senior Notes due 2024 and 2027 on the same date. The indebtedness, obligations and liabilities under the Credit Facilities are unconditionally guaranteed jointly and severally on an unsecured basis by Allegion plc and Allegion US Holding Company. Outstanding borrowings under the Credit Facilities will accrue interest, at the option of the Borrowers, at a per annum rate of (i) a LIBOR rate plus the applicable margin or (ii) a base rate plus the applicable margin. The applicable margin for borrowings under the Credit Facilities is subject to a ratings-based pricing grid with the margin ranging from 1.125% to 1.500% depending on the Borrowers’ credit ratings. Outstanding borrowings under the Term Facility currently accrue interest at LIBOR plus an applicable margin. The margin for the Term Facility borrowing was 1.25% as of September 30, 2017 . The Borrower will pay certain fees with respect to the Credit Facilities, including an unused commitment fee on the undrawn portion of the Revolving Facility of between 0.125% and 0.200%, depending on the Borrowers’ credit rating, as well as certain other fees. During the three month period ending September 30, 2017, the Company incurred a non-cash charge of approximately $0.4 million associated with the write-off of previously unamortized deferred financing costs on the Second Amended Credit Agreement, expensed $1.2 million of third party costs to Interest expense, and recorded deferred financing costs of $2.6 million as part of the new Credit Facilities transaction which will be amortized over the duration of the Credit Facilities. To manage the Company's exposure to fluctuations in LIBOR rates, the Company has forward starting interest rate swaps to fix the interest rate paid during the contract period for $250.0 million of the Company's variable rate Term Facility. These swaps expire in September 2020. At September 30, 2017 , the Company had $18.0 million of letters of credit outstanding. Senior Notes A wholly-owned subsidiary of the Company has issued $300.0 million of 5.75% senior notes due 2021 (the "2021 Senior Notes"). The 2021 Senior Notes accrue interest at the rate of 5.75% per annum, payable semi-annually on April 1 and October 1 of each year. The 2021 Senior Notes mature on October 1, 2021. In September 2015, Allegion plc issued $300.0 million of 5.875% senior notes due 2023 (the "2023 Senior Notes"). The 2023 Senior Notes accrue interest at the rate of 5.875% per annum, payable semi-annually on March 15 and September 15 of each year, beginning March 15, 2016. The 2023 Senior Notes mature on September 15, 2023. On October 2, 2017, Allegion US Holding Company Inc. (“Allegion US Holding”), a subsidiary of Allegion plc (“Allegion”), issued $ 400.0 million aggregate principal amount of its 3.200% Senior Notes due 2024 and $ 400.0 million aggregate principal amount of its 3.550% Senior Notes due 2027. On October 3, 2017 Allegion US Holding used the net proceeds of the offering to redeem in full the Company’s 5.75% Senior Notes due 2021 and to redeem in full the Company’s 5.875% Senior Notes due 2023, pay the related redemption premiums of approximately $33.0 million (will be recorded in Interest expense), and fees of approximately $7.4 million related to the Senior Notes due 2024 and 2027, of which half will be deferred over 7 years and half over 10 years and amortized into interest expense. The Company will also have a loss related to the write off of unamortized debt issue costs from previous issuances of approximately $9.4 million (will be recorded in Interest expense). In addition, on October 2, 2017, the Company repaid in full the borrowings under the Revolving Facility and used the remaining proceeds for general corporate purposes. The Company recorded approximately $7.4 million of deferred debt issue costs related to the Senior Notes due 2024 and 2027, of which $2.3 million was recorded as of September 30, 2017, and $5.1 million was recorded in October 2017. The weighted-average interest rate for borrowings was 2.95% under the Term Loan Facility (including the effect of interest rate swaps) at September 30, 2017 , 5.75% under the 2021 Senior Notes and 5.875% under the 2023 Senior Notes. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial 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. On the date 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 fair market 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. The Company assesses at inception and at least quarterly thereafter, whether the derivatives used in cash flow hedging transactions are highly effective in offsetting the changes in the cash flows of the hedged item. To the extent the derivative is deemed to be a highly effective hedge, the fair market value changes of the instrument are recorded to Accumulated other comprehensive income. Any ineffective portion of a derivative instrument’s change in fair value is recorded in Net earnings in the period of change. If the hedging relationship ceases to be highly effective, or it becomes probable that a forecasted transaction is no longer expected to occur, the hedging relationship will be undesignated and any future gains and losses on the derivative instrument will be recorded in Net earnings. Currency Hedging Instruments The gross notional amount of the Company’s currency derivatives was $ 85.2 million and $ 132.6 million at September 30, 2017 and December 31, 2016 , respectively. At September 30, 2017 and December 31, 2016 , a loss of $ 0.5 million and a gain of $ 0.8 million , net of tax, were included in Accumulated other comprehensive loss related to the fair value of the Company’s currency derivatives designated as cash flow hedges. The amount expected to be reclassified into Net earnings over the next twelve months is a loss of $ 0.5 million . The actual amounts that will be reclassified to Net earnings may vary from this amount as a result of changes in market conditions. Gains and losses associated with the Company’s currency derivatives not designated as hedges are recorded in Net earnings as changes in fair value occur. At September 30, 2017 , the maximum term of the Company’s currency derivatives was less than one year. Interest Rate Swaps To manage the Company's exposure to fluctuations in LIBOR rates, the Company has forward starting interest rate swaps to fix the interest rate paid during the contract period for $250.0 million of the Company's variable rate Term Facility. These swaps expire in September 2020. These interest rate swaps met the criteria to be accounted for as cash flow hedges of variable rate interest payments. Consequently, the changes in fair value of the interest rate swaps were recognized in Accumulated other comprehensive loss. At September 30, 2017 and December 31, 2016 , gains of $2.4 million and $2.6 million , net of tax, were recorded in Accumulated other comprehensive loss related to these interest rate swaps. No gains are expected to be reclassified into Net earnings over the next twelve months. The actual amounts that will be reclassified to Net earnings may vary from this amount as a result of changes in market conditions. The fair values of derivative instruments included within the Condensed and Consolidated Balance Sheets were as follows: Asset derivatives Liability derivatives In millions September 30, December 31, September 30, December 31, Derivatives designated as hedges: Currency derivatives $ — $ 0.7 $ 1.3 $ 0.1 Interest rate swaps 3.7 4.6 — 0.4 Derivatives not designated as hedges: Currency derivatives 0.4 0.3 0.1 0.2 Total derivatives $ 4.1 $ 5.6 $ 1.4 $ 0.7 Asset and liability currency derivatives included in the table above are recorded within Other current assets and Accrued expenses and other current liabilities, respectively. Asset and liability interest rate swap derivatives included in the table above are recorded within Other noncurrent assets and Accrued expenses and other current liabilities. The amounts associated with derivatives designated as hedges affecting Net earnings and Accumulated other comprehensive loss for the three months ended September 30 were as follows: Amount of gain Location of gain Amount of gain (loss) reclassified from Accumulated other comprehensive loss and In millions 2017 2016 2017 2016 Currency derivatives $ 0.6 $ 1.5 Cost of goods sold $ 1.0 $ (1.1 ) Interest rate swaps 0.3 2.5 Interest expense — — Total $ 0.9 $ 4.0 $ 1.0 $ (1.1 ) The amounts associated with derivatives designated as hedges affecting Net earnings and Accumulated other comprehensive loss for the nine months ended September 30 were as follows: Amount of gain (loss) Location of gain (loss) Amount of gain reclassified from Accumulated other comprehensive loss and In millions 2017 2016 2017 2016 Currency derivatives $ 2.2 $ (0.7 ) Cost of goods sold $ 4.0 $ 4.2 Interest rate swaps (0.5 ) (1.0 ) Interest expense — — Total $ 1.7 $ (1.7 ) $ 4.0 $ 4.2 The 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 Condensed and Consolidated Statements of Comprehensive Income. Concentration of Credit Risk The counterparties to the Company’s forward contracts and swaps 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. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits Other than Pensions | 9 Months Ended |
Sep. 30, 2017 | |
General Discussion of Pension and Other Postretirement Benefits [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 of its 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 components of the Company’s net periodic pension benefit costs for the three and nine months ended September 30 were as follows: U.S. Three months ended Nine months ended In millions 2017 2016 2017 2016 Service cost $ 2.1 $ 2.6 $ 6.5 $ 7.3 Interest cost 2.7 2.6 7.8 7.6 Expected return on plan assets (3.0 ) (2.6 ) (8.9 ) (7.7 ) Net amortization of: Prior service costs — 0.2 0.2 0.5 Plan net actuarial losses 1.3 0.4 3.6 3.1 Net periodic pension benefit cost $ 3.1 $ 3.2 $ 9.2 $ 10.8 Non-U.S. Three months ended Nine months ended In millions 2017 2016 2017 2016 Service cost $ 0.8 $ 0.8 $ 2.4 $ 2.5 Interest cost 2.1 2.9 6.4 8.7 Expected return on plan assets (3.4 ) (3.7 ) (10.3 ) (11.1 ) Amortization of plan net actuarial losses 0.4 0.6 1.3 1.7 Net periodic pension benefit (income) cost $ (0.1 ) $ 0.6 $ (0.2 ) $ 1.8 The Company made employer contributions of $56.0 million (of which $50.0 million was discretionary) and $6.7 million during the nine months ended September 30, 2017 and 2016 to its defined benefit pension plans. Additional contributions of approximately $3.7 million are expected during the remainder of 2017 . Postretirement Benefits Other Than Pensions The Company sponsors a postretirement 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. The components of net periodic postretirement benefit income for the three and nine months ended September 30 were as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Service cost $ — $ 0.1 $ — $ 0.1 Interest cost 0.1 0.1 0.3 0.3 Net amortization of: Prior service gains (0.4 ) (0.5 ) (1.2 ) (1.3 ) Plan net actuarial gains — — (0.1 ) — Net periodic postretirement benefit income $ (0.3 ) $ (0.3 ) $ (1.0 ) $ (0.9 ) |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on a framework that utilizes the inputs market participants use to determine the fair value of an asset or liability and establishes a fair value hierarchy to prioritize those inputs. The fair value hierarchy is comprised of three levels that are described below: • Level 1 – Inputs based on quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 quoted prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. • Level 3 – Unobservable inputs based on little or no market activity and that are significant to the fair value of the assets and liabilities. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability based on the best information available under the circumstances. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Assets and liabilities measured at fair value at September 30, 2017 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: Interest rate swaps $ — $ 3.7 $ — $ 3.7 Currency derivatives — 0.4 — 0.4 Total asset recurring fair value measurements $ — $ 4.1 $ — $ 4.1 Liabilities: Currency derivatives $ — $ 1.4 $ — $ 1.4 Deferred compensation plans — 19.8 — 19.8 Total liability recurring fair value measurements $ — $ 21.2 $ — $ 21.2 Nonrecurring fair value measurements Financial instruments not carried at fair value Total debt $ — $ 1,494.6 $ — $ 1,494.6 Total financial instruments not carried at fair value $ — $ 1,494.6 $ — $ 1,494.6 Assets and liabilities measured at fair value at December 31, 2016 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: Interest rate swap $ — $ 4.6 $ — $ 4.6 Currency derivatives — 1.0 — 1.0 Total asset recurring fair value measurements $ — $ 5.6 $ — $ 5.6 Liabilities: Currency derivatives $ — $ 0.3 $ — $ 0.3 Interest rate swap — 0.4 — 0.4 Deferred compensation plans — 16.8 — 16.8 Total liability recurring fair value measurements $ — $ 17.5 $ — $ 17.5 Financial instruments not carried at fair value Total debt $ — $ 1,510.6 $ — $ 1,510.6 Total financial instruments not carried at fair value $ — $ 1,510.6 $ — $ 1,510.6 The Company determines the fair value of its financial assets and liabilities using the following methodologies: • Currency derivatives – These instruments include foreign currency contracts for non-functional currency balance sheet exposures. The fair value of the foreign currency contracts are determined based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily accessible and observable. • Interest rate swaps – These instruments include interest rate swap contracts for up to $250.0 million of the Company's variable rate debt. The fair value of the derivative instruments are determined based on quoted prices for the Company's swaps, which are not considered an active market. • Deferred compensation plans - These include obligations related to deferred compensation adjusted for market performance. The fair value is obtained based on observable market prices quoted on public exchanges for similar instruments. • Debt – These securities are recorded at cost and include debt instruments maturing through 2024 . 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 receivable, accounts payable and short-term borrowings are a reasonable estimate of their fair value due to the short-term nature of these instruments. These methodologies used by the Company to determine the fair value of its financial assets and liabilities at September 30, 2017 are the same as those used at December 31, 2016 . There have been no significant transfers between Level 1 and Level 2 categories. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity The reconciliation of Ordinary shares is as follows: In millions Total December 31, 2016 95.3 Shares issued under incentive plans, net 0.5 Repurchase of ordinary shares (0.8 ) September 30, 2017 95.0 During the nine months ended September 30, 2017 , the Company paid $60.0 million to repurchase 0.8 million ordinary shares on the open market under a share repurchase program previously approved by its Board of Directors. The components of Equity for the nine months ended September 30, 2017 were as follows: In millions Allegion plc Noncontrolling Total Balance at December 31, 2016 $ 113.3 $ 3.1 $ 116.4 Net earnings 263.7 0.9 264.6 Currency translation 86.8 1.1 87.9 Change in value of derivatives qualifying as cash flow hedges, net of tax (1.5 ) — (1.5 ) Pension and OPEB adjustments, net of tax (3.5 ) — (3.5 ) Total comprehensive income 345.5 2.0 347.5 Cumulative effect of change in accounting principle (5.0 ) — (5.0 ) Share-based compensation 12.8 — 12.8 Dividends to noncontrolling interests — (0.1 ) (0.1 ) Dividends to ordinary shareholders (45.6 ) — (45.6 ) Repurchase of ordinary shares (60.0 ) — (60.0 ) Shares issued under incentive plans, net 6.2 — 6.2 Other — (0.1 ) (0.1 ) Balance at September 30, 2017 $ 367.2 $ 4.9 $ 372.1 The components of Equity for the nine months ended September 30, 2016 were as follows: In millions Allegion plc Noncontrolling Total Balance at December 31, 2015 $ 25.6 $ 4.1 $ 29.7 Net earnings 154.3 1.9 156.2 Currency translation 15.5 0.5 16.0 Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax (15.0 ) — (15.0 ) Pension and OPEB adjustments, net of tax 14.9 — 14.9 Total comprehensive income 169.7 2.4 172.1 Share-based compensation 13.1 — 13.1 Acquisition/divestiture of noncontrolling interests (0.4 ) — (0.4 ) Dividends to noncontrolling interests — (2.8 ) (2.8 ) Dividends to ordinary shareholders (34.6 ) — (34.6 ) Shares issued under incentive plans, net 8.4 — 8.4 Repurchase of ordinary shares (30.0 ) — (30.0 ) Balance at September 30, 2016 $ 151.8 $ 3.7 $ 155.5 Other Comprehensive Income (Loss) The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2017 are as follows: In millions Cash flow hedges Pension and OPEB Items Foreign Currency Items Total December 31, 2016 $ 3.4 $ (120.5 ) $ (147.2 ) $ (264.3 ) Other comprehensive income (loss) before reclassifications 1.8 (6.5 ) 86.8 82.1 Amounts reclassified from accumulated other comprehensive loss (4.0 ) 3.8 — (0.2 ) Tax benefit (expense) 0.7 (0.8 ) — (0.1 ) September 30, 2017 $ 1.9 $ (124.0 ) $ (60.4 ) $ (182.5 ) The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2016 are as follows: In millions Cash flow hedges and marketable securities Pension and OPEB Items Foreign Currency Items Total December 31, 2015 $ 14.0 $ (139.3 ) $ (106.9 ) $ (232.2 ) Other comprehensive income before reclassifications 1.4 12.1 15.5 29.0 Amounts reclassified from accumulated other comprehensive loss (17.8 ) 4.0 — (13.8 ) Tax benefit (expense) 1.4 (1.2 ) — 0.2 September 30, 2016 $ (1.0 ) $ (124.4 ) $ (91.4 ) $ (216.8 ) Reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2017 were as follows: Amount Reclassified from Accumulated Other Comprehensive Loss In millions Three months ended Nine months ended Statement of Comprehensive Income Line Item Reclasses below represent (income) loss to the Statement of Comprehensive Income Gains on cash flow hedges: Foreign exchange contracts $ (1.0 ) $ (4.0 ) Cost of goods sold (1.0 ) (4.0 ) Earnings before income taxes 0.3 1.1 Provision for income taxes $ (0.7 ) $ (2.9 ) Net earnings Defined benefit pension items: Amortization of: Prior-service gains $ (0.4 ) $ (1.0 ) (a) Actuarial losses 1.7 4.8 (a) 1.3 3.8 Loss before income taxes (0.3 ) (0.9 ) Tax benefit $ 1.0 $ 2.9 Net loss Total reclassifications for the period $ 0.3 $ — Net loss (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 10 for additional details). Reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2016 were as follows: Amount Reclassified from Accumulated Other Comprehensive Loss In millions Three months ended Nine months ended Statement of Comprehensive Income Line Item Reclasses below represent (income) loss to the Statement of Comprehensive Income Gains on cash flow hedges: Foreign exchange contracts $ 1.1 $ (4.2 ) Cost of goods sold 1.1 (4.2 ) Loss (earnings) before income taxes 0.6 1.4 Provision for income taxes $ 1.7 $ (2.8 ) Net loss (earnings) Gains on marketable securities: Realized gain on sale of securities $ — $ (13.6 ) Other, net — (13.6 ) Earnings before income taxes — — Provision for income taxes $ — $ (13.6 ) Net earnings Defined benefit pension items: Amortization of: Prior-service gains $ (0.3 ) $ (0.8 ) (a) Actuarial losses 1.0 4.8 (a) 0.7 4.0 Loss before income taxes (0.4 ) (1.2 ) Tax benefit $ 0.3 $ 2.8 Net loss Total reclassifications for the period $ 2.0 $ (13.6 ) Net loss (earnings) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 10 for additional details). |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation [Abstract] | |
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 share units ("PSUs") and deferred compensation. Compensation Expense Share-based compensation expense is included in Selling and administrative expenses within Net earnings. The expenses recognized for the three and nine months ended September 30 were as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Stock options $ 0.7 $ 1.1 $ 2.7 $ 3.3 RSUs 1.7 2.0 5.9 6.1 PSUs 1.4 1.2 4.5 3.7 Deferred compensation 0.6 0.7 2.0 1.1 Pre-tax expense 4.4 5.0 15.1 14.2 Tax benefit (1.5 ) (1.5 ) (5.0 ) (4.2 ) After-tax expense $ 2.9 $ 3.5 $ 10.1 $ 10.0 Stock Options/RSUs Eligible participants may receive (i) stock options, (ii) RSUs or (iii) a combination of both stock options and RSUs. Grants issued during the nine months ended September 30 were as follows: 2017 2016 Number Weighted- Number Weighted- Stock options 165,113 $ 18.22 230,259 $ 15.86 RSUs 119,695 $ 73.37 113,095 $ 58.89 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 average fair value of the stock options granted is determined using the Black-Scholes option-pricing model. The following assumptions were used during the nine months ended September 30 : 2017 2016 Dividend yield 0.89 % 0.83 % Volatility 24.93 % 28.85 % Risk-free rate of return 2.08 % 1.38 % Expected life 6.0 years 6.0 years Expected volatility is based on the weighted average of the implied volatility of a group of the Company’s peers due to the lack of trading history for the Company's ordinary shares. 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 life of the award. Historical peer data is used to estimate forfeitures within the Company’s valuation model. The expected life of the Company’s stock option awards is derived from the simplified approach based on the weighted average time to vest and the remaining contractual term and represents the period of time that awards are expected to be outstanding. Performance Shares The Company has a Performance Share Program for key employees. The program provides awards 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. During the nine months ended September 30, 2017 , the Company granted PSUs with a maximum award level of approximately 0.1 million shares. In February 2015, 2016 and 2017, the Company’s Compensation Committee granted PSUs that were 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 based on the change in the 30 day average price for the grant year index to the 30 day average price for the index over the performance period. The fair values of the market condition were estimated using a Monte Carlo Simulation approach in a risk-neutral framework based upon historical volatility, risk-free rates and correlation matrix. Deferred Compensation The Company allows key employees to defer a portion of their eligible 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 | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring Charges [Abstract] | |
Restructuring Activities | Restructuring Activities During the three months ended September 30, 2017 and 2016 , the Company incurred costs of $7.4 million and $1.1 million , respectively, associated with ongoing restructuring actions. During the nine months ended September 30, 2017 and 2016 , the Company incurred costs of $8.5 million and $3.0 million , respectively, associated with ongoing restructuring actions. Restructuring Plans Restructuring charges recorded during the three and nine months ended September 30 as part of restructuring plans were as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Americas $ 5.4 $ 0.7 $ 5.4 $ 2.0 EMEIA 1.5 0.4 2.5 0.8 Asia Pacific — — — 0.2 Corporate 0.5 — 0.6 — Total $ 7.4 $ 1.1 $ 8.5 $ 3.0 Cost of goods sold 2.9 0.7 3.2 0.8 Selling and administrative expenses 4.5 0.4 5.3 2.2 Total $ 7.4 $ 1.1 $ 8.5 $ 3.0 The Americas, Corporate and EMEIA restructuring charges primarily related to workforce reductions and the closure and consolidation of manufacturing facilities in an effort to increase efficiencies. Americas restructuring charges also include costs associated with the exit of an immaterial product line. The changes in the restructuring reserve during the nine months ended September 30, 2017 were as follows: In millions Americas EMEIA Corporate Total December 31, 2016 $ 0.3 $ 3.2 $ — $ 3.5 Additions, net of reversals 5.4 2.5 0.6 8.5 Cash and non-cash uses (4.6 ) (4.4 ) (0.5 ) (9.5 ) Currency translation — 0.2 — 0.2 September 30, 2017 $ 1.1 $ 1.5 $ 0.1 $ 2.7 The majority of the costs accrued as of September 30, 2017 will be paid within one year. The Company did not incur other non-qualified restructuring charges during the three months ended September 30, 2017. The Company did incur other non-qualified restructuring charges of $1.4 million during the nine months ended September 30, 2017, in conjunction with restructuring plans, which represent costs that are directly attributable to restructuring activities, but do not fall into the severance, exit or disposal category. |
Other, Net
Other, Net | 9 Months Ended |
Sep. 30, 2017 | |
Other Net [Abstract] | |
Other, Net | Other (Income) Expense, Net The components of Other (income) expense, net for the three and nine months ended September 30 were as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Interest income $ (0.3 ) $ (0.5 ) $ (0.6 ) $ (1.9 ) Exchange (gain) loss (0.1 ) 0.5 0.4 2.9 (Earnings) loss from and gains on the sale of equity investments (0.1 ) 0.1 (4.7 ) (3.9 ) Other (3.2 ) 0.3 (3.3 ) (14.1 ) Other (income) expense, net $ (3.7 ) $ 0.4 $ (8.2 ) $ (17.0 ) Other (income) expense, net for the three months ended September 30, 2017 included a gain of $2.9 million related to a legal entity liquidation. Other (income) expense, net for the nine months ended September 30, 2017 included a gain of $4.9 million from the sale of iDevices, LLC, and a gain of $2.9 million related to a legal entity liquidation. During the nine months ended September 30, 2016 the Company recorded gains from the sale of marketable securities of $12.4 million , which is included in Other in the table above. Additionally, earnings from equity method investments included a gain recognized by an investment during the nine months ended September 30, 2016 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | – Income Taxes The effective income tax rates for the three months ended September 30, 2017 and 2016 were 19.6% and 90.5% . The effective income tax rate for the three months ended September 30, 2016 was negatively impacted by $84.4 million (before and after-tax) primarily due to the write-down of the carrying value of consideration receivable related to the September 2015 divestiture of our Systems Integration business in China. Excluding this write-down, the effective tax rate increased due to unfavorable changes in the mix of income earned in higher rate jurisdictions. The effective income tax rates for the nine months ended September 30, 2017 and 2016 were 16.7% and 26.5% . The effective income tax rate for the nine months ended September 30, 2017 was impacted by a favorable benefit of vesting and exercise of share based compensation awards and a favorable benefit resulting from the release of valuation allowances, which are partially offset by unfavorable changes in the mix of income earned in higher rate jurisdictions. The effective income tax rate for the nine months ended September 30, 2016 was negatively impacted by $84.4 million (before and after-tax) primarily due to the write-down of the carrying value of consideration receivable related to the September 2015 divestiture of our Systems Integration business in China. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 9 Months Ended |
Sep. 30, 2017 | |
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 for the three and nine months ended September 30 : Three months ended Nine months ended In millions 2017 2016 2017 2016 Weighted-average number of basic shares 95.0 96.0 95.2 95.9 Shares issuable under incentive stock plans 0.8 0.9 0.8 0.9 Weighted-average number of diluted shares 95.8 96.9 96.0 96.8 At September 30, 2017 , 0.1 million stock options were excluded from the computation of weighted average diluted shares outstanding because the effect of including these shares would have been anti-dilutive. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company classifies its businesses into the following three reportable segments based on industry and market focus: Americas, EMEIA and Asia Pacific. 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 the Company's operating decisions. The Company defines Segment operating margin as Segment operating income as a percentage of Net revenues. A summary of operations by reportable segment for the three and nine months ended September 30 was as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Net revenues Americas $ 455.2 $ 436.2 $ 1,331.4 $ 1,235.7 EMEIA 125.1 116.4 372.7 356.5 Asia Pacific 29.1 28.5 81.0 76.1 Total $ 609.4 $ 581.1 $ 1,785.1 $ 1,668.3 Segment operating income Americas $ 131.8 $ 131.5 $ 379.7 $ 351.7 EMEIA 9.1 3.4 24.5 20.3 Asia Pacific 2.2 1.8 5.1 3.8 Total 143.1 136.7 409.3 375.8 Reconciliation to Operating income Unallocated corporate expense (17.0 ) (15.2 ) (50.3 ) (47.5 ) Operating income $ 126.1 $ 121.5 $ 359.0 $ 328.3 Reconciliation to earnings before income taxes Interest expense 17.8 15.6 49.7 48.4 Loss on divestitures — 84.4 — 84.4 Other (income) loss, net (3.7 ) 0.4 (8.2 ) (17.0 ) Earnings before income taxes $ 112.0 $ 21.1 $ 317.5 $ 212.5 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is involved in various litigations, 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 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. As to the latter, 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 from time to time receives 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 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 our 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. During the three months ended September 30, 2017 and 2016 , the Company recorded $ 0.5 million and $ 1.8 million of expenses for environmental remediation at sites presently or formerly owned or leased by us. During the nine months ended September 30, 2017 and 2016 , the Company recorded $2.0 million and $6.8 million of expenses for environmental remediation at sites presently or formerly owned or leased by it. As of September 30, 2017 and December 31, 2016 , the Company has recorded reserves for environmental matters of $ 29.0 million and $ 30.6 million . Of the total reserve, $ 8.8 million and $ 9.6 million relate to remediation of sites previously disposed by the Company. Environmental reserves are classified as Accrued expenses and other current liabilities or Other noncurrent liabilities based on their expected term. The Company's total current environmental reserve at September 30, 2017 and December 31, 2016 was $ 12.9 million and $ 6.1 million , respectively, and the remainder is classified as non-current. Given the evolving nature of environmental laws, regulations and technology, the ultimate cost of future compliance is uncertain. Warranty Liability Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available. The changes in the standard product warranty liability for the nine months ended September 30 were as follows: In millions 2017 2016 Balance at beginning of period $ 13.3 $ 11.7 Reductions for payments (5.5 ) (4.6 ) Accruals for warranties issued during the current period 6.2 6.2 Changes to accruals related to preexisting warranties (0.7 ) — Translation 0.4 — Balance at end of period $ 13.7 $ 13.3 Standard product warranty liabilities are classified as Accrued expenses and other current liabilities. |
Guarantor Financial Information
Guarantor Financial Information (Notes) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Guarantor Financial Information Allegion US Holding Company, Inc. ("Allegion US Holding") is the issuer of the 2021 Senior Notes and a guarantor of the 2023 Senior Notes. Allegion plc is the issuer of the 2023 Senior Notes and a guarantor of the 2021 Senior Notes. Schlage Lock Company LLC and Von Duprin LLC (together, the “Other Subsidiary Guarantors”) are guarantors of the 2021 Senior Notes and the 2023 Senior Notes. The following condensed and consolidated financial information of Allegion plc, Allegion US Holding, the Other Subsidiary Guarantors and the other Allegion subsidiaries that are not guarantors (the “Other Subsidiaries”) on a combined basis as of September 30, 2017 and December 31, 2016 , and for the three and nine months ended September 30, 2017 and 2016 , is being presented in order to meet the reporting requirements under the 2021 Senior Notes and 2023 Senior Notes indentures and Rule 3-10 of Regulation S-X. In accordance with Rule 3-10(d) of Regulation S-X, separate financial statements for Allegion plc, Allegion US Holding and the Other Subsidiary Guarantors are not required to be filed with the SEC, as the subsidiary debt issuer and the guarantors are directly or indirectly 100% owned by the Parent and the guarantees are full and unconditional and joint and several. As disclosed within Note 8, the 2021 and 2023 Senior Notes were redeemed by the respective issuers on October 3, 2017. On October 2, 2017, Allegion US Holding issued Senior Notes due 2024 and Senior Notes due 2027 (together the “Notes”). The Notes are guaranteed by Allegion plc (the “Guarantor”) pursuant to an Indenture dated October 2, 2017, and are jointly, severally, and fully and unconditionally guaranteed on an unsecured senior basis by the Guarantor. The Notes are not guaranteed by the Company's current and future subsidiaries presented in this periodic report, although the Notes are the direct obligations of Allegion US Holding. As a result, the guarantor financial information presented under Rule 3-10 of Regulation S-X included in this periodic report does not reflect the guarantor structure of the Notes. In future periodic filings beginning with the Company's 2017 consolidated financial statements included in Form 10-K, the condensed and consolidating financial information presented below will be modified to present the guarantor financial information consistent with the guarantor structure of the Notes. Specifically, the “Allegion US Holding” column will be labeled as the “Issuer”, the “Allegion plc” column will be labeled as the “Guarantor” and the “Other Subsidiary Guarantors” column will be combined with the “Other Subsidiaries” column and be labeled “Non-Guarantor Subsidiaries”. Consolidating adjustments will also be modified to eliminate previously disclosed activity between the subsidiary guarantors and the other subsidiaries as applicable. Condensed and Consolidated Balance Sheet September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Current assets: Cash and cash equivalents $ 1.1 $ 0.1 $ 177.7 $ 156.0 $ — $ 334.9 Accounts and notes receivable, net — — 164.9 137.9 — 302.8 Inventories — — 80.6 176.5 — 257.1 Other current assets 0.5 35.4 12.7 79.2 (98.0 ) 29.8 Accounts and notes receivable affiliates — 416.4 492.6 342.0 (1,251.0 ) — Total current assets 1.6 451.9 928.5 891.6 (1,349.0 ) 924.6 Investment in affiliates 1,514.7 2,903.8 218.6 3,648.8 (8,285.9 ) — Property, plant and equipment, net — — 120.9 125.2 — 246.1 Goodwill and other intangible assets, net — — 180.0 969.1 — 1,149.1 Notes receivable affiliates 2.9 1,124.9 3,444.7 1,667.2 (6,239.7 ) — Other noncurrent assets 5.4 19.2 55.4 47.5 — 127.5 Total assets $ 1,524.6 $ 4,499.8 $ 4,948.1 $ 7,349.4 $ (15,874.6 ) $ 2,447.3 Current liabilities: Accounts payable and accruals $ 3.0 $ 11.0 $ 275.4 $ 205.8 $ (98.0 ) $ 397.2 Short-term borrowings and current maturities of long-term debt 35.0 — — — — 35.0 Accounts and notes payable affiliates — 72.0 669.9 509.1 (1,251.0 ) — Total current liabilities 38.0 83.0 945.3 714.9 (1,349.0 ) 432.2 Long-term debt 1,118.2 292.7 — 1.1 — 1,412.0 Notes payable affiliate — 2,655.5 51.0 3,533.2 (6,239.7 ) — Other noncurrent liabilities 1.2 — 84.4 145.4 — 231.0 Total liabilities 1,157.4 3,031.2 1,080.7 4,394.6 (7,588.7 ) 2,075.2 Equity: Total shareholders equity (deficit) 367.2 1,468.6 3,867.4 2,949.9 (8,285.9 ) 367.2 Noncontrolling interests — — — 4.9 — 4.9 Total equity (deficit) 367.2 1,468.6 3,867.4 2,954.8 (8,285.9 ) 372.1 Total liabilities and equity $ 1,524.6 $ 4,499.8 $ 4,948.1 $ 7,349.4 $ (15,874.6 ) $ 2,447.3 Condensed and Consolidated Balance Sheet December 31, 2016 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Current assets: Cash and cash equivalents $ 0.5 $ 0.1 $ 166.0 $ 145.8 $ — $ 312.4 Accounts and notes receivable, net — — 140.0 120.0 — 260.0 Inventories — — 77.6 143.0 — 220.6 Other current assets 0.4 49.7 9.4 145.1 (168.3 ) 36.3 Accounts and notes receivable affiliates — 331.6 395.0 320.6 (1,047.2 ) — Total current assets 0.9 381.4 788.0 874.5 (1,215.5 ) 829.3 Investment in affiliates 1,229.4 2,814.1 193.4 3,422.6 (7,659.5 ) — Property, plant and equipment, net — — 122.0 104.6 — 226.6 Goodwill and other intangible assets, net — — 180.8 893.4 — 1,074.2 Notes receivable affiliates 53.2 1,149.8 3,444.7 1,679.8 (6,327.5 ) — Other noncurrent assets 5.4 14.8 61.9 35.2 — 117.3 Total assets $ 1,288.9 $ 4,360.1 $ 4,790.8 $ 7,010.1 $ (15,202.5 ) $ 2,247.4 Current liabilities: Accounts payable and accruals $ 7.0 $ 4.7 $ 353.2 $ 184.8 $ (168.3 ) $ 381.4 Short-term borrowings and current maturities of long-term debt 46.9 — — 1.3 — 48.2 Accounts and notes payable affiliates 0.4 36.4 629.6 380.8 (1,047.2 ) — Total current liabilities 54.3 41.1 982.8 566.9 (1,215.5 ) 429.6 Long-term debt 1,120.2 294.4 — 1.0 — 1,415.6 Notes payables affiliate — 2,690.7 53.3 3,583.5 (6,327.5 ) — Other noncurrent liabilities 1.1 — 138.7 146.0 — 285.8 Total liabilities 1,175.6 3,026.2 1,174.8 4,297.4 (7,543.0 ) 2,131.0 Equity: Total shareholders equity (deficit) 113.3 1,333.9 3,616.0 2,709.6 (7,659.5 ) 113.3 Noncontrolling interests — — — 3.1 — 3.1 Total equity (deficit) 113.3 1,333.9 3,616.0 2,712.7 (7,659.5 ) 116.4 Total liabilities and equity $ 1,288.9 $ 4,360.1 $ 4,790.8 $ 7,010.1 $ (15,202.5 ) $ 2,247.4 Condensed and Consolidated Statement of Cash Flows For the nine months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ 67.4 $ 10.3 $ 231.3 $ 280.9 $ (419.9 ) $ 170.0 Cash flows from investing activities: Capital expenditures — — (14.7 ) (19.0 ) — (33.7 ) Acquisition of and equity investments in businesses, net of cash acquired — — (22.2 ) 1.4 — (20.8 ) Proceeds from sale of equity investment — — 15.5 — — 15.5 Other investing activities, net — — — 2.9 — 2.9 Net cash used in investing activities — — (21.4 ) (14.7 ) — (36.1 ) Cash flows from financing activities: Short-term borrowings, net — — — (1.3 ) — (1.3 ) Borrowings from revolving facility 165.0 — — — — 165.0 Issuance of term facility 700.0 — — — — 700.0 Settlement of second amended credit facility (856.3 ) — — — — (856.3 ) Payments of long-term debt (23.5 ) — — — — (23.5 ) Debt repayments, net (14.8 ) — — (1.3 ) — (16.1 ) Debt issuance costs (2.9 ) (0.1 ) — — — (3.0 ) Net inter-company proceeds (payments) 50.3 (10.2 ) 8.2 (48.3 ) — — Dividends paid — — (206.4 ) (213.5 ) 419.9 — Dividends paid to shareholders (45.6 ) — — — — (45.6 ) Repurchase of ordinary shares (60.0 ) — — — — (60.0 ) Other financing activities, net 6.2 — — (0.2 ) — 6.0 Net cash provided by (used in) financing activities (66.8 ) (10.3 ) (198.2 ) (263.3 ) 419.9 (118.7 ) Effect of exchange rate changes on cash and cash equivalents — — — 7.3 — 7.3 Net increase (decrease) in cash and cash equivalents 0.6 — 11.7 10.2 — 22.5 Cash and cash equivalents - beginning of period 0.5 0.1 166.0 145.8 — 312.4 Cash and cash equivalents - end of period $ 1.1 $ 0.1 $ 177.7 $ 156.0 $ — $ 334.9 Condensed and Consolidated Statement of Cash Flows For the nine months ended September 30, 2016 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ (26.6 ) $ 8.9 $ 361.6 $ 165.8 $ (331.3 ) $ 178.4 Cash flows from investing activities: Capital expenditures — — (8.1 ) (18.3 ) — (26.4 ) Acquisition of businesses, net of cash acquired — — — (31.4 ) — (31.4 ) Proceeds from sales of marketable securities — — — 14.1 — 14.1 Other investing activities, net — — — (5.6 ) — (5.6 ) Net cash used in investing activities — — (8.1 ) (41.2 ) — (49.3 ) Cash flows from financing activities: Debt repayments, net (35.2 ) 0.2 — (18.6 ) — (53.6 ) Debt issuance costs (0.3 ) — — — — (0.3 ) Net inter-company proceeds (payments) 115.9 (9.1 ) (117.3 ) 10.5 — — Dividends (paid) received — — (216.8 ) (114.5 ) 331.3 — Dividends paid to shareholders (34.5 ) — — — — (34.5 ) Acquisition/divestiture of noncontrolling interests — — — (0.4 ) — (0.4 ) Repurchase of ordinary shares (30.0 ) — — — — (30.0 ) Other financing activities, net 8.4 — — (5.6 ) — 2.8 Net cash provided by (used in) financing activities 24.3 (8.9 ) (334.1 ) (128.6 ) 331.3 (116.0 ) Effect of exchange rate changes on cash and cash equivalents — — — 1.7 — 1.7 Net increase (decrease) in cash and cash equivalents (2.3 ) — 19.4 (2.3 ) — 14.8 Cash and cash equivalents - beginning of period 3.3 0.3 73.8 122.3 — 199.7 Cash and cash equivalents - end of period $ 1.0 $ 0.3 $ 93.2 $ 120.0 $ — $ 214.5 | Condensed and Consolidated Statement of Comprehensive Income For the three months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 432.6 $ 273.0 $ (96.2 ) $ 609.4 Cost of goods sold — — 241.3 190.4 (96.2 ) 335.5 Selling and administrative expenses 1.3 — 87.5 59.0 — 147.8 Operating income (loss) (1.3 ) — 103.8 23.6 — 126.1 Equity earnings (loss) in affiliates, net of tax 104.1 47.4 0.5 88.0 (240.0 ) — Interest expense 13.0 4.6 — 0.2 — 17.8 Intercompany interest and fees — 28.3 (38.8 ) 10.5 — — Other income, net — — (0.4 ) (3.3 ) — (3.7 ) Earnings (loss) before income taxes 89.8 14.5 143.5 104.2 (240.0 ) 112.0 Provision (benefit) for income taxes — (12.7 ) 55.1 (20.5 ) — 21.9 Net earnings (loss) 89.8 27.2 88.4 124.7 (240.0 ) 90.1 Less: Net earnings attributable to noncontrolling interests — — — 0.3 — 0.3 Net earnings (loss) attributable to Allegion plc $ 89.8 $ 27.2 $ 88.4 $ 124.4 $ (240.0 ) $ 89.8 Total comprehensive income (loss) $ 111.9 $ 27.4 $ 89.5 $ 146.5 $ (262.6 ) $ 112.7 Less: Total comprehensive income attributable to noncontrolling interests — — — 0.8 — 0.8 Total comprehensive income (loss) attributable to Allegion plc $ 111.9 $ 27.4 $ 89.5 $ 145.7 $ (262.6 ) $ 111.9 Condensed and Consolidated Statement of Comprehensive Income For the nine months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Consolidating Total Net revenues $ — $ — $ 1,271.5 $ 835.3 $ (321.7 ) $ 1,785.1 Cost of goods sold — — 715.2 595.8 (321.7 ) 989.3 Selling and administrative expenses 3.8 — 262.1 170.9 — 436.8 Operating income (loss) (3.8 ) — 294.2 68.6 — 359.0 Equity earnings (loss) in affiliates, net of tax 302.8 114.2 2.4 245.7 (665.1 ) — Interest expense 35.3 14.2 — 0.2 — 49.7 Intercompany interest and fees — 77.7 (100.9 ) 23.2 — — Other income, net — — (4.5 ) (3.7 ) — (8.2 ) Earnings (loss) before income taxes 263.7 22.3 402.0 294.6 (665.1 ) 317.5 Provision (benefit) for income taxes — (35.4 ) 153.9 (65.6 ) — 52.9 Net earnings (loss) 263.7 57.7 248.1 360.2 (665.1 ) 264.6 Less: Net earnings attributable to noncontrolling interests — — — 0.9 — 0.9 Net earnings (loss) attributable to Allegion plc $ 263.7 $ 57.7 $ 248.1 $ 359.3 $ (665.1 ) $ 263.7 Total comprehensive income 345.5 57.2 250.6 441.9 (747.7 ) 347.5 Less: Total comprehensive income attributable to noncontrolling interests — — — 2.0 — 2.0 Total comprehensive income attributable to Allegion plc $ 345.5 $ 57.2 $ 250.6 $ 439.9 $ (747.7 ) $ 345.5 Condensed and Consolidated Statement of Comprehensive Income For the three months ended September 30, 2016 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Consolidating Total Net revenues $ — $ — $ 424.6 $ 265.2 $ (108.7 ) $ 581.1 Cost of goods sold — — 234.7 191.6 (108.7 ) 317.6 Selling and administrative expenses 0.9 — 83.6 57.5 — 142.0 Operating income (loss) (0.9 ) — 106.3 16.1 — 121.5 Equity earnings (loss) in affiliates, net of tax 12.9 42.4 (0.2 ) 86.0 (141.1 ) — Interest expense 10.4 5.1 — 0.1 — 15.6 Intercompany interest and fees — 23.9 (33.1 ) 9.2 — — Loss on divestiture — — — 84.4 — 84.4 Other income, net — 0.4 0.3 (0.3 ) — 0.4 Earnings (loss) before income taxes 1.6 13.0 138.9 8.7 (141.1 ) 21.1 Provision (benefit) for income taxes — (11.3 ) 53.1 (22.7 ) — 19.1 Net earnings (loss) 1.6 24.3 85.8 31.4 (141.1 ) 2.0 Less: Net earnings attributable to noncontrolling interests — — — 0.4 — 0.4 Net earnings (loss) attributable to Allegion plc $ 1.6 $ 24.3 $ 85.8 $ 31.0 $ (141.1 ) $ 1.6 Total comprehensive income (loss) $ 16.0 $ 27.6 $ 86.6 $ 42.1 $ (156.1 ) $ 16.2 Less: Total comprehensive income attributable to noncontrolling interests — — — 0.2 — 0.2 Total comprehensive income (loss) attributable to Allegion plc $ 16.0 $ 27.6 $ 86.6 $ 41.9 $ (156.1 ) $ 16.0 Condensed and Consolidated Statement of Comprehensive Income For the nine months ended September 30, 2016 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 1,194.3 $ 798.3 $ (324.3 ) $ 1,668.3 Cost of goods sold — — 674.4 571.0 (324.3 ) 921.1 Selling and administrative expenses 3.2 — 246.9 168.8 — 418.9 Operating income (loss) (3.2 ) — 273.0 58.5 — 328.3 Equity earnings (loss) in affiliates, net of tax 190.8 105.9 0.4 242.4 (539.5 ) — Interest expense 32.6 15.3 — 0.5 — 48.4 Intercompany interest and fees 0.1 71.6 (99.1 ) 27.4 — — Loss on divestiture — — — 84.4 — 84.4 Other income (expense), net 0.1 0.4 (20.1 ) 2.6 — (17.0 ) Earnings (loss) before income taxes 154.8 18.6 392.6 270.4 (539.5 ) 212.5 Provision (benefit) for income taxes 0.5 (33.6 ) 149.7 (60.3 ) — 56.3 Net earnings (loss) 154.3 52.2 242.9 330.7 (539.5 ) 156.2 Less: Net earnings attributable to noncontrolling interests — — — 1.9 — 1.9 Net earnings (loss) attributable to Allegion plc $ 154.3 $ 52.2 $ 242.9 $ 328.8 $ (539.5 ) $ 154.3 Total comprehensive income $ 169.7 $ 43.8 $ 253.2 $ 260.2 $ (554.8 ) $ 172.1 Less: Total comprehensive income attributable to noncontrolling interests — — — 2.4 — 2.4 Total comprehensive income attributable to Allegion plc $ 169.7 $ 43.8 $ 253.2 $ 257.8 $ (554.8 ) $ 169.7 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21 – Subsequent Events On October 2, 2017, Allegion US Holding Company Inc. (“Allegion US Holding”), a subsidiary of Allegion plc (“Allegion”), issued $400.0 million aggregate principal amount of its 3.200% Senior Notes due 2024 and $400.0 million aggregate principal amount of its 3.550% Senior Notes due 2027. On October 3, 2017 Allegion US Holding used the net proceeds of the offering to redeem in full Allegion US Holding’s 5.75% Senior Notes due 2021 and to redeem in full Allegion’s 5.875% Senior Notes due 2023, pay the related redemption premiums of approximately $33.0 million (will be recorded in interest expense), and fees of approximately $7.4 million related to the Senior Notes due 2024 and 2027, of which half will be deferred over 7 years and half over 10 years and amortized into interest expense. The Company will also have a loss related to the write off of unamortized bond issue costs from previous issuances of approximately $9.4 million (will be recorded in interest expense). In addition, on October 2, 2017, the Company repaid in full the borrowings under the Revolving Facility and used the remaining proceeds for general corporate purposes. |
Recent Accounting Pronounceme27
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." ASU 2015-11 changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. The standard defines net realizable value as estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The Company adopted the provisions of ASU 2015-11 on January 1, 2017. The adoption of ASU 2015-11 did not have a material impact on the condensed and consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory." This update addresses the income tax consequences of intra-entity transfers of assets other than inventory. Previously, GAAP prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. In addition, interpretations of this guidance have developed in practice over the years for transfers of certain intangible and tangible assets. The amendments in the update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company elected to early adopt on January 1, 2017. As a result, during the first quarter of 2017, the Company recognized a cumulative effect within retained earnings of $5.0 million with an offset to other current assets and other noncurrent assets. In January 2017, the FASB issued ASU 2017-04, "Intangibles– Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment." The amended guidance simplifies the accounting for goodwill impairment for all entities by eliminating the requirement to perform a hypothetical purchase price allocation. A goodwill impairment charge will now be recognized for the amount by which the carrying value of a reporting unit exceeds its fair value, not to exceed the carrying amount of goodwill. The ASU will be effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for any impairment tests after January 1, 2017. The Company elected to early adopt on October 1, 2017 and will apply the new standard, if applicable, to our annual impairment test on goodwill as of October 1, 2017. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" (ASC 606). ASC 606 is a single, comprehensive revenue recognition model for all contracts with customers. The model is based on changes in contract assets (rights to receive consideration) and liabilities (obligations to provide a good or perform a service). Revenue is recognized based on the satisfaction of performance obligations, which occurs when control of a good or service transfers to a customer. ASC 606 contains expanded disclosure requirements relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Entities may use a full retrospective approach or report the cumulative effect as of the date of adoption ("modified retrospective method"). This guidance will be effective for the Company January 1, 2018. The FASB has also issued the following standards which clarify ASU 2014-09 and have the same effective date as the original standard: ASU 2016-20, Revenue from Contracts with Customers: Technical Corrections and Improvements, ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients and ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. The Company has completed an assessment of the new standard’s impact and a technical assessment of material customer contracts. The Company will choose the modified retrospective method upon adoption in 2018. The adoption of the new standard will not have a material impact on the Company's condensed and consolidated statements of comprehensive income, balance sheets or statements of cash flows. The Company will expand the condensed and consolidated financial statement disclosures in order to comply with ASU 2014-09. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires the identification of arrangements that should be accounted for as leases by lessees. In general, for lease arrangements exceeding a twelve month term, these arrangements will be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted, although we currently plan to adopt this ASU on January 1, 2019. ASU 2016-02 is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. The Company is continuing to assess what impact ASU 2016-02 will have on the condensed and consolidated financial statements; however, the Company anticipates that this adoption will result in a significant gross-up of assets and liabilities on its condensed and consolidated balance sheets and will require changes to its systems and processes. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. The ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is assessing what impact ASU 2016-13 will have on the condensed and consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Clarification of Certain Cash Receipts and Cash Payments." ASU 2016-15 eliminates the diversity in practice related to the classification of certain cash receipts and payments in the statement of cash flows, by adding or clarifying guidance on eight specific cash flow issues. The ASU will be effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted. The amendments in this update will be applied retrospectively to all periods presented, unless deemed impracticable, in which case, prospective application is permitted. The Company is assessing what impact ASU 2016-15 will have on the condensed and consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." ASU 2017-07 requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the statement of comprehensive income separately from the service cost component and outside a subtotal of operating income. ASU 2017-07 also allows only the service cost component to be eligible for capitalization when applicable (for example, as a cost of internally manufactured inventory or a self-constructed asset). The ASU is effective for annual periods beginning after December 15, 2017. The ASU should be applied retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the income statement and prospectively, on and after the effective date, for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The amendments allow a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. Upon adoption, the Company intends to apply these practical expedients for prior period presentation. The Company does not believe the adoption of the new standard will not have a material impact on the Company's condensed and consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." ASU 2017-12 addresses previous limitations on how an entity can designate the hedged risk in certain cash flow and fair value hedging relationships by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The ASU is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The amendments in this update should be applied to hedging relationships existing on the date of adoption, which includes a cumulative-effect adjustment to eliminate any ineffectiveness recorded to accumulated other comprehensive income or loss with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year in which adoption occurred. Presentation and disclosure amendments are required to be applied prospectively. The Company is assessing what impact ASU 2017-12 will have on the condensed and consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory, Net [Abstract] | |
Major Classes Of Inventory | The major classes of inventory were as follows: In millions September 30, December 31, Raw materials $ 71.3 $ 56.7 Work-in-process 30.5 23.6 Finished goods 155.3 140.3 Total $ 257.1 $ 220.6 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill Disclosure [Abstract] | |
Changes in Goodwill Carrying Amounts | The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 were as follows: In millions Americas EMEIA Asia Pacific Total December 31, 2016 (gross) $ 372.9 $ 736.1 $ 93.3 $ 1,202.3 Accumulated impairment — (478.6 ) (6.9 ) (485.5 ) December 31, 2016 (net) 372.9 257.5 86.4 716.8 Acquisitions and settlements 3.1 (1.7 ) 1.3 2.7 Currency translation — 31.1 5.3 36.4 September 30, 2017 (net) $ 376.0 $ 286.9 $ 93.0 $ 755.9 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Asset Net of Goodwill | The gross amount of the Company’s intangible assets and related accumulated amortization were as follows: September 30, 2017 December 31, 2016 In millions Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Completed technologies/patents $ 32.4 $ (9.3 ) $ 23.1 $ 48.0 $ (25.3 ) $ 22.7 Customer relationships 319.0 (69.1 ) 249.9 278.9 (51.6 ) 227.3 Trademarks (finite-lived) 87.7 (44.5 ) 43.2 78.5 (37.3 ) 41.2 Other 7.1 (4.5 ) 2.6 11.0 (9.4 ) 1.6 Total finite-lived intangible assets 446.2 $ (127.4 ) 318.8 416.4 $ (123.6 ) 292.8 Trademarks (indefinite-lived) 74.4 74.4 64.6 64.6 Total $ 520.6 $ 393.2 $ 481.0 $ 357.4 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt and other borrowings consisted of the following: In millions September 30, December 31, Term Loan A Facility $ — $ 879.8 Term Facility 700.0 — Revolving Facility 165.0 — 5.75% Senior notes due 2021 300.0 300.0 5.875% Senior notes due 2023 300.0 300.0 Other debt, including capital leases, maturing in various amounts through 2024 1.0 2.3 Unamortized debt issuance costs, net (19.0 ) (18.3 ) Total debt 1,447.0 1,463.8 Less current portion of long-term debt 35.0 48.2 Total long-term debt $ 1,412.0 $ 1,415.6 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of the Fair Values of Derivative Instruments | The fair values of derivative instruments included within the Condensed and Consolidated Balance Sheets were as follows: Asset derivatives Liability derivatives In millions September 30, December 31, September 30, December 31, Derivatives designated as hedges: Currency derivatives $ — $ 0.7 $ 1.3 $ 0.1 Interest rate swaps 3.7 4.6 — 0.4 Derivatives not designated as hedges: Currency derivatives 0.4 0.3 0.1 0.2 Total derivatives $ 4.1 $ 5.6 $ 1.4 $ 0.7 |
Schedule of Derivatives Designated as Hedges Affecting Net Earning and AOCI | The amounts associated with derivatives designated as hedges affecting Net earnings and Accumulated other comprehensive loss for the nine months ended September 30 were as follows: Amount of gain (loss) Location of gain (loss) Amount of gain reclassified from Accumulated other comprehensive loss and In millions 2017 2016 2017 2016 Currency derivatives $ 2.2 $ (0.7 ) Cost of goods sold $ 4.0 $ 4.2 Interest rate swaps (0.5 ) (1.0 ) Interest expense — — Total $ 1.7 $ (1.7 ) $ 4.0 $ 4.2 The amounts associated with derivatives designated as hedges affecting Net earnings and Accumulated other comprehensive loss for the three months ended September 30 were as follows: Amount of gain Location of gain Amount of gain (loss) reclassified from Accumulated other comprehensive loss and In millions 2017 2016 2017 2016 Currency derivatives $ 0.6 $ 1.5 Cost of goods sold $ 1.0 $ (1.1 ) Interest rate swaps 0.3 2.5 Interest expense — — Total $ 0.9 $ 4.0 $ 1.0 $ (1.1 ) |
Pensions and Postretirement B33
Pensions and Postretirement Benefits Other than Pensions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Pension Plans [Member] | |
Schedule of Net Periodic Benefit Cost | The components of the Company’s net periodic pension benefit costs for the three and nine months ended September 30 were as follows: U.S. Three months ended Nine months ended In millions 2017 2016 2017 2016 Service cost $ 2.1 $ 2.6 $ 6.5 $ 7.3 Interest cost 2.7 2.6 7.8 7.6 Expected return on plan assets (3.0 ) (2.6 ) (8.9 ) (7.7 ) Net amortization of: Prior service costs — 0.2 0.2 0.5 Plan net actuarial losses 1.3 0.4 3.6 3.1 Net periodic pension benefit cost $ 3.1 $ 3.2 $ 9.2 $ 10.8 Non-U.S. Three months ended Nine months ended In millions 2017 2016 2017 2016 Service cost $ 0.8 $ 0.8 $ 2.4 $ 2.5 Interest cost 2.1 2.9 6.4 8.7 Expected return on plan assets (3.4 ) (3.7 ) (10.3 ) (11.1 ) Amortization of plan net actuarial losses 0.4 0.6 1.3 1.7 Net periodic pension benefit (income) cost $ (0.1 ) $ 0.6 $ (0.2 ) $ 1.8 The Company made employer contributions of $56.0 million (of which $50.0 million was discretionary) and $6.7 million during the nine months ended September 30, 2017 and 2016 to its defined benefit pension plans. Additional contributions of approximately $3.7 million are expected during the remainder of 2017 . |
Other Postretirement Benefit Plans [Member] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic postretirement benefit income for the three and nine months ended September 30 were as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Service cost $ — $ 0.1 $ — $ 0.1 Interest cost 0.1 0.1 0.3 0.3 Net amortization of: Prior service gains (0.4 ) (0.5 ) (1.2 ) (1.3 ) Plan net actuarial gains — — (0.1 ) — Net periodic postretirement benefit income $ (0.3 ) $ (0.3 ) $ (1.0 ) $ (0.9 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Assets and liabilities measured at fair value at September 30, 2017 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: Interest rate swaps $ — $ 3.7 $ — $ 3.7 Currency derivatives — 0.4 — 0.4 Total asset recurring fair value measurements $ — $ 4.1 $ — $ 4.1 Liabilities: Currency derivatives $ — $ 1.4 $ — $ 1.4 Deferred compensation plans — 19.8 — 19.8 Total liability recurring fair value measurements $ — $ 21.2 $ — $ 21.2 Nonrecurring fair value measurements Financial instruments not carried at fair value Total debt $ — $ 1,494.6 $ — $ 1,494.6 Total financial instruments not carried at fair value $ — $ 1,494.6 $ — $ 1,494.6 Assets and liabilities measured at fair value at December 31, 2016 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: Interest rate swap $ — $ 4.6 $ — $ 4.6 Currency derivatives — 1.0 — 1.0 Total asset recurring fair value measurements $ — $ 5.6 $ — $ 5.6 Liabilities: Currency derivatives $ — $ 0.3 $ — $ 0.3 Interest rate swap — 0.4 — 0.4 Deferred compensation plans — 16.8 — 16.8 Total liability recurring fair value measurements $ — $ 17.5 $ — $ 17.5 Financial instruments not carried at fair value Total debt $ — $ 1,510.6 $ — $ 1,510.6 Total financial instruments not carried at fair value $ — $ 1,510.6 $ — $ 1,510.6 |
Equity (Tables)
Equity (Tables) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | ||
Reconciliation of Ordinary Shares | The reconciliation of Ordinary shares is as follows: In millions Total December 31, 2016 95.3 Shares issued under incentive plans, net 0.5 Repurchase of ordinary shares (0.8 ) September 30, 2017 95.0 | |
Components Of Shareholders Equity Rollforward | The components of Equity for the nine months ended September 30, 2017 were as follows: In millions Allegion plc Noncontrolling Total Balance at December 31, 2016 $ 113.3 $ 3.1 $ 116.4 Net earnings 263.7 0.9 264.6 Currency translation 86.8 1.1 87.9 Change in value of derivatives qualifying as cash flow hedges, net of tax (1.5 ) — (1.5 ) Pension and OPEB adjustments, net of tax (3.5 ) — (3.5 ) Total comprehensive income 345.5 2.0 347.5 Cumulative effect of change in accounting principle (5.0 ) — (5.0 ) Share-based compensation 12.8 — 12.8 Dividends to noncontrolling interests — (0.1 ) (0.1 ) Dividends to ordinary shareholders (45.6 ) — (45.6 ) Repurchase of ordinary shares (60.0 ) — (60.0 ) Shares issued under incentive plans, net 6.2 — 6.2 Other — (0.1 ) (0.1 ) Balance at September 30, 2017 $ 367.2 $ 4.9 $ 372.1 | The components of Equity for the nine months ended September 30, 2016 were as follows: In millions Allegion plc Noncontrolling Total Balance at December 31, 2015 $ 25.6 $ 4.1 $ 29.7 Net earnings 154.3 1.9 156.2 Currency translation 15.5 0.5 16.0 Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax (15.0 ) — (15.0 ) Pension and OPEB adjustments, net of tax 14.9 — 14.9 Total comprehensive income 169.7 2.4 172.1 Share-based compensation 13.1 — 13.1 Acquisition/divestiture of noncontrolling interests (0.4 ) — (0.4 ) Dividends to noncontrolling interests — (2.8 ) (2.8 ) Dividends to ordinary shareholders (34.6 ) — (34.6 ) Shares issued under incentive plans, net 8.4 — 8.4 Repurchase of ordinary shares (30.0 ) — (30.0 ) Balance at September 30, 2016 $ 151.8 $ 3.7 $ 155.5 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2017 are as follows: In millions Cash flow hedges Pension and OPEB Items Foreign Currency Items Total December 31, 2016 $ 3.4 $ (120.5 ) $ (147.2 ) $ (264.3 ) Other comprehensive income (loss) before reclassifications 1.8 (6.5 ) 86.8 82.1 Amounts reclassified from accumulated other comprehensive loss (4.0 ) 3.8 — (0.2 ) Tax benefit (expense) 0.7 (0.8 ) — (0.1 ) September 30, 2017 $ 1.9 $ (124.0 ) $ (60.4 ) $ (182.5 ) | The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2016 are as follows: In millions Cash flow hedges and marketable securities Pension and OPEB Items Foreign Currency Items Total December 31, 2015 $ 14.0 $ (139.3 ) $ (106.9 ) $ (232.2 ) Other comprehensive income before reclassifications 1.4 12.1 15.5 29.0 Amounts reclassified from accumulated other comprehensive loss (17.8 ) 4.0 — (13.8 ) Tax benefit (expense) 1.4 (1.2 ) — 0.2 September 30, 2016 $ (1.0 ) $ (124.4 ) $ (91.4 ) $ (216.8 ) |
Disclosure of Reclassification Amount | Reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2017 were as follows: Amount Reclassified from Accumulated Other Comprehensive Loss In millions Three months ended Nine months ended Statement of Comprehensive Income Line Item Reclasses below represent (income) loss to the Statement of Comprehensive Income Gains on cash flow hedges: Foreign exchange contracts $ (1.0 ) $ (4.0 ) Cost of goods sold (1.0 ) (4.0 ) Earnings before income taxes 0.3 1.1 Provision for income taxes $ (0.7 ) $ (2.9 ) Net earnings Defined benefit pension items: Amortization of: Prior-service gains $ (0.4 ) $ (1.0 ) (a) Actuarial losses 1.7 4.8 (a) 1.3 3.8 Loss before income taxes (0.3 ) (0.9 ) Tax benefit $ 1.0 $ 2.9 Net loss Total reclassifications for the period $ 0.3 $ — Net loss (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 10 for additional details). | Reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2016 were as follows: Amount Reclassified from Accumulated Other Comprehensive Loss In millions Three months ended Nine months ended Statement of Comprehensive Income Line Item Reclasses below represent (income) loss to the Statement of Comprehensive Income Gains on cash flow hedges: Foreign exchange contracts $ 1.1 $ (4.2 ) Cost of goods sold 1.1 (4.2 ) Loss (earnings) before income taxes 0.6 1.4 Provision for income taxes $ 1.7 $ (2.8 ) Net loss (earnings) Gains on marketable securities: Realized gain on sale of securities $ — $ (13.6 ) Other, net — (13.6 ) Earnings before income taxes — — Provision for income taxes $ — $ (13.6 ) Net earnings Defined benefit pension items: Amortization of: Prior-service gains $ (0.3 ) $ (0.8 ) (a) Actuarial losses 1.0 4.8 (a) 0.7 4.0 Loss before income taxes (0.4 ) (1.2 ) Tax benefit $ 0.3 $ 2.8 Net loss Total reclassifications for the period $ 2.0 $ (13.6 ) Net loss (earnings) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 10 for additional details). |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation Expense | The expenses recognized for the three and nine months ended September 30 were as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Stock options $ 0.7 $ 1.1 $ 2.7 $ 3.3 RSUs 1.7 2.0 5.9 6.1 PSUs 1.4 1.2 4.5 3.7 Deferred compensation 0.6 0.7 2.0 1.1 Pre-tax expense 4.4 5.0 15.1 14.2 Tax benefit (1.5 ) (1.5 ) (5.0 ) (4.2 ) After-tax expense $ 2.9 $ 3.5 $ 10.1 $ 10.0 |
Grants of Stock Options and RSUs | Grants issued during the nine months ended September 30 were as follows: 2017 2016 Number Weighted- Number Weighted- Stock options 165,113 $ 18.22 230,259 $ 15.86 RSUs 119,695 $ 73.37 113,095 $ 58.89 |
Average fair value of stock options, assumptions | The following assumptions were used during the nine months ended September 30 : 2017 2016 Dividend yield 0.89 % 0.83 % Volatility 24.93 % 28.85 % Risk-free rate of return 2.08 % 1.38 % Expected life 6.0 years 6.0 years |
Restructuring Activities (Table
Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | Restructuring charges recorded during the three and nine months ended September 30 as part of restructuring plans were as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Americas $ 5.4 $ 0.7 $ 5.4 $ 2.0 EMEIA 1.5 0.4 2.5 0.8 Asia Pacific — — — 0.2 Corporate 0.5 — 0.6 — Total $ 7.4 $ 1.1 $ 8.5 $ 3.0 Cost of goods sold 2.9 0.7 3.2 0.8 Selling and administrative expenses 4.5 0.4 5.3 2.2 Total $ 7.4 $ 1.1 $ 8.5 $ 3.0 The Americas, Corporate and EMEIA restructuring charges primarily related to workforce reductions and the closure and consolidation of manufacturing facilities in an effort to increase efficiencies. |
Schedule of Changes in Restructuring Reserve | The changes in the restructuring reserve during the nine months ended September 30, 2017 were as follows: In millions Americas EMEIA Corporate Total December 31, 2016 $ 0.3 $ 3.2 $ — $ 3.5 Additions, net of reversals 5.4 2.5 0.6 8.5 Cash and non-cash uses (4.6 ) (4.4 ) (0.5 ) (9.5 ) Currency translation — 0.2 — 0.2 September 30, 2017 $ 1.1 $ 1.5 $ 0.1 $ 2.7 |
Other, Net (Tables)
Other, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Net [Abstract] | |
Other, Net | The components of Other (income) expense, net for the three and nine months ended September 30 were as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Interest income $ (0.3 ) $ (0.5 ) $ (0.6 ) $ (1.9 ) Exchange (gain) loss (0.1 ) 0.5 0.4 2.9 (Earnings) loss from and gains on the sale of equity investments (0.1 ) 0.1 (4.7 ) (3.9 ) Other (3.2 ) 0.3 (3.3 ) (14.1 ) Other (income) expense, net $ (3.7 ) $ 0.4 $ (8.2 ) $ (17.0 ) |
Earnings Per Share (EPS) (Table
Earnings Per Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted Shares | The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations for the three and nine months ended September 30 : Three months ended Nine months ended In millions 2017 2016 2017 2016 Weighted-average number of basic shares 95.0 96.0 95.2 95.9 Shares issuable under incentive stock plans 0.8 0.9 0.8 0.9 Weighted-average number of diluted shares 95.8 96.9 96.0 96.8 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Operations by Reportable Segments | A summary of operations by reportable segment for the three and nine months ended September 30 was as follows: Three months ended Nine months ended In millions 2017 2016 2017 2016 Net revenues Americas $ 455.2 $ 436.2 $ 1,331.4 $ 1,235.7 EMEIA 125.1 116.4 372.7 356.5 Asia Pacific 29.1 28.5 81.0 76.1 Total $ 609.4 $ 581.1 $ 1,785.1 $ 1,668.3 Segment operating income Americas $ 131.8 $ 131.5 $ 379.7 $ 351.7 EMEIA 9.1 3.4 24.5 20.3 Asia Pacific 2.2 1.8 5.1 3.8 Total 143.1 136.7 409.3 375.8 Reconciliation to Operating income Unallocated corporate expense (17.0 ) (15.2 ) (50.3 ) (47.5 ) Operating income $ 126.1 $ 121.5 $ 359.0 $ 328.3 Reconciliation to earnings before income taxes Interest expense 17.8 15.6 49.7 48.4 Loss on divestitures — 84.4 — 84.4 Other (income) loss, net (3.7 ) 0.4 (8.2 ) (17.0 ) Earnings before income taxes $ 112.0 $ 21.1 $ 317.5 $ 212.5 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The changes in the standard product warranty liability for the nine months ended September 30 were as follows: In millions 2017 2016 Balance at beginning of period $ 13.3 $ 11.7 Reductions for payments (5.5 ) (4.6 ) Accruals for warranties issued during the current period 6.2 6.2 Changes to accruals related to preexisting warranties (0.7 ) — Translation 0.4 — Balance at end of period $ 13.7 $ 13.3 |
Guarantor Financial Informati42
Guarantor Financial Information (Tables) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Condensed Statement of Comprehensive Income [Table Text Block] | Condensed and Consolidated Statement of Comprehensive Income For the three months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 432.6 $ 273.0 $ (96.2 ) $ 609.4 Cost of goods sold — — 241.3 190.4 (96.2 ) 335.5 Selling and administrative expenses 1.3 — 87.5 59.0 — 147.8 Operating income (loss) (1.3 ) — 103.8 23.6 — 126.1 Equity earnings (loss) in affiliates, net of tax 104.1 47.4 0.5 88.0 (240.0 ) — Interest expense 13.0 4.6 — 0.2 — 17.8 Intercompany interest and fees — 28.3 (38.8 ) 10.5 — — Other income, net — — (0.4 ) (3.3 ) — (3.7 ) Earnings (loss) before income taxes 89.8 14.5 143.5 104.2 (240.0 ) 112.0 Provision (benefit) for income taxes — (12.7 ) 55.1 (20.5 ) — 21.9 Net earnings (loss) 89.8 27.2 88.4 124.7 (240.0 ) 90.1 Less: Net earnings attributable to noncontrolling interests — — — 0.3 — 0.3 Net earnings (loss) attributable to Allegion plc $ 89.8 $ 27.2 $ 88.4 $ 124.4 $ (240.0 ) $ 89.8 Total comprehensive income (loss) $ 111.9 $ 27.4 $ 89.5 $ 146.5 $ (262.6 ) $ 112.7 Less: Total comprehensive income attributable to noncontrolling interests — — — 0.8 — 0.8 Total comprehensive income (loss) attributable to Allegion plc $ 111.9 $ 27.4 $ 89.5 $ 145.7 $ (262.6 ) $ 111.9 Condensed and Consolidated Statement of Comprehensive Income For the nine months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Consolidating Total Net revenues $ — $ — $ 1,271.5 $ 835.3 $ (321.7 ) $ 1,785.1 Cost of goods sold — — 715.2 595.8 (321.7 ) 989.3 Selling and administrative expenses 3.8 — 262.1 170.9 — 436.8 Operating income (loss) (3.8 ) — 294.2 68.6 — 359.0 Equity earnings (loss) in affiliates, net of tax 302.8 114.2 2.4 245.7 (665.1 ) — Interest expense 35.3 14.2 — 0.2 — 49.7 Intercompany interest and fees — 77.7 (100.9 ) 23.2 — — Other income, net — — (4.5 ) (3.7 ) — (8.2 ) Earnings (loss) before income taxes 263.7 22.3 402.0 294.6 (665.1 ) 317.5 Provision (benefit) for income taxes — (35.4 ) 153.9 (65.6 ) — 52.9 Net earnings (loss) 263.7 57.7 248.1 360.2 (665.1 ) 264.6 Less: Net earnings attributable to noncontrolling interests — — — 0.9 — 0.9 Net earnings (loss) attributable to Allegion plc $ 263.7 $ 57.7 $ 248.1 $ 359.3 $ (665.1 ) $ 263.7 Total comprehensive income 345.5 57.2 250.6 441.9 (747.7 ) 347.5 Less: Total comprehensive income attributable to noncontrolling interests — — — 2.0 — 2.0 Total comprehensive income attributable to Allegion plc $ 345.5 $ 57.2 $ 250.6 $ 439.9 $ (747.7 ) $ 345.5 Condensed and Consolidated Statement of Comprehensive Income For the three months ended September 30, 2016 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Consolidating Total Net revenues $ — $ — $ 424.6 $ 265.2 $ (108.7 ) $ 581.1 Cost of goods sold — — 234.7 191.6 (108.7 ) 317.6 Selling and administrative expenses 0.9 — 83.6 57.5 — 142.0 Operating income (loss) (0.9 ) — 106.3 16.1 — 121.5 Equity earnings (loss) in affiliates, net of tax 12.9 42.4 (0.2 ) 86.0 (141.1 ) — Interest expense 10.4 5.1 — 0.1 — 15.6 Intercompany interest and fees — 23.9 (33.1 ) 9.2 — — Loss on divestiture — — — 84.4 — 84.4 Other income, net — 0.4 0.3 (0.3 ) — 0.4 Earnings (loss) before income taxes 1.6 13.0 138.9 8.7 (141.1 ) 21.1 Provision (benefit) for income taxes — (11.3 ) 53.1 (22.7 ) — 19.1 Net earnings (loss) 1.6 24.3 85.8 31.4 (141.1 ) 2.0 Less: Net earnings attributable to noncontrolling interests — — — 0.4 — 0.4 Net earnings (loss) attributable to Allegion plc $ 1.6 $ 24.3 $ 85.8 $ 31.0 $ (141.1 ) $ 1.6 Total comprehensive income (loss) $ 16.0 $ 27.6 $ 86.6 $ 42.1 $ (156.1 ) $ 16.2 Less: Total comprehensive income attributable to noncontrolling interests — — — 0.2 — 0.2 Total comprehensive income (loss) attributable to Allegion plc $ 16.0 $ 27.6 $ 86.6 $ 41.9 $ (156.1 ) $ 16.0 Condensed and Consolidated Statement of Comprehensive Income For the nine months ended September 30, 2016 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 1,194.3 $ 798.3 $ (324.3 ) $ 1,668.3 Cost of goods sold — — 674.4 571.0 (324.3 ) 921.1 Selling and administrative expenses 3.2 — 246.9 168.8 — 418.9 Operating income (loss) (3.2 ) — 273.0 58.5 — 328.3 Equity earnings (loss) in affiliates, net of tax 190.8 105.9 0.4 242.4 (539.5 ) — Interest expense 32.6 15.3 — 0.5 — 48.4 Intercompany interest and fees 0.1 71.6 (99.1 ) 27.4 — — Loss on divestiture — — — 84.4 — 84.4 Other income (expense), net 0.1 0.4 (20.1 ) 2.6 — (17.0 ) Earnings (loss) before income taxes 154.8 18.6 392.6 270.4 (539.5 ) 212.5 Provision (benefit) for income taxes 0.5 (33.6 ) 149.7 (60.3 ) — 56.3 Net earnings (loss) 154.3 52.2 242.9 330.7 (539.5 ) 156.2 Less: Net earnings attributable to noncontrolling interests — — — 1.9 — 1.9 Net earnings (loss) attributable to Allegion plc $ 154.3 $ 52.2 $ 242.9 $ 328.8 $ (539.5 ) $ 154.3 Total comprehensive income $ 169.7 $ 43.8 $ 253.2 $ 260.2 $ (554.8 ) $ 172.1 Less: Total comprehensive income attributable to noncontrolling interests — — — 2.4 — 2.4 Total comprehensive income attributable to Allegion plc $ 169.7 $ 43.8 $ 253.2 $ 257.8 $ (554.8 ) $ 169.7 | |
Condensed Balance Sheet [Table Text Block] | Condensed and Consolidated Balance Sheet September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Current assets: Cash and cash equivalents $ 1.1 $ 0.1 $ 177.7 $ 156.0 $ — $ 334.9 Accounts and notes receivable, net — — 164.9 137.9 — 302.8 Inventories — — 80.6 176.5 — 257.1 Other current assets 0.5 35.4 12.7 79.2 (98.0 ) 29.8 Accounts and notes receivable affiliates — 416.4 492.6 342.0 (1,251.0 ) — Total current assets 1.6 451.9 928.5 891.6 (1,349.0 ) 924.6 Investment in affiliates 1,514.7 2,903.8 218.6 3,648.8 (8,285.9 ) — Property, plant and equipment, net — — 120.9 125.2 — 246.1 Goodwill and other intangible assets, net — — 180.0 969.1 — 1,149.1 Notes receivable affiliates 2.9 1,124.9 3,444.7 1,667.2 (6,239.7 ) — Other noncurrent assets 5.4 19.2 55.4 47.5 — 127.5 Total assets $ 1,524.6 $ 4,499.8 $ 4,948.1 $ 7,349.4 $ (15,874.6 ) $ 2,447.3 Current liabilities: Accounts payable and accruals $ 3.0 $ 11.0 $ 275.4 $ 205.8 $ (98.0 ) $ 397.2 Short-term borrowings and current maturities of long-term debt 35.0 — — — — 35.0 Accounts and notes payable affiliates — 72.0 669.9 509.1 (1,251.0 ) — Total current liabilities 38.0 83.0 945.3 714.9 (1,349.0 ) 432.2 Long-term debt 1,118.2 292.7 — 1.1 — 1,412.0 Notes payable affiliate — 2,655.5 51.0 3,533.2 (6,239.7 ) — Other noncurrent liabilities 1.2 — 84.4 145.4 — 231.0 Total liabilities 1,157.4 3,031.2 1,080.7 4,394.6 (7,588.7 ) 2,075.2 Equity: Total shareholders equity (deficit) 367.2 1,468.6 3,867.4 2,949.9 (8,285.9 ) 367.2 Noncontrolling interests — — — 4.9 — 4.9 Total equity (deficit) 367.2 1,468.6 3,867.4 2,954.8 (8,285.9 ) 372.1 Total liabilities and equity $ 1,524.6 $ 4,499.8 $ 4,948.1 $ 7,349.4 $ (15,874.6 ) $ 2,447.3 Condensed and Consolidated Balance Sheet December 31, 2016 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Current assets: Cash and cash equivalents $ 0.5 $ 0.1 $ 166.0 $ 145.8 $ — $ 312.4 Accounts and notes receivable, net — — 140.0 120.0 — 260.0 Inventories — — 77.6 143.0 — 220.6 Other current assets 0.4 49.7 9.4 145.1 (168.3 ) 36.3 Accounts and notes receivable affiliates — 331.6 395.0 320.6 (1,047.2 ) — Total current assets 0.9 381.4 788.0 874.5 (1,215.5 ) 829.3 Investment in affiliates 1,229.4 2,814.1 193.4 3,422.6 (7,659.5 ) — Property, plant and equipment, net — — 122.0 104.6 — 226.6 Goodwill and other intangible assets, net — — 180.8 893.4 — 1,074.2 Notes receivable affiliates 53.2 1,149.8 3,444.7 1,679.8 (6,327.5 ) — Other noncurrent assets 5.4 14.8 61.9 35.2 — 117.3 Total assets $ 1,288.9 $ 4,360.1 $ 4,790.8 $ 7,010.1 $ (15,202.5 ) $ 2,247.4 Current liabilities: Accounts payable and accruals $ 7.0 $ 4.7 $ 353.2 $ 184.8 $ (168.3 ) $ 381.4 Short-term borrowings and current maturities of long-term debt 46.9 — — 1.3 — 48.2 Accounts and notes payable affiliates 0.4 36.4 629.6 380.8 (1,047.2 ) — Total current liabilities 54.3 41.1 982.8 566.9 (1,215.5 ) 429.6 Long-term debt 1,120.2 294.4 — 1.0 — 1,415.6 Notes payables affiliate — 2,690.7 53.3 3,583.5 (6,327.5 ) — Other noncurrent liabilities 1.1 — 138.7 146.0 — 285.8 Total liabilities 1,175.6 3,026.2 1,174.8 4,297.4 (7,543.0 ) 2,131.0 Equity: Total shareholders equity (deficit) 113.3 1,333.9 3,616.0 2,709.6 (7,659.5 ) 113.3 Noncontrolling interests — — — 3.1 — 3.1 Total equity (deficit) 113.3 1,333.9 3,616.0 2,712.7 (7,659.5 ) 116.4 Total liabilities and equity $ 1,288.9 $ 4,360.1 $ 4,790.8 $ 7,010.1 $ (15,202.5 ) $ 2,247.4 | |
Condensed Cash Flow Statement [Table Text Block] | Condensed and Consolidated Statement of Cash Flows For the nine months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ 67.4 $ 10.3 $ 231.3 $ 280.9 $ (419.9 ) $ 170.0 Cash flows from investing activities: Capital expenditures — — (14.7 ) (19.0 ) — (33.7 ) Acquisition of and equity investments in businesses, net of cash acquired — — (22.2 ) 1.4 — (20.8 ) Proceeds from sale of equity investment — — 15.5 — — 15.5 Other investing activities, net — — — 2.9 — 2.9 Net cash used in investing activities — — (21.4 ) (14.7 ) — (36.1 ) Cash flows from financing activities: Short-term borrowings, net — — — (1.3 ) — (1.3 ) Borrowings from revolving facility 165.0 — — — — 165.0 Issuance of term facility 700.0 — — — — 700.0 Settlement of second amended credit facility (856.3 ) — — — — (856.3 ) Payments of long-term debt (23.5 ) — — — — (23.5 ) Debt repayments, net (14.8 ) — — (1.3 ) — (16.1 ) Debt issuance costs (2.9 ) (0.1 ) — — — (3.0 ) Net inter-company proceeds (payments) 50.3 (10.2 ) 8.2 (48.3 ) — — Dividends paid — — (206.4 ) (213.5 ) 419.9 — Dividends paid to shareholders (45.6 ) — — — — (45.6 ) Repurchase of ordinary shares (60.0 ) — — — — (60.0 ) Other financing activities, net 6.2 — — (0.2 ) — 6.0 Net cash provided by (used in) financing activities (66.8 ) (10.3 ) (198.2 ) (263.3 ) 419.9 (118.7 ) Effect of exchange rate changes on cash and cash equivalents — — — 7.3 — 7.3 Net increase (decrease) in cash and cash equivalents 0.6 — 11.7 10.2 — 22.5 Cash and cash equivalents - beginning of period 0.5 0.1 166.0 145.8 — 312.4 Cash and cash equivalents - end of period $ 1.1 $ 0.1 $ 177.7 $ 156.0 $ — $ 334.9 Condensed and Consolidated Statement of Cash Flows For the nine months ended September 30, 2016 In millions Allegion plc Allegion US Holding Other Subsidiary Guarantors Other Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ (26.6 ) $ 8.9 $ 361.6 $ 165.8 $ (331.3 ) $ 178.4 Cash flows from investing activities: Capital expenditures — — (8.1 ) (18.3 ) — (26.4 ) Acquisition of businesses, net of cash acquired — — — (31.4 ) — (31.4 ) Proceeds from sales of marketable securities — — — 14.1 — 14.1 Other investing activities, net — — — (5.6 ) — (5.6 ) Net cash used in investing activities — — (8.1 ) (41.2 ) — (49.3 ) Cash flows from financing activities: Debt repayments, net (35.2 ) 0.2 — (18.6 ) — (53.6 ) Debt issuance costs (0.3 ) — — — — (0.3 ) Net inter-company proceeds (payments) 115.9 (9.1 ) (117.3 ) 10.5 — — Dividends (paid) received — — (216.8 ) (114.5 ) 331.3 — Dividends paid to shareholders (34.5 ) — — — — (34.5 ) Acquisition/divestiture of noncontrolling interests — — — (0.4 ) — (0.4 ) Repurchase of ordinary shares (30.0 ) — — — — (30.0 ) Other financing activities, net 8.4 — — (5.6 ) — 2.8 Net cash provided by (used in) financing activities 24.3 (8.9 ) (334.1 ) (128.6 ) 331.3 (116.0 ) Effect of exchange rate changes on cash and cash equivalents — — — 1.7 — 1.7 Net increase (decrease) in cash and cash equivalents (2.3 ) — 19.4 (2.3 ) — 14.8 Cash and cash equivalents - beginning of period 3.3 0.3 73.8 122.3 — 199.7 Cash and cash equivalents - end of period $ 1.0 $ 0.3 $ 93.2 $ 120.0 $ — $ 214.5 |
Inventories (Schedule of Major
Inventories (Schedule of Major Classes of Inventory) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory, Net [Abstract] | ||
Inventory, Raw Materials, Gross | $ 71.3 | $ 56.7 |
Inventory, Work in Process, Gross | 30.5 | 23.6 |
Inventory, Finished Goods, Gross | 155.3 | 140.3 |
Inventories | $ 257.1 | $ 220.6 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
December 31, 2016 (gross) | $ 1,202.3 | |
Accumulated impairment | $ (485.5) | |
Acquisitions and settlements | 2.7 | |
Currency translation | 36.4 | |
September 30, 2017 (net) | 755.9 | 716.8 |
Americas [Member] | ||
Goodwill [Roll Forward] | ||
December 31, 2016 (gross) | 372.9 | |
Accumulated impairment | 0 | |
Acquisitions and settlements | 3.1 | |
Currency translation | 0 | |
September 30, 2017 (net) | 376 | 372.9 |
EMEIA [Member] | ||
Goodwill [Roll Forward] | ||
December 31, 2016 (gross) | 736.1 | |
Accumulated impairment | (478.6) | |
Acquisitions and settlements | (1.7) | |
Currency translation | 31.1 | |
September 30, 2017 (net) | 286.9 | 257.5 |
Asia Pacific [Member] | ||
Goodwill [Roll Forward] | ||
December 31, 2016 (gross) | 93.3 | |
Accumulated impairment | (6.9) | |
Acquisitions and settlements | 1.3 | |
Currency translation | 5.3 | |
September 30, 2017 (net) | $ 93 | $ 86.4 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | $ 446.2 | $ 416.4 | |
Accumulated amortization | (127.4) | (123.6) | |
Net finite-lived intangible assets | 318.8 | 292.8 | |
Total intangible assets, gross | 520.6 | 481 | |
Intangible assets, net | 393.2 | 357.4 | |
Amortization of intangible assets | 16.4 | $ 15.5 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,016 | 22.3 | ||
2,017 | 22.3 | ||
2,018 | 21.4 | ||
2,019 | 21.4 | ||
2,020 | 21.4 | ||
Trademarks [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Trademarks (indefinite-lived) | 74.4 | 64.6 | |
Completed technologies/patents [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | 32.4 | 48 | |
Accumulated amortization | (9.3) | (25.3) | |
Net finite-lived intangible assets | 23.1 | 22.7 | |
Customer relationships [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | 319 | 278.9 | |
Accumulated amortization | (69.1) | (51.6) | |
Net finite-lived intangible assets | 249.9 | 227.3 | |
Trademarks [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | 87.7 | 78.5 | |
Accumulated amortization | (44.5) | (37.3) | |
Net finite-lived intangible assets | 43.2 | 41.2 | |
Other Intangible Assets [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | 7.1 | 11 | |
Accumulated amortization | (4.5) | (9.4) | |
Net finite-lived intangible assets | $ 2.6 | $ 1.6 |
Divestitures Divestitures Narra
Divestitures Divestitures Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Divestitures [Abstract] | |
Equity Method Investment, Realized (Gain) Loss on Disposal | $ 4.9 |
Business Combination, Contingent Consideration, Asset | $ 2.7 |
Debt and Credit Facilities (Sum
Debt and Credit Facilities (Summary of Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 1,447 | $ 1,463.8 |
Less current portion of long-term debt | 35 | 48.2 |
Long-term debt | 1,412 | 1,415.6 |
Term Loan A Facility Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 879.8 |
Term Loan Facility due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 700 | 0 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 165 | 0 |
Unamortized debt issuance costs, net [Member] | Unamortized debt issuance costs, net [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs, net | (19) | (18.3) |
Other debt, including capital leases [Member] | Other debt, including capital leases [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 1 | 2.3 |
5.75% Senior Notes Due 2021 [Member] | 5.75% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 300 | 300 |
5.875% Senior Notes Due 2023 [Member] | 5.875% Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 300 | $ 300 |
Debt and Credit Facilities (Nar
Debt and Credit Facilities (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Long-term Debt, Description | 1,200 | |||
Principal amount of notes | $ 400,000,000 | $ 400,000,000 | ||
Borrowings from revolving facility | 165,000,000 | 165,000,000 | $ 0 | |
Write off of Deferred Debt Issuance Cost | 400,000 | |||
Payments of Debt Issuance Costs | 1,200,000 | 3,000,000 | 300,000 | |
Debt Issuance Costs, Gross | 2,600,000 | 2,600,000 | ||
Payments of long-term debt | 23,500,000 | $ 53,600,000 | ||
Letters of credit outstanding amount | 18,000,000 | 18,000,000 | ||
Term Loan Facility due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 700,000,000 | 700,000,000 | $ 0 | |
Term Loan A Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | $ 0 | 879,800,000 | |
Term Loan Facility due 2022 [Member] | Term Loan Facility due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 2.95% | 2.95% | ||
Unamortized debt issuance costs, net [Member] | Unamortized debt issuance costs, net [Member] | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt issuance costs, net | $ (19,000,000) | $ (19,000,000) | (18,300,000) | |
5.875% Senior Notes Due 2023 [Member] | 5.875% Senior Notes Due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount of notes | $ 300,000,000 | $ 300,000,000 | ||
5.875% Senior notes due 2023 | 5.875% | 5.875% | ||
Long-term debt | $ 300,000,000 | $ 300,000,000 | 300,000,000 | |
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 165,000,000 | 165,000,000 | 0 | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, borrowing capacity | 500,000,000 | 500,000,000 | ||
Term Loan A Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 700,000,000 | $ 700,000,000 | ||
Senior Notes [Member] | 5.75% Senior Notes Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 5.75% | 5.75% | ||
5.75% Senior Notes Due 2021 [Member] | 5.75% Senior Notes Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount of notes | $ 300,000,000 | $ 300,000,000 | ||
5.875% Senior notes due 2023 | 5.75% | 5.75% | ||
Long-term debt | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | |
Subsidiaries [Member] | Senior Notes [Member] | 5.875% Senior Notes Due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 5.875% | 5.875% | ||
Interest Rate Swap [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount of notes | $ 250,000,000 | $ 250,000,000 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Currency derivatives Gains (Losses) expected to be reclassified into earnings over the next twelve months | $ (0.5) | |
Principal amount of notes | 400 | |
Designated as Hedging Instrument [Member] | ||
Derivative, Notional Amount | 85.2 | $ 132.6 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (0.5) | 0.8 |
Interest Rate Swap [Member] | ||
Principal amount of notes | 250 | |
Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 2.4 | 2.6 |
Term Loan A Facility Due 2022 [Member] | ||
Long-term debt | $ 0 | $ 879.8 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Derivatives Designated as Hedges Affecting Condensed Consolidated Income Statement and Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income | $ 0.9 | $ 4 | $ 1.7 | $ (1.7) | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income | 1 | (1.1) | 4 | 4.2 | |
Derivative Asset, Fair Value, Gross Asset | 4.1 | 4.1 | $ 5.6 | ||
Derivative Liability, Fair Value, Gross Liability | 1.4 | 1.4 | 0.7 | ||
Currency Derivatives [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income | 0.6 | 1.5 | 2.2 | (0.7) | |
Interest Rate Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income | 0.3 | 2.5 | (0.5) | (1) | |
Cost of Goods Sold [Member] | Currency Derivatives [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income | 1 | (1.1) | 4 | 4.2 | |
Interest Expense [Member] | Interest Rate Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income | 0 | $ 0 | 0 | $ 0 | |
Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign Currency Cash Flow Hedge Asset at Fair Value | 0 | 0 | 0.7 | ||
Foreign Currency Cash Flow Hedge Liability at Fair Value | 1.3 | 1.3 | 0.1 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 3.7 | 3.7 | 4.6 | ||
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | 0 | 0.4 | ||
Not Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0.4 | 0.4 | 0.3 | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 0.1 | $ 0.1 | $ 0.2 |
Pensions and Postretirement B51
Pensions and Postretirement Benefits Other than Pensions (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Discretionary pension plan contributions | $ 50 | $ 0 |
Pension Plans [Member] | ||
Company contributions | 56 | $ 6.7 |
Additional contributions expected during the remainder of the year | $ 3.7 |
Pensions and Postretirement B52
Pensions and Postretirement Benefits Other than Pensions (Components of the Company's Pension-Related Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
United States Pension Plan of US Entity [Member] | ||||
Service cost | $ 2.1 | $ 2.6 | $ 6.5 | $ 7.3 |
Interest cost | 2.7 | 2.6 | 7.8 | 7.6 |
Expected return on plan assets | (3) | (2.6) | (8.9) | (7.7) |
Net amortization of prior service costs | 0 | 0.2 | 0.2 | 0.5 |
Net amortization of plan net actuarial losses | 1.3 | 0.4 | 3.6 | 3.1 |
Net periodic pension benefit cost | 3.1 | 3.2 | 9.2 | 10.8 |
Foreign Pension Plan [Member] | ||||
Service cost | 0.8 | 0.8 | 2.4 | 2.5 |
Interest cost | 2.1 | 2.9 | 6.4 | 8.7 |
Expected return on plan assets | (3.4) | (3.7) | (10.3) | (11.1) |
Net amortization of plan net actuarial losses | 0.4 | 0.6 | 1.3 | 1.7 |
Net periodic pension benefit cost | $ (0.1) | $ 0.6 | $ (0.2) | $ 1.8 |
Pensions and Postretirement B53
Pensions and Postretirement Benefits Other than Pensions (Components of Net Periodic Postretirement Benefit Cost) (Details) - Postretirement Benefit Costs [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Service cost | $ 0 | $ 0.1 | $ 0 | $ 0.1 |
Interest cost | 0.1 | 0.1 | 0.3 | 0.3 |
Net amortization of prior service gains | (0.4) | (0.5) | (1.2) | (1.3) |
Net amortization of plan net actuarial losses | 0 | 0 | (0.1) | 0 |
Total | $ (0.3) | $ (0.3) | $ (1) | $ (0.9) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument, Face Amount | $ 400 | |
Assets, fair value measurements [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | 4.1 | $ 5.6 |
Liabilities, fair value measurements [Abstract] | ||
Derivative Liability, Fair Value, Gross Liability | 1.4 | 0.7 |
Recurring fair value measurements [Member] | ||
Assets, fair value measurements [Abstract] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.4 | 1 |
Interest Rate Derivative Assets, at Fair Value | 3.7 | 4.6 |
Total assets, fair value measurements | 4.1 | 5.6 |
Liabilities, fair value measurements [Abstract] | ||
Interest Rate Derivative Liabilities, at Fair Value | 0.4 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1.4 | 0.3 |
Deferred Compensation Liability, Current and Noncurrent | 19.8 | 16.8 |
Total liability, fair value measurements | 21.2 | 17.5 |
Total debt | 1,494.6 | 1,510.6 |
Total financial instruments not carried at fair value | 1,494.6 | 1,510.6 |
Recurring fair value measurements [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets, fair value measurements [Abstract] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 0 | 0 |
Total assets, fair value measurements | 0 | 0 |
Liabilities, fair value measurements [Abstract] | ||
Interest Rate Derivative Liabilities, at Fair Value | 0 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Liability, Current and Noncurrent | 0 | 0 |
Total liability, fair value measurements | 0 | 0 |
Total debt | 0 | 0 |
Total financial instruments not carried at fair value | 0 | 0 |
Recurring fair value measurements [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets, fair value measurements [Abstract] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.4 | 1 |
Interest Rate Derivative Assets, at Fair Value | 3.7 | 4.6 |
Total assets, fair value measurements | 4.1 | 5.6 |
Liabilities, fair value measurements [Abstract] | ||
Interest Rate Derivative Liabilities, at Fair Value | 0.4 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 1.4 | 0.3 |
Deferred Compensation Liability, Current and Noncurrent | 19.8 | 16.8 |
Total liability, fair value measurements | 21.2 | 17.5 |
Total debt | 1,494.6 | 1,510.6 |
Total financial instruments not carried at fair value | 1,494.6 | 1,510.6 |
Recurring fair value measurements [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets, fair value measurements [Abstract] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 0 | 0 |
Total assets, fair value measurements | 0 | 0 |
Liabilities, fair value measurements [Abstract] | ||
Interest Rate Derivative Liabilities, at Fair Value | 0 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 |
Deferred Compensation Liability, Current and Noncurrent | 0 | 0 |
Total liability, fair value measurements | 0 | 0 |
Total debt | 0 | 0 |
Total financial instruments not carried at fair value | 0 | $ 0 |
Interest Rate Swap [Member] | ||
Debt Instrument, Face Amount | $ 250 |
Equity (Reconciliation of Ordin
Equity (Reconciliation of Ordinary Shares) (Details) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Increase (Decrease) In Ordinary Shares [Roll Forward] | ||
Treasury Stock, Shares, Acquired | (0.8) | |
Treasury Stock, Value, Acquired, Cost Method | $ (60) | $ (30) |
Common Stock [Member] | ||
Increase (Decrease) In Ordinary Shares [Roll Forward] | ||
December 31, 2016 | 95.3 | |
Shares issued under incentive plans, net | 0.5 | |
Treasury Stock, Shares, Acquired | (0.8) | |
September 30, 2017 | 95 |
Equity (Components of Sharehold
Equity (Components of Shareholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at December 31: | $ 116.4 | $ 29.7 | ||
Net earnings (loss) | $ 90.1 | $ 2 | 264.6 | 156.2 |
Currency translation | 87.9 | 16 | ||
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax | (1.5) | (15) | ||
Pension and OPEB adjustments, net of tax | (3.5) | 14.9 | ||
Total comprehensive income | 112.7 | 16.2 | 347.5 | 172.1 |
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | (5) | |||
Share-based Compensation | 12.8 | 13.1 | ||
Acquisition/divestiture of noncontrolling interests | (0.4) | |||
Dividends to noncontrolling interests | (0.1) | (2.8) | ||
Dividends to ordinary shareholders | (45.6) | (34.6) | ||
Payments for Repurchase of Common Stock | 60 | 30 | ||
Dividends paid to ordinary shareholders | (45.6) | (34.5) | ||
Treasury Stock, Value, Acquired, Cost Method | (60) | (30) | ||
Shares issued under incentive plans, net | 6.2 | 8.4 | ||
Other | (0.1) | |||
Balance at September 30: | 372.1 | 155.5 | 372.1 | 155.5 |
Shareholders' Equity [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at December 31: | 151.8 | 113.3 | 25.6 | |
Net earnings (loss) | 263.7 | 154.3 | ||
Currency translation | 86.8 | 15.5 | ||
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax | (1.5) | (15) | ||
Pension and OPEB adjustments, net of tax | (3.5) | 14.9 | ||
Total comprehensive income | 345.5 | 169.7 | ||
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | (5) | |||
Share-based Compensation | 12.8 | 13.1 | ||
Acquisition/divestiture of noncontrolling interests | (0.4) | |||
Dividends to noncontrolling interests | 0 | 0 | ||
Dividends to ordinary shareholders | (34.6) | |||
Treasury Stock, Value, Acquired, Cost Method | (30) | |||
Shares issued under incentive plans, net | 6.2 | 8.4 | ||
Other | 0 | |||
Balance at September 30: | 367.2 | 367.2 | ||
Noncontrolling Interest [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance at December 31: | $ 3.7 | 3.1 | 4.1 | |
Net earnings (loss) | 0.9 | 1.9 | ||
Currency translation | 1.1 | 0.5 | ||
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax | 0 | 0 | ||
Pension and OPEB adjustments, net of tax | 0 | 0 | ||
Total comprehensive income | 2 | 2.4 | ||
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle | 0 | |||
Share-based Compensation | 0 | 0 | ||
Acquisition/divestiture of noncontrolling interests | 0 | |||
Dividends to noncontrolling interests | (0.1) | (2.8) | ||
Dividends to ordinary shareholders | 0 | 0 | ||
Treasury Stock, Value, Acquired, Cost Method | 0 | 0 | ||
Shares issued under incentive plans, net | 0 | $ 0 | ||
Other | (0.1) | |||
Balance at September 30: | $ 4.9 | $ 4.9 |
Equity (Changes in Accumulated
Equity (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at December 31: | $ (264.3) | $ (232.2) |
Other comprehensive income before reclassifications | 82.1 | 29 |
Amounts reclassified from accumulated other comprehensive income | (0.2) | (13.8) |
Tax (expense) benefit | (0.1) | 0.2 |
Balance at September 30: | (182.5) | (216.8) |
Cash flow hedges and marketable securities [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at December 31: | 3.4 | 14 |
Other comprehensive income before reclassifications | 1.8 | 1.4 |
Amounts reclassified from accumulated other comprehensive income | (4) | (17.8) |
Tax (expense) benefit | 0.7 | 1.4 |
Balance at September 30: | 1.9 | (1) |
Pension and OPEB Adjustments [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at December 31: | (120.5) | (139.3) |
Other comprehensive income before reclassifications | (6.5) | 12.1 |
Amounts reclassified from accumulated other comprehensive income | 3.8 | 4 |
Tax (expense) benefit | (0.8) | (1.2) |
Balance at September 30: | (124) | (124.4) |
Foreign Currency Gain (Loss) [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at December 31: | (147.2) | (106.9) |
Other comprehensive income before reclassifications | 86.8 | 15.5 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Tax (expense) benefit | 0 | 0 |
Balance at September 30: | $ (60.4) | $ (91.4) |
Equity (Reclassification Adjust
Equity (Reclassification Adjustments out of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Prior-service gains | $ (0.4) | $ (0.3) | $ (1) | $ (0.8) |
Amortization of actuarial (gains) losses | 1.7 | 1 | 4.8 | 4.8 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 3.5 | (14.9) | ||
Earnings before income taxes [Member] | ||||
(Gains) and losses on cash flow hedges | (1) | 1.1 | (4) | (4.2) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | (13.6) | ||
Reclassifications from Other comprehensive (income) loss of Defined benefit plan items | 1.3 | 0.7 | 3.8 | 4 |
Earnings from continuing operations [Member] | ||||
Cash flow hedge reclassification adjustments, net of tax | (0.7) | 1.7 | (2.9) | (2.8) |
Other Comprehensive (Income) Loss, Available-for-sale Securities Adjustment, Net of Tax | 0 | (13.6) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.3 | 2 | 0 | (13.6) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 1 | 0.3 | 2.9 | 2.8 |
Other, net [Member] | ||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | (13.6) | ||
Provision for income taxes [Member] | ||||
Tax provision (benefit) on cash flow hedge reclassification adjustments | 0.3 | 0.6 | 1.1 | 1.4 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Sale of Securities, Tax | 0 | 0 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | (0.3) | (0.4) | (0.9) | (1.2) |
Cost of Goods Sold [Member] | Currency Derivatives [Member] | ||||
(Gains) and losses on cash flow hedges | $ (1) | $ 1.1 | $ (4) | $ (4.2) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) shares in Millions | 9 Months Ended |
Sep. 30, 2017shares | |
Stock options and Restricted Stock Units (RSUs) [Member] | |
Vesting period, in years | 3 years |
Performance Shares [Member] | |
Maximum award level for eligible employees (in shares) | 0.1 |
Percentage of awards applied to performance condition | 50.00% |
Percentage of awards applied to market condition | 50.00% |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share based compensation expense | $ 4.4 | $ 5 | $ 15.1 | $ 14.2 |
Tax benefit | (1.5) | (1.5) | (5) | (4.2) |
After-tax expense | 2.9 | 3.5 | 10.1 | 10 |
Stock Options [Member] | ||||
Share based compensation expense | 0.7 | 1.1 | 2.7 | 3.3 |
Restricted Stock Units (RSUs) [Member] | ||||
Share based compensation expense | 1.7 | 2 | 5.9 | 6.1 |
Performance Shares [Member] | ||||
Share based compensation expense | 1.4 | 1.2 | 4.5 | 3.7 |
Deferred Compensation [Member] | ||||
Share based compensation expense | $ 0.6 | $ 0.7 | $ 2 | $ 1.1 |
Share-Based Compensation (Grant
Share-Based Compensation (Grants of Stock Options and RSUs) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Options [Member] | ||
Equity awards, granted, in shares | 165,113 | 230,259 |
Weighted average fair value per award, in dollars per share | $ 18.22 | $ 15.86 |
RSUs [Member] | ||
Equity awards, granted, in shares | 119,695 | 113,095 |
Weighted average fair value per award, in dollars per share | $ 73.37 | $ 58.89 |
Share-Based Compensation (Avera
Share-Based Compensation (Average Fair Value of Stock Options Granted, Assumptions) (Details) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation [Abstract] | ||
Dividend yield | 0.89% | 0.83% |
Volatility | 24.93% | 28.85% |
Risk-free rate of return | 2.08% | 1.38% |
Expected life, in years | 6 years | 6 years |
Restructuring Activities (Narra
Restructuring Activities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Restructuring Charges [Abstract] | |||||
Other Restructuring Costs | $ 1.4 | ||||
Restructuring reserve, current | $ 2.7 | 2.7 | $ 3.5 | ||
Additions | $ 7.4 | $ 1.1 | $ 8.5 | $ 3 |
Restructuring Activities (Sched
Restructuring Activities (Schedule of Restructuring Charges Recorded) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Additions | $ 7.4 | $ 1.1 | $ 8.5 | $ 3 |
Americas [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additions | 5.4 | 0.7 | 5.4 | 2 |
EMEIA [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additions | 1.5 | 0.4 | 2.5 | 0.8 |
Asia Pacific [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additions | 0 | 0 | 0 | 0.2 |
Corporate Segment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additions | 0.5 | 0 | 0.6 | 0 |
Cost of Goods, Total [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additions | 2.9 | 0.7 | 3.2 | 0.8 |
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Additions | $ 4.5 | $ 0.4 | $ 5.3 | $ 2.2 |
Restructuring Activities (Sch65
Restructuring Activities (Schedule of Changes in Restructuring Reserve) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||||
December 31, 2016 | $ 3.5 | |||
Additions, net of reversals | $ 7.4 | $ 1.1 | 8.5 | $ 3 |
Cash and non-cash uses | (9.5) | |||
Currency translation | 0.2 | |||
September 30, 2017 | 2.7 | 2.7 | ||
Americas [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2016 | 0.3 | |||
Additions, net of reversals | 5.4 | 0.7 | 5.4 | 2 |
Cash and non-cash uses | (4.6) | |||
Currency translation | 0 | |||
September 30, 2017 | 1.1 | 1.1 | ||
EMEIA [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2016 | 3.2 | |||
Additions, net of reversals | 1.5 | 0.4 | 2.5 | 0.8 |
Cash and non-cash uses | (4.4) | |||
Currency translation | 0.2 | |||
September 30, 2017 | 1.5 | 1.5 | ||
Corporate Segment [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
December 31, 2016 | 0 | |||
Additions, net of reversals | 0.5 | $ 0 | 0.6 | $ 0 |
Cash and non-cash uses | (0.5) | |||
Currency translation | 0 | |||
September 30, 2017 | $ 0.1 | $ 0.1 |
Other, Net (Details)
Other, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Income | $ 2.9 | $ 2.9 | ||
Equity Method Investment, Realized (Gain) Loss on Disposal | 4.9 | |||
Marketable Securities, Realized (Gain) Loss | $ 12.4 | |||
Interest income | (0.3) | $ (0.5) | (0.6) | (1.9) |
Exchange (gain) loss | (0.1) | 0.5 | 0.4 | 2.9 |
Equity Method Investment, Summarized Financial Information, Net (Income) Loss | (0.1) | 0.1 | (4.7) | (3.9) |
Other (income) loss | (3.2) | 0.3 | (3.3) | (14.1) |
Other, net | $ (3.7) | $ 0.4 | $ (8.2) | $ (17) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (percent) | 19.60% | 90.50% | 16.70% | 26.50% |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 0 | $ (84.4) | $ 0 | $ (84.4) |
Earnings Per Share (EPS) (Detai
Earnings Per Share (EPS) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of basic shares | 95 | 96 | 95.2 | 95.9 |
Shares issuable under incentive stock plans | 0.8 | 0.9 | 0.8 | 0.9 |
Weighted average number of diluted shares | 95.8 | 96.9 | 96 | 96.8 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2017segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 3 |
Business Segment Information (S
Business Segment Information (Summary of Operations by Reportable Segments) (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | |
Number of reportable segments | segment | 3 | |||
Net revenues | $ 609.4 | $ 581.1 | $ 1,785.1 | $ 1,668.3 |
Segment operating income | 143.1 | 136.7 | 409.3 | 375.8 |
Operating income | 126.1 | 121.5 | 359 | 328.3 |
Interest expense | 17.8 | 15.6 | 49.7 | 48.4 |
Disposal Group, Not Discontinued Operation, (Gain) Loss on Disposal | 0 | 84.4 | 0 | 84.4 |
Other income, net | (3.7) | 0.4 | (8.2) | (17) |
Earnings before income taxes | 112 | 21.1 | 317.5 | 212.5 |
Americas [Member] | ||||
Net revenues | 455.2 | 436.2 | 1,331.4 | 1,235.7 |
Segment operating income | 131.8 | 131.5 | 379.7 | 351.7 |
EMEIA [Member] | ||||
Net revenues | 125.1 | 116.4 | 372.7 | 356.5 |
Segment operating income | 9.1 | 3.4 | 24.5 | 20.3 |
Asia Pacific [Member] | ||||
Net revenues | 29.1 | 28.5 | 81 | 76.1 |
Segment operating income | 2.2 | 1.8 | 5.1 | 3.8 |
Unallocated Amount to Segment [Member] | ||||
Unallocated corporate expense | $ (17) | $ (15.2) | $ (50.3) | $ (47.5) |
Commitments and Contingencies71
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Expense for environmental remediation | $ 0.5 | $ 1.8 | $ 2 | $ 6.8 | |
Reserves for environmental matters | 29 | 29 | $ 30.6 | ||
Reserves for environmental matters, current | 12.9 | 12.9 | 6.1 | ||
Segment, Discontinued Operations [Member] | |||||
Reserves for environmental matters | $ 8.8 | $ 8.8 | $ 9.6 |
Commitments and Contingencies72
Commitments and Contingencies (Product Warranty Liability) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 13.3 | $ 11.7 |
Reductions for payments | (5.5) | (4.6) |
Accruals for warranties issued during the current period | 6.2 | 6.2 |
Changes to accruals related to preexisting warranties | (0.7) | 0 |
Translation | 0.4 | 0 |
Balance at end of period | $ 13.7 | $ 13.3 |
Guarantor Financial Informati73
Guarantor Financial Information (Statement of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenues | $ 609.4 | $ 581.1 | $ 1,785.1 | $ 1,668.3 |
Cost of goods sold | 335.5 | 317.6 | 989.3 | 921.1 |
Selling and administrative expenses | 147.8 | 142 | 436.8 | 418.9 |
Operating income | 126.1 | 121.5 | 359 | 328.3 |
Equity earnings (loss) in affiliates, net of tax | 0 | 0 | 0 | 0 |
Interest expense | 17.8 | 15.6 | 49.7 | 48.4 |
Intercompany interest and fees | 0 | 0 | 0 | 0 |
Disposal Group, Not Discontinued Operation, (Gain) Loss on Disposal | 0 | 84.4 | 0 | 84.4 |
Other (income) expense, net | (3.7) | 0.4 | (8.2) | (17) |
Earnings before income taxes | 112 | 21.1 | 317.5 | 212.5 |
Provision (benefit) for income taxes | 21.9 | 19.1 | 52.9 | 56.3 |
Net earnings | 90.1 | 2 | 264.6 | 156.2 |
Less: Net (earnings) loss attributable to noncontrolling interests | 0.3 | 0.4 | 0.9 | 1.9 |
Net earnings attributable to Allegion plc | 89.8 | 1.6 | 263.7 | 154.3 |
Total comprehensive income | 112.7 | 16.2 | 347.5 | 172.1 |
Less: Total comprehensive income attributable to noncontrolling interests | 0.8 | 0.2 | 2 | 2.4 |
Total comprehensive income attributable to Allegion plc | 111.9 | 16 | 345.5 | 169.7 |
Other Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenues | 273 | 265.2 | 835.3 | 798.3 |
Cost of goods sold | 190.4 | 191.6 | 595.8 | 571 |
Selling and administrative expenses | 59 | 57.5 | 170.9 | 168.8 |
Operating income | 23.6 | 16.1 | 68.6 | 58.5 |
Equity earnings (loss) in affiliates, net of tax | 88 | 86 | 245.7 | 242.4 |
Interest expense | 0.2 | 0.1 | 0.2 | 0.5 |
Intercompany interest and fees | 10.5 | 9.2 | 23.2 | 27.4 |
Disposal Group, Not Discontinued Operation, (Gain) Loss on Disposal | 84.4 | 84.4 | ||
Other (income) expense, net | (3.3) | (0.3) | (3.7) | 2.6 |
Earnings before income taxes | 104.2 | 8.7 | 294.6 | 270.4 |
Provision (benefit) for income taxes | (20.5) | (22.7) | (65.6) | (60.3) |
Net earnings | 124.7 | 31.4 | 360.2 | 330.7 |
Less: Net (earnings) loss attributable to noncontrolling interests | 0.3 | 0.4 | 0.9 | 1.9 |
Net earnings attributable to Allegion plc | 124.4 | 31 | 359.3 | 328.8 |
Total comprehensive income | 146.5 | 42.1 | 441.9 | 260.2 |
Less: Total comprehensive income attributable to noncontrolling interests | 0.8 | 0.2 | 2 | 2.4 |
Total comprehensive income attributable to Allegion plc | 145.7 | 41.9 | 439.9 | 257.8 |
Parent Company [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Selling and administrative expenses | 1.3 | 0.9 | 3.8 | 3.2 |
Operating income | (1.3) | (0.9) | (3.8) | (3.2) |
Equity earnings (loss) in affiliates, net of tax | 104.1 | 12.9 | 302.8 | 190.8 |
Interest expense | 13 | 10.4 | 35.3 | 32.6 |
Intercompany interest and fees | 0 | 0 | 0 | 0.1 |
Disposal Group, Not Discontinued Operation, (Gain) Loss on Disposal | 0 | 0 | ||
Other (income) expense, net | 0 | 0 | 0 | 0.1 |
Earnings before income taxes | 89.8 | 1.6 | 263.7 | 154.8 |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0.5 |
Net earnings | 89.8 | 1.6 | 263.7 | 154.3 |
Less: Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Allegion plc | 89.8 | 1.6 | 263.7 | 154.3 |
Total comprehensive income | 111.9 | 16 | 345.5 | 169.7 |
Less: Total comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income attributable to Allegion plc | 111.9 | 16 | 345.5 | 169.7 |
Subsidiary Issuer [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Selling and administrative expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Equity earnings (loss) in affiliates, net of tax | 47.4 | 42.4 | 114.2 | 105.9 |
Interest expense | 4.6 | 5.1 | 14.2 | 15.3 |
Intercompany interest and fees | 28.3 | 23.9 | 77.7 | 71.6 |
Disposal Group, Not Discontinued Operation, (Gain) Loss on Disposal | 0 | 0 | ||
Other (income) expense, net | 0 | 0.4 | 0 | 0.4 |
Earnings before income taxes | 14.5 | 13 | 22.3 | 18.6 |
Provision (benefit) for income taxes | (12.7) | (11.3) | (35.4) | (33.6) |
Net earnings | 27.2 | 24.3 | 57.7 | 52.2 |
Less: Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Allegion plc | 27.2 | 24.3 | 57.7 | 52.2 |
Total comprehensive income | 27.4 | 27.6 | 57.2 | 43.8 |
Less: Total comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income attributable to Allegion plc | 27.4 | 27.6 | 57.2 | 43.8 |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenues | 432.6 | 424.6 | 1,271.5 | 1,194.3 |
Cost of goods sold | 241.3 | 234.7 | 715.2 | 674.4 |
Selling and administrative expenses | 87.5 | 83.6 | 262.1 | 246.9 |
Operating income | 103.8 | 106.3 | 294.2 | 273 |
Equity earnings (loss) in affiliates, net of tax | 0.5 | (0.2) | 2.4 | 0.4 |
Interest expense | 0 | 0 | 0 | 0 |
Intercompany interest and fees | (38.8) | (33.1) | (100.9) | (99.1) |
Disposal Group, Not Discontinued Operation, (Gain) Loss on Disposal | 0 | 0 | ||
Other (income) expense, net | (0.4) | 0.3 | (4.5) | (20.1) |
Earnings before income taxes | 143.5 | 138.9 | 402 | 392.6 |
Provision (benefit) for income taxes | 55.1 | 53.1 | 153.9 | 149.7 |
Net earnings | 88.4 | 85.8 | 248.1 | 242.9 |
Less: Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Allegion plc | 88.4 | 85.8 | 248.1 | 242.9 |
Total comprehensive income | 89.5 | 86.6 | 250.6 | 253.2 |
Less: Total comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income attributable to Allegion plc | 89.5 | 86.6 | 250.6 | 253.2 |
Consolidation, Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net revenues | (96.2) | (108.7) | (321.7) | (324.3) |
Cost of goods sold | (96.2) | (108.7) | (321.7) | (324.3) |
Selling and administrative expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Equity earnings (loss) in affiliates, net of tax | (240) | (141.1) | (665.1) | (539.5) |
Interest expense | 0 | 0 | 0 | 0 |
Intercompany interest and fees | 0 | 0 | 0 | 0 |
Disposal Group, Not Discontinued Operation, (Gain) Loss on Disposal | 0 | 0 | ||
Other (income) expense, net | 0 | 0 | 0 | 0 |
Earnings before income taxes | (240) | (141.1) | (665.1) | (539.5) |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 |
Net earnings | (240) | (141.1) | (665.1) | (539.5) |
Less: Net (earnings) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Allegion plc | (240) | (141.1) | (665.1) | (539.5) |
Total comprehensive income | (262.6) | (156.1) | (747.7) | (554.8) |
Less: Total comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Total comprehensive income attributable to Allegion plc | $ (262.6) | $ (156.1) | $ (747.7) | $ (554.8) |
Guarantor Financial Informati74
Guarantor Financial Information (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 334.9 | $ 312.4 | $ 214.5 | $ 199.7 |
Accounts and notes receivable, net | 302.8 | 260 | ||
Inventories | 257.1 | 220.6 | ||
Other current assets | 29.8 | 36.3 | ||
Accounts and notes receivable affiliates | 0 | 0 | ||
Total current assets | 924.6 | 829.3 | ||
Investment in affiliates | 0 | 0 | ||
Property, plant and equipment, net | 246.1 | 226.6 | ||
Goodwill and other intangible assets, net | 1,149.1 | 1,074.2 | ||
Notes receivable affiliates | 0 | 0 | ||
Other noncurrent assets | 127.5 | 117.3 | ||
Total assets | 2,447.3 | 2,247.4 | ||
Current liabilities: | ||||
Accounts payable and accruals | 397.2 | 381.4 | ||
Short-term borrowings and current maturities of long-term debt | 35 | 48.2 | ||
Accounts and notes payable affiliates | 0 | 0 | ||
Total current liabilities | 432.2 | 429.6 | ||
Long-term debt | 1,412 | 1,415.6 | ||
Notes payable affiliate | 0 | 0 | ||
Other noncurrent liabilities | 231 | 285.8 | ||
Total liabilities | 2,075.2 | 2,131 | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | 367.2 | 113.3 | ||
Noncontrolling interests | 4.9 | 3.1 | ||
Total equity (deficit) | 372.1 | 116.4 | 155.5 | 29.7 |
Total liabilities and equity | 2,447.3 | 2,247.4 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 1.1 | 0.5 | 1 | 3.3 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 0.5 | 0.4 | ||
Accounts and notes receivable affiliates | 0 | 0 | ||
Total current assets | 1.6 | 0.9 | ||
Investment in affiliates | 1,514.7 | 1,229.4 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Notes receivable affiliates | 2.9 | 53.2 | ||
Other noncurrent assets | 5.4 | 5.4 | ||
Total assets | 1,524.6 | 1,288.9 | ||
Current liabilities: | ||||
Accounts payable and accruals | 3 | 7 | ||
Short-term borrowings and current maturities of long-term debt | 35 | 46.9 | ||
Accounts and notes payable affiliates | 0 | 0.4 | ||
Total current liabilities | 38 | 54.3 | ||
Long-term debt | 1,118.2 | 1,120.2 | ||
Notes payable affiliate | 0 | 0 | ||
Other noncurrent liabilities | 1.2 | 1.1 | ||
Total liabilities | 1,157.4 | 1,175.6 | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | 367.2 | 113.3 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity (deficit) | 367.2 | 113.3 | ||
Total liabilities and equity | 1,524.6 | 1,288.9 | ||
Subsidiary Issuer [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0.1 | 0.1 | 0.3 | 0.3 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 35.4 | 49.7 | ||
Accounts and notes receivable affiliates | 416.4 | 331.6 | ||
Total current assets | 451.9 | 381.4 | ||
Investment in affiliates | 2,903.8 | 2,814.1 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Notes receivable affiliates | 1,124.9 | 1,149.8 | ||
Other noncurrent assets | 19.2 | 14.8 | ||
Total assets | 4,499.8 | 4,360.1 | ||
Current liabilities: | ||||
Accounts payable and accruals | 11 | 4.7 | ||
Short-term borrowings and current maturities of long-term debt | 0 | 0 | ||
Accounts and notes payable affiliates | 72 | 36.4 | ||
Total current liabilities | 83 | 41.1 | ||
Long-term debt | 292.7 | 294.4 | ||
Notes payable affiliate | 2,655.5 | 2,690.7 | ||
Other noncurrent liabilities | 0 | 0 | ||
Total liabilities | 3,031.2 | 3,026.2 | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | 1,468.6 | 1,333.9 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity (deficit) | 1,468.6 | 1,333.9 | ||
Total liabilities and equity | 4,499.8 | 4,360.1 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 177.7 | 166 | 93.2 | 73.8 |
Accounts and notes receivable, net | 164.9 | 140 | ||
Inventories | 80.6 | 77.6 | ||
Other current assets | 12.7 | 9.4 | ||
Accounts and notes receivable affiliates | 492.6 | 395 | ||
Total current assets | 928.5 | 788 | ||
Investment in affiliates | 218.6 | 193.4 | ||
Property, plant and equipment, net | 120.9 | 122 | ||
Goodwill and other intangible assets, net | 180 | 180.8 | ||
Notes receivable affiliates | 3,444.7 | 3,444.7 | ||
Other noncurrent assets | 55.4 | 61.9 | ||
Total assets | 4,948.1 | 4,790.8 | ||
Current liabilities: | ||||
Accounts payable and accruals | 275.4 | 353.2 | ||
Short-term borrowings and current maturities of long-term debt | 0 | 0 | ||
Accounts and notes payable affiliates | 669.9 | 629.6 | ||
Total current liabilities | 945.3 | 982.8 | ||
Long-term debt | 0 | 0 | ||
Notes payable affiliate | 51 | 53.3 | ||
Other noncurrent liabilities | 84.4 | 138.7 | ||
Total liabilities | 1,080.7 | 1,174.8 | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | 3,867.4 | 3,616 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity (deficit) | 3,867.4 | 3,616 | ||
Total liabilities and equity | 4,948.1 | 4,790.8 | ||
Other Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 156 | 145.8 | 120 | 122.3 |
Accounts and notes receivable, net | 137.9 | 120 | ||
Inventories | 176.5 | 143 | ||
Other current assets | 79.2 | 145.1 | ||
Accounts and notes receivable affiliates | 342 | 320.6 | ||
Total current assets | 891.6 | 874.5 | ||
Investment in affiliates | 3,648.8 | 3,422.6 | ||
Property, plant and equipment, net | 125.2 | 104.6 | ||
Goodwill and other intangible assets, net | 969.1 | 893.4 | ||
Notes receivable affiliates | 1,667.2 | 1,679.8 | ||
Other noncurrent assets | 47.5 | 35.2 | ||
Total assets | 7,349.4 | 7,010.1 | ||
Current liabilities: | ||||
Accounts payable and accruals | 205.8 | 184.8 | ||
Short-term borrowings and current maturities of long-term debt | 0 | 1.3 | ||
Accounts and notes payable affiliates | 509.1 | 380.8 | ||
Total current liabilities | 714.9 | 566.9 | ||
Long-term debt | 1.1 | 1 | ||
Notes payable affiliate | 3,533.2 | 3,583.5 | ||
Other noncurrent liabilities | 145.4 | 146 | ||
Total liabilities | 4,394.6 | 4,297.4 | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | 2,949.9 | 2,709.6 | ||
Noncontrolling interests | 4.9 | 3.1 | ||
Total equity (deficit) | 2,954.8 | 2,712.7 | ||
Total liabilities and equity | 7,349.4 | 7,010.1 | ||
Consolidation, Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | (98) | (168.3) | ||
Accounts and notes receivable affiliates | (1,251) | (1,047.2) | ||
Total current assets | (1,349) | (1,215.5) | ||
Investment in affiliates | (8,285.9) | (7,659.5) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Notes receivable affiliates | (6,239.7) | (6,327.5) | ||
Other noncurrent assets | 0 | 0 | ||
Total assets | (15,874.6) | (15,202.5) | ||
Current liabilities: | ||||
Accounts payable and accruals | (98) | (168.3) | ||
Short-term borrowings and current maturities of long-term debt | 0 | 0 | ||
Accounts and notes payable affiliates | (1,251) | (1,047.2) | ||
Total current liabilities | (1,349) | (1,215.5) | ||
Long-term debt | 0 | 0 | ||
Notes payable affiliate | (6,239.7) | (6,327.5) | ||
Other noncurrent liabilities | 0 | 0 | ||
Total liabilities | (7,588.7) | (7,543) | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | (8,285.9) | (7,659.5) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity (deficit) | (8,285.9) | (7,659.5) | ||
Total liabilities and equity | $ (15,874.6) | $ (15,202.5) |
Guarantor Financial Informati75
Guarantor Financial Information (Statement of Cash Flow) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 170 | $ 178.4 | |
Cash flows from investing activities: | |||
Capital expenditures | (33.7) | (26.4) | |
Acquisition of and equity investments in businesses, net of cash acquired | (20.8) | (31.4) | |
Proceeds from sale of equity investment | 15.5 | 0 | |
Proceeds from sale of marketable securities | 0 | 14.1 | |
Other investing activities, net | 2.9 | (5.6) | |
Net cash used in investing activities | (36.1) | (49.3) | |
Cash flows from financing activities: | |||
Short-term borrowings, net | (1.3) | 0 | |
Borrowings from revolving facility | 165 | ||
Issuance of term facility | 700 | 0 | |
Settlement of second amended credit facility | (856.3) | 0 | |
Payments of long-term debt | (23.5) | (53.6) | |
Debt repayments, net | (16.1) | (53.6) | |
Debt issuance costs | $ (1.2) | (3) | (0.3) |
Net inter-company proceeds (payments) | 0 | 0 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 0 | 0 | |
Dividends paid to ordinary shareholders | (45.6) | (34.5) | |
Payments to Noncontrolling Interests | 0 | (0.4) | |
Repurchase of ordinary shares | (60) | (30) | |
Other financing activities, net | 6 | 2.8 | |
Net cash used in financing activities | (118.7) | (116) | |
Effect of exchange rate changes on cash and cash equivalents | 7.3 | 1.7 | |
Net increase in cash and cash equivalents | 22.5 | 14.8 | |
Cash and cash equivalents - beginning of period | 312.4 | 199.7 | |
Cash and cash equivalents - end of period | 334.9 | 334.9 | 214.5 |
IR Limited [Member] | |||
Cash flows from financing activities: | |||
Debt issuance costs | 0 | ||
IR International [Member] | |||
Cash flows from financing activities: | |||
Debt issuance costs | 0 | ||
Parent Company [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 67.4 | (26.6) | |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | |
Acquisition of and equity investments in businesses, net of cash acquired | 0 | 0 | |
Proceeds from sale of equity investment | 0 | ||
Proceeds from Divestiture of Businesses | 0 | ||
Other investing activities, net | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities: | |||
Short-term borrowings, net | 0 | ||
Borrowings from revolving facility | 165 | ||
Issuance of term facility | 700 | ||
Settlement of second amended credit facility | (856.3) | ||
Payments of long-term debt | (23.5) | ||
Debt repayments, net | (14.8) | (35.2) | |
Debt issuance costs | (2.9) | ||
Net inter-company proceeds (payments) | 50.3 | 115.9 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 0 | 0 | |
Dividends paid to ordinary shareholders | (45.6) | (34.5) | |
Payments to Noncontrolling Interests | 0 | ||
Repurchase of ordinary shares | (60) | (30) | |
Other financing activities, net | 6.2 | 8.4 | |
Net cash used in financing activities | (66.8) | 24.3 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net increase in cash and cash equivalents | 0.6 | (2.3) | |
Cash and cash equivalents - beginning of period | 0.5 | 3.3 | |
Cash and cash equivalents - end of period | 1.1 | 1.1 | 1 |
Subsidiary Issuer [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 10.3 | 8.9 | |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | |
Acquisition of and equity investments in businesses, net of cash acquired | 0 | 0 | |
Proceeds from sale of equity investment | 0 | ||
Proceeds from Divestiture of Businesses | 0 | ||
Other investing activities, net | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities: | |||
Short-term borrowings, net | 0 | ||
Borrowings from revolving facility | 0 | ||
Issuance of term facility | 0 | ||
Settlement of second amended credit facility | 0 | ||
Payments of long-term debt | 0 | ||
Debt repayments, net | 0 | 0.2 | |
Debt issuance costs | (0.1) | ||
Net inter-company proceeds (payments) | (10.2) | (9.1) | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 0 | 0 | |
Dividends paid to ordinary shareholders | 0 | 0 | |
Payments to Noncontrolling Interests | 0 | ||
Repurchase of ordinary shares | 0 | 0 | |
Other financing activities, net | 0 | 0 | |
Net cash used in financing activities | (10.3) | (8.9) | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net increase in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents - beginning of period | 0.1 | 0.3 | |
Cash and cash equivalents - end of period | 0.1 | 0.1 | 0.3 |
Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 231.3 | 361.6 | |
Cash flows from investing activities: | |||
Capital expenditures | (14.7) | (8.1) | |
Acquisition of and equity investments in businesses, net of cash acquired | (22.2) | 0 | |
Proceeds from sale of equity investment | 15.5 | ||
Proceeds from Divestiture of Businesses | 0 | ||
Other investing activities, net | 0 | 0 | |
Net cash used in investing activities | (21.4) | (8.1) | |
Cash flows from financing activities: | |||
Short-term borrowings, net | 0 | ||
Borrowings from revolving facility | 0 | ||
Issuance of term facility | 0 | ||
Settlement of second amended credit facility | 0 | ||
Payments of long-term debt | 0 | ||
Debt repayments, net | 0 | 0 | |
Debt issuance costs | 0 | ||
Net inter-company proceeds (payments) | 8.2 | (117.3) | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | (206.4) | (216.8) | |
Dividends paid to ordinary shareholders | 0 | 0 | |
Payments to Noncontrolling Interests | 0 | ||
Repurchase of ordinary shares | 0 | 0 | |
Other financing activities, net | 0 | 0 | |
Net cash used in financing activities | (198.2) | (334.1) | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net increase in cash and cash equivalents | 11.7 | 19.4 | |
Cash and cash equivalents - beginning of period | 166 | 73.8 | |
Cash and cash equivalents - end of period | 177.7 | 177.7 | 93.2 |
Other Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 280.9 | 165.8 | |
Cash flows from investing activities: | |||
Capital expenditures | (19) | (18.3) | |
Acquisition of and equity investments in businesses, net of cash acquired | 1.4 | (31.4) | |
Proceeds from sale of equity investment | 0 | ||
Proceeds from sale of marketable securities | 14.1 | ||
Other investing activities, net | 2.9 | (5.6) | |
Net cash used in investing activities | (14.7) | (41.2) | |
Cash flows from financing activities: | |||
Short-term borrowings, net | (1.3) | ||
Borrowings from revolving facility | 0 | ||
Issuance of term facility | 0 | ||
Settlement of second amended credit facility | 0 | ||
Payments of long-term debt | 0 | ||
Debt repayments, net | (1.3) | (18.6) | |
Debt issuance costs | 0 | 0 | |
Net inter-company proceeds (payments) | (48.3) | 10.5 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | (213.5) | (114.5) | |
Dividends paid to ordinary shareholders | 0 | 0 | |
Payments to Noncontrolling Interests | (0.4) | ||
Repurchase of ordinary shares | 0 | 0 | |
Other financing activities, net | (0.2) | (5.6) | |
Net cash used in financing activities | (263.3) | (128.6) | |
Effect of exchange rate changes on cash and cash equivalents | 7.3 | 1.7 | |
Net increase in cash and cash equivalents | 10.2 | (2.3) | |
Cash and cash equivalents - beginning of period | 145.8 | 122.3 | |
Cash and cash equivalents - end of period | 156 | 156 | 120 |
IR Ireland [Member] | |||
Cash flows from financing activities: | |||
Debt issuance costs | (0.3) | ||
Consolidation, Eliminations [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | (419.9) | (331.3) | |
Cash flows from investing activities: | |||
Capital expenditures | 0 | 0 | |
Acquisition of and equity investments in businesses, net of cash acquired | 0 | 0 | |
Proceeds from sale of equity investment | 0 | ||
Proceeds from Divestiture of Businesses | 0 | ||
Other investing activities, net | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities: | |||
Short-term borrowings, net | 0 | ||
Borrowings from revolving facility | 0 | ||
Issuance of term facility | 0 | ||
Settlement of second amended credit facility | 0 | ||
Payments of long-term debt | 0 | ||
Debt repayments, net | 0 | 0 | |
Debt issuance costs | 0 | 0 | |
Net inter-company proceeds (payments) | 0 | 0 | |
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | 419.9 | 331.3 | |
Dividends paid to ordinary shareholders | 0 | 0 | |
Payments to Noncontrolling Interests | 0 | ||
Repurchase of ordinary shares | 0 | 0 | |
Other financing activities, net | 0 | 0 | |
Net cash used in financing activities | 419.9 | 331.3 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |
Net increase in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents - beginning of period | 0 | 0 | |
Cash and cash equivalents - end of period | $ 0 | $ 0 | $ 0 |
Subsequent Events Debt instrume
Subsequent Events Debt instrument, face value (Details) $ in Millions | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | |
Principal amount of notes | $ 400 |
Subsequent Events Bond call pre
Subsequent Events Bond call premium (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Debt Instrument [Line Items] | |
Redemption Premium | $ 33 |
Subsequent Events Debt issue co
Subsequent Events Debt issue costs (Details) $ in Millions | Sep. 30, 2017USD ($) |
Subsequent Event [Line Items] | |
Debt Issuance Costs, Net | $ 7.4 |
Subsequent Events Unamortized B
Subsequent Events Unamortized Bond Issue Costs (Details) $ in Millions | Sep. 30, 2017USD ($) |
Subsequent Event [Line Items] | |
Unamortized Debt Issuance Expense | $ 9.4 |