Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 22, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 95,055,763 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net revenues | $ 711.5 | $ 609.4 | $ 2,029.3 | $ 1,785.1 |
Cost of goods sold | (402.1) | (335) | (1,156.5) | (988.2) |
Selling and administrative expenses | (167.1) | (147.3) | (488.4) | (435.3) |
Operating income | 142.3 | 127.1 | 384.4 | 361.6 |
Interest expense | (14) | (17.8) | (40.3) | (49.7) |
Other income, net | (1.9) | (2.7) | (3.9) | (5.6) |
Earnings before income taxes | 130.2 | 112 | 348 | 317.5 |
Provision for income taxes | (14.1) | (21.9) | (45.5) | (52.9) |
Net earnings | 116.1 | 90.1 | 302.5 | 264.6 |
Less: Net earnings attributable to noncontrolling interests | (0.1) | (0.3) | (0.4) | (0.9) |
Net earnings attributable to Allegion plc | $ 116 | $ 89.8 | $ 302.1 | $ 263.7 |
Earnings per share attributable to Allegion plc ordinary shareholders: | ||||
Basic net earnings | $ 1.22 | $ 0.95 | $ 3.18 | $ 2.77 |
Diluted net earnings | $ 1.21 | $ 0.94 | $ 3.15 | $ 2.75 |
Weighted-average shares outstanding | ||||
Basic | 95.1 | 95 | 95.1 | 95.2 |
Diluted | 95.8 | 95.8 | 95.8 | 96 |
Dividends declared per ordinary share | $ 0.21 | $ 0.16 | $ 0.63 | $ 0.48 |
Total comprehensive income | $ 103.3 | $ 112.7 | $ 265.3 | $ 347.5 |
Less: Total comprehensive (loss) income attributable to noncontrolling interests | (0.6) | 0.8 | (1.6) | 2 |
Total comprehensive income attributable to Allegion plc | $ 103.9 | $ 111.9 | $ 266.9 | $ 345.5 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 189.7 | $ 466.2 |
Restricted Cash, Current | 6.8 | 0 |
Accounts and notes receivable, net | 361.4 | 296.6 |
Inventories | 278.3 | 239.8 |
Other current assets | 37.1 | 30.1 |
Total current assets | 873.3 | 1,032.7 |
Property, plant and equipment, net | 273.3 | 252.2 |
Goodwill | 878 | 761.2 |
Intangible assets, net | 558.4 | 394.3 |
Other noncurrent assets | 147.1 | 101.6 |
Total assets | 2,730.1 | 2,542 |
LIABILITIES AND EQUITY | ||
Accounts payable | 208 | 188.3 |
Accrued expenses and other current liabilities | 243.9 | 237.5 |
Short-term borrowings and current maturities of long-term debt | 35 | 35 |
Total current liabilities | 486.9 | 460.8 |
Long-term debt | 1,417.7 | 1,442.3 |
Other noncurrent liabilities | 226.5 | 233.4 |
Total liabilities | 2,131.1 | 2,136.5 |
Equity: | ||
Ordinary shares, $0.01 par value (95,051,627 and 95,062,385 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively) | 1 | 1 |
Capital in excess of par value | 12.2 | 9.1 |
Retained earnings | 771.9 | 544.4 |
Accumulated other comprehensive loss | (188.2) | (152.9) |
Total Allegion plc shareholders’ equity | 596.9 | 401.6 |
Noncontrolling interests | 2.1 | 3.9 |
Total equity | 599 | 405.5 |
Total liabilities and equity | $ 2,730.1 | $ 2,542 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 302.5 | $ 264.6 |
Adjustments to arrive at net cash provided by operating activities: | ||
Depreciation and amortization | 65.8 | 49.9 |
Discretionary pension plan contribution | 0 | (50) |
Changes in assets and liabilities and other non-cash items | (107.9) | (94.5) |
Net cash provided by operating activities | 260.4 | 170 |
Cash flows from investing activities: | ||
Capital expenditures | (31.8) | (33.7) |
Acquisition of and equity investments in businesses, net of cash acquired | (375.8) | (20.8) |
Proceeds from sale of equity investment | 0 | 15.5 |
Other investing activities, net | (1.1) | 2.9 |
Net cash used in investing activities | (408.7) | (36.1) |
Cash flows from financing activities: | ||
Short-term borrowings, net | (0.7) | (1.3) |
Proceeds from revolving facility | 115 | 165 |
Repayments of revolving facility | 115 | 0 |
Issuance of term facility | 0 | 700 |
Settlement of second amended credit facility | 0 | (856.3) |
Payments of other long-term debt | (26.7) | (23.5) |
Debt repayments, net | (27.4) | (16.1) |
Payments of Debt Issuance Costs | 0 | 3 |
Dividends paid to ordinary shareholders | (59.6) | (45.6) |
Repurchase of ordinary shares | (30) | (60) |
Other financing activities, net | 0.1 | 6 |
Net cash used in financing activities | (116.9) | (118.7) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (4.5) | 7.3 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (269.7) | 22.5 |
Cash, cash equivalents, and restricted cash - beginning of period | 466.2 | 312.4 |
Cash, cash equivalents, and restricted cash - end of period | $ 196.5 | $ 334.9 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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, 2017 . 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, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted 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. ASC 606 allows entities to adopt the standard on either a full retrospective approach or report the cumulative effect as of the date of adoption ("modified retrospective method"). The FASB has also issued the following standards which clarify ASU 2014-09: ASU 2017-14, Revenue Recognition, Revenue from Contracts with Customers: Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403, ASU 2017-13, Revenue Recognition, Revenue from Contracts with Customers: Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments, 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 adopted each of these standards on January 1, 2018 on a modified retrospective basis. The impact of adopting the new standards was not material to the Company’s Condensed and Consolidated Financial Statements at January 1, 2018 or for the three or nine months ended September 30, 2018, and no cumulative effect adjustment was recorded to opening retained earnings. Expanded disclosure as required by the new standards is presented within Note 17 to 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 is effective for annual and interim reporting periods beginning after December 15, 2017, and as such, the Company adopted ASU 2016-15 on January 1, 2018. The amendments in this update are required to be applied retrospectively to all periods presented. The adoption of ASU 2016-15 did not have a material impact on the Condensed and Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." This update provides guidance to assist companies in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update provides a more robust framework to use in determining when a set of transferred assets and activities is a business. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017, and requires prospective adoption. The Company adopted ASU 2017-01 on January 1, 2018. The adoption of ASU 2017-01 did not have a material impact 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, and as such, the Company adopted ASU 2017-07 on January 1, 2018. The Company has applied ASU 2017-07 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 Condensed and Consolidated Statements of Comprehensive Income and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The adoption of ASU 2017-07 did not have a material impact on the 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 Company elected to early adopt the provisions of ASU 2017-12 on January 1, 2018. The amendments in this update have been applied to hedging relationships existing on the date of adoption. The adoption of ASU 2017-12 did not have a material impact on the Condensed and Consolidated Financial Statements. In March 2018, the FASB issued ASU 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118". The overarching purpose of ASU 2018-05 is to codify the guidance issued by the SEC related to income tax accounting implications due to the comprehensive U.S. tax legislation commonly referred to as the Tax Cuts and Jobs Act enacted on December 22, 2017 (the "Tax Reform Act"), as originally discussed within Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118) within ASC 740, Income Taxes. SAB 118, and now ASC 740 provide a measurement period, which in no case should extend beyond one year from the Tax Reform Act enactment date, during which a company acting in good faith may complete the accounting for the impacts of the Tax Reform Act. To the extent that a company’s accounting for certain income tax effects of the Tax Reform Act is incomplete, the company can determine a reasonable estimate for those effects and record a provisional estimate in the financial statements in the first reporting period in which a reasonable estimate can be determined. If a company cannot determine a provisional estimate to be included in the financial statements, the company should continue to apply ASC 740 based on the provisions of the tax laws that were in effect immediately prior to the Tax Reform Act being enacted. At December 31, 2017, the Company recorded a provisional valuation allowance related to interest limitation carryforwards and other adjustments to the net deferred tax assets, with a corresponding discrete net tax charge of $22.8 million . On April 2, 2018, IRS Notice 2018-28 was issued to provide guidance to assist taxpayers in complying with providing transition guidance related to interest limitation carryforwards recorded at the enactment date. Management is in process of evaluating IRS Notice 2018-28 and assessing its impact on the provisional valuation allowance recorded at December 31, 2017. During the three-month period ended September 30, 2018, an adjustment resulting in a $3.3 million tax benefit was made to the provisional amounts previously recognized related to the Tax Reform Act, primarily relating to clarified guidance received during the quarter around the deductibility of certain executive compensation. The Company will continue to analyze impacts from the enactment of the Tax Reform Act on its Condensed and Consolidated Financial Statements, and any additional impacts will be recorded as they are identified during the measurement period as provided for in SAB 118, which extends up to one year from the enactment date. Recently Issued Accounting Pronouncements 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. In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842 (Leases)", which provides narrow amendments to clarify how to apply certain aspects of ASU 2016-02, and ASU 2018-11, "Leases (Topic 842): Targeted Improvements", which provides adopters an additional transition method by allowing entities to initially apply ASU 2016-02, and subsequent related standards, at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. These ASUs are effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. The Company is in the process of updating its systems, policies, and internal controls over financial reporting in anticipation of adopting these standards on January 1, 2019. The Company will utilize the new cumulative-effect adjustment transition method allowed per ASU 2018-11. The Company also currently anticipates electing the following practical expedients available within these standards: • The Company will elect to not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. • If at the lease commencement date a lease has a lease term of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company will elect not to apply ASC 842 recognition requirements. Nonetheless, the Company intends to include leases of less than 12 months within the updated footnote disclosures. • If the Company enters into a large number of leases in the same month with the same terms and conditions, these will be looked at as a group (portfolio) assuming the lease model under this approach will not materially differ from applying to each individual lease. • If available, the rate implicit in the lease will be used as the discount rate. However, if this is not available, the Company will use it's incremental borrowing rate as the discount rate, defined as the weighted average rate of total outstanding debt, gross of any hedging contracts. • As the Company will apply the new transition method allowed per ASU 2018-11, the Company will elect to not reassess arrangements entered into prior than January 1, 2019 for whether an arrangement is or contains a lease, the lease classification applied, or to separate initial direct costs. The Company is continuing to assess what the complete impact these ASUs and the related practical expedients will have on the Condensed and Consolidated Financial Statements; however, the Company anticipates that adoption will result in the recognition of a significant right-of-use asset and lease liability on its Condensed and Consolidated Balance Sheets. Changes to processes and internal controls to meet the new standards' reporting and disclosure requirements have been identified and are being implemented. Software has been implemented that will assist in the recognition of the right-to-use asset and lease liability to be included on the Condensed and Consolidated Balance Sheets related to leases currently classified as operating leases with durations greater than twelve months, with certain allowable exceptions. The Company is in the process of reviewing its lease portfolio, as well as other agreements not currently classified as leases, for embedded leases and to ensure appropriate classification and disclosure under the new standards. 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 February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." The new guidance permits entities to reclassify tax effects stranded in accumulated other comprehensive income (AOCI) as a result of the Tax Reform Act. ASU 2018-02 provides this option not only for the impact to deferred tax assets and liabilities due to the reduction in the U.S. tax rate, but also for tax effects stranded in AOCI for other reasons specific to the Tax Reform Act, such as state taxes or transitioning to a territorial tax system. Tax effects that are stranded in AOCI for reasons not relating to the Tax Reform Act may not be reclassified under ASU 2018-02. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Entities that adopt the ASU in an annual or interim period after the period of enactment are able to choose whether to apply the amendments retrospectively to each period in which the effect of the Tax Reform Act is recognized or to apply the amendments in the period of adoption. The Company is assessing what impact ASU 2018-02 will have on the Condensed and Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The new guidance modifies the disclosure requirements related to fair value measurements in Topic 820, Fair Value Measurement, including removing certain previous disclosure requirements, adding certain new disclosure requirements, and modifying certain other disclosure requirements. 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 elected to early adopt ASU 2018-13 on October 1, 2018. The adoption is not expected to have a material impact on the Condensed and Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans." The new guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including removing certain previous disclosure requirements, adding certain new disclosure requirements, and clarifying certain other disclosure requirements. The ASU will be effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company elected to early adopt ASU 2018-14 on October 1, 2018. The adoption is not expected to have a material impact on the Condensed and Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The new guidance aligns the requirements for capitalizing implementation costs incurred in a cloud-based hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). 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 2018-15 will have on the Condensed and Consolidated Financial Statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2018 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value using the first-in first-out (FIFO) method. The major classes of inventory were as follows: In millions September 30, December 31, Raw materials $ 60.5 $ 66.6 Work-in-process 25.7 29.8 Finished goods 192.1 143.4 Total $ 278.3 $ 239.8 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows: In millions Americas EMEIA Asia Pacific Total December 31, 2017 (gross) $ 375.2 $ 769.8 $ 101.7 $ 1,246.7 Accumulated impairment — (478.6 ) (6.9 ) (485.5 ) December 31, 2017 (net) 375.2 291.2 94.8 761.2 Acquisitions 107.5 9.2 15.8 132.5 Currency translation 0.2 (9.6 ) (6.3 ) (15.7 ) September 30, 2018 (net) $ 482.9 $ 290.8 $ 104.3 $ 878.0 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 December 31, 2017 In millions Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Completed technologies/patents $ 59.0 $ (13.1 ) $ 45.9 $ 32.6 $ (10.0 ) $ 22.6 Customer relationships 423.6 (84.5 ) 339.1 324.5 (74.1 ) 250.4 Trade names (finite-lived) 87.9 (47.1 ) 40.8 89.0 (46.1 ) 42.9 Other 9.1 (6.1 ) 3.0 7.9 (4.9 ) 3.0 Total finite-lived intangible assets 579.6 $ (150.8 ) 428.8 454.0 $ (135.1 ) 318.9 Trade names (indefinite-lived) 129.6 129.6 75.4 75.4 Total $ 709.2 $ 558.4 $ 529.4 $ 394.3 Intangible asset amortization expense was $28.6 million and $16.4 million for the nine months ended September 30, 2018 and 2017 , respectively. Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $ 34.4 million for full year 2018 , $ 28.7 million for 2019 , $ 28.7 million for 2020 , $ 28.7 million for 2021 , and $ 28.7 million for 2022 . |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions and Investments in Unconsolidated Entities 2018 During the nine months ended September 30, 2018 , the Company completed six acquisitions: Business Date Technical Glass Products, Inc. ("TGP") January 2018 Hammond Enterprises, Inc. ("Hammond") January 2018 Qatar Metal Industries LLC ("QMI") February 2018 AD Systems, Inc. ("AD Systems") March 2018 Gainsborough Hardware and API Locksmiths ("Door and Access Systems") July 2018 ISONAS Security Systems, Inc. ("ISONAS") July 2018 In January 2018, the Company acquired 100% of TGP through one of its subsidiaries. TGP provides fire-rated architectural glass and framing solutions for commercial buildings, as well as non-fire rated architectural glass and framing, including channel glass systems and curtain walls throughout the United States, Canada, and select markets in the Middle East. TGP has been integrated into the Company's Americas and EMEIA segments. In January 2018, the Company acquired 100% of the machinery, equipment, and intellectual property of a division of Hammond through one of its subsidiaries. The assets acquired have been integrated into the Company's existing production facilities and are specific to the Company's Schlage-branded products. In February 2018, the Company acquired 100% of QMI through one of its subsidiaries. QMI specializes in fire rated and non-fire rated steel and wooden doors, acoustic doors, and wooden cabinets, as well as fire rated curtain wall systems and access panels in Qatar, Saudi Arabia, Bahrain, Oman, Kuwait, the United Arab Emirates, and Africa. QMI has been integrated into the Company's EMEIA segment. In March 2018, the Company acquired 100% of AD Systems through one of its subsidiaries. AD Systems designs and manufactures high-performance interior and storefront door systems, specializing in sliding and acoustic solutions. AD Systems' portfolio includes sliding and swinging doors, perimeter frames, door hardware, gasketing, seals and sidelite panels. AD Systems has been integrated into the Company's Americas segment. In July 2018, the Company acquired Door and Access Systems, based in Australia, through one of its subsidiaries. This business includes the brands Gainsborough Hardware, the market-leading residential door hardware brand in Australia, and API Locksmiths, which serves the Australian market with its keying, installation and access control services. Door and Access Systems has been integrated into the Company's Asia Pacific segment. In July 2018, the Company acquired 100% of ISONAS through one of its subsidiaries. ISONAS designs and manufactures edge-computing technology that produces Power over Ethernet access control solutions for non-residential end-markets. ISONAS has been integrated into the Company's Americas segment. Total consideration paid for these six acquisitions to date was approximately $368 million (net of cash acquired). The Company estimates the fair value of future consideration to be paid, including contingent consideration, to be approximately $6 million . Cash on hand and $75 million of borrowings on the Revolving Facility in July, which has since been repaid, were utilized to fund these acquisitions. The preliminary allocation of the aggregate purchase price to assets acquired and liabilities assumed for the acquisitions described above is as follows: In millions Accounts receivable, net $ 29.8 Inventories 28.7 Other current assets 1.3 Property, plant and equipment, net 27.6 Goodwill 132.5 Intangible assets, net 204.3 Other noncurrent assets 0.9 Accounts payable (11.1 ) Accrued expenses and other current liabilities (35.2 ) Other noncurrent liabilities (4.7 ) Total consideration $ 374.1 Intangible assets are primarily comprised of approximately $59 million of indefinite-lived trade names, $112 million of customer relationships, and $33 million of completed technologies and other intangibles, which includes approximately $6 million of acquired backlog revenue. The customer relationships have a 17-year weighted average useful life, while the completed technologies and other intangibles, excluding the backlog revenue, have a 16-year weighted average useful life. The backlog revenue was fully amortized as of June 30, 2018. Goodwill results from several factors including Allegion-specific synergies that were excluded from the cash flow projections used in the valuation of intangible assets and intangible assets that do not qualify for separate recognition, for example, assembled workforce. The majority of the goodwill is expected to be deductible for tax purposes. The preliminary purchase price allocations for the acquisitions are pending completion of valuations. These acquisitions are accounted for as business combinations. The following unaudited pro forma financial information for the three and nine months ended September 30, 2018 and 2017 reflects the consolidated results of operations of the Company as if these acquisitions had taken place on January 1, 2017: Three months ended Nine months ended In millions, except per share amounts 2018 2017 2018 2017 Net revenues $ 711.5 $ 663.6 $ 2,071.8 $ 1,939.3 Net earnings attributable to Allegion plc $ 119.3 $ 93.4 $ 313.1 $ 263.2 Basic net earnings per share $ 1.25 $ 0.98 $ 3.29 $ 2.76 Diluted net earnings per share $ 1.25 $ 0.97 $ 3.27 $ 2.74 The unaudited pro forma financial information is presented for informational purposes only and does not purport to be indicative of results of operations that would have occurred had the pro forma events taken place on the date indicated or the future consolidated results of operations of the combined company. The unaudited pro forma financial information has been calculated after applying the Company's accounting policies and adjusting the historical financial results to reflect additional items directly attributable to the acquisitions that would have been incurred assuming the acquisitions had occurred on January 1, 2017. Adjustments to historical financial information include additional amortization of approximately $1.5 million (net of tax) and $8.3 million (net of tax) included in the three and nine months ended September 30, 2017, respectively, in the pro forma table above. Approximately $3.9 million (net of tax) of the additional amortization included in the nine months ended September 30, 2017 relates to backlog revenue acquired by the Company, which is recorded in Cost of goods sold. The following financial information reflects Net revenues and Earnings before income taxes of the acquisitions for the three and nine months ended September 30, 2018 since their respective acquisition dates included in the Condensed and Consolidated Statement of Comprehensive Income: In millions Three months ended September 30, 2018 Nine months ended September 30, 2018 Net revenues $ 55.0 $ 115.0 Earnings before income taxes $ 0.9 $ (0.7 ) During the three months ended September 30, 2018 and 2017 , the Company incurred $4.1 million and $1.2 million , respectively, of acquisition and integration related exenses. During the nine months ended September 30, 2018 and 2017 , the Company incurred $8.6 million and $2.4 million , respectively, of acquisition and integration related expenses. These expenses are included in Selling and administrative expenses in the Condensed and Consolidated Statements of Comprehensive Income. During the nine months ended September 30, 2018 , the Company also made $8 million of investments in three unconsolidated entities, Yonomi Inc., a U.S. based mobile application and cloud platform provider for connected living, Nuki GmbH, a European retrofit residential smart lock innovator, and Conneqtech, a European based IoT platform developer specializing in connected mobility and tracking features for bicycles and healthcare. These investments are accounted for using the equity method. 2017 In January 2017, the Company acquired Republic Doors & Frames, LLC ("Republic") through one of its subsidiaries. This acquisition did not have a material impact on the Condensed and Consolidated Financial Statements. In April 2017, iDevices LLC, including the Company's equity investment, was acquired by a third party. The Company recorded a cumulative gain of $5.3 million during the nine months ended September 30, 2017 within Other income, net (see Note 14). |
Debt and Credit Facilities
Debt and Credit Facilities | 9 Months Ended |
Sep. 30, 2018 | |
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 Facility $ 665.0 $ 691.3 Revolving Facility — — 3.200% Senior Notes due 2024 400.0 400.0 3.550% Senior Notes due 2027 400.0 400.0 Other debt 1.0 1.0 Total borrowings outstanding 1,466.0 1,492.3 Less discounts and debt issuance costs, net (13.3 ) (15.0 ) Total debt 1,452.7 1,477.3 Less current portion of long-term debt 35.0 35.0 Total long-term debt $ 1,417.7 $ 1,442.3 Unsecured Credit Facilities As of September 30, 2018 , the Company has an unsecured Credit Agreement in place that provides for up to $1,200.0 million in unsecured financing, consisting of a $700.0 million term loan facility (the “Term Facility”) and a $500.0 million revolving credit facility (the “Revolving Facility” and, together with the Term Facility, the “Credit Facilities”). The Credit Facilities mature on September 12, 2022 and are unconditionally guaranteed jointly and severally on an unsecured basis by the Company and Allegion US Holding Company Inc. ("Allegion US Hold Co"), the Company's wholly-owned subsidiary. The Term Facility amortizes 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 Company repaid $26.3 million of principal on its Term Facility during the nine months ended September 30, 2018 . The Revolving Facility provides aggregate commitments of up to $500.0 million , which includes up to $100.0 million for the issuance of letters of credit. At September 30, 2018 , the Company had $0.0 million outstanding on the Revolving Facility and $17.2 million of letters of credit outstanding. Outstanding borrowings under the Credit Facilities accrue interest, at the option of the Company of (i) a LIBOR rate plus the applicable margin or (ii) a base rate plus the applicable margin. The applicable margin ranges from 1.125% to 1.500% depending on the Company's credit ratings. At September 30, 2018 , the outstanding borrowings under the Credit Facilities accrue interest at LIBOR plus a margin of 1.250% . To manage the Company's exposure to fluctuations in LIBOR rates, the Company has interest rate swaps to fix the interest rate for $250.0 million of the outstanding borrowings (see Note 8). The Credit Facilities contain negative and affirmative covenants and events of default that, among other things, limit or restrict the Company's ability to enter into certain transactions. In addition, the Credit Facilities require the Company to comply with a maximum leverage ratio and a minimum interest expense coverage ratio, as defined within the agreement. As of September 30, 2018 , the Company was in compliance with all covenants. Senior Notes As of September 30, 2018 , Allegion US Hold Co has $400.0 million outstanding of its 3.200% Senior Notes due 2024 (the “3.200% Senior Notes”) and $400.0 million outstanding of its 3.550% Senior Notes due 2027 (the “3.550% Senior Notes” and, together with the 3.200% Senior Notes, the “Notes”). The Notes require semi-annual interest payments on April 1 and October 1 of each year, and will mature on October 1, 2024 and October 1, 2027, respectively. The Notes are senior unsecured obligations of Allegion US Hold Co and rank equally with all of Allegion US Hold Co’s existing and future senior unsecured and unsubordinated indebtedness. The guarantee of the Notes is the senior unsecured obligation of the Company and ranks equally with all of the Company's existing and future senior unsecured and unsubordinated indebtedness. The weighted average interest rate for borrowings was 3.24% under the Credit Facilities (including the effect of interest rate swaps), 3.200% under the 3.200% Senior Notes and 3.550% under the 3.550% Senior Notes at September 30, 2018 . |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
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. When a derivative contract is entered into, the Company designates the derivative instrument as a cash flow hedge of a forecasted transaction, a cash flow hedge of a recognized asset or liability, or as an undesignated derivative. The Company formally documents its hedge relationships, including identification of the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivative instruments that are designated as hedges to specific assets, liabilities or forecasted transactions. The 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 effective in offsetting the changes in the cash flows of the hedged item. To the extent the derivative is deemed to be an effective hedge, the fair market value changes of the instrument are recorded to Accumulated other comprehensive income (AOCI), while changes in the fair market value of derivatives not deemed to be an effective hedge are recorded in Net earnings in the period of change. If the hedging relationship ceases to be effective subsequent to inception, 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 $ 74.2 million and $ 57.7 million at September 30, 2018 and December 31, 2017 , respectively. At September 30, 2018 and December 31, 2017 , gains of $ 0.3 million and $ 0.3 million , net of tax, were included in Accumulated other comprehensive loss related to 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 gain of $ 0.3 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, 2018 , the maximum term of the Company’s currency derivatives was less than one year. Interest Rate Swaps The Company has 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 interest rate swaps expire in September 2020 and 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 are recognized in Accumulated other comprehensive loss. At September 30, 2018 and December 31, 2017 , gains of $5.4 million and $3.5 million , net of tax, were included in Accumulated other comprehensive loss related to these interest rate swaps. The amount expected to be reclassified into Net earnings over the next twelve months is a gain of approximately $2 million . 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 $ 0.2 $ 0.2 $ 0.4 $ 0.3 Interest rate swaps 7.9 5.3 — — Derivatives not designated as hedges: Currency derivatives — — 0.1 0.4 Total derivatives $ 8.1 $ 5.5 $ 0.5 $ 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. Interest rate swap derivatives included in the table above are recorded within Other noncurrent assets. 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 (loss) recognized in Accumulated other comprehensive loss Location of gain (loss) recognized Amount of gain reclassified from Accumulated other comprehensive loss and In millions 2018 2017 2018 2017 Currency derivatives $ — $ 0.6 Cost of goods sold $ 1.3 $ 1.0 Interest rate swaps 1.5 0.3 Interest expense 0.6 — Total $ 1.5 $ 0.9 $ 1.9 $ 1.0 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) recognized in Accumulated other comprehensive loss Location of gain (loss) recognized Amount of gain reclassified from Accumulated other comprehensive loss and In millions 2018 2017 2018 2017 Currency derivatives $ 2.2 $ 2.2 Cost of goods sold $ 2.3 $ 4.0 Interest rate swaps 4.1 (0.5 ) Interest expense 1.5 — Total $ 6.3 $ 1.7 $ 3.8 $ 4.0 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, 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, 2018 | |
Retirement Benefits, Description [Abstract] | |
Pensions and Postretirement Benefits Other than Pensions | Pensions and Postretirement Benefits Other than Pensions The Company sponsors several U.S. defined benefit and defined contribution plans covering substantially all 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 cost (income) for the three and nine months ended September 30 were as follows: U.S. Three months ended Nine months ended In millions 2018 2017 2018 2017 Service cost $ 1.7 $ 1.7 $ 5.2 $ 5.3 Interest cost 2.6 2.7 7.7 7.8 Expected return on plan assets (3.6 ) (3.0 ) (10.9 ) (8.9 ) Administrative costs and other 0.5 0.4 1.4 1.2 Net amortization of: Prior service costs — — 0.2 0.2 Plan net actuarial losses 1.1 1.3 3.0 3.6 Net periodic pension benefit cost $ 2.3 $ 3.1 $ 6.6 $ 9.2 Non-U.S. Three months ended Nine months ended In millions 2018 2017 2018 2017 Service cost $ 0.4 $ 0.3 $ 1.4 $ 1.1 Interest cost 2.2 2.1 6.4 6.4 Expected return on plan assets (3.9 ) (3.4 ) (11.7 ) (10.3 ) Administrative costs and other 0.4 0.5 1.2 1.3 Amortization of plan net actuarial losses 0.3 0.4 0.7 1.3 Net periodic pension benefit income $ (0.6 ) $ (0.1 ) $ (2.0 ) $ (0.2 ) The Service cost component of Net periodic pension benefit cost (income) is recorded in Cost of goods sold and Selling and administrative expenses within the Condensed and Consolidated Statements of Comprehensive Income. The remaining components of Net periodic pension benefit cost (income), including Administrative costs and other, are recorded within Other income, net within the Condensed and Consolidated Statements of Comprehensive Income. The Company made employer contributions of $6.6 million and $ 56.0 million (of which $50.0 million was discretionary) during the nine months ended September 30, 2018 and 2017 , respectively, to its defined benefit pension plans. Additional contributions of approximately $4 million are expected during the remainder of 2018 . 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. Net periodic postretiremenet benefit cost (income) is included within Other income, net within the Condensed and Consolidated Statements of Comprehensive Income. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 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 $ — $ 7.9 $ — $ 7.9 Foreign currency contracts — 0.2 — 0.2 Total asset recurring fair value measurements — 8.1 — 8.1 Liabilities: Foreign currency contracts — 0.5 — 0.5 Deferred compensation and other retirement plans — 21.3 — 21.3 Total liability recurring fair value measurements — 21.8 — 21.8 Financial instruments not carried at fair value Total debt — 1,403.1 — 1,403.1 Total financial instruments not carried at fair value $ — $ 1,403.1 $ — $ 1,403.1 Assets and liabilities measured at fair value at December 31, 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 $ — $ 5.3 $ — $ 5.3 Foreign currency contracts — 0.2 — 0.2 Total asset recurring fair value measurements — 5.5 — 5.5 Liabilities: Foreign currency contracts — 0.7 — 0.7 Deferred compensation and other retirement plans — 20.9 — 20.9 Total liability recurring fair value measurements — 21.6 — 21.6 Financial instruments not carried at fair value Total debt — 1,485.2 — 1,485.2 Total financial instruments not carried at fair value $ — $ 1,485.2 $ — $ 1,485.2 The Company determines the fair value of its financial assets and liabilities using the following methodologies: • Interest rate swaps – These instruments include interest rate swap contracts for $250.0 million of the Company's variable rate debt. The fair value of the derivative instruments is determined based on quoted prices for the Company's swaps, which is not considered an active market. • Foreign currency contracts – These instruments include foreign currency contracts for non-functional currency balance sheet exposures. The fair value of the foreign currency contracts is determined based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily accessible and observable. • Deferred compensation and other retirement plans - These include obligations related to deferred compensation and other retirement plans adjusted for market performance. The fair value is obtained based on observable market prices quoted on public exchanges for similar instruments. • Debt – These instruments are recorded at cost and include senior notes maturing through 2027 . 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, Restricted cash, Accounts receivable, Accounts payable and Accrued expenses and Other current liabilities 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, 2018 are the same as those used at December 31, 2017 . There have been no significant transfers between Level 1 and Level 2 categories. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity The reconciliation of Ordinary shares is as follows: In millions Total December 31, 2017 95.1 Shares issued under incentive plans, net 0.4 Repurchase of ordinary shares (0.4 ) September 30, 2018 95.1 During the nine months ended September 30, 2018 , the Company paid $30.0 million to repurchase 0.4 million ordinary shares on the open market under a share repurchase authorization previously approved by its Board of Directors. The components of Equity for the nine months ended September 30, 2018 were as follows: In millions Allegion plc Noncontrolling Total Balance at December 31, 2017 $ 401.6 $ 3.9 $ 405.5 Net earnings 302.1 0.4 302.5 Currency translation (42.2 ) (2.0 ) (44.2 ) Change in value of derivatives qualifying as cash flow hedges, net of tax 1.9 — 1.9 Pension and OPEB adjustments, net of tax 5.1 — 5.1 Total comprehensive income (loss) 266.9 (1.6 ) 265.3 Share-based compensation 15.9 — 15.9 Dividends to noncontrolling interests — (0.2 ) (0.2 ) Dividends to ordinary shareholders (59.9 ) — (59.9 ) Repurchase of ordinary shares (30.0 ) — (30.0 ) Shares issued under incentive plans, net 2.4 — 2.4 Balance at September 30, 2018 $ 596.9 $ 2.1 $ 599.0 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 Other Comprehensive Income (Loss) The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2018 are as follows: In millions Cash flow hedges Pension and OPEB Items Foreign Currency Items Total December 31, 2017 $ 3.8 $ (107.6 ) $ (49.1 ) $ (152.9 ) Other comprehensive income (loss) before reclassifications 6.3 2.4 (42.2 ) (33.5 ) Amounts reclassified from accumulated other comprehensive loss (a) (3.8 ) 3.3 — (0.5 ) Tax expense (0.7 ) (0.6 ) — (1.3 ) September 30, 2018 $ 5.6 $ (102.5 ) $ (91.3 ) $ (188.2 ) (a) Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to cash flow hedges are recorded in Cost of goods sold and Interest expense. Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to pension and OPEB items and foreign currency items are recorded in Other income, net. 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 (a) (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 ) (a) Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to cash flow hedges are recorded in Cost of goods sold and Interest expense. Amounts reclassified from Accumulated other comprehensive loss and recognized into Net earnings related to pension and OPEB items and foreign currency items are recorded in Other income, net. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
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 Cost of goods sold and Selling and administrative expenses. The expenses recognized for the three and nine months ended September 30 were as follows: Three months ended Nine months ended In millions 2018 2017 2018 2017 Stock options $ 1.0 $ 0.7 $ 3.9 $ 2.7 RSUs 2.6 1.7 8.1 5.9 PSUs 1.1 1.4 4.2 4.5 Deferred compensation 0.6 0.6 1.2 2.0 Pre-tax expense 5.3 4.4 17.4 15.1 Tax benefit (1.0 ) (1.5 ) (1.9 ) (5.0 ) After-tax expense $ 4.3 $ 2.9 $ 15.5 $ 10.1 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: 2018 2017 Number Weighted- Number Weighted- Stock options 160,849 $ 21.29 165,113 $ 18.22 RSUs 121,928 $ 84.86 119,695 $ 73.37 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 three-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 : 2018 2017 Dividend yield 0.97 % 0.89 % Volatility 22.38 % 24.93 % Risk-free rate of return 2.75 % 2.08 % 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. The risk-free rate of return is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected term of the award. 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 ("PSP") for key employees which 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, 2018 , the Company granted PSUs with a maximum award level of approximately 0.1 million shares. In February 2016, 2017 and 2018, the Company’s Compensation Committee granted PSUs that were earned based 50% upon a performance condition, measured at each reporting period by earnings per share ("EPS") performance in relation to pre-established targets set by the Compensation Committee, and 50% upon a market condition, measured by the Company’s relative total shareholder return ("TSR") against the S&P 400 Capital Goods Index over a three-year performance period. The fair values of the market conditions are estimated using a Monte Carlo Simulation approach in a risk-neutral framework to model future stock price movements based upon historical volatility, risk-free rates of return and correlation matrix. 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, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring Activities | Restructuring Activities During the three months ended September 30, 2018 and 2017 , the Company recorded $2.7 million and $7.4 million , respectively, of expenses associated with restructuring activities. During the nine months ended September 30, 2018 and 2017 , the Company recorded $4.1 million and $8.5 million , respectively, of expenses associated with restructuring activities. These expenses are included within Cost of goods sold and Selling and administrative expenses within the Condensed and Consolidated Statements of Comprehensive Income. The changes in the restructuring reserve during the nine months ended September 30, 2018 were as follows: In millions Total December 31, 2017 $ 4.2 Additions, net of reversals 4.1 Cash and non-cash uses (5.2 ) Currency translation (0.1 ) September 30, 2018 $ 3.0 Costs accrued as of September 30, 2018 are expected to be paid within one year. |
Other, Net
Other, Net | 9 Months Ended |
Sep. 30, 2018 | |
Other Net [Abstract] | |
Other, Net | Other Income, Net The components of Other income, net for the three and nine months ended September 30 were as follows: Three months ended Nine months ended In millions 2018 2017 2018 2017 Interest income $ (0.4 ) $ (0.3 ) $ (0.7 ) $ (0.6 ) Foreign currency exchange (gain) loss (0.8 ) (0.1 ) (1.0 ) 0.4 Earnings from and gains on the sale of equity investments — (0.1 ) (0.1 ) (4.7 ) Net periodic pension and postretirement benefit (income) cost, less service cost (0.7 ) 1.0 (2.3 ) 2.6 Other — (3.2 ) 0.2 (3.3 ) Other income, net $ (1.9 ) $ (2.7 ) $ (3.9 ) $ (5.6 ) Other income, net for the three and nine months ended September 30 , 2018 was primarily related to Net periodic pension and postretirement benefit income, less service cost, and foreign currency exchange gains. Other income, net for the three months ended September 30 , 2017 was primarily related to a gain of $2.9 million related to a legal entity liquidation. Other income, net for the nine months ended September 30 , 2017 also included a cumulative gain of $5.3 million from the sale of an equity method investment. These gains were partially offset by Net periodic pension and postretirement benefit cost, less service cost. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rates for the three months ended September 30, 2018 and 2017 were 10.8% and 19.6% , respectively. The decrease in the effective tax rate compared to 2017 is primarily due to the favorable impact of the Tax Reform Act, including the reduction of the US statutory tax rate and the adjustment recorded to provisional tax amounts previously recognized (see Note 2). The decrease in the effective tax rate is also driven by the year over year change in the recognition of uncertain tax positions, and changes in the mix of income earned in lower rate jurisdictions. The effective income tax rates for the nine months ended September 30, 2018 and 2017 were 13.1% and 16.7% , respectively. The decrease in the effective tax rate compared to 2017 is primarily due to the favorable impact of the Tax Reform Act, changes in taxes accrued on unremitted earnings and changes in the mix of income earned in lower rate jurisdictions. The favorable impact is partially offset by unfavorable year over year changes in the recognition of both uncertain tax positions and valuation allowances. |
Earnings Per Share (EPS)
Earnings Per Share (EPS) | 9 Months Ended |
Sep. 30, 2018 | |
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 EPS calculations for the three and nine months ended September 30 : Three months ended Nine months ended In millions 2018 2017 2018 2017 Weighted-average number of basic shares 95.1 95.0 95.1 95.2 Shares issuable under incentive stock plans 0.7 0.8 0.7 0.8 Weighted-average number of diluted shares 95.8 95.8 95.8 96.0 At September 30, 2018 , 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. |
Net Revenues (Notes)
Net Revenues (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Net Revenues Net revenues are recognized based on the satisfaction of performance obligations under the terms of a contract. Generally, this occurs when control of a product or service transfers to a customer. Transfer of control typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms). Net revenues are measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Persuasive evidence of a sales arrangement and fixed or determinable price are deemed to be satisfied upon receipt of an executed and legally binding sales agreement or contract that clearly defines the terms and conditions of the transaction including the respective obligations of the parties. If the defined terms and conditions allow variability in all or a component of the price, revenue is not recognized until such time that the price becomes fixed or determinable. At the point of sale, the existence of an enforceable claim that requires payment within a reasonable amount of time is validated and the collectability of that claim is assessed. If collectability is not deemed to be reasonably assured, then revenue recognition is deferred until such time that collectability becomes probable or cash is received. Service and installation revenues are recognized when earned. In some instances, customer acceptance provisions are included in sales arrangements to give the buyer the ability to ensure the delivered product or service meets the criteria established in the order. In these instances, revenue recognition is deferred until the acceptance terms specified in the arrangement are fulfilled through customer acceptance or a demonstration that established criteria have been satisfied. If uncertainty exists about customer acceptance, revenue is not recognized until acceptance has occurred. We do not adjust the transaction price for the effects of a significant financing component, as the time period between control transfer of goods and services is less than one year. The Company’s payment terms are generally consistent with the industries in which their businesses operate. The Company has two principal revenue streams, tangible product sales and services. Approximately 99% of consolidated Net revenues involve contracts with a single performance obligation, the shipment of tangible products. The remaining Net revenues involve services including installation and consulting. Unlike the single performance obligation to ship a tangible product, the service revenue stream delays revenue recognition until the service performance obligation is satisfied. Net revenues for tangible product sales and services by business segment for the three and nine months ended September 30, 2018 and 2017 are as follows: Three months ended September 30, 2018 Nine months ended September 30, 2018 in millions Americas EMEIA Asia Pacific Consolidated Americas EMEIA Asia Pacific Consolidated Net revenues Products $ 530.1 $ 129.5 $ 44.8 $ 704.4 $ 1,495.9 $ 419.6 $ 98.7 $ 2,014.2 Services — 4.9 2.2 7.1 — 12.9 2.2 15.1 Total Net Revenues $ 530.1 $ 134.4 $ 47.0 $ 711.5 $ 1,495.9 $ 432.5 $ 100.9 $ 2,029.3 Three months ended September 30, 2017 (a) Nine months ended September 30, 2017 (a) in millions Americas EMEIA Asia Pacific Consolidated Americas EMEIA Asia Pacific Consolidated Net revenues Products $ 455.2 $ 120.6 $ 29.1 $ 604.9 $ 1,331.4 $ 360.2 $ 81.0 $ 1,772.6 Services — 4.5 — 4.5 — 12.5 — 12.5 Total Net Revenues $ 455.2 $ 125.1 $ 29.1 $ 609.4 $ 1,331.4 $ 372.7 $ 81.0 $ 1,785.1 (a) The Company adopted ASU 2014-09 and related updates as of January 1, 2018 on a modified retrospective basis, and as such, amounts presented for the three and nine months ended September 30, 2017 are based on ASC 605. Tangible product sales are recognized at a point in time at which transfer of control has occurred. Service revenues are recognized over time using a time-based output method applied over the contract term beginning on the date that the service or installation is either provided or made available to the customer. We used the practical expedients to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less and for contracts where we have the right to invoice for performance completed to date. As of September 30, 2018 , the contract liability associated with contract revenue is not material. As a practical expedient, we recognize incremental costs of obtaining a contract, if any, as an expense when incurred if the amortization period of the asset would have been one year or less. We do not have any costs to obtain or fulfill a contract that are capitalized under ASC 606. The Company does offer various sales incentive programs to customers, dealers, and distributors that do not preclude revenue recognition, but do require an accrual for the best estimate of expected activity. These items are accrued for over time based on the Company's historical rates of providing these incentives and annual forecasted sales volumes. During the three and nine months ended September 30, 2018 , no adjustments related to performance obligations satisfied in previous periods were recorded. Examples of the sales incentives that are accrued for as a contra receivable and sales deduction at the point of sale include, but are not limited to, discounts (i.e. net 30 type), coupons, and rebates where the customer does not have to provide any additional requirements to receive the discount. Sales returns and customer disputes involving a question of quantity or price are also accounted for as a reduction in revenue and a contra receivable. All other incentives or incentive programs where the customer is required to reach a certain sales level, remain a customer for a certain period, provide a rebate form or is subject to additional requirements are accounted for as a reduction of revenue and establishment of a liability. The Company also offers a standard warranty with most product sales and the value of such warranty is included in the contractual price. The corresponding cost of the warranty obligation is accrued as a liability (see Note 19). Sales, value-added and other similar taxes that we collect are excluded from revenue. We have elected to account for shipping and handling activities that occur after control of the related goods transfers as fulfillment activities instead of performance obligations. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2018 | |
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. The Company largely evaluates performance based on Segment operating income and Segment operating margins. Segment operating income is the measure of profit and loss that the Company’s chief operating decision maker uses to evaluate the financial performance of the business and as the basis for resource allocation, performance reviews, and compensation. For these reasons, the Company believes that Segment operating income represents the most relevant measure of segment profit and loss. The Company’s chief operating decision maker may exclude certain charges or gains, such as corporate charges and other special charges, from Operating income to arrive at a Segment operating income that is a more meaningful measure of profit and loss upon which to base its 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 2018 2017 2018 2017 Net revenues Americas $ 530.1 $ 455.2 $ 1,495.9 $ 1,331.4 EMEIA 134.4 125.1 432.5 372.7 Asia Pacific 47.0 29.1 100.9 81.0 Total $ 711.5 $ 609.4 $ 2,029.3 $ 1,785.1 Segment operating income Americas $ 153.8 $ 133.2 $ 415.5 $ 383.6 EMEIA 7.6 8.6 27.3 23.1 Asia Pacific 1.5 2.2 0.8 5.1 Total 162.9 144.0 443.6 411.8 Reconciliation to Operating income Unallocated corporate expense (20.6 ) (16.9 ) (59.2 ) (50.2 ) Operating income 142.3 127.1 384.4 361.6 Reconciliation to earnings before income taxes Interest expense 14.0 17.8 40.3 49.7 Other income, net (1.9 ) (2.7 ) (3.9 ) (5.6 ) Earnings before income taxes $ 130.2 $ 112.0 $ 348.0 $ 317.5 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and 2017 , the Company recorded $ 0.4 million and $ 0.5 million of expenses for environmental remediation at sites presently or formerly owned or leased by the Company. During the nine months ended September 30, 2018 and 2017 , the Company recorded $ 1.7 million and $ 2.0 million of expenses for environmental remediation at sites presently or formerly owned or leased by the Company. As of September 30, 2018 and December 31, 2017 , the Company has recorded reserves for environmental matters of $ 24.1 million and $ 28.9 million , respectively. The total reserve at September 30, 2018 and December 31, 2017 , included $ 6.7 million and $ 8.9 million , respectively, related to remediation of sites previously disposed by the Company. Environmental reserves are classified as Accrued expenses and other current liabilities or Other noncurrent liabilities based on their expected term. The Company's total current environmental reserve at September 30, 2018 and December 31, 2017 was $ 6.4 million and $ 12.6 million , respectively, and the remainder is classified as noncurrent. Given the evolving nature of environmental laws, regulations and technology, the ultimate cost of future compliance is uncertain. Warranty Liability 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 2018 2017 Balance at beginning of period $ 14.1 $ 13.3 Reductions for payments (5.9 ) (5.5 ) Accruals for warranties issued during the current period 6.1 6.2 Changes to accruals related to preexisting warranties (0.1 ) (0.7 ) Acquisitions 0.5 — Translation (0.1 ) 0.4 Balance at end of period $ 14.6 $ 13.7 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, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Guarantor Financial Information Allegion US Hold Co is the issuer of the 3.200% and 3.550% Senior Notes. Allegion plc is the guarantor of the 3.200% and 3.550% Senior Notes. The following condensed and consolidated financial information of Allegion plc, Allegion US Hold Co, and the other Allegion subsidiaries that are not guarantors (the "Other Subsidiaries") on a combined basis as of September 30, 2018 and for the three and nine months ended September 30, 2018 and 2017 , is being presented in order to meet the reporting requirements under the Senior Notes indenture and Rule 3-10 of Regulation S-X. In accordance with Rule 3-10(d) of Regulation S-X, separate financial statements for the Issuer, Allegion plc, whom is the guarantor, are not required to be filed with the SEC as the subsidiary debt issuer is directly or indirectly 100% owned by the Parent, whom is the guarantor, and the guarantees are full and unconditional and joint and several. During the nine months ended September 30, 2018 , an entity previously presented in the "Other Subsidiaries" column merged with Allegion US Hold Co. The entity merged with Allegion US Hold Co primarily includes intercompany investments and related equity; there is no material statement of comprehensive income or cash flow activity related to this entity. As a result, the following condensed and consolidated financial information presented below as of December 31, 2017, and for the three and nine months ended September 30, 2017 has been updated to reflect this new structure. Condensed and Consolidated Statement of Comprehensive Income For the three months ended September 30, 2018 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 711.5 $ — $ 711.5 Cost of goods sold — — 402.1 — 402.1 Selling and administrative expenses 1.3 — 165.8 — 167.1 Operating income (loss) (1.3 ) — 143.6 — 142.3 Equity earnings (loss) in affiliates, net of tax 124.5 73.2 — (197.7 ) — Interest expense 7.2 6.4 0.4 — 14.0 Intercompany interest and fees — 26.3 (26.3 ) — — Other income, net — — (1.9 ) — (1.9 ) Earnings (loss) before income taxes 116.0 40.5 171.4 (197.7 ) 130.2 Provision (benefit) for income taxes — (7.7 ) 21.8 — 14.1 Net earnings (loss) 116.0 48.2 149.6 (197.7 ) 116.1 Less: Net loss attributable to noncontrolling interests — — 0.1 — 0.1 Net earnings (loss) attributable to Allegion plc $ 116.0 $ 48.2 $ 149.5 $ (197.7 ) $ 116.0 Total comprehensive income (loss) $ 103.9 $ 48.1 $ 142.5 $ (191.2 ) $ 103.3 Less: Total comprehensive loss attributable to noncontrolling interests — — (0.6 ) — (0.6 ) Total comprehensive income (loss) attributable to Allegion plc $ 103.9 $ 48.1 $ 143.1 $ (191.2 ) $ 103.9 Condensed and Consolidated Statement of Comprehensive Income For the nine months ended September 30, 2018 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 2,029.3 $ — $ 2,029.3 Cost of goods sold — — 1,156.5 — 1,156.5 Selling and administrative expenses 4.6 — 483.8 — 488.4 Operating income (loss) (4.6 ) — 389.0 — 384.4 Equity earnings (loss) in affiliates, net of tax 327.0 146.4 — (473.4 ) — Interest expense 20.3 19.4 0.6 — 40.3 Intercompany interest and fees — 78.2 (78.2 ) — — Other income, net — — (3.9 ) — (3.9 ) Earnings (loss) before income taxes 302.1 48.8 470.5 (473.4 ) 348.0 Provision (benefit) for income taxes — (20.0 ) 65.5 — 45.5 Net earnings (loss) 302.1 68.8 405.0 (473.4 ) 302.5 Less: Net earnings attributable to noncontrolling interests — — 0.4 — 0.4 Net earnings (loss) attributable to Allegion plc $ 302.1 $ 68.8 $ 404.6 $ (473.4 ) $ 302.1 Total comprehensive income (loss) $ 266.9 $ 70.7 $ 365.8 $ (438.1 ) $ 265.3 Less: Total comprehensive loss attributable to noncontrolling interests — — (1.6 ) — (1.6 ) Total comprehensive income (loss) attributable to Allegion plc $ 266.9 $ 70.7 $ 367.4 $ (438.1 ) $ 266.9 Condensed and Consolidated Statement of Comprehensive Income For the three months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 609.4 $ — $ 609.4 Cost of goods sold — — 335.0 — 335.0 Selling and administrative expenses 1.2 — 146.1 — 147.3 Operating income (loss) (1.2 ) — 128.3 — 127.1 Equity earnings (loss) in affiliates, net of tax 104.2 (16.5 ) — (87.7 ) — Interest expense (income) 13.2 4.7 (0.1 ) — 17.8 Intercompany interest and fees — (75.2 ) 75.2 — — Other income, net — — (2.7 ) — (2.7 ) Earnings (loss) before income taxes 89.8 54.0 55.9 (87.7 ) 112.0 Provision (benefit) for income taxes — 27.2 (5.3 ) — 21.9 Net earnings (loss) 89.8 26.8 61.2 (87.7 ) 90.1 Less: Net earnings attributable to noncontrolling interests — — 0.3 — 0.3 Net earnings (loss) attributable to Allegion plc $ 89.8 $ 26.8 $ 60.9 $ (87.7 ) $ 89.8 Total comprehensive income (loss) $ 111.9 $ 27.1 $ 84.0 $ (110.3 ) $ 112.7 Less: Total comprehensive income attributable to noncontrolling interests — — 0.8 — 0.8 Total comprehensive income (loss) attributable to Allegion plc $ 111.9 $ 27.1 $ 83.2 $ (110.3 ) $ 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 Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 1,785.1 $ — $ 1,785.1 Cost of goods sold — — 988.2 — 988.2 Selling and administrative expenses 3.8 — 431.5 — 435.3 Operating income (loss) (3.8 ) — 365.4 — 361.6 Equity earnings (loss) in affiliates, net of tax 302.8 53.5 0.6 (356.9 ) — Interest expense 35.3 14.2 0.2 — 49.7 Intercompany interest and fees — (21.1 ) 21.1 — — Other income, net — — (5.6 ) — (5.6 ) Earnings (loss) before income taxes 263.7 60.4 350.3 (356.9 ) 317.5 Provision for income taxes — 2.8 50.1 — 52.9 Net earnings (loss) 263.7 57.6 300.2 (356.9 ) 264.6 Less: Net earnings attributable to noncontrolling interests — — 0.9 — 0.9 Net earnings (loss) attributable to Allegion plc $ 263.7 $ 57.6 $ 299.3 $ (356.9 ) $ 263.7 Total comprehensive income (loss) $ 345.5 $ 57.2 $ 384.3 $ (439.5 ) $ 347.5 Less: Total comprehensive income attributable to noncontrolling interests — — 2.0 — 2.0 Total comprehensive income (loss) attributable to Allegion plc $ 345.5 $ 57.2 $ 382.3 $ (439.5 ) $ 345.5 Condensed and Consolidated Balance Sheet September 30, 2018 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Current assets: Cash and cash equivalents $ 0.6 $ 14.0 $ 175.1 $ — $ 189.7 Restricted cash — — 6.8 — 6.8 Accounts and notes receivable, net — — 361.4 — 361.4 Inventories — — 278.3 — 278.3 Other current assets 0.8 24.7 20.2 (8.6 ) 37.1 Accounts and notes receivable affiliates — 473.6 342.8 (816.4 ) — Total current assets 1.4 512.3 1,184.6 (825.0 ) 873.3 Investment in affiliates 1,227.8 652.9 — (1,880.7 ) — Property, plant and equipment, net — — 273.3 — 273.3 Goodwill and other intangible assets, net — — 1,436.4 — 1,436.4 Notes receivable affiliates 25.5 1,483.7 2,613.8 (4,123.0 ) — Other noncurrent assets 4.3 30.4 112.4 — 147.1 Total assets $ 1,259.0 $ 2,679.3 $ 5,620.5 $ (6,828.7 ) $ 2,730.1 Current liabilities: Accounts payable and accruals $ 1.8 $ 13.5 $ 445.2 $ (8.6 ) $ 451.9 Short-term borrowings and current maturities of long-term debt 35.0 — — — 35.0 Accounts and notes payable affiliates — 342.9 473.5 (816.4 ) — Total current liabilities 36.8 356.4 918.7 (825.0 ) 486.9 Long-term debt 624.2 792.5 1.0 — 1,417.7 Notes payable affiliate — 2,613.8 1,509.2 (4,123.0 ) — Other noncurrent liabilities 1.1 4.7 220.7 — 226.5 Total liabilities 662.1 3,767.4 2,649.6 (4,948.0 ) 2,131.1 Equity: Total shareholders equity (deficit) 596.9 (1,088.1 ) 2,968.8 (1,880.7 ) 596.9 Noncontrolling interests — — 2.1 — 2.1 Total equity (deficit) 596.9 (1,088.1 ) 2,970.9 (1,880.7 ) 599.0 Total liabilities and equity $ 1,259.0 $ 2,679.3 $ 5,620.5 $ (6,828.7 ) $ 2,730.1 Condensed and Consolidated Balance Sheet December 31, 2017 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Current assets: Cash and cash equivalents $ 0.7 $ 0.3 $ 465.2 $ — $ 466.2 Accounts and notes receivable, net — — 296.6 — 296.6 Inventories — — 239.8 — 239.8 Other current assets 0.3 56.3 17.6 (44.1 ) 30.1 Accounts receivable affiliates — 430.0 305.3 (735.3 ) — Total current assets 1.0 486.6 1,324.5 (779.4 ) 1,032.7 Investment in affiliates 1,079.6 240.8 — (1,320.4 ) — Property, plant and equipment, net — — 252.2 — 252.2 Goodwill and other intangible assets, net — — 1,155.5 — 1,155.5 Notes receivable affiliates 3.5 1,580.3 2,381.0 (3,964.8 ) — Other noncurrent assets 5.1 5.5 91.0 — 101.6 Total assets $ 1,089.2 $ 2,313.2 $ 5,204.2 $ (6,064.6 ) $ 2,542.0 Current liabilities: Accounts payable and accruals $ 1.9 $ 7.0 $ 461.0 $ (44.1 ) $ 425.8 Short-term borrowings and current maturities of long-term debt 35.0 — — — 35.0 Accounts and notes payable affiliates 0.2 304.9 430.2 (735.3 ) — Total current liabilities 37.1 311.9 891.2 (779.4 ) 460.8 Long-term debt 649.3 792.0 1.0 — 1,442.3 Notes payables affiliate — 2,381.0 1,583.8 (3,964.8 ) — Other noncurrent liabilities 1.2 4.2 228.0 — 233.4 Total liabilities 687.6 3,489.1 2,704.0 (4,744.2 ) 2,136.5 Equity: Total shareholders equity (deficit) 401.6 (1,175.9 ) 2,496.3 (1,320.4 ) 401.6 Noncontrolling interests — — 3.9 — 3.9 Total equity (deficit) 401.6 (1,175.9 ) 2,500.2 (1,320.4 ) 405.5 Total liabilities and equity $ 1,089.2 $ 2,313.2 $ 5,204.2 $ (6,064.6 ) $ 2,542.0 Condensed and Consolidated Statement of Cash Flows For the nine months ended September 30, 2018 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ 135.4 $ (68.5 ) $ 402.5 $ (209.0 ) $ 260.4 Cash flows from investing activities: Capital expenditures — — (31.8 ) — (31.8 ) Acquisition of and equity investments in businesses, net of cash acquired — (247.1 ) (128.7 ) — (375.8 ) Other investing activities, net — — (1.1 ) — (1.1 ) Net cash used in investing activities — (247.1 ) (161.6 ) — (408.7 ) Cash flows from financing activities: Debt repayments, net (26.3 ) — (1.1 ) — (27.4 ) Net inter-company proceeds (payments) (22.0 ) 329.3 (307.3 ) — — Dividends paid — — (209.0 ) 209.0 — Dividends paid to shareholders (59.6 ) — — — (59.6 ) Repurchase of ordinary shares (30.0 ) — — — (30.0 ) Other financing activities, net 2.4 — (2.3 ) — 0.1 Net cash (used in) provided by financing activities (135.5 ) 329.3 (519.7 ) 209.0 (116.9 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — (4.5 ) — (4.5 ) Net (decrease) increase in cash, cash equivalents, and restricted cash (0.1 ) 13.7 (283.3 ) — (269.7 ) Cash, cash equivalents, and restricted cash - beginning of period 0.7 0.3 465.2 — 466.2 Cash, cash equivalents, and restricted cash - end of period $ 0.6 $ 14.0 $ 181.9 $ — $ 196.5 Condensed and Consolidated Statement of Cash Flows For the nine months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ 67.4 $ 123.1 $ 193.1 $ (213.6 ) $ 170.0 Cash flows from investing activities: Capital expenditures — — (33.7 ) — (33.7 ) Acquisition of businesses, net of cash acquired — — (20.8 ) — (20.8 ) Proceeds from sales and maturities of marketable securities — — 15.5 — 15.5 Other investing activities, net — — 2.9 — 2.9 Net cash used in investing activities — — (36.1 ) — (36.1 ) Cash flows from financing activities: 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 (17.5 ) (32.8 ) — — Dividends paid — (105.5 ) (108.1 ) 213.6 — 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 (used in) provided by financing activities (66.8 ) (123.1 ) (142.4 ) 213.6 (118.7 ) Effect of exchange rate changes on cash and cash equivalents — — 7.3 — 7.3 Net increase in cash and cash equivalents 0.6 — 21.9 — 22.5 Cash and cash equivalents - beginning of period 0.5 0.2 311.7 — 312.4 Cash and cash equivalents - end of period $ 1.1 $ 0.2 $ 333.6 $ — $ 334.9 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted 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. ASC 606 allows entities to adopt the standard on either a full retrospective approach or report the cumulative effect as of the date of adoption ("modified retrospective method"). The FASB has also issued the following standards which clarify ASU 2014-09: ASU 2017-14, Revenue Recognition, Revenue from Contracts with Customers: Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 116 and SEC Release No. 33-10403, ASU 2017-13, Revenue Recognition, Revenue from Contracts with Customers: Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments, 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 adopted each of these standards on January 1, 2018 on a modified retrospective basis. The impact of adopting the new standards was not material to the Company’s Condensed and Consolidated Financial Statements at January 1, 2018 or for the three or nine months ended September 30, 2018, and no cumulative effect adjustment was recorded to opening retained earnings. Expanded disclosure as required by the new standards is presented within Note 17 to 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 is effective for annual and interim reporting periods beginning after December 15, 2017, and as such, the Company adopted ASU 2016-15 on January 1, 2018. The amendments in this update are required to be applied retrospectively to all periods presented. The adoption of ASU 2016-15 did not have a material impact on the Condensed and Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business." This update provides guidance to assist companies in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The update provides a more robust framework to use in determining when a set of transferred assets and activities is a business. This ASU is effective for annual and interim reporting periods beginning after December 15, 2017, and requires prospective adoption. The Company adopted ASU 2017-01 on January 1, 2018. The adoption of ASU 2017-01 did not have a material impact 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, and as such, the Company adopted ASU 2017-07 on January 1, 2018. The Company has applied ASU 2017-07 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 Condensed and Consolidated Statements of Comprehensive Income and prospectively for the capitalization of the service cost component of net periodic pension cost and net periodic postretirement benefit in assets. The adoption of ASU 2017-07 did not have a material impact on the 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 Company elected to early adopt the provisions of ASU 2017-12 on January 1, 2018. The amendments in this update have been applied to hedging relationships existing on the date of adoption. The adoption of ASU 2017-12 did not have a material impact on the Condensed and Consolidated Financial Statements. In March 2018, the FASB issued ASU 2018-05, "Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118". The overarching purpose of ASU 2018-05 is to codify the guidance issued by the SEC related to income tax accounting implications due to the comprehensive U.S. tax legislation commonly referred to as the Tax Cuts and Jobs Act enacted on December 22, 2017 (the "Tax Reform Act"), as originally discussed within Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118) within ASC 740, Income Taxes. SAB 118, and now ASC 740 provide a measurement period, which in no case should extend beyond one year from the Tax Reform Act enactment date, during which a company acting in good faith may complete the accounting for the impacts of the Tax Reform Act. To the extent that a company’s accounting for certain income tax effects of the Tax Reform Act is incomplete, the company can determine a reasonable estimate for those effects and record a provisional estimate in the financial statements in the first reporting period in which a reasonable estimate can be determined. If a company cannot determine a provisional estimate to be included in the financial statements, the company should continue to apply ASC 740 based on the provisions of the tax laws that were in effect immediately prior to the Tax Reform Act being enacted. At December 31, 2017, the Company recorded a provisional valuation allowance related to interest limitation carryforwards and other adjustments to the net deferred tax assets, with a corresponding discrete net tax charge of $22.8 million . On April 2, 2018, IRS Notice 2018-28 was issued to provide guidance to assist taxpayers in complying with providing transition guidance related to interest limitation carryforwards recorded at the enactment date. Management is in process of evaluating IRS Notice 2018-28 and assessing its impact on the provisional valuation allowance recorded at December 31, 2017. During the three-month period ended September 30, 2018, an adjustment resulting in a $3.3 million tax benefit was made to the provisional amounts previously recognized related to the Tax Reform Act, primarily relating to clarified guidance received during the quarter around the deductibility of certain executive compensation. The Company will continue to analyze impacts from the enactment of the Tax Reform Act on its Condensed and Consolidated Financial Statements, and any additional impacts will be recorded as they are identified during the measurement period as provided for in SAB 118, which extends up to one year from the enactment date. Recently Issued Accounting Pronouncements 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. In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842 (Leases)", which provides narrow amendments to clarify how to apply certain aspects of ASU 2016-02, and ASU 2018-11, "Leases (Topic 842): Targeted Improvements", which provides adopters an additional transition method by allowing entities to initially apply ASU 2016-02, and subsequent related standards, at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. These ASUs are effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. The Company is in the process of updating its systems, policies, and internal controls over financial reporting in anticipation of adopting these standards on January 1, 2019. The Company will utilize the new cumulative-effect adjustment transition method allowed per ASU 2018-11. The Company also currently anticipates electing the following practical expedients available within these standards: • The Company will elect to not separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component. • If at the lease commencement date a lease has a lease term of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company will elect not to apply ASC 842 recognition requirements. Nonetheless, the Company intends to include leases of less than 12 months within the updated footnote disclosures. • If the Company enters into a large number of leases in the same month with the same terms and conditions, these will be looked at as a group (portfolio) assuming the lease model under this approach will not materially differ from applying to each individual lease. • If available, the rate implicit in the lease will be used as the discount rate. However, if this is not available, the Company will use it's incremental borrowing rate as the discount rate, defined as the weighted average rate of total outstanding debt, gross of any hedging contracts. • As the Company will apply the new transition method allowed per ASU 2018-11, the Company will elect to not reassess arrangements entered into prior than January 1, 2019 for whether an arrangement is or contains a lease, the lease classification applied, or to separate initial direct costs. The Company is continuing to assess what the complete impact these ASUs and the related practical expedients will have on the Condensed and Consolidated Financial Statements; however, the Company anticipates that adoption will result in the recognition of a significant right-of-use asset and lease liability on its Condensed and Consolidated Balance Sheets. Changes to processes and internal controls to meet the new standards' reporting and disclosure requirements have been identified and are being implemented. Software has been implemented that will assist in the recognition of the right-to-use asset and lease liability to be included on the Condensed and Consolidated Balance Sheets related to leases currently classified as operating leases with durations greater than twelve months, with certain allowable exceptions. The Company is in the process of reviewing its lease portfolio, as well as other agreements not currently classified as leases, for embedded leases and to ensure appropriate classification and disclosure under the new standards. 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 February 2018, the FASB issued ASU 2018-02, "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." The new guidance permits entities to reclassify tax effects stranded in accumulated other comprehensive income (AOCI) as a result of the Tax Reform Act. ASU 2018-02 provides this option not only for the impact to deferred tax assets and liabilities due to the reduction in the U.S. tax rate, but also for tax effects stranded in AOCI for other reasons specific to the Tax Reform Act, such as state taxes or transitioning to a territorial tax system. Tax effects that are stranded in AOCI for reasons not relating to the Tax Reform Act may not be reclassified under ASU 2018-02. This ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. Entities that adopt the ASU in an annual or interim period after the period of enactment are able to choose whether to apply the amendments retrospectively to each period in which the effect of the Tax Reform Act is recognized or to apply the amendments in the period of adoption. The Company is assessing what impact ASU 2018-02 will have on the Condensed and Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The new guidance modifies the disclosure requirements related to fair value measurements in Topic 820, Fair Value Measurement, including removing certain previous disclosure requirements, adding certain new disclosure requirements, and modifying certain other disclosure requirements. 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 elected to early adopt ASU 2018-13 on October 1, 2018. The adoption is not expected to have a material impact on the Condensed and Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, "Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans." The new guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans, including removing certain previous disclosure requirements, adding certain new disclosure requirements, and clarifying certain other disclosure requirements. The ASU will be effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Early adoption is permitted. The Company elected to early adopt ASU 2018-14 on October 1, 2018. The adoption is not expected to have a material impact on the Condensed and Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The new guidance aligns the requirements for capitalizing implementation costs incurred in a cloud-based hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). 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 2018-15 will have on the Condensed and Consolidated Financial Statements. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory, Net [Abstract] | |
Major Classes Of Inventory | The major classes of inventory were as follows: In millions September 30, December 31, Raw materials $ 60.5 $ 66.6 Work-in-process 25.7 29.8 Finished goods 192.1 143.4 Total $ 278.3 $ 239.8 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill Disclosure [Abstract] | |
Changes in Goodwill Carrying Amounts | The changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows: In millions Americas EMEIA Asia Pacific Total December 31, 2017 (gross) $ 375.2 $ 769.8 $ 101.7 $ 1,246.7 Accumulated impairment — (478.6 ) (6.9 ) (485.5 ) December 31, 2017 (net) 375.2 291.2 94.8 761.2 Acquisitions 107.5 9.2 15.8 132.5 Currency translation 0.2 (9.6 ) (6.3 ) (15.7 ) September 30, 2018 (net) $ 482.9 $ 290.8 $ 104.3 $ 878.0 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 December 31, 2017 In millions Gross carrying amount Accumulated amortization Net carrying amount Gross carrying amount Accumulated amortization Net carrying amount Completed technologies/patents $ 59.0 $ (13.1 ) $ 45.9 $ 32.6 $ (10.0 ) $ 22.6 Customer relationships 423.6 (84.5 ) 339.1 324.5 (74.1 ) 250.4 Trade names (finite-lived) 87.9 (47.1 ) 40.8 89.0 (46.1 ) 42.9 Other 9.1 (6.1 ) 3.0 7.9 (4.9 ) 3.0 Total finite-lived intangible assets 579.6 $ (150.8 ) 428.8 454.0 $ (135.1 ) 318.9 Trade names (indefinite-lived) 129.6 129.6 75.4 75.4 Total $ 709.2 $ 558.4 $ 529.4 $ 394.3 |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The preliminary allocation of the aggregate purchase price to assets acquired and liabilities assumed for the acquisitions described above is as follows: In millions Accounts receivable, net $ 29.8 Inventories 28.7 Other current assets 1.3 Property, plant and equipment, net 27.6 Goodwill 132.5 Intangible assets, net 204.3 Other noncurrent assets 0.9 Accounts payable (11.1 ) Accrued expenses and other current liabilities (35.2 ) Other noncurrent liabilities (4.7 ) Total consideration $ 374.1 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma financial information for the three and nine months ended September 30, 2018 and 2017 reflects the consolidated results of operations of the Company as if these acquisitions had taken place on January 1, 2017: Three months ended Nine months ended In millions, except per share amounts 2018 2017 2018 2017 Net revenues $ 711.5 $ 663.6 $ 2,071.8 $ 1,939.3 Net earnings attributable to Allegion plc $ 119.3 $ 93.4 $ 313.1 $ 263.2 Basic net earnings per share $ 1.25 $ 0.98 $ 3.29 $ 2.76 Diluted net earnings per share $ 1.25 $ 0.97 $ 3.27 $ 2.74 |
Revenues and Net earnings from acquired business [Table Text Block] | The following financial information reflects Net revenues and Earnings before income taxes of the acquisitions for the three and nine months ended September 30, 2018 since their respective acquisition dates included in the Condensed and Consolidated Statement of Comprehensive Income: In millions Three months ended September 30, 2018 Nine months ended September 30, 2018 Net revenues $ 55.0 $ 115.0 Earnings before income taxes $ 0.9 $ (0.7 ) |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | ong-term debt and other borrowings consisted of the following: In millions September 30, December 31, Term Facility $ 665.0 $ 691.3 Revolving Facility — — 3.200% Senior Notes due 2024 400.0 400.0 3.550% Senior Notes due 2027 400.0 400.0 Other debt 1.0 1.0 Total borrowings outstanding 1,466.0 1,492.3 Less discounts and debt issuance costs, net (13.3 ) (15.0 ) Total debt 1,452.7 1,477.3 Less current portion of long-term debt 35.0 35.0 Total long-term debt $ 1,417.7 $ 1,442.3 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 $ 0.2 $ 0.2 $ 0.4 $ 0.3 Interest rate swaps 7.9 5.3 — — Derivatives not designated as hedges: Currency derivatives — — 0.1 0.4 Total derivatives $ 8.1 $ 5.5 $ 0.5 $ 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 three months ended September 30 were as follows: Amount of gain (loss) recognized in Accumulated other comprehensive loss Location of gain (loss) recognized Amount of gain reclassified from Accumulated other comprehensive loss and In millions 2018 2017 2018 2017 Currency derivatives $ — $ 0.6 Cost of goods sold $ 1.3 $ 1.0 Interest rate swaps 1.5 0.3 Interest expense 0.6 — Total $ 1.5 $ 0.9 $ 1.9 $ 1.0 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) recognized in Accumulated other comprehensive loss Location of gain (loss) recognized Amount of gain reclassified from Accumulated other comprehensive loss and In millions 2018 2017 2018 2017 Currency derivatives $ 2.2 $ 2.2 Cost of goods sold $ 2.3 $ 4.0 Interest rate swaps 4.1 (0.5 ) Interest expense 1.5 — Total $ 6.3 $ 1.7 $ 3.8 $ 4.0 |
Pensions and Postretirement B_2
Pensions and Postretirement Benefits Other than Pensions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Pension Plans [Member] | |
Schedule of Net Periodic Benefit Cost | The components of the Company’s Net periodic pension benefit cost (income) for the three and nine months ended September 30 were as follows: U.S. Three months ended Nine months ended In millions 2018 2017 2018 2017 Service cost $ 1.7 $ 1.7 $ 5.2 $ 5.3 Interest cost 2.6 2.7 7.7 7.8 Expected return on plan assets (3.6 ) (3.0 ) (10.9 ) (8.9 ) Administrative costs and other 0.5 0.4 1.4 1.2 Net amortization of: Prior service costs — — 0.2 0.2 Plan net actuarial losses 1.1 1.3 3.0 3.6 Net periodic pension benefit cost $ 2.3 $ 3.1 $ 6.6 $ 9.2 Non-U.S. Three months ended Nine months ended In millions 2018 2017 2018 2017 Service cost $ 0.4 $ 0.3 $ 1.4 $ 1.1 Interest cost 2.2 2.1 6.4 6.4 Expected return on plan assets (3.9 ) (3.4 ) (11.7 ) (10.3 ) Administrative costs and other 0.4 0.5 1.2 1.3 Amortization of plan net actuarial losses 0.3 0.4 0.7 1.3 Net periodic pension benefit income $ (0.6 ) $ (0.1 ) $ (2.0 ) $ (0.2 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Assets and liabilities measured at fair value at December 31, 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 $ — $ 5.3 $ — $ 5.3 Foreign currency contracts — 0.2 — 0.2 Total asset recurring fair value measurements — 5.5 — 5.5 Liabilities: Foreign currency contracts — 0.7 — 0.7 Deferred compensation and other retirement plans — 20.9 — 20.9 Total liability recurring fair value measurements — 21.6 — 21.6 Financial instruments not carried at fair value Total debt — 1,485.2 — 1,485.2 Total financial instruments not carried at fair value $ — $ 1,485.2 $ — $ 1,485.2 Assets and liabilities measured at fair value at September 30, 2018 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 $ — $ 7.9 $ — $ 7.9 Foreign currency contracts — 0.2 — 0.2 Total asset recurring fair value measurements — 8.1 — 8.1 Liabilities: Foreign currency contracts — 0.5 — 0.5 Deferred compensation and other retirement plans — 21.3 — 21.3 Total liability recurring fair value measurements — 21.8 — 21.8 Financial instruments not carried at fair value Total debt — 1,403.1 — 1,403.1 Total financial instruments not carried at fair value $ — $ 1,403.1 $ — $ 1,403.1 |
Equity (Tables)
Equity (Tables) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | ||
Reconciliation of Ordinary Shares | The reconciliation of Ordinary shares is as follows: In millions Total December 31, 2017 95.1 Shares issued under incentive plans, net 0.4 Repurchase of ordinary shares (0.4 ) September 30, 2018 95.1 | |
Components Of Shareholders Equity Rollforward | The components of Equity for the nine months ended September 30, 2018 were as follows: In millions Allegion plc Noncontrolling Total Balance at December 31, 2017 $ 401.6 $ 3.9 $ 405.5 Net earnings 302.1 0.4 302.5 Currency translation (42.2 ) (2.0 ) (44.2 ) Change in value of derivatives qualifying as cash flow hedges, net of tax 1.9 — 1.9 Pension and OPEB adjustments, net of tax 5.1 — 5.1 Total comprehensive income (loss) 266.9 (1.6 ) 265.3 Share-based compensation 15.9 — 15.9 Dividends to noncontrolling interests — (0.2 ) (0.2 ) Dividends to ordinary shareholders (59.9 ) — (59.9 ) Repurchase of ordinary shares (30.0 ) — (30.0 ) Shares issued under incentive plans, net 2.4 — 2.4 Balance at September 30, 2018 $ 596.9 $ 2.1 $ 599.0 | 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 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in Accumulated other comprehensive loss for the nine months ended September 30, 2018 are as follows: In millions Cash flow hedges Pension and OPEB Items Foreign Currency Items Total December 31, 2017 $ 3.8 $ (107.6 ) $ (49.1 ) $ (152.9 ) Other comprehensive income (loss) before reclassifications 6.3 2.4 (42.2 ) (33.5 ) Amounts reclassified from accumulated other comprehensive loss (a) (3.8 ) 3.3 — (0.5 ) Tax expense (0.7 ) (0.6 ) — (1.3 ) September 30, 2018 $ 5.6 $ (102.5 ) $ (91.3 ) $ (188.2 ) | 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 (a) (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 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 2018 2017 2018 2017 Stock options $ 1.0 $ 0.7 $ 3.9 $ 2.7 RSUs 2.6 1.7 8.1 5.9 PSUs 1.1 1.4 4.2 4.5 Deferred compensation 0.6 0.6 1.2 2.0 Pre-tax expense 5.3 4.4 17.4 15.1 Tax benefit (1.0 ) (1.5 ) (1.9 ) (5.0 ) After-tax expense $ 4.3 $ 2.9 $ 15.5 $ 10.1 |
Grants of Stock Options and RSUs | Grants issued during the nine months ended September 30 were as follows: 2018 2017 Number Weighted- Number Weighted- Stock options 160,849 $ 21.29 165,113 $ 18.22 RSUs 121,928 $ 84.86 119,695 $ 73.37 |
Average fair value of stock options, assumptions | The following assumptions were used during the nine months ended September 30 : 2018 2017 Dividend yield 0.97 % 0.89 % Volatility 22.38 % 24.93 % Risk-free rate of return 2.75 % 2.08 % Expected life 6.0 years 6.0 years |
Restructuring Activities (Table
Restructuring Activities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring Charges [Abstract] | |
Schedule of Changes in Restructuring Reserve | The changes in the restructuring reserve during the nine months ended September 30, 2018 were as follows: In millions Total December 31, 2017 $ 4.2 Additions, net of reversals 4.1 Cash and non-cash uses (5.2 ) Currency translation (0.1 ) September 30, 2018 $ 3.0 Costs accrued as of September 30, 2018 are expected to be paid within one year. |
Other, Net (Tables)
Other, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Net [Abstract] | |
Other, Net | The components of Other income, net for the three and nine months ended September 30 were as follows: Three months ended Nine months ended In millions 2018 2017 2018 2017 Interest income $ (0.4 ) $ (0.3 ) $ (0.7 ) $ (0.6 ) Foreign currency exchange (gain) loss (0.8 ) (0.1 ) (1.0 ) 0.4 Earnings from and gains on the sale of equity investments — (0.1 ) (0.1 ) (4.7 ) Net periodic pension and postretirement benefit (income) cost, less service cost (0.7 ) 1.0 (2.3 ) 2.6 Other — (3.2 ) 0.2 (3.3 ) Other income, net $ (1.9 ) $ (2.7 ) $ (3.9 ) $ (5.6 ) |
Earnings Per Share (EPS) (Table
Earnings Per Share (EPS) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 EPS calculations for the three and nine months ended September 30 : Three months ended Nine months ended In millions 2018 2017 2018 2017 Weighted-average number of basic shares 95.1 95.0 95.1 95.2 Shares issuable under incentive stock plans 0.7 0.8 0.7 0.8 Weighted-average number of diluted shares 95.8 95.8 95.8 96.0 |
Net Revenues (Tables)
Net Revenues (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Net revenues for tangible product sales and services by business segment for the three and nine months ended September 30, 2018 and 2017 are as follows: Three months ended September 30, 2018 Nine months ended September 30, 2018 in millions Americas EMEIA Asia Pacific Consolidated Americas EMEIA Asia Pacific Consolidated Net revenues Products $ 530.1 $ 129.5 $ 44.8 $ 704.4 $ 1,495.9 $ 419.6 $ 98.7 $ 2,014.2 Services — 4.9 2.2 7.1 — 12.9 2.2 15.1 Total Net Revenues $ 530.1 $ 134.4 $ 47.0 $ 711.5 $ 1,495.9 $ 432.5 $ 100.9 $ 2,029.3 Three months ended September 30, 2017 (a) Nine months ended September 30, 2017 (a) in millions Americas EMEIA Asia Pacific Consolidated Americas EMEIA Asia Pacific Consolidated Net revenues Products $ 455.2 $ 120.6 $ 29.1 $ 604.9 $ 1,331.4 $ 360.2 $ 81.0 $ 1,772.6 Services — 4.5 — 4.5 — 12.5 — 12.5 Total Net Revenues $ 455.2 $ 125.1 $ 29.1 $ 609.4 $ 1,331.4 $ 372.7 $ 81.0 $ 1,785.1 (a) The Company adopted ASU 2014-09 and related updates as of January 1, 2018 on a modified retrospective basis, and as such, amounts presented for the three and nine months ended September 30, 2017 are based on ASC 605. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 2018 2017 2018 2017 Net revenues Americas $ 530.1 $ 455.2 $ 1,495.9 $ 1,331.4 EMEIA 134.4 125.1 432.5 372.7 Asia Pacific 47.0 29.1 100.9 81.0 Total $ 711.5 $ 609.4 $ 2,029.3 $ 1,785.1 Segment operating income Americas $ 153.8 $ 133.2 $ 415.5 $ 383.6 EMEIA 7.6 8.6 27.3 23.1 Asia Pacific 1.5 2.2 0.8 5.1 Total 162.9 144.0 443.6 411.8 Reconciliation to Operating income Unallocated corporate expense (20.6 ) (16.9 ) (59.2 ) (50.2 ) Operating income 142.3 127.1 384.4 361.6 Reconciliation to earnings before income taxes Interest expense 14.0 17.8 40.3 49.7 Other income, net (1.9 ) (2.7 ) (3.9 ) (5.6 ) Earnings before income taxes $ 130.2 $ 112.0 $ 348.0 $ 317.5 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 2018 2017 Balance at beginning of period $ 14.1 $ 13.3 Reductions for payments (5.9 ) (5.5 ) Accruals for warranties issued during the current period 6.1 6.2 Changes to accruals related to preexisting warranties (0.1 ) (0.7 ) Acquisitions 0.5 — Translation (0.1 ) 0.4 Balance at end of period $ 14.6 $ 13.7 |
Guarantor Financial Informati_2
Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 711.5 $ — $ 711.5 Cost of goods sold — — 402.1 — 402.1 Selling and administrative expenses 1.3 — 165.8 — 167.1 Operating income (loss) (1.3 ) — 143.6 — 142.3 Equity earnings (loss) in affiliates, net of tax 124.5 73.2 — (197.7 ) — Interest expense 7.2 6.4 0.4 — 14.0 Intercompany interest and fees — 26.3 (26.3 ) — — Other income, net — — (1.9 ) — (1.9 ) Earnings (loss) before income taxes 116.0 40.5 171.4 (197.7 ) 130.2 Provision (benefit) for income taxes — (7.7 ) 21.8 — 14.1 Net earnings (loss) 116.0 48.2 149.6 (197.7 ) 116.1 Less: Net loss attributable to noncontrolling interests — — 0.1 — 0.1 Net earnings (loss) attributable to Allegion plc $ 116.0 $ 48.2 $ 149.5 $ (197.7 ) $ 116.0 Total comprehensive income (loss) $ 103.9 $ 48.1 $ 142.5 $ (191.2 ) $ 103.3 Less: Total comprehensive loss attributable to noncontrolling interests — — (0.6 ) — (0.6 ) Total comprehensive income (loss) attributable to Allegion plc $ 103.9 $ 48.1 $ 143.1 $ (191.2 ) $ 103.9 Condensed and Consolidated Statement of Comprehensive Income For the nine months ended September 30, 2018 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 2,029.3 $ — $ 2,029.3 Cost of goods sold — — 1,156.5 — 1,156.5 Selling and administrative expenses 4.6 — 483.8 — 488.4 Operating income (loss) (4.6 ) — 389.0 — 384.4 Equity earnings (loss) in affiliates, net of tax 327.0 146.4 — (473.4 ) — Interest expense 20.3 19.4 0.6 — 40.3 Intercompany interest and fees — 78.2 (78.2 ) — — Other income, net — — (3.9 ) — (3.9 ) Earnings (loss) before income taxes 302.1 48.8 470.5 (473.4 ) 348.0 Provision (benefit) for income taxes — (20.0 ) 65.5 — 45.5 Net earnings (loss) 302.1 68.8 405.0 (473.4 ) 302.5 Less: Net earnings attributable to noncontrolling interests — — 0.4 — 0.4 Net earnings (loss) attributable to Allegion plc $ 302.1 $ 68.8 $ 404.6 $ (473.4 ) $ 302.1 Total comprehensive income (loss) $ 266.9 $ 70.7 $ 365.8 $ (438.1 ) $ 265.3 Less: Total comprehensive loss attributable to noncontrolling interests — — (1.6 ) — (1.6 ) Total comprehensive income (loss) attributable to Allegion plc $ 266.9 $ 70.7 $ 367.4 $ (438.1 ) $ 266.9 Condensed and Consolidated Statement of Comprehensive Income For the three months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 609.4 $ — $ 609.4 Cost of goods sold — — 335.0 — 335.0 Selling and administrative expenses 1.2 — 146.1 — 147.3 Operating income (loss) (1.2 ) — 128.3 — 127.1 Equity earnings (loss) in affiliates, net of tax 104.2 (16.5 ) — (87.7 ) — Interest expense (income) 13.2 4.7 (0.1 ) — 17.8 Intercompany interest and fees — (75.2 ) 75.2 — — Other income, net — — (2.7 ) — (2.7 ) Earnings (loss) before income taxes 89.8 54.0 55.9 (87.7 ) 112.0 Provision (benefit) for income taxes — 27.2 (5.3 ) — 21.9 Net earnings (loss) 89.8 26.8 61.2 (87.7 ) 90.1 Less: Net earnings attributable to noncontrolling interests — — 0.3 — 0.3 Net earnings (loss) attributable to Allegion plc $ 89.8 $ 26.8 $ 60.9 $ (87.7 ) $ 89.8 Total comprehensive income (loss) $ 111.9 $ 27.1 $ 84.0 $ (110.3 ) $ 112.7 Less: Total comprehensive income attributable to noncontrolling interests — — 0.8 — 0.8 Total comprehensive income (loss) attributable to Allegion plc $ 111.9 $ 27.1 $ 83.2 $ (110.3 ) $ 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 Subsidiaries Consolidating Adjustments Total Net revenues $ — $ — $ 1,785.1 $ — $ 1,785.1 Cost of goods sold — — 988.2 — 988.2 Selling and administrative expenses 3.8 — 431.5 — 435.3 Operating income (loss) (3.8 ) — 365.4 — 361.6 Equity earnings (loss) in affiliates, net of tax 302.8 53.5 0.6 (356.9 ) — Interest expense 35.3 14.2 0.2 — 49.7 Intercompany interest and fees — (21.1 ) 21.1 — — Other income, net — — (5.6 ) — (5.6 ) Earnings (loss) before income taxes 263.7 60.4 350.3 (356.9 ) 317.5 Provision for income taxes — 2.8 50.1 — 52.9 Net earnings (loss) 263.7 57.6 300.2 (356.9 ) 264.6 Less: Net earnings attributable to noncontrolling interests — — 0.9 — 0.9 Net earnings (loss) attributable to Allegion plc $ 263.7 $ 57.6 $ 299.3 $ (356.9 ) $ 263.7 Total comprehensive income (loss) $ 345.5 $ 57.2 $ 384.3 $ (439.5 ) $ 347.5 Less: Total comprehensive income attributable to noncontrolling interests — — 2.0 — 2.0 Total comprehensive income (loss) attributable to Allegion plc $ 345.5 $ 57.2 $ 382.3 $ (439.5 ) $ 345.5 |
Condensed Balance Sheet [Table Text Block] | Condensed and Consolidated Balance Sheet September 30, 2018 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Current assets: Cash and cash equivalents $ 0.6 $ 14.0 $ 175.1 $ — $ 189.7 Restricted cash — — 6.8 — 6.8 Accounts and notes receivable, net — — 361.4 — 361.4 Inventories — — 278.3 — 278.3 Other current assets 0.8 24.7 20.2 (8.6 ) 37.1 Accounts and notes receivable affiliates — 473.6 342.8 (816.4 ) — Total current assets 1.4 512.3 1,184.6 (825.0 ) 873.3 Investment in affiliates 1,227.8 652.9 — (1,880.7 ) — Property, plant and equipment, net — — 273.3 — 273.3 Goodwill and other intangible assets, net — — 1,436.4 — 1,436.4 Notes receivable affiliates 25.5 1,483.7 2,613.8 (4,123.0 ) — Other noncurrent assets 4.3 30.4 112.4 — 147.1 Total assets $ 1,259.0 $ 2,679.3 $ 5,620.5 $ (6,828.7 ) $ 2,730.1 Current liabilities: Accounts payable and accruals $ 1.8 $ 13.5 $ 445.2 $ (8.6 ) $ 451.9 Short-term borrowings and current maturities of long-term debt 35.0 — — — 35.0 Accounts and notes payable affiliates — 342.9 473.5 (816.4 ) — Total current liabilities 36.8 356.4 918.7 (825.0 ) 486.9 Long-term debt 624.2 792.5 1.0 — 1,417.7 Notes payable affiliate — 2,613.8 1,509.2 (4,123.0 ) — Other noncurrent liabilities 1.1 4.7 220.7 — 226.5 Total liabilities 662.1 3,767.4 2,649.6 (4,948.0 ) 2,131.1 Equity: Total shareholders equity (deficit) 596.9 (1,088.1 ) 2,968.8 (1,880.7 ) 596.9 Noncontrolling interests — — 2.1 — 2.1 Total equity (deficit) 596.9 (1,088.1 ) 2,970.9 (1,880.7 ) 599.0 Total liabilities and equity $ 1,259.0 $ 2,679.3 $ 5,620.5 $ (6,828.7 ) $ 2,730.1 Condensed and Consolidated Balance Sheet December 31, 2017 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Current assets: Cash and cash equivalents $ 0.7 $ 0.3 $ 465.2 $ — $ 466.2 Accounts and notes receivable, net — — 296.6 — 296.6 Inventories — — 239.8 — 239.8 Other current assets 0.3 56.3 17.6 (44.1 ) 30.1 Accounts receivable affiliates — 430.0 305.3 (735.3 ) — Total current assets 1.0 486.6 1,324.5 (779.4 ) 1,032.7 Investment in affiliates 1,079.6 240.8 — (1,320.4 ) — Property, plant and equipment, net — — 252.2 — 252.2 Goodwill and other intangible assets, net — — 1,155.5 — 1,155.5 Notes receivable affiliates 3.5 1,580.3 2,381.0 (3,964.8 ) — Other noncurrent assets 5.1 5.5 91.0 — 101.6 Total assets $ 1,089.2 $ 2,313.2 $ 5,204.2 $ (6,064.6 ) $ 2,542.0 Current liabilities: Accounts payable and accruals $ 1.9 $ 7.0 $ 461.0 $ (44.1 ) $ 425.8 Short-term borrowings and current maturities of long-term debt 35.0 — — — 35.0 Accounts and notes payable affiliates 0.2 304.9 430.2 (735.3 ) — Total current liabilities 37.1 311.9 891.2 (779.4 ) 460.8 Long-term debt 649.3 792.0 1.0 — 1,442.3 Notes payables affiliate — 2,381.0 1,583.8 (3,964.8 ) — Other noncurrent liabilities 1.2 4.2 228.0 — 233.4 Total liabilities 687.6 3,489.1 2,704.0 (4,744.2 ) 2,136.5 Equity: Total shareholders equity (deficit) 401.6 (1,175.9 ) 2,496.3 (1,320.4 ) 401.6 Noncontrolling interests — — 3.9 — 3.9 Total equity (deficit) 401.6 (1,175.9 ) 2,500.2 (1,320.4 ) 405.5 Total liabilities and equity $ 1,089.2 $ 2,313.2 $ 5,204.2 $ (6,064.6 ) $ 2,542.0 |
Condensed Cash Flow Statement [Table Text Block] | Condensed and Consolidated Statement of Cash Flows For the nine months ended September 30, 2018 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ 135.4 $ (68.5 ) $ 402.5 $ (209.0 ) $ 260.4 Cash flows from investing activities: Capital expenditures — — (31.8 ) — (31.8 ) Acquisition of and equity investments in businesses, net of cash acquired — (247.1 ) (128.7 ) — (375.8 ) Other investing activities, net — — (1.1 ) — (1.1 ) Net cash used in investing activities — (247.1 ) (161.6 ) — (408.7 ) Cash flows from financing activities: Debt repayments, net (26.3 ) — (1.1 ) — (27.4 ) Net inter-company proceeds (payments) (22.0 ) 329.3 (307.3 ) — — Dividends paid — — (209.0 ) 209.0 — Dividends paid to shareholders (59.6 ) — — — (59.6 ) Repurchase of ordinary shares (30.0 ) — — — (30.0 ) Other financing activities, net 2.4 — (2.3 ) — 0.1 Net cash (used in) provided by financing activities (135.5 ) 329.3 (519.7 ) 209.0 (116.9 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash — — (4.5 ) — (4.5 ) Net (decrease) increase in cash, cash equivalents, and restricted cash (0.1 ) 13.7 (283.3 ) — (269.7 ) Cash, cash equivalents, and restricted cash - beginning of period 0.7 0.3 465.2 — 466.2 Cash, cash equivalents, and restricted cash - end of period $ 0.6 $ 14.0 $ 181.9 $ — $ 196.5 Condensed and Consolidated Statement of Cash Flows For the nine months ended September 30, 2017 In millions Allegion plc Allegion US Holding Other Subsidiaries Consolidating Adjustments Total Net cash provided by (used in) operating activities $ 67.4 $ 123.1 $ 193.1 $ (213.6 ) $ 170.0 Cash flows from investing activities: Capital expenditures — — (33.7 ) — (33.7 ) Acquisition of businesses, net of cash acquired — — (20.8 ) — (20.8 ) Proceeds from sales and maturities of marketable securities — — 15.5 — 15.5 Other investing activities, net — — 2.9 — 2.9 Net cash used in investing activities — — (36.1 ) — (36.1 ) Cash flows from financing activities: 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 (17.5 ) (32.8 ) — — Dividends paid — (105.5 ) (108.1 ) 213.6 — 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 (used in) provided by financing activities (66.8 ) (123.1 ) (142.4 ) 213.6 (118.7 ) Effect of exchange rate changes on cash and cash equivalents — — 7.3 — 7.3 Net increase in cash and cash equivalents 0.6 — 21.9 — 22.5 Cash and cash equivalents - beginning of period 0.5 0.2 311.7 — 312.4 Cash and cash equivalents - end of period $ 1.1 $ 0.2 $ 333.6 $ — $ 334.9 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements Tax reform impact (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ 3.3 | |
Deferred tax valuation allowance for interest deduction [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Deferred Other Tax Expense (Benefit) | $ 22.8 |
Inventories (Schedule of Major
Inventories (Schedule of Major Classes of Inventory) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 60.5 | $ 66.6 |
Inventory, Work in Process, Net of Reserves | 25.7 | 29.8 |
Inventory, Finished Goods, Net of Reserves | 192.1 | 143.4 |
Inventory, Net | $ 278.3 | $ 239.8 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Goodwill, Gross | $ 1,246.7 | |
Accumulated impairment | (485.5) | |
Goodwill | $ 878 | 761.2 |
Acquisitions | 132.5 | |
Currency translation | (15.7) | |
Americas [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 375.2 | |
Accumulated impairment | 0 | |
Goodwill | 482.9 | 375.2 |
Acquisitions | 107.5 | |
Currency translation | 0.2 | |
EMEIA [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 769.8 | |
Accumulated impairment | (478.6) | |
Goodwill | 290.8 | 291.2 |
Acquisitions | 9.2 | |
Currency translation | (9.6) | |
Asia Pacific [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Gross | 101.7 | |
Accumulated impairment | (6.9) | |
Goodwill | 104.3 | $ 94.8 |
Acquisitions | 15.8 | |
Currency translation | $ (6.3) |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | $ 579.6 | $ 454 | |
Accumulated amortization | (150.8) | (135.1) | |
Net finite-lived intangible assets | 428.8 | 318.9 | |
Trademarks (indefinite-lived) | 59 | ||
Total intangible assets, gross | 709.2 | 529.4 | |
Intangible assets, net | 558.4 | 394.3 | |
Amortization of intangible assets | 28.6 | $ 16.4 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 34.4 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 28.7 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 28.7 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 28.7 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 28.7 | ||
Trademarks [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Trademarks (indefinite-lived) | 129.6 | 75.4 | |
Completed technologies/patents [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | 59 | 32.6 | |
Accumulated amortization | (13.1) | (10) | |
Net finite-lived intangible assets | 45.9 | 22.6 | |
Customer relationships [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | 423.6 | 324.5 | |
Accumulated amortization | (84.5) | (74.1) | |
Net finite-lived intangible assets | 339.1 | 250.4 | |
Trademarks [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | 87.9 | 89 | |
Accumulated amortization | (47.1) | (46.1) | |
Net finite-lived intangible assets | 40.8 | 42.9 | |
Other Intangible Assets [Member] | |||
Schedule of Acquired Finite-Lived and Indefinite-Lived Intangible Assets by Major Class [Line Items] | |||
Finite-lived intangible assets, gross | 9.1 | 7.9 | |
Accumulated amortization | (6.1) | (4.9) | |
Net finite-lived intangible assets | $ 3 | $ 3 |
Acquisition Acquisition (Detail
Acquisition Acquisition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 59 | $ 59 | ||
Business Acquisition, Pro Forma Information, Description | 1.5 | 8.3 | ||
Business Combination, Acquisition Related Costs | 4.1 | $ 1.2 | 8.6 | $ 2.4 |
Gain (Loss) on Sale of Equity Investments | 5.3 | |||
Proceeds from revolving facility | 115 | $ 165 | ||
Finite-Lived Customer Relationships, Gross | 112 | 112 | ||
Other Finite-Lived Intangible Assets, Gross | 33 | 33 | ||
Six Acquisitions [Domain] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | 368 | |||
Business Combination, Contingent Consideration, Liability | 6 | 6 | ||
Equity Method Investments [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 8 | |||
Amortization of backlog revenue [Domain] | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Pro Forma Information, Description | 3.9 | |||
Order or Production Backlog [Member] | ||||
Business Acquisition [Line Items] | ||||
Other Finite-Lived Intangible Assets, Gross | 6 | $ 6 | ||
Proceeds from Revolving Facility to fund July 2018 acquisitions [Domain] | ||||
Business Acquisition [Line Items] | ||||
Proceeds from revolving facility | $ 75 |
Acquisition Opening Balance She
Acquisition Opening Balance Sheet (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 878 | $ 761.2 |
Six Acquisitions [Domain] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 29.8 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 28.7 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 1.3 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 27.6 | |
Goodwill | 132.5 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 204.3 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 0.9 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (11.1) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (35.2) | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | (4.7) | |
Business Combination, Consideration Transferred | $ 374.1 |
Acquisition Pro forma table (De
Acquisition Pro forma table (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Business Combinations [Abstract] | ||||
Business Acquisition, Pro Forma Revenue | $ 711.5 | $ 663.6 | $ 2,071.8 | $ 1,939.3 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 119.3 | $ 93.4 | $ 313.1 | $ 263.2 |
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ 1.25 | $ 0.98 | $ 3.29 | $ 2.76 |
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ 1.25 | $ 0.97 | $ 3.27 | $ 2.74 |
Acquisition Net revenues and ea
Acquisition Net revenues and earnings before income taxes since acquisition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Business Combinations [Abstract] | ||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 55 | $ 115 |
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 0.9 | $ (0.7) |
Debt and Credit Facilities (Sum
Debt and Credit Facilities (Summary of Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Other debt | $ 1 | $ 1 |
Total borrowings outstanding | 1,466 | 1,492.3 |
Less discounts and debt issuance costs, net | (13.3) | (15) |
Total debt | 1,452.7 | 1,477.3 |
Less current portion of long-term debt | 35 | 35 |
Long-term debt | 1,417.7 | 1,442.3 |
Unsecured Debt [Member] | Term Loan Facility Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 665 | 691.3 |
Unsecured Debt [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | 0 |
Senior Notes [Member] | 3.200% Senior Note due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 400 | 400 |
Senior Notes [Member] | 3.550% Senior Note due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 400 | $ 400 |
Debt and Credit Facilities (Nar
Debt and Credit Facilities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Total borrowings outstanding | $ 1,466 | $ 1,466 | $ 1,492.3 | |
Proceeds from Lines of Credit | $ 115 | $ 165 | ||
Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 3.24% | 3.24% | ||
Unsecured Debt [Member] | 3.200% Senior Note due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 400 | $ 400 | ||
Unsecured Debt [Member] | 3.550% Senior Note due 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 400 | $ 400 | ||
Senior Notes [Member] | 3.200% Senior Note due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 3.20% | 3.20% | ||
Long-term debt | $ 400 | $ 400 | 400 | |
Senior Notes [Member] | 3.550% Senior Note due 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, Weighted Average Interest Rate | 3.55% | 3.55% | ||
Long-term debt | $ 400 | $ 400 | $ 400 | |
Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured Debt | $ 1,200 | 1,200 | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||
Term Loan Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured Debt | $ 700 | 700 | ||
Repayments of Debt | 26.3 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 100 | 100 | ||
Long-term Line of Credit, Noncurrent | 0 | 0 | ||
Line of credit facility, borrowing capacity | 500 | 500 | ||
Letters of credit outstanding amount | $ 17.2 | 17.2 | ||
Minimum [Member] | Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.125% | |||
Maximum [Member] | Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, Notional Amount | $ 250 | $ 250 | ||
12/31/17 through 12/31/20 [Domain] | Term Loan Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Maturities, Repayment Terms | 0.0125 | |||
3/31/21 through 9/22/22 [Domain] | Term Loan Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Maturities, Repayment Terms | 0.025 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Deferred gain/loss, net of tax, included in accumulated other comprehensive income (AOCI) related to the fair value of the Company's currency derivatives designated as accounting hedges | $ (188.2) | $ (152.9) |
Forward Contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Notional Amount | 74.2 | 57.7 |
Deferred gain/loss, net of tax, included in accumulated other comprehensive income (AOCI) related to the fair value of the Company's currency derivatives designated as accounting hedges | 0.3 | 0.3 |
Currency derivatives expected to be reclassified into earnings over the next twelve months | 0.3 | |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivative, Notional Amount | 250 | |
Deferred gain/loss, net of tax, included in accumulated other comprehensive income (AOCI) related to the fair value of the Company's currency derivatives designated as accounting hedges | 5.4 | $ 3.5 |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 2 |
Financial Instruments (Schedule
Financial Instruments (Schedule of the Fair Values of Derivative Instruments) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset fair value | $ 8.1 | $ 5.5 |
Derivative liability fair value | 0.5 | 0.7 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives designated as hedges, asset at fair value | 0.2 | 0.2 |
Derivatives designated as hedges, liability at fair value | 0.4 | 0.3 |
Interest Rate Derivative Assets, at Fair Value | 7.9 | 5.3 |
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 |
Nondesignated [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives not designated as hedges, asset at fair value | 0 | 0 |
Derivatives not designated as hedges, liability at fair value | $ 0.1 | $ 0.4 |
Financial Instruments (Schedu_2
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income | $ 1.5 | $ 0.9 | $ 6.3 | $ 1.7 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income | 1.9 | 1 | 3.8 | 4 |
Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income | 0 | 0.6 | 2.2 | 2.2 |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income | 1.5 | 0.3 | 4.1 | (0.5) |
Cost of Goods Sold [Member] | Forward Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income | 1.3 | 1 | 2.3 | 4 |
Interest Expense [Member] | Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income | $ 0.6 | $ 0 | $ 1.5 | $ 0 |
Pensions and Postretirement B_3
Pensions and Postretirement Benefits Other than Pensions (Narrative) (Details) - Pension Plans [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Company contributions | $ 6.6 | $ 56 |
Additional contributions expected during the remainder of the year | $ 4 | |
Voluntary pension contribution [Domain] | ||
Company contributions | $ 50 |
Pensions and Postretirement B_4
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
UNITED STATES | ||||
Service cost | $ 1.7 | $ 1.7 | $ 5.2 | $ 5.3 |
Interest cost | 2.6 | 2.7 | 7.7 | 7.8 |
Expected return on plan assets | (3.6) | (3) | (10.9) | (8.9) |
Administrative costs and other | 0.5 | 0.4 | 1.4 | 1.2 |
Prior service costs | 0 | 0 | 0.2 | 0.2 |
Amortization of plan net actuarial losses | 1.1 | 1.3 | 3 | 3.6 |
Net periodic pension benefit cost | 2.3 | 3.1 | 6.6 | 9.2 |
Non-U.S. | ||||
Service cost | 0.4 | 0.3 | 1.4 | 1.1 |
Interest cost | 2.2 | 2.1 | 6.4 | 6.4 |
Expected return on plan assets | (3.9) | (3.4) | (11.7) | (10.3) |
Administrative costs and other | 0.4 | 0.5 | 1.2 | 1.3 |
Amortization of plan net actuarial losses | 0.3 | 0.4 | 0.7 | 1.3 |
Net periodic pension benefit cost | $ (0.6) | $ (0.1) | $ (2) | $ (0.2) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Assets, fair value measurements [Abstract] | ||
Derivative instruments | $ 8.1 | $ 5.5 |
Liabilities, fair value measurements [Abstract] | ||
Foreign currency contracts | 0.5 | 0.7 |
Recurring fair value measurements [Member] | ||
Assets, fair value measurements [Abstract] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 0.2 | 0.2 |
Interest Rate Derivative Assets, at Fair Value | 7.9 | 5.3 |
Total assets, fair value measurements | 8.1 | 5.5 |
Liabilities, fair value measurements [Abstract] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.5 | 0.7 |
Deferred Compensation Liability, Current and Noncurrent | 21.3 | 20.9 |
Total liability, fair value measurements | 21.8 | 21.6 |
Total debt | 1,403.1 | 1,485.2 |
Total financial instruments not carried at fair value | 1,403.1 | 1,485.2 |
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] | ||
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 | 0.2 | 0.2 |
Interest Rate Derivative Assets, at Fair Value | 7.9 | 5.3 |
Total assets, fair value measurements | 8.1 | 5.5 |
Liabilities, fair value measurements [Abstract] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.5 | 0.7 |
Deferred Compensation Liability, Current and Noncurrent | 21.3 | 20.9 |
Total liability, fair value measurements | 21.8 | 21.6 |
Total debt | 1,403.1 | 1,485.2 |
Total financial instruments not carried at fair value | 1,403.1 | 1,485.2 |
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] | ||
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 |
Equity (Reconciliation of Ordin
Equity (Reconciliation of Ordinary Shares) (Details) - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Increase (Decrease) In Ordinary Shares [Roll Forward] | ||
Stock Repurchased During Period, Shares | 0.4 | |
Common Stock [Member] | ||
Increase (Decrease) In Ordinary Shares [Roll Forward] | ||
December 31, 2017 | 95.1 | 95.1 |
Shares issued under incentive plans, net | 0.4 | |
Treasury Stock, Shares, Acquired | (0.4) |
Equity (Components of Sharehold
Equity (Components of Shareholders' Equity) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Noncontrolling interests | $ 2.1 | $ 2.1 | $ 3.9 | |||
Stockholders' Equity Attributable to Parent | 596.9 | 596.9 | 401.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at December 31: | 405.5 | $ 116.4 | ||||
Net earnings (loss) | (116.1) | $ (90.1) | (302.5) | (264.6) | ||
Net earnings attributable to Allegion plc | 116 | 89.8 | 302.1 | 263.7 | ||
Less: Net loss attributable to noncontrolling interests | 0.1 | 0.3 | 0.4 | 0.9 | ||
Currency translation | 44.2 | (87.9) | ||||
Other Comprehensive Income Unrealized Holding Gain Loss On Securities And Derivatives Arising During Period Net Of Tax | 1.9 | (1.5) | ||||
Pension and OPEB adjustments, net of tax | 5.1 | (3.5) | ||||
Total comprehensive income | 103.3 | 112.7 | 265.3 | 347.5 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (5) | |||||
Share-based compensation | 15.9 | 12.8 | ||||
Dividends to noncontrolling interests | 0.2 | 0.1 | ||||
Dividends to ordinary shareholders | (59.9) | (45.6) | ||||
Payments for Repurchase of Common Stock | 30 | 60 | ||||
Shares issued under incentive plans, net | 2.4 | 6.2 | ||||
Other | (0.1) | |||||
Balance at September 30: | 599 | 372.1 | 599 | 372.1 | ||
Shareholders' Equity [Member] | ||||||
Stockholders' Equity Attributable to Parent | 596.9 | 367.2 | 596.9 | 367.2 | $ 401.6 | $ 113.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings attributable to Allegion plc | 302.1 | 263.7 | ||||
Currency translation | 42.2 | (86.8) | ||||
Other Comprehensive Income Unrealized Holding Gain Loss On Securities And Derivatives Arising During Period Net Of Tax | 1.9 | (1.5) | ||||
Pension and OPEB adjustments, net of tax | 5.1 | (3.5) | ||||
Total comprehensive income | 345.5 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 266.9 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (5) | |||||
Share-based compensation | 15.9 | 12.8 | ||||
Dividends to noncontrolling interests | 0 | 0 | ||||
Dividends to ordinary shareholders | 59.9 | (45.6) | ||||
Payments for Repurchase of Common Stock | 60 | |||||
Shares issued under incentive plans, net | 2.4 | 6.2 | ||||
Other | 0 | |||||
Noncontrolling Interest [Member] | ||||||
Noncontrolling interests | $ 2.1 | $ 4.9 | 2.1 | 4.9 | $ 3.1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Less: Net loss attributable to noncontrolling interests | 0.4 | (0.9) | ||||
Currency translation | (2) | (1.1) | ||||
Other Comprehensive Income Unrealized Holding Gain Loss On Securities And Derivatives Arising During Period Net Of Tax | 0 | 0 | ||||
Pension and OPEB adjustments, net of tax | 0 | 0 | ||||
Total comprehensive income | 2 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | (1.6) | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 0 | |||||
Share-based compensation | 0 | 0 | ||||
Dividends to noncontrolling interests | 0.2 | 0.1 | ||||
Dividends to ordinary shareholders | 0 | 0 | ||||
Payments for Repurchase of Common Stock | 0 | 0 | ||||
Shares issued under incentive plans, net | $ 0 | 0 | ||||
Other | $ (0.1) |
Equity (Changes in Accumulated
Equity (Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at December 31: | $ (152.9) | |
Balance at September 30: | (188.2) | |
Cash flow hedges and marketable securities [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at December 31: | 3.8 | $ 3.4 |
Other comprehensive income before reclassifications | 6.3 | 1.8 |
Amounts reclassified from accumulated other comprehensive income | (3.8) | (4) |
Tax (expense) benefit | (0.7) | 0.7 |
Balance at September 30: | 5.6 | 1.9 |
Pension and OPEB Adjustments [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at December 31: | (107.6) | (120.5) |
Other comprehensive income before reclassifications | 2.4 | (6.5) |
Amounts reclassified from accumulated other comprehensive income | 3.3 | 3.8 |
Tax (expense) benefit | (0.6) | (0.8) |
Balance at September 30: | (102.5) | (124) |
Foreign Currency Gain (Loss) [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at December 31: | (49.1) | (147.2) |
Other comprehensive income before reclassifications | (42.2) | 86.8 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Tax (expense) benefit | 0 | 0 |
Balance at September 30: | (91.3) | (60.4) |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at December 31: | (152.9) | (264.3) |
Other comprehensive income before reclassifications | (33.5) | 82.1 |
Amounts reclassified from accumulated other comprehensive income | (0.5) | (0.2) |
Tax (expense) benefit | (1.3) | (0.1) |
Balance at September 30: | $ (188.2) | $ (182.5) |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Performance Shares [Member] | |
Maximum award level for eligible employees (in shares) | 0.1 |
Share-Based Compensation (Share
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share based compensation expense | $ 5.3 | $ 4.4 | $ 17.4 | $ 15.1 |
Tax benefit | (1) | (1.5) | (1.9) | (5) |
After-tax expense | 4.3 | 2.9 | 15.5 | 10.1 |
Employee Stock Option [Member] | ||||
Share based compensation expense | 1 | 0.7 | 3.9 | 2.7 |
Restricted Stock Units (RSUs) [Member] | ||||
Share based compensation expense | 2.6 | 1.7 | 8.1 | 5.9 |
Performance Shares [Member] | ||||
Share based compensation expense | 1.1 | 1.4 | 4.2 | 4.5 |
Deferred Compensation [Member] | ||||
Share based compensation expense | $ 0.6 | $ 0.6 | $ 1.2 | $ 2 |
Share-Based Compensation (Grant
Share-Based Compensation (Grants of Stock Options and RSUs) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Restricted Stock [Member] | ||
Equity awards, granted, in shares | 121,928 | 119,695 |
Weighted average fair value per award, in dollars per share | $ 84.86 | $ 73.37 |
Employee Stock Option [Member] | ||
Equity awards, granted, in shares | 160,849 | 165,113 |
Weighted average fair value per award, in dollars per share | $ 21.29 | $ 18.22 |
Share-Based Compensation (Avera
Share-Based Compensation (Average Fair Value of Stock Options Granted, Assumptions) (Details) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation [Abstract] | ||
Dividend yield | 0.97% | 0.89% |
Volatility | 22.38% | 24.93% |
Risk-free rate of return | 2.75% | 2.08% |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Charges [Abstract] | ||||
Restructuring charges | $ 2.7 | $ 7.4 | $ 4.1 | $ 8.5 |
Restructuring Activities (Sched
Restructuring Activities (Schedule of Changes in Restructuring Reserve) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Current | $ 3 | $ 3 | $ 4.2 | ||
Additions | $ 2.7 | $ 7.4 | 4.1 | $ 8.5 | |
Cash and non-cash uses | (5.2) | ||||
Restructuring Reserve, Translation Adjustment | $ (0.1) |
Other, Net (Details)
Other, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Net [Abstract] | ||||
Nonoperating gain relating to a legal entity liquidation | 2.9 | |||
Interest income | $ (0.4) | $ (0.3) | $ (0.7) | $ (0.6) |
Exchange gain (loss) | (0.8) | (0.1) | (1) | 0.4 |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 0 | (0.1) | (0.1) | (4.7) |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) | (0.7) | 1 | (2.3) | 2.6 |
Other | 0 | (3.2) | 0.2 | (3.3) |
Other income, net | $ (1.9) | $ (2.7) | $ (3.9) | (5.6) |
Gain (Loss) on Sale of Equity Investments | $ 5.3 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (percent) | 10.80% | 19.60% | 13.10% | 16.70% |
Earnings Per Share (EPS) (Detai
Earnings Per Share (EPS) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted-average number of basic shares | 95.1 | 95 | 95.1 | 95.2 |
Shares issuable under incentive stock plans | 0.7 | 0.8 | 0.7 | 0.8 |
Weighted average number of diluted shares | 95.8 | 95.8 | 95.8 | 96 |
Earnings Per Share (EPS) (Narra
Earnings Per Share (EPS) (Narrative) (Details) shares in Millions | 9 Months Ended |
Sep. 30, 2018shares | |
Earnings Per Share (EPS) (Narrative) [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 |
Net Revenues (Details)
Net Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 711.5 | $ 609.4 | $ 2,029.3 | $ 1,785.1 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 530.1 | 455.2 | 1,495.9 | 1,331.4 |
EMEIA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 134.4 | 125.1 | 432.5 | 372.7 |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 47 | 29.1 | 100.9 | 81 |
Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 704.4 | 604.9 | 2,014.2 | 1,772.6 |
Product [Member] | Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 530.1 | 455.2 | 1,495.9 | 1,331.4 |
Product [Member] | EMEIA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 129.5 | 120.6 | 419.6 | 360.2 |
Product [Member] | Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 44.8 | 29.1 | 98.7 | 81 |
Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 7.1 | 4.5 | 15.1 | 12.5 |
Services [Member] | Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Services [Member] | EMEIA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 4.9 | 4.5 | 12.9 | 12.5 |
Services [Member] | Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 2.2 | $ 0 | $ 2.2 | $ 0 |
Business Segment Information (S
Business Segment Information (Summary of Operations by Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net revenues | $ 711.5 | $ 609.4 | $ 2,029.3 | $ 1,785.1 |
Segment operating income | 162.9 | 144 | 443.6 | 411.8 |
Operating income | 142.3 | 127.1 | 384.4 | 361.6 |
Interest expense | 14 | 17.8 | 40.3 | 49.7 |
Other income, net | 1.9 | 2.7 | 3.9 | 5.6 |
Earnings before income taxes | 130.2 | 112 | 348 | 317.5 |
Americas [Member] | ||||
Net revenues | 530.1 | 455.2 | 1,495.9 | 1,331.4 |
Segment operating income | 153.8 | 133.2 | 415.5 | 383.6 |
EMEIA [Member] | ||||
Net revenues | 134.4 | 125.1 | 432.5 | 372.7 |
Segment operating income | 7.6 | 8.6 | 27.3 | 23.1 |
Asia Pacific [Member] | ||||
Net revenues | 47 | 29.1 | 100.9 | 81 |
Segment operating income | 1.5 | 2.2 | 0.8 | 5.1 |
Corporate, Non-Segment [Member] | ||||
Unallocated corporate expense | $ (20.6) | $ (16.9) | $ (59.2) | $ (50.2) |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Expense for environmental remediation | $ 0.4 | $ 0.5 | $ 1.7 | $ 2 | |
Reserves for environmental matters | 24.1 | 24.1 | $ 28.9 | ||
Reserves for environmental matters, current | 6.4 | 6.4 | 12.6 | ||
Segment, Discontinued Operations [Member] | |||||
Reserves for environmental matters | $ 6.7 | $ 6.7 | $ 8.9 |
Commitments and Contingencies_3
Commitments and Contingencies (Product Warranty Liability) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 14.1 | $ 13.3 |
Reductions for payments | (5.9) | (5.5) |
Accruals for warranties issued during the current period | 6.1 | 6.2 |
Changes to accruals related to preexisting warranties | (0.1) | (0.7) |
Standard and Extended Product Warranty Accrual, Additions from Business Acquisition | 0.5 | 0 |
Translation | (0.1) | 0.4 |
Balance at end of period | $ 14.6 | $ 13.7 |
Guarantor Financial Informati_3
Guarantor Financial Information (Statement of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Guarantor Obligations [Line Items] | ||||
Net revenues | $ 711.5 | $ 609.4 | $ 2,029.3 | $ 1,785.1 |
Cost of goods sold | (402.1) | (335) | (1,156.5) | (988.2) |
Selling and administrative expenses | (167.1) | (147.3) | (488.4) | (435.3) |
Operating income | 142.3 | 127.1 | 384.4 | 361.6 |
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | 0 |
Interest expense | (14) | (17.8) | (40.3) | (49.7) |
Intercompany interest and fees | 0 | 0 | 0 | 0 |
Other income, net | (1.9) | (2.7) | (3.9) | (5.6) |
Earnings before income taxes | 130.2 | 112 | 348 | 317.5 |
Income Tax Expense (Benefit) | 14.1 | 21.9 | 45.5 | 52.9 |
Net earnings | 116.1 | 90.1 | 302.5 | 264.6 |
Less: Net earnings attributable to noncontrolling interests | (0.1) | (0.3) | (0.4) | (0.9) |
Net Income (Loss) Attributable to Parent | 116 | 89.8 | 302.1 | 263.7 |
Total comprehensive income | 103.3 | 112.7 | 265.3 | 347.5 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (0.6) | 0.8 | (1.6) | 2 |
Total comprehensive income attributable to Allegion plc | 103.9 | 111.9 | 266.9 | 345.5 |
Allegion plc | ||||
Guarantor Obligations [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Selling and administrative expenses | (1.3) | (1.2) | (4.6) | (3.8) |
Operating income | (1.3) | (1.2) | (4.6) | (3.8) |
Income (Loss) from Equity Method Investments | 124.5 | 104.2 | 327 | 302.8 |
Interest expense | (7.2) | (13.2) | (20.3) | (35.3) |
Intercompany interest and fees | 0 | 0 | 0 | 0 |
Other income, net | 0 | 0 | 0 | 0 |
Earnings before income taxes | 116 | 89.8 | 302.1 | 263.7 |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
Net earnings | 116 | 89.8 | 302.1 | 263.7 |
Less: Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | 116 | 89.8 | 302.1 | 263.7 |
Total comprehensive income | 103.9 | 111.9 | 266.9 | 345.5 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Total comprehensive income attributable to Allegion plc | 103.9 | 111.9 | 266.9 | 345.5 |
Allegion US Holding | ||||
Guarantor Obligations [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 |
Income (Loss) from Equity Method Investments | 73.2 | (16.5) | 146.4 | 53.5 |
Interest expense | (6.4) | (4.7) | (19.4) | (14.2) |
Intercompany interest and fees | 26.3 | (75.2) | 78.2 | (21.1) |
Other income, net | 0 | 0 | 0 | 0 |
Earnings before income taxes | 40.5 | 54 | 48.8 | 60.4 |
Income Tax Expense (Benefit) | (7.7) | 27.2 | (20) | 2.8 |
Net earnings | 48.2 | 26.8 | 68.8 | 57.6 |
Less: Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | 48.2 | 26.8 | 68.8 | 57.6 |
Total comprehensive income | 48.1 | 27.1 | 70.7 | 57.2 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Total comprehensive income attributable to Allegion plc | 48.1 | 27.1 | 70.7 | 57.2 |
Other Subsidiaries | ||||
Guarantor Obligations [Line Items] | ||||
Net revenues | 711.5 | 609.4 | 2,029.3 | 1,785.1 |
Cost of goods sold | (402.1) | (335) | (1,156.5) | (988.2) |
Selling and administrative expenses | (165.8) | (146.1) | (483.8) | (431.5) |
Operating income | 143.6 | 128.3 | 389 | 365.4 |
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | 0.6 |
Interest expense | (0.4) | (0.1) | (0.6) | (0.2) |
Intercompany interest and fees | (26.3) | 75.2 | (78.2) | 21.1 |
Other income, net | (1.9) | (2.7) | (3.9) | (5.6) |
Earnings before income taxes | 171.4 | 55.9 | 470.5 | 350.3 |
Income Tax Expense (Benefit) | 21.8 | (5.3) | 65.5 | 50.1 |
Net earnings | 149.6 | 61.2 | 405 | 300.2 |
Less: Net earnings attributable to noncontrolling interests | (0.1) | (0.3) | (0.4) | (0.9) |
Net Income (Loss) Attributable to Parent | 149.5 | 60.9 | 404.6 | 299.3 |
Total comprehensive income | 142.5 | 84 | 365.8 | 384.3 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (0.6) | 0.8 | (1.6) | 2 |
Total comprehensive income attributable to Allegion plc | 143.1 | 83.2 | 367.4 | 382.3 |
Consolidating Adjustments | ||||
Guarantor Obligations [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 |
Income (Loss) from Equity Method Investments | (197.7) | (87.7) | (473.4) | (356.9) |
Interest expense | 0 | 0 | 0 | 0 |
Intercompany interest and fees | 0 | 0 | 0 | 0 |
Other income, net | 0 | 0 | 0 | 0 |
Earnings before income taxes | (197.7) | (87.7) | (473.4) | (356.9) |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
Net earnings | (197.7) | (87.7) | (473.4) | (356.9) |
Less: Net earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net Income (Loss) Attributable to Parent | (197.7) | (87.7) | (473.4) | (356.9) |
Total comprehensive income | (191.2) | (110.3) | (438.1) | (439.5) |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Total comprehensive income attributable to Allegion plc | $ (191.2) | $ (110.3) | $ (438.1) | $ (439.5) |
Guarantor Financial Informati_4
Guarantor Financial Information (Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 189.7 | $ 466.2 | ||
Restricted Cash, Current | 6.8 | 0 | ||
Accounts and notes receivable, net | 361.4 | 296.6 | ||
Inventories | 278.3 | 239.8 | ||
Other current assets | 37.1 | 30.1 | ||
Accounts and notes receivable affiliates | 0 | 0 | ||
Total current assets | 873.3 | 1,032.7 | ||
Investment in affiliates | 0 | 0 | ||
Property, plant and equipment, net | 273.3 | 252.2 | ||
Goodwill and other intangible assets, net | 1,436.4 | 1,155.5 | ||
Notes receivable affiliates | 0 | 0 | ||
Other noncurrent assets | 147.1 | 101.6 | ||
Total assets | 2,730.1 | 2,542 | ||
Current liabilities: | ||||
Accounts payable and accruals | 451.9 | 425.8 | ||
Short-term borrowings and current maturities of long-term debt | 35 | 35 | ||
Accounts and notes payable affiliates | 0 | 0 | ||
Total current liabilities | 486.9 | 460.8 | ||
Long-term debt | 1,417.7 | 1,442.3 | ||
Notes payable affiliate | 0 | 0 | ||
Other noncurrent liabilities | 226.5 | 233.4 | ||
Total liabilities | 2,131.1 | 2,136.5 | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | 596.9 | 401.6 | ||
Noncontrolling interests | 2.1 | 3.9 | ||
Total equity (deficit) | 599 | 405.5 | $ 372.1 | $ 116.4 |
Total liabilities and equity | 2,730.1 | 2,542 | ||
Allegion plc | ||||
Current assets: | ||||
Cash and cash equivalents | 0.6 | 0.7 | ||
Restricted Cash, Current | 0 | |||
Accounts and notes receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 0.8 | 0.3 | ||
Accounts and notes receivable affiliates | 0 | 0 | ||
Total current assets | 1.4 | 1 | ||
Investment in affiliates | 1,227.8 | 1,079.6 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Notes receivable affiliates | 25.5 | 3.5 | ||
Other noncurrent assets | 4.3 | 5.1 | ||
Total assets | 1,259 | 1,089.2 | ||
Current liabilities: | ||||
Accounts payable and accruals | 1.8 | 1.9 | ||
Short-term borrowings and current maturities of long-term debt | 35 | 35 | ||
Accounts and notes payable affiliates | 0 | 0.2 | ||
Total current liabilities | 36.8 | 37.1 | ||
Long-term debt | 624.2 | 649.3 | ||
Notes payable affiliate | 0 | 0 | ||
Other noncurrent liabilities | 1.1 | 1.2 | ||
Total liabilities | 662.1 | 687.6 | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | 596.9 | 401.6 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity (deficit) | 596.9 | 401.6 | ||
Total liabilities and equity | 1,259 | 1,089.2 | ||
Allegion US Holding | ||||
Current assets: | ||||
Cash and cash equivalents | 14 | 0.3 | ||
Restricted Cash, Current | 0 | |||
Accounts and notes receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 24.7 | 56.3 | ||
Accounts and notes receivable affiliates | 473.6 | 430 | ||
Total current assets | 512.3 | 486.6 | ||
Investment in affiliates | 652.9 | 240.8 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Notes receivable affiliates | 1,483.7 | 1,580.3 | ||
Other noncurrent assets | 30.4 | 5.5 | ||
Total assets | 2,679.3 | 2,313.2 | ||
Current liabilities: | ||||
Accounts payable and accruals | 13.5 | 7 | ||
Short-term borrowings and current maturities of long-term debt | 0 | 0 | ||
Accounts and notes payable affiliates | 342.9 | 304.9 | ||
Total current liabilities | 356.4 | 311.9 | ||
Long-term debt | 792.5 | 792 | ||
Notes payable affiliate | 2,613.8 | 2,381 | ||
Other noncurrent liabilities | 4.7 | 4.2 | ||
Total liabilities | 3,767.4 | 3,489.1 | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | (1,088.1) | (1,175.9) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity (deficit) | (1,088.1) | (1,175.9) | ||
Total liabilities and equity | 2,679.3 | 2,313.2 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted Cash, Current | 0 | |||
Accounts and notes receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | (8.6) | (44.1) | ||
Accounts and notes receivable affiliates | (816.4) | (735.3) | ||
Total current assets | (825) | (779.4) | ||
Investment in affiliates | (1,880.7) | (1,320.4) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill and other intangible assets, net | 0 | 0 | ||
Notes receivable affiliates | (4,123) | (3,964.8) | ||
Other noncurrent assets | 0 | 0 | ||
Total assets | (6,828.7) | (6,064.6) | ||
Current liabilities: | ||||
Accounts payable and accruals | (8.6) | (44.1) | ||
Short-term borrowings and current maturities of long-term debt | 0 | 0 | ||
Accounts and notes payable affiliates | (816.4) | (735.3) | ||
Total current liabilities | (825) | (779.4) | ||
Long-term debt | 0 | 0 | ||
Notes payable affiliate | (4,123) | (3,964.8) | ||
Other noncurrent liabilities | 0 | 0 | ||
Total liabilities | (4,948) | (4,744.2) | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | (1,880.7) | (1,320.4) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity (deficit) | (1,880.7) | (1,320.4) | ||
Total liabilities and equity | (6,828.7) | (6,064.6) | ||
Other Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 175.1 | 465.2 | ||
Restricted Cash, Current | 6.8 | |||
Accounts and notes receivable, net | 361.4 | 296.6 | ||
Inventories | 278.3 | 239.8 | ||
Other current assets | 20.2 | 17.6 | ||
Accounts and notes receivable affiliates | 342.8 | 305.3 | ||
Total current assets | 1,184.6 | 1,324.5 | ||
Investment in affiliates | 0 | 0 | ||
Property, plant and equipment, net | 273.3 | 252.2 | ||
Goodwill and other intangible assets, net | 1,436.4 | 1,155.5 | ||
Notes receivable affiliates | 2,613.8 | 2,381 | ||
Other noncurrent assets | 112.4 | 91 | ||
Total assets | 5,620.5 | 5,204.2 | ||
Current liabilities: | ||||
Accounts payable and accruals | 445.2 | 461 | ||
Short-term borrowings and current maturities of long-term debt | 0 | 0 | ||
Accounts and notes payable affiliates | 473.5 | 430.2 | ||
Total current liabilities | 918.7 | 891.2 | ||
Long-term debt | 1 | 1 | ||
Notes payable affiliate | 1,509.2 | 1,583.8 | ||
Other noncurrent liabilities | 220.7 | 228 | ||
Total liabilities | 2,649.6 | 2,704 | ||
Equity: | ||||
Stockholders' Equity Attributable to Parent | 2,968.8 | 2,496.3 | ||
Noncontrolling interests | 2.1 | 3.9 | ||
Total equity (deficit) | 2,970.9 | 2,500.2 | ||
Total liabilities and equity | $ 5,620.5 | $ 5,204.2 |
Guarantor Financial Informati_5
Guarantor Financial Information (Statement of Cash Flow) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | $ 260.4 | $ 170 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (31.8) | (33.7) | ||
Acquisition of and equity investments in businesses, net of cash acquired | (375.8) | (20.8) | ||
Proceeds from Sale and Maturity of Marketable Securities | 15.5 | |||
Other investing activities, net | (1.1) | 2.9 | ||
Net cash used in investing activities | (408.7) | (36.1) | ||
Cash flows from financing activities: | ||||
Debt repayments, net | (27.4) | (16.1) | ||
Payments of Debt Issuance Costs | 0 | 3 | ||
Net inter-company proceeds (payments) | 0 | 0 | ||
Dividends paid | 0 | 0 | ||
Dividends paid to ordinary shareholders | (59.6) | (45.6) | ||
Repurchase of ordinary shares | (30) | (60) | ||
Other financing activities, net | 0.1 | 6 | ||
Net cash used in financing activities | (116.9) | (118.7) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (4.5) | 7.3 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (269.7) | 22.5 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 196.5 | 334.9 | $ 466.2 | $ 312.4 |
Allegion plc | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | 135.4 | 67.4 | ||
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 and Maturity of Marketable Securities | 0 | |||
Other investing activities, net | 0 | 0 | ||
Net cash used in investing activities | 0 | 0 | ||
Cash flows from financing activities: | ||||
Debt repayments, net | (26.3) | (14.8) | ||
Payments of Debt Issuance Costs | 2.9 | |||
Net inter-company proceeds (payments) | (22) | 50.3 | ||
Dividends paid | 0 | 0 | ||
Dividends paid to ordinary shareholders | (59.6) | (45.6) | ||
Repurchase of ordinary shares | (30) | (60) | ||
Other financing activities, net | 2.4 | 6.2 | ||
Net cash used in financing activities | (135.5) | (66.8) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (0.1) | 0.6 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0.6 | 1.1 | 0.7 | 0.5 |
Allegion US Holding | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | (68.5) | 123.1 | ||
Cash flows from investing activities: | ||||
Capital expenditures | 0 | 0 | ||
Acquisition of and equity investments in businesses, net of cash acquired | (247.1) | 0 | ||
Proceeds from Sale and Maturity of Marketable Securities | 0 | |||
Other investing activities, net | 0 | 0 | ||
Net cash used in investing activities | (247.1) | 0 | ||
Cash flows from financing activities: | ||||
Debt repayments, net | 0 | 0 | ||
Payments of Debt Issuance Costs | 0.1 | |||
Net inter-company proceeds (payments) | 329.3 | (17.5) | ||
Dividends paid | 0 | (105.5) | ||
Dividends paid to ordinary shareholders | 0 | 0 | ||
Repurchase of ordinary shares | 0 | 0 | ||
Other financing activities, net | 0 | 0 | ||
Net cash used in financing activities | 329.3 | (123.1) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 13.7 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 14 | 0.2 | 0.3 | 0.2 |
Consolidating Adjustments | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | (209) | (213.6) | ||
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 and Maturity of Marketable Securities | 0 | |||
Other investing activities, net | 0 | 0 | ||
Net cash used in investing activities | 0 | 0 | ||
Cash flows from financing activities: | ||||
Debt repayments, net | 0 | 0 | ||
Payments of Debt Issuance Costs | 0 | |||
Net inter-company proceeds (payments) | 0 | 0 | ||
Dividends paid | 209 | 213.6 | ||
Dividends paid to ordinary shareholders | 0 | 0 | ||
Repurchase of ordinary shares | 0 | 0 | ||
Other financing activities, net | 0 | 0 | ||
Net cash used in financing activities | 209 | 213.6 | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 0 | 0 | 0 | 0 |
Other Subsidiaries | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash provided by operating activities | 402.5 | 193.1 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (31.8) | (33.7) | ||
Acquisition of and equity investments in businesses, net of cash acquired | (128.7) | (20.8) | ||
Proceeds from Sale and Maturity of Marketable Securities | 15.5 | |||
Other investing activities, net | (1.1) | 2.9 | ||
Net cash used in investing activities | (161.6) | (36.1) | ||
Cash flows from financing activities: | ||||
Debt repayments, net | (1.1) | (1.3) | ||
Payments of Debt Issuance Costs | 0 | |||
Net inter-company proceeds (payments) | (307.3) | (32.8) | ||
Dividends paid | (209) | (108.1) | ||
Dividends paid to ordinary shareholders | 0 | 0 | ||
Repurchase of ordinary shares | 0 | 0 | ||
Other financing activities, net | (2.3) | (0.2) | ||
Net cash used in financing activities | (519.7) | (142.4) | ||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (4.5) | 7.3 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (283.3) | 21.9 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 181.9 | $ 333.6 | $ 465.2 | $ 311.7 |