x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ireland | 98-1108930 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | ¨ | |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Item 1 - | ||
Item 2 - | ||
Item 3 - | ||
Item 4 - | ||
Item 1 - | ||
Item 1A - | ||
Item 2 - | ||
Item 6 - | ||
Item 1. | Financial Statements |
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
In millions, except per share amounts | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net revenues | $ | 584.9 | $ | 519.5 | $ | 1,087.2 | $ | 978.2 | |||||||
Cost of goods sold | 317.5 | 297.7 | 603.5 | 569.3 | |||||||||||
Selling and administrative expenses | 143.1 | 126.1 | 276.9 | 242.2 | |||||||||||
Operating income | 124.3 | 95.7 | 206.8 | 166.7 | |||||||||||
Interest expense | 16.5 | 11.3 | 32.8 | 22.9 | |||||||||||
Other (income) expense, net | (8.6 | ) | 0.4 | (17.4 | ) | 3.5 | |||||||||
Earnings before income taxes | 116.4 | 84.0 | 191.4 | 140.3 | |||||||||||
Provision for income taxes | 21.0 | 19.0 | 37.2 | 31.4 | |||||||||||
Earnings from continuing operations | 95.4 | 65.0 | 154.2 | 108.9 | |||||||||||
Discontinued operations, net of tax | — | — | — | (0.2 | ) | ||||||||||
Net earnings | 95.4 | 65.0 | 154.2 | 108.7 | |||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 0.4 | 1.1 | 1.5 | (0.6 | ) | ||||||||||
Net earnings attributable to Allegion plc | $ | 95.0 | $ | 63.9 | $ | 152.7 | $ | 109.3 | |||||||
Amounts attributable to Allegion plc ordinary shareholders: | |||||||||||||||
Continuing operations | $ | 95.0 | $ | 63.9 | $ | 152.7 | $ | 109.5 | |||||||
Discontinued operations | — | — | — | (0.2 | ) | ||||||||||
Net earnings | $ | 95.0 | $ | 63.9 | $ | 152.7 | $ | 109.3 | |||||||
Earnings per share attributable to Allegion plc ordinary shareholders: | |||||||||||||||
Basic: | |||||||||||||||
Continuing operations | $ | 0.99 | $ | 0.67 | $ | 1.59 | $ | 1.14 | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Net earnings | $ | 0.99 | $ | 0.67 | $ | 1.59 | $ | 1.14 | |||||||
Diluted: | |||||||||||||||
Continuing operations | $ | 0.98 | $ | 0.66 | $ | 1.58 | $ | 1.13 | |||||||
Discontinued operations | — | — | — | — | |||||||||||
Net earnings | $ | 0.98 | $ | 0.66 | $ | 1.58 | $ | 1.13 | |||||||
Weighted-average shares outstanding | |||||||||||||||
Basic | 95.8 | 95.8 | 95.9 | 95.8 | |||||||||||
Diluted | 96.8 | 96.7 | 96.8 | 96.9 | |||||||||||
Dividends declared per ordinary share | $ | 0.12 | $ | 0.10 | $ | 0.24 | $ | 0.20 | |||||||
Total comprehensive income | $ | 69.0 | $ | 70.5 | $ | 155.9 | $ | 83.8 | |||||||
Less: Total comprehensive income (loss) attributable to noncontrolling interests | (0.4 | ) | 1.1 | 2.2 | (0.6 | ) | |||||||||
Total comprehensive income attributable to Allegion plc | $ | 69.4 | $ | 69.4 | $ | 153.7 | $ | 84.4 |
In millions | June 30, 2016 | December 31, 2015 | |||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 169.1 | $ | 199.7 | |||
Accounts and notes receivable, net | 348.3 | 303.4 | |||||
Inventories | 225.3 | 204.1 | |||||
Other current assets | 85.2 | 27.9 | |||||
Total current assets | 827.9 | 735.1 | |||||
Property, plant and equipment, net | 227.1 | 224.8 | |||||
Goodwill | 728.8 | 714.1 | |||||
Intangible assets, net | 389.9 | 372.4 | |||||
Other noncurrent assets | 171.8 | 216.6 | |||||
Total assets | $ | 2,345.5 | $ | 2,263.0 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 175.7 | $ | 175.1 | |||
Accrued expenses and other current liabilities | 245.4 | 206.4 | |||||
Short-term borrowings and current maturities of long-term debt | 48.6 | 65.6 | |||||
Total current liabilities | 469.7 | 447.1 | |||||
Long-term debt | 1,437.1 | 1,457.5 | |||||
Other noncurrent liabilities | 295.9 | 328.7 | |||||
Total liabilities | 2,202.7 | 2,233.3 | |||||
Equity: | |||||||
Allegion plc shareholders’ equity: | |||||||
Ordinary shares, $0.01 par value (96.8 shares issued) | 1.0 | 1.0 | |||||
Capital in excess of par value | 8.8 | 24.4 | |||||
Retained earnings | 360.6 | 232.4 | |||||
Accumulated other comprehensive loss | (231.2 | ) | (232.2 | ) | |||
Total Allegion plc shareholders’ equity | 139.2 | 25.6 | |||||
Noncontrolling interests | 3.6 | 4.1 | |||||
Total equity | 142.8 | 29.7 | |||||
Total liabilities and equity | $ | 2,345.5 | $ | 2,263.0 |
Six months ended | |||||||
June 30, | |||||||
In millions | 2016 | 2015 | |||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 154.2 | $ | 108.7 | |||
Discontinued operations, net of tax | — | 0.2 | |||||
Adjustments to arrive at net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 33.5 | 24.8 | |||||
Changes in assets and liabilities and other non-cash items | (86.5 | ) | (100.3 | ) | |||
Net cash provided by continuing operating activities | 101.2 | 33.4 | |||||
Net cash used in discontinued operating activities | — | (0.2 | ) | ||||
Net cash provided by operating activities | 101.2 | 33.2 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (16.5 | ) | (18.6 | ) | |||
Acquisition of and equity investments in businesses, net of cash acquired | (31.4 | ) | (52.0 | ) | |||
Proceeds from sale of marketable securities | 14.1 | — | |||||
Other investing activities, net | (4.7 | ) | 4.1 | ||||
Net cash used in investing activities | (38.5 | ) | (66.5 | ) | |||
Cash flows from financing activities: | |||||||
Short-term borrowings, net | — | 12.2 | |||||
Payments of long-term debt | (40.5 | ) | (24.4 | ) | |||
Debt borrowings (repayments), net | (40.5 | ) | (12.2 | ) | |||
Dividends paid to ordinary shareholders | (22.9 | ) | (19.1 | ) | |||
Acquisition/divestiture of noncontrolling interests | (0.4 | ) | — | ||||
Repurchase of ordinary shares | (30.0 | ) | (30.0 | ) | |||
Other financing activities, net | (1.2 | ) | 8.7 | ||||
Net cash used in continuing financing activities | (95.0 | ) | (52.6 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | 1.7 | (3.6 | ) | ||||
Net decrease in cash and cash equivalents | (30.6 | ) | (89.5 | ) | |||
Cash and cash equivalents - beginning of period | 199.7 | 290.5 | |||||
Cash and cash equivalents - end of period | $ | 169.1 | $ | 201.0 |
In millions | June 30, 2016 | December 31, 2015 | |||||
Raw materials | $ | 58.2 | $ | 58.9 | |||
Work-in-process | 26.6 | 30.0 | |||||
Finished goods | 140.5 | 115.2 | |||||
Total | $ | 225.3 | $ | 204.1 |
In millions | Americas | EMEIA | Asia Pacific | Total | |||||||||||
December 31, 2015 (gross) | $ | 372.8 | $ | 733.4 | $ | 93.4 | $ | 1,199.6 | |||||||
Accumulated impairment | — | (478.6 | ) | (6.9 | ) | (485.5 | ) | ||||||||
December 31, 2015 (net) | 372.8 | 254.8 | 86.5 | 714.1 | |||||||||||
Acquisitions | — | 9.4 | — | 9.4 | |||||||||||
Currency translation | 0.1 | 4.6 | 0.6 | 5.3 | |||||||||||
June 30, 2016 | $ | 372.9 | $ | 268.8 | $ | 87.1 | $ | 728.8 |
June 30, 2016 | December 31, 2015 | |||||||||||||||||||||||
In millions | Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||||||
Completed technologies/patents | $ | 49.9 | $ | (24.8 | ) | $ | 25.1 | $ | 49.0 | $ | (23.1 | ) | $ | 25.9 | ||||||||||
Customer relationships | 292.9 | (47.8 | ) | 245.1 | 278.7 | (40.2 | ) | 238.5 | ||||||||||||||||
Trademarks (finite-lived) | 83.0 | (37.8 | ) | 45.2 | 81.2 | (35.3 | ) | 45.9 | ||||||||||||||||
Other | 12.0 | (9.5 | ) | 2.5 | 9.0 | (9.0 | ) | — | ||||||||||||||||
Total finite-lived intangible assets | 437.8 | $ | (119.9 | ) | 317.9 | 417.9 | $ | (107.6 | ) | 310.3 | ||||||||||||||
Trademarks (indefinite-lived) | 72.0 | 72.0 | 62.1 | 62.1 | ||||||||||||||||||||
Total | $ | 509.8 | $ | 389.9 | $ | 480.0 | $ | 372.4 |
Business | Date |
iDevices | February 2015 |
Zero International Inc. ("Zero") | April 2015 |
Brio (Division of RMD Industries Pty Ltd) ("Brio") | May 2015 |
Milre Systek Co., Ltd ("Milre") | July 2015 |
SimonsVoss Technologies GmbH ("SimonsVoss") | September 2015 |
AXA Stenman Holding ("AXA") | September 2015 |
In millions | |||
Accounts and notes receivable, net | $ | 23.3 | |
Inventories | 34.8 | ||
Other current assets | 2.0 | ||
Property, plant and equipment, net | 27.2 | ||
Goodwill | 255.1 | ||
Intangible assets, net | 273.8 | ||
Other noncurrent assets | 12.5 | ||
Accounts payable | (12.2 | ) | |
Accrued expenses and other current liabilities | (30.1 | ) | |
Deferred tax liabilities and other noncurrent liabilities | (75.1 | ) | |
Total cash consideration | $ | 511.3 |
Three months ended | Six months ended | ||||||
In millions, except per share amounts | June 30, 2015 | June 30, 2015 | |||||
Net revenues | $ | 554.8 | $ | 1,059.1 | |||
Net earnings attributable to Allegion plc | $ | 62.6 | $ | 108.0 | |||
Basic income per share | $ | 0.65 | $ | 1.13 | |||
Diluted income per share | $ | 0.65 | $ | 1.12 |
Three months ended | Six months ended | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net revenues | $ | 47.0 | $ | 6.3 | $ | 92.8 | $ | 6.3 | |||||||
Earnings before income tax | $ | 5.3 | $ | 0.7 | $ | 10.2 | $ | 0.7 |
In millions | June 30, 2016 | December 31, 2015 | |||||
Term Loan A Facility | $ | 903.2 | $ | 926.7 | |||
5.75% Senior notes due 2021 | 300.0 | 300.0 | |||||
5.875% Senior notes due 2023 | 300.0 | 300.0 | |||||
Other debt, including capital leases, maturing in various amounts through 2024 | 2.8 | 18.7 | |||||
Unamortized debt issuance costs, net | (20.3 | ) | (22.3 | ) | |||
Total debt | 1,485.7 | 1,523.1 | |||||
Less current portion of long-term debt | 48.6 | 65.6 | |||||
Total long-term debt | $ | 1,437.1 | $ | 1,457.5 |
Asset derivatives | Liability derivatives | ||||||||||||||
In millions | June 30, 2016 | December 31, 2015 | June 30, 2016 | December 31, 2015 | |||||||||||
Derivatives designated as hedges: | |||||||||||||||
Currency derivatives | $ | 0.1 | $ | 1.8 | $ | 1.3 | $ | — | |||||||
Interest rate swaps | — | — | 4.6 | 1.2 | |||||||||||
Derivatives not designated as hedges: | |||||||||||||||
Currency derivatives | 2.3 | 1.0 | 1.1 | 4.5 | |||||||||||
Total derivatives | $ | 2.4 | $ | 2.8 | $ | 7.0 | $ | 5.7 |
Amount of gain (loss) recognized in Accumulated other comprehensive loss | Location of gain (loss) recognized in Net earnings | Amount of gain (loss) reclassified from Accumulated other comprehensive loss and recognized into Net earnings | |||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Currency derivatives | $ | 1.9 | $ | 0.9 | Cost of goods sold | $ | 2.0 | $ | 3.0 | ||||||||
Interest rate swaps | (2.1 | ) | 0.3 | Interest expense | — | — | |||||||||||
Total | $ | (0.2 | ) | $ | 1.2 | $ | 2.0 | $ | 3.0 |
Amount of gain (loss) recognized in Accumulated other comprehensive loss | Location of gain (loss) recognized in Net earnings | Amount of gain (loss) reclassified from Accumulated other comprehensive loss and recognized into Net earnings | |||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||||
Currency derivatives | $ | 2.3 | $ | 4.2 | Cost of goods sold | $ | 5.3 | $ | 4.7 | ||||||||
Interest rate swaps | (3.5 | ) | (1.1 | ) | Interest expense | — | — | ||||||||||
Total | $ | (1.2 | ) | $ | 3.1 | $ | 5.3 | $ | 4.7 |
U.S. | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Service cost | $ | 2.4 | $ | 2.3 | $ | 4.7 | $ | 4.7 | |||||||
Interest cost | 2.5 | 2.8 | 5.0 | 5.5 | |||||||||||
Expected return on plan assets | (2.6 | ) | (2.9 | ) | (5.1 | ) | (5.7 | ) | |||||||
Net amortization of: | |||||||||||||||
Prior service costs | 0.1 | 0.2 | 0.3 | 0.4 | |||||||||||
Plan net actuarial losses | 1.4 | 1.2 | 2.7 | 2.3 | |||||||||||
Net periodic pension benefit cost | $ | 3.8 | $ | 3.6 | $ | 7.6 | $ | 7.2 | |||||||
Net settlement losses | — | — | — | 0.6 | |||||||||||
Net periodic pension benefit cost after settlement losses | $ | 3.8 | $ | 3.6 | $ | 7.6 | $ | 7.8 |
Non-U.S. | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Service cost | $ | 0.9 | $ | 0.9 | $ | 1.7 | $ | 1.7 | |||||||
Interest cost | 2.9 | 3.5 | 5.8 | 6.9 | |||||||||||
Expected return on plan assets | (3.7 | ) | (4.5 | ) | (7.4 | ) | (8.9 | ) | |||||||
Amortization of plan net actuarial losses | 0.5 | 0.3 | 1.1 | 0.7 | |||||||||||
Net periodic pension benefit cost | $ | 0.6 | $ | 0.2 | $ | 1.2 | $ | 0.4 |
Three months ended | Six months ended | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Service cost | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
Amortization of prior service gains | (0.4 | ) | (0.4 | ) | (0.8 | ) | (0.8 | ) | |||||||
Net periodic postretirement benefit income | $ | (0.3 | ) | $ | (0.2 | ) | $ | (0.6 | ) | $ | (0.5 | ) |
• | 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. |
Fair value measurements | Total fair value | ||||||||||||||
In millions | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Recurring fair value measurements | |||||||||||||||
Assets: | |||||||||||||||
Foreign currency contracts | — | 2.4 | — | 2.4 | |||||||||||
Total asset recurring fair value measurements | $ | — | $ | 2.4 | $ | — | $ | 2.4 | |||||||
Liabilities: | |||||||||||||||
Foreign currency contracts | $ | — | $ | 2.4 | $ | — | $ | 2.4 | |||||||
Interest rate swap | — | 4.6 | — | 4.6 | |||||||||||
Deferred compensation plans | — | 15.8 | — | 15.8 | |||||||||||
Total liability recurring fair value measurements | $ | — | $ | 22.8 | $ | — | $ | 22.8 | |||||||
Financial instruments not carried at fair value | |||||||||||||||
Total debt | — | 1,533.0 | — | 1,533.0 | |||||||||||
Total financial instruments not carried at fair value | $ | — | $ | 1,533.0 | $ | — | $ | 1,533.0 |
Fair value measurements | Total fair value | ||||||||||||||
In millions | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Recurring fair value measurements | |||||||||||||||
Assets: | |||||||||||||||
Marketable securities | $ | 14.2 | $ | — | $ | — | $ | 14.2 | |||||||
Foreign currency contracts | — | 2.8 | — | 2.8 | |||||||||||
Total asset recurring fair value measurements | $ | 14.2 | $ | 2.8 | $ | — | $ | 17.0 | |||||||
Liabilities: | |||||||||||||||
Foreign currency contracts | $ | — | $ | 4.5 | $ | — | $ | 4.5 | |||||||
Interest rate swap | — | 1.2 | — | 1.2 | |||||||||||
Deferred compensation plans | — | 15.5 | — | 15.5 | |||||||||||
Total liability recurring fair value measurements | $ | — | $ | 21.2 | $ | — | $ | 21.2 | |||||||
Financial instruments not carried at fair value | |||||||||||||||
Total debt | — | 1,556.6 | — | 1,556.6 | |||||||||||
Total financial instruments not carried at fair value | $ | — | $ | 1,556.6 | $ | — | $ | 1,556.6 |
• | Marketable securities – These securities include investments in publicly traded stock of non-U.S. companies held by non-U.S. subsidiaries of the Company. The fair value is obtained for the securities based on observable market prices quoted on public stock exchanges. |
• | Foreign currency contracts – These instruments include foreign currency contracts for non-functional currency balance sheet exposures. The fair value of the foreign currency contracts are determined based on a pricing model that uses spot rates and forward prices from actively quoted currency markets that are readily accessible and observable. |
• | Interest rate swaps – These instruments include forward-starting interest rate swap contracts for up to $300.0 million of the Company's variable rate debt. The fair value of the derivative instruments are determined based on quoted prices for the Company's swaps, which are not considered an active market. |
• | Deferred compensation plans - These include obligations related to deferred compensation adjusted for market performance. The fair value is obtained based on observable market prices quoted on public exchanges for similar instruments. |
• | Debt – These securities are recorded at cost and include senior notes maturing through 2023. The fair value of the long-term debt instruments is obtained based on observable market prices quoted on public exchanges for similar instruments. |
In millions | Total | |
December 31, 2015 | 96.0 | |
Shares issued under incentive plans, net | 0.3 | |
Repurchase of ordinary shares | (0.5 | ) |
June 30, 2016 | 95.8 |
In millions | Allegion plc shareholders’ equity | Noncontrolling interests | Total equity | ||||||||
Balance at December 31, 2015 | $ | 25.6 | $ | 4.1 | $ | 29.7 | |||||
Net earnings | 152.7 | 1.5 | 154.2 | ||||||||
Currency translation | 8.2 | 0.7 | 8.9 | ||||||||
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax | (19.1 | ) | — | (19.1 | ) | ||||||
Pension and OPEB adjustments, net of tax | 11.9 | — | 11.9 | ||||||||
Total comprehensive income | 153.7 | 2.2 | 155.9 | ||||||||
Share-based compensation | 8.8 | — | 8.8 | ||||||||
Acquisition/divestiture of noncontrolling interests | (0.4 | ) | — | (0.4 | ) | ||||||
Dividends to noncontrolling interests | — | (2.7 | ) | (2.7 | ) | ||||||
Dividends to ordinary shareholders | (23.1 | ) | — | (23.1 | ) | ||||||
Repurchase of ordinary shares | (30.0 | ) | — | (30.0 | ) | ||||||
Shares issued under incentive plans, net | 4.6 | — | 4.6 | ||||||||
Balance at June 30, 2016 | $ | 139.2 | $ | 3.6 | $ | 142.8 |
In millions | Allegion plc shareholders’ equity (deficit) | Noncontrolling interests | Total equity (deficit) | ||||||||
Balance at December 31, 2014 | $ | (4.8 | ) | $ | 23.3 | $ | 18.5 | ||||
Net earnings | 109.3 | (0.6 | ) | 108.7 | |||||||
Currency translation | (28.4 | ) | — | (28.4 | ) | ||||||
Change in value of marketable securities and derivatives qualifying as cash flow hedges, net of tax | 2.8 | — | 2.8 | ||||||||
Pension and OPEB adjustments, net of tax | 0.7 | — | 0.7 | ||||||||
Total comprehensive income | 84.4 | (0.6 | ) | 83.8 | |||||||
Share-based compensation | 6.9 | — | 6.9 | ||||||||
Acquisition/divestiture of noncontrolling interests | — | 3.0 | 3.0 | ||||||||
Dividends to noncontrolling interests | — | (0.3 | ) | (0.3 | ) | ||||||
Dividends to ordinary shareholders | (19.1 | ) | — | (19.1 | ) | ||||||
Shares issued under incentive plans, net | 9.9 | — | 9.9 | ||||||||
Repurchase of ordinary shares | (30.0 | ) | — | (30.0 | ) | ||||||
Balance at June 30, 2015 | $ | 47.3 | $ | 25.4 | $ | 72.7 |
In millions | Cash flow hedges and marketable securities | Pension and OPEB Items | Foreign Currency Items | Total | ||||||||||||
December 31, 2015 | $ | 14.0 | $ | (139.3 | ) | $ | (106.9 | ) | $ | (232.2 | ) | |||||
Other comprehensive income (loss) before reclassifications | (1.0 | ) | 9.4 | 8.2 | 16.6 | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (18.9 | ) | 3.3 | — | (15.6 | ) | ||||||||||
Tax benefit (expense) | 0.8 | (0.8 | ) | — | — | |||||||||||
June 30, 2016 | $ | (5.1 | ) | $ | (127.4 | ) | $ | (98.7 | ) | $ | (231.2 | ) |
In millions | Cash flow hedges and marketable securities | Pension and OPEB Items | Foreign Currency Items | Total | ||||||||||||
December 31, 2014 | $ | 15.7 | $ | (116.1 | ) | $ | (47.8 | ) | $ | (148.2 | ) | |||||
Other comprehensive loss before reclassifications | 7.9 | (1.5 | ) | (28.4 | ) | (22.0 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive income | (4.7 | ) | 2.6 | — | (2.1 | ) | ||||||||||
Tax benefit (expense) | (0.4 | ) | (0.4 | ) | — | (0.8 | ) | |||||||||
June 30, 2015 | $ | 18.5 | $ | (115.4 | ) | $ | (76.2 | ) | $ | (173.1 | ) |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||||
In millions | Three months ended | Six months ended | Statement of Comprehensive Income Line Item | |||||||
Reclasses below represent (Income) loss to the Statement of Comprehensive Income | ||||||||||
Gains and losses on cash flow hedges: | ||||||||||
Foreign exchange contracts | $ | (2.0 | ) | $ | (5.3 | ) | Cost of goods sold | |||
(2.0 | ) | (5.3 | ) | Earnings before income taxes | ||||||
— | 0.8 | Provision for income taxes | ||||||||
$ | (2.0 | ) | $ | (4.5 | ) | Earnings from continuing operations | ||||
Unrealized gains and losses on marketable securities: | ||||||||||
Realized gain on sale of securities | $ | (7.8 | ) | $ | (13.6 | ) | Other income, net | |||
(7.8 | ) | (13.6 | ) | Earnings before income taxes | ||||||
— | — | Provision for income taxes | ||||||||
$ | (7.8 | ) | $ | (13.6 | ) | Earnings from continuing operations | ||||
Defined benefit pension items: | ||||||||||
Amortization of: | ||||||||||
Prior-service gains | $ | (0.3 | ) | $ | (0.5 | ) | (a) | |||
Actuarial losses | 1.9 | 3.8 | (a) | |||||||
1.6 | 3.3 | Earnings before income taxes | ||||||||
(0.4 | ) | (0.8 | ) | Provision for income taxes | ||||||
$ | 1.2 | $ | 2.5 | Earnings from continuing operations | ||||||
Total reclassifications for the period | $ | (8.6 | ) | $ | (15.6 | ) | Earnings from continuing operations |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||||
In millions | Three months ended | Six months ended | Statement of Comprehensive Income Line Item | |||||||
Reclasses below represent (Income) loss to the Statement of Comprehensive Income | ||||||||||
Gains on cash flow hedges: | ||||||||||
Foreign exchange contracts | $ | (3.0 | ) | $ | (4.7 | ) | Cost of goods sold | |||
(3.0 | ) | (4.7 | ) | Earnings before income taxes | ||||||
— | (0.4 | ) | Provision for income taxes | |||||||
$ | (3.0 | ) | $ | (5.1 | ) | Earnings from continuing operations | ||||
Defined benefit pension items: | ||||||||||
Amortization of: | ||||||||||
Prior-service gains | $ | (0.2 | ) | $ | (0.4 | ) | (a) | |||
Actuarial (gains) losses | 1.5 | 3.0 | (a) | |||||||
1.3 | 2.6 | Earnings before income taxes | ||||||||
(0.3 | ) | (0.4 | ) | Provision for income taxes | ||||||
1.0 | 2.2 | Earnings from continuing operations | ||||||||
Total reclassifications for the period | $ | (2.0 | ) | $ | (2.9 | ) | Earnings from continuing operations |
Three months ended | Six months ended | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Stock options | $ | 0.9 | $ | 0.9 | $ | 2.2 | $ | 1.9 | |||||||
RSUs | 2.1 | 1.3 | 4.1 | 2.9 | |||||||||||
PSUs | 1.2 | 1.1 | 2.5 | 2.1 | |||||||||||
Deferred compensation | 0.2 | 0.1 | 0.4 | 0.5 | |||||||||||
Pre-tax expense | 4.4 | 3.4 | 9.2 | 7.4 | |||||||||||
Tax benefit | (1.3 | ) | (1.2 | ) | (2.7 | ) | (2.5 | ) | |||||||
After-tax expense | $ | 3.1 | $ | 2.2 | $ | 6.5 | $ | 4.9 |
2016 | 2015 | ||||||||||||
Number granted | Weighted- average fair value per award | Number granted | Weighted- average fair value per award | ||||||||||
Stock options | 230,259 | $ | 15.86 | 220,679 | $ | 17.88 | |||||||
RSUs | 109,241 | $ | 58.42 | 96,387 | $ | 58.45 |
2016 | 2015 | ||||
Dividend yield | 0.83 | % | 0.69 | % | |
Volatility | 28.85 | % | 34.02 | % | |
Risk-free rate of return | 1.38 | % | 1.78 | % | |
Expected life | 6.0 years | 6.0 years |
In millions | Americas | EMEIA | Asia Pacific | Total | |||||||||||
December 31, 2015 | $ | — | $ | 10.0 | $ | 0.2 | $ | 10.2 | |||||||
Additions, net of reversals | 1.3 | 0.4 | 0.2 | 1.9 | |||||||||||
Cash and non-cash uses | (1.3 | ) | (2.2 | ) | (0.4 | ) | (3.9 | ) | |||||||
Currency translation | — | 0.1 | — | 0.1 | |||||||||||
June 30, 2016 | $ | — | $ | 8.3 | $ | — | $ | 8.3 |
Three months ended | Six months ended | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
EMEIA | $ | 0.2 | $ | 3.8 | $ | 0.4 | $ | 3.8 | |||||||
Total | $ | 0.2 | $ | 3.8 | $ | 0.4 | $ | 3.8 | |||||||
Cost of goods sold | $ | 0.1 | $ | 3.5 | $ | 0.2 | $ | 3.5 | |||||||
Selling and administrative expenses | 0.1 | 0.3 | 0.2 | 0.3 | |||||||||||
Total | $ | 0.2 | $ | 3.8 | $ | 0.4 | $ | 3.8 |
Three months ended | Six months ended | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Interest income | $ | (0.9 | ) | $ | (0.5 | ) | $ | (1.4 | ) | $ | (0.8 | ) | |||
Exchange (gain) loss | (0.6 | ) | 0.6 | 2.4 | 3.9 | ||||||||||
(Earnings) loss from equity investments | (0.5 | ) | — | (4.0 | ) | 0.2 | |||||||||
Other | (6.6 | ) | 0.3 | (14.4 | ) | 0.2 | |||||||||
Other (income) expense, net | $ | (8.6 | ) | $ | 0.4 | $ | (17.4 | ) | $ | 3.5 |
Three months ended | Six months ended | ||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||
Weighted-average number of basic shares | 95.8 | 95.8 | 95.9 | 95.8 | |||||||
Shares issuable under incentive stock plans | 1.0 | 0.9 | 0.9 | 1.1 | |||||||
Weighted-average number of diluted shares | 96.8 | 96.7 | 96.8 | 96.9 |
Three months ended | Six months ended | ||||||||||||||
In millions | 2016 | 2015 | 2016 | 2015 | |||||||||||
Net revenues | |||||||||||||||
Americas | $ | 436.5 | $ | 402.1 | $ | 799.5 | $ | 756.4 | |||||||
EMEIA | 121.6 | 83.9 | 240.1 | 165.6 | |||||||||||
Asia Pacific | 26.8 | 33.5 | 47.6 | 56.2 | |||||||||||
Total | $ | 584.9 | $ | 519.5 | $ | 1,087.2 | $ | 978.2 | |||||||
Segment operating income (loss) | |||||||||||||||
Americas | $ | 130.0 | $ | 111.9 | $ | 220.2 | $ | 196.1 | |||||||
EMEIA | 8.9 | 0.5 | 16.9 | 3.1 | |||||||||||
Asia Pacific | 2.1 | (1.4 | ) | 2.0 | (4.0 | ) | |||||||||
Total | $ | 141.0 | $ | 111.0 | $ | 239.1 | $ | 195.2 | |||||||
Reconciliation to Operating income | |||||||||||||||
Unallocated corporate expense | (16.7 | ) | (15.3 | ) | (32.3 | ) | (28.5 | ) | |||||||
Operating income | $ | 124.3 | $ | 95.7 | $ | 206.8 | $ | 166.7 | |||||||
Reconciliation to earnings before income taxes | |||||||||||||||
Interest expense | 16.5 | 11.3 | 32.8 | 22.9 | |||||||||||
Other (income) expense, net | (8.6 | ) | 0.4 | (17.4 | ) | 3.5 | |||||||||
Earnings before income taxes | $ | 116.4 | $ | 84.0 | $ | 191.4 | $ | 140.3 |
In millions | 2016 | 2015 | |||||
Balance at beginning of period | $ | 11.7 | $ | 10.3 | |||
Reductions for payments | (2.9 | ) | (3.1 | ) | |||
Accruals for warranties issued during the current period | 3.6 | 2.6 | |||||
Changes to accruals related to preexisting warranties | (0.3 | ) | 0.1 | ||||
Translation | — | (0.1 | ) | ||||
Balance at end of period | $ | 12.1 | $ | 9.8 |
In millions | Allegion plc | Allegion US Holding | Other Subsidiary Guarantors | Other Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||||
Net revenues | $ | — | $ | — | $ | 421.8 | $ | 275.6 | $ | (112.5 | ) | $ | 584.9 | ||||||||||
Cost of goods sold | — | — | 233.9 | 196.1 | (112.5 | ) | 317.5 | ||||||||||||||||
Selling and administrative expenses | 1.3 | — | 84.6 | 57.2 | — | 143.1 | |||||||||||||||||
Operating income (loss) | (1.3 | ) | — | 103.3 | 22.3 | — | 124.3 | ||||||||||||||||
Equity earnings (loss) in affiliates, net of tax | 107.4 | 38.2 | 0.1 | 85.3 | (231.0 | ) | — | ||||||||||||||||
Interest expense | 11.1 | 5.1 | — | 0.3 | — | 16.5 | |||||||||||||||||
Intercompany interest and fees | 0.1 | 23.9 | (33.5 | ) | 9.5 | — | — | ||||||||||||||||
Other income, net | — | — | (0.3 | ) | (8.3 | ) | — | (8.6 | ) | ||||||||||||||
Earnings (loss) before income taxes | 94.9 | 9.2 | 137.2 | 106.1 | (231.0 | ) | 116.4 | ||||||||||||||||
Provision (benefit) for income taxes | — | (11.2 | ) | 51.8 | (19.6 | ) | — | 21.0 | |||||||||||||||
Earnings (loss) from continuing operations | 94.9 | 20.4 | 85.4 | 125.7 | (231.0 | ) | 95.4 | ||||||||||||||||
Discontinued operations, net of tax | — | — | — | — | — | — | |||||||||||||||||
Net earnings (loss) | 94.9 | 20.4 | 85.4 | 125.7 | (231.0 | ) | 95.4 | ||||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | 0.4 | — | 0.4 | |||||||||||||||||
Net earnings (loss) attributable to Allegion plc | $ | 94.9 | $ | 20.4 | $ | 85.4 | $ | 125.3 | $ | (231.0 | ) | $ | 95.0 | ||||||||||
Total comprehensive income (loss) | $ | 69.4 | $ | 10.0 | $ | 94.3 | $ | 101.4 | $ | (206.1 | ) | $ | 69.0 | ||||||||||
Less: Total comprehensive income attributable to noncontrolling interests | — | — | — | (0.4 | ) | — | (0.4 | ) | |||||||||||||||
Total comprehensive income (loss) attributable to Allegion plc | $ | 69.4 | $ | 10.0 | $ | 94.3 | $ | 101.8 | $ | (206.1 | ) | $ | 69.4 |
In millions | Allegion plc | Allegion US Holding | Other Subsidiary Guarantors | Other Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||||
Net revenues | $ | — | $ | — | $ | 769.7 | $ | 533.1 | $ | (215.6 | ) | $ | 1,087.2 | ||||||||||
Cost of goods sold | — | — | 439.8 | 379.3 | (215.6 | ) | 603.5 | ||||||||||||||||
Selling and administrative expenses | 2.3 | — | 163.3 | 111.3 | — | 276.9 | |||||||||||||||||
Operating income (loss) | (2.3 | ) | — | 166.6 | 42.5 | — | 206.8 | ||||||||||||||||
Equity earnings (loss) in affiliates, net of tax | 177.8 | 63.6 | 0.6 | 156.4 | (398.4 | ) | — | ||||||||||||||||
Interest expense | 22.2 | 10.2 | — | 0.4 | — | 32.8 | |||||||||||||||||
Intercompany interest and fees | 0.1 | 47.7 | (66.0 | ) | 18.2 | — | — | ||||||||||||||||
Other (income) expense, net | — | — | (20.4 | ) | 3.0 | — | (17.4 | ) | |||||||||||||||
Earnings (loss) before income taxes | 153.2 | 5.7 | 253.6 | 177.3 | (398.4 | ) | 191.4 | ||||||||||||||||
Provision (benefit) for income taxes | 0.5 | (22.3 | ) | 96.6 | (37.6 | ) | — | 37.2 | |||||||||||||||
Earnings (loss) from continuing operations | 152.7 | 28.0 | 157.0 | 214.9 | (398.4 | ) | 154.2 | ||||||||||||||||
Discontinued operations, net of tax | — | — | — | — | — | — | |||||||||||||||||
Net earnings (loss) | 152.7 | 28.0 | 157.0 | 214.9 | (398.4 | ) | 154.2 | ||||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | 1.5 | — | 1.5 | |||||||||||||||||
Net earnings (loss) attributable to Allegion plc | $ | 152.7 | $ | 28.0 | $ | 157.0 | $ | 213.4 | $ | (398.4 | ) | $ | 152.7 | ||||||||||
Total comprehensive income (loss) | $ | 153.7 | $ | 16.2 | $ | 166.6 | $ | 218.1 | $ | (398.7 | ) | $ | 155.9 | ||||||||||
Less: Total comprehensive income attributable to noncontrolling interests | — | — | — | 2.2 | — | 2.2 | |||||||||||||||||
Total comprehensive income (loss) attributable to Allegion plc | $ | 153.7 | $ | 16.2 | $ | 166.6 | $ | 215.9 | $ | (398.7 | ) | $ | 153.7 |
In millions | Allegion plc | Allegion US Holding | Other Subsidiary Guarantors | Other Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||||
Net revenues | $ | — | $ | — | $ | 388.3 | $ | 180.0 | $ | (48.8 | ) | $ | 519.5 | ||||||||||
Cost of goods sold | — | — | 219.3 | 127.2 | (48.8 | ) | 297.7 | ||||||||||||||||
Selling and administrative expenses | 1.1 | — | 78.4 | 46.6 | — | 126.1 | |||||||||||||||||
Operating income (loss) | (1.1 | ) | — | 90.6 | 6.2 | — | 95.7 | ||||||||||||||||
Equity earnings (loss) in affiliates, net of tax | 71.1 | 27.1 | 0.8 | 61.5 | (160.5 | ) | — | ||||||||||||||||
Interest expense | 5.9 | 5.4 | — | — | — | 11.3 | |||||||||||||||||
Intercompany interest and fees | 0.2 | 22.8 | (9.6 | ) | (13.4 | ) | — | — | |||||||||||||||
Other (income) expense, net | — | — | — | 0.4 | — | 0.4 | |||||||||||||||||
Earnings (loss) before income taxes | 63.9 | (1.1 | ) | 101.0 | 80.7 | (160.5 | ) | 84.0 | |||||||||||||||
Provision (benefit) for income taxes | — | (10.8 | ) | 38.7 | (8.9 | ) | — | 19.0 | |||||||||||||||
Earnings (loss) from continuing operations | 63.9 | 9.7 | 62.3 | 89.6 | (160.5 | ) | 65.0 | ||||||||||||||||
Discontinued operations, net of tax | — | — | — | — | — | — | |||||||||||||||||
Net earnings (loss) | 63.9 | 9.7 | 62.3 | 89.6 | (160.5 | ) | 65.0 | ||||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | 1.1 | — | 1.1 | |||||||||||||||||
Net earnings (loss) attributable to Allegion plc | $ | 63.9 | $ | 9.7 | $ | 62.3 | $ | 88.5 | $ | (160.5 | ) | $ | 63.9 | ||||||||||
Total comprehensive income (loss) | $ | 69.4 | $ | 10.1 | $ | 59.0 | $ | 98.2 | $ | (166.2 | ) | $ | 70.5 | ||||||||||
Less: Total comprehensive income attributable to noncontrolling interests | — | — | — | 1.1 | — | 1.1 | |||||||||||||||||
Total comprehensive income (loss) attributable to Allegion plc | $ | 69.4 | $ | 10.1 | $ | 59.0 | $ | 97.1 | $ | (166.2 | ) | $ | 69.4 |
In millions | Allegion plc | Allegion US Holding | Other Subsidiary Guarantors | Other Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||||
Net revenues | $ | — | $ | — | $ | 729.3 | $ | 343.9 | $ | (95.0 | ) | $ | 978.2 | ||||||||||
Cost of goods sold | — | — | 417.6 | 246.7 | (95.0 | ) | 569.3 | ||||||||||||||||
Selling and administrative expenses | 2.0 | (0.1 | ) | 151.2 | 89.1 | — | 242.2 | ||||||||||||||||
Operating income (loss) | (2.0 | ) | 0.1 | 160.5 | 8.1 | — | 166.7 | ||||||||||||||||
Equity earnings (loss) in affiliates, net of tax | 123.8 | 37.1 | 1.4 | 109.7 | (272.0 | ) | — | ||||||||||||||||
Interest expense | 12.4 | 10.4 | — | 0.1 | — | 22.9 | |||||||||||||||||
Intercompany interest and fees | 0.2 | 46.2 | (18.7 | ) | (27.7 | ) | — | — | |||||||||||||||
Other (income) expense, net | (0.1 | ) | (0.2 | ) | 0.4 | 3.4 | — | 3.5 | |||||||||||||||
Earnings (loss) before income taxes | 109.3 | (19.2 | ) | 180.2 | 142.0 | (272.0 | ) | 140.3 | |||||||||||||||
Provision (benefit) for income taxes | — | (21.7 | ) | 69.0 | (15.9 | ) | — | 31.4 | |||||||||||||||
Earnings (loss) from continuing operations | 109.3 | 2.5 | 111.2 | 157.9 | (272.0 | ) | 108.9 | ||||||||||||||||
Discontinued operations, net of tax | — | — | (0.1 | ) | (0.1 | ) | — | (0.2 | ) | ||||||||||||||
Net earnings (loss) | 109.3 | 2.5 | 111.1 | 157.8 | (272.0 | ) | 108.7 | ||||||||||||||||
Less: Net loss attributable to noncontrolling interests | — | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||
Net earnings (loss) attributable to Allegion plc | $ | 109.3 | $ | 2.5 | $ | 111.1 | $ | 158.4 | $ | (272.0 | ) | $ | 109.3 | ||||||||||
Total comprehensive income (loss) | $ | 84.4 | $ | 1.3 | $ | 111.6 | $ | 133.6 | $ | (247.1 | ) | $ | 83.8 | ||||||||||
Less: Total comprehensive income attributable to noncontrolling interests | — | — | — | (0.6 | ) | — | (0.6 | ) | |||||||||||||||
Total comprehensive income (loss) attributable to Allegion plc | $ | 84.4 | $ | 1.3 | $ | 111.6 | $ | 134.2 | $ | (247.1 | ) | $ | 84.4 |
In millions | Allegion plc | Allegion US Holding | Other Subsidiary Guarantors | Other Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 0.4 | $ | 0.2 | $ | 63.8 | $ | 104.7 | $ | — | $ | 169.1 | |||||||||||
Accounts and notes receivable, net | — | — | 156.9 | 191.4 | — | 348.3 | |||||||||||||||||
Inventories | — | — | 74.1 | 151.2 | — | 225.3 | |||||||||||||||||
Other current assets | 1.0 | 22.3 | 13.4 | 113.7 | (65.2 | ) | 85.2 | ||||||||||||||||
Accounts and notes receivable affiliates | 167.8 | 418.9 | 485.4 | 318.5 | (1,390.6 | ) | — | ||||||||||||||||
Total current assets | 169.2 | 441.4 | 793.6 | 879.5 | (1,455.8 | ) | 827.9 | ||||||||||||||||
Investment in affiliates | 1,161.8 | 2,986.4 | 193.6 | 4,238.6 | (8,580.4 | ) | — | ||||||||||||||||
Property, plant and equipment, net | — | — | 119.1 | 108.0 | — | 227.1 | |||||||||||||||||
Intangible assets, net | — | — | 181.1 | 937.6 | — | 1,118.7 | |||||||||||||||||
Notes receivable affiliates | — | 1,144.2 | 3,637.5 | 1,727.0 | (6,508.7 | ) | — | ||||||||||||||||
Other noncurrent assets | 6.2 | 9.1 | 89.5 | 67.0 | — | 171.8 | |||||||||||||||||
Total assets | $ | 1,337.2 | $ | 4,581.1 | $ | 5,014.4 | $ | 7,957.7 | $ | (16,544.9 | ) | $ | 2,345.5 | ||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable and accruals | $ | 8.6 | $ | 4.4 | $ | 234.6 | $ | 238.7 | $ | (65.2 | ) | $ | 421.1 | ||||||||||
Short-term borrowings and current maturities of long-term debt | 46.9 | — | — | 1.7 | — | 48.6 | |||||||||||||||||
Accounts and note payable affiliates | 0.3 | 36.3 | 678.6 | 675.4 | (1,390.6 | ) | — | ||||||||||||||||
Total current liabilities | 55.8 | 40.7 | 913.2 | 915.8 | (1,455.8 | ) | 469.7 | ||||||||||||||||
Long-term debt | 1,142.2 | 293.7 | — | 1.2 | — | 1,437.1 | |||||||||||||||||
Note payable affiliate | — | 2,759.9 | — | 3,748.8 | (6,508.7 | ) | — | ||||||||||||||||
Other noncurrent liabilities | — | 4.6 | 128.9 | 162.4 | — | 295.9 | |||||||||||||||||
Total liabilities | 1,198.0 | 3,098.9 | 1,042.1 | 4,828.2 | (7,964.5 | ) | 2,202.7 | ||||||||||||||||
Equity: | |||||||||||||||||||||||
Total shareholders equity (deficit) | 139.2 | 1,482.2 | 3,972.3 | 3,125.9 | (8,580.4 | ) | 139.2 | ||||||||||||||||
Noncontrolling interests | — | — | — | 3.6 | — | 3.6 | |||||||||||||||||
Total equity (deficit) | 139.2 | 1,482.2 | 3,972.3 | 3,129.5 | (8,580.4 | ) | 142.8 | ||||||||||||||||
Total liabilities and equity | $ | 1,337.2 | $ | 4,581.1 | $ | 5,014.4 | $ | 7,957.7 | $ | (16,544.9 | ) | $ | 2,345.5 |
In millions | Allegion plc | Allegion US Holding | Other Subsidiary Guarantors | Other Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 3.3 | $ | 0.3 | $ | 73.8 | $ | 122.3 | $ | — | $ | 199.7 | |||||||||||
Accounts and notes receivable, net | — | — | 121.6 | 181.8 | — | 303.4 | |||||||||||||||||
Inventories | — | — | 106.7 | 97.4 | — | 204.1 | |||||||||||||||||
Other current assets | 0.5 | 44.7 | 9.9 | (27.2 | ) | — | 27.9 | ||||||||||||||||
Accounts receivable affiliates | 248.6 | 356.4 | 375.9 | 324.5 | (1,305.4 | ) | — | ||||||||||||||||
Total current assets | 252.4 | 401.4 | 687.9 | 698.8 | (1,305.4 | ) | 735.1 | ||||||||||||||||
Investment in affiliates | 986.2 | 3,001.4 | 192.9 | 4,660.2 | (8,840.7 | ) | — | ||||||||||||||||
Property, plant and equipment, net | — | — | 147.6 | 77.2 | — | 224.8 | |||||||||||||||||
Intangible assets, net | — | — | 181.4 | 905.1 | — | 1,086.5 | |||||||||||||||||
Notes receivable affiliates | — | 1,144.2 | 3,549.9 | 1,726.3 | (6,420.4 | ) | — | ||||||||||||||||
Other noncurrent assets | 10.8 | 1.5 | 82.1 | 122.2 | — | 216.6 | |||||||||||||||||
Total assets | $ | 1,249.4 | $ | 4,548.5 | $ | 4,841.8 | $ | 8,189.8 | $ | (16,566.5 | ) | $ | 2,263.0 | ||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts payable and accruals | $ | 8.2 | $ | 4.3 | $ | 356.7 | $ | 12.3 | $ | — | $ | 381.5 | |||||||||||
Short-term borrowings and current maturities of long-term debt | 46.9 | — | 0.1 | 18.6 | — | 65.6 | |||||||||||||||||
Accounts and note payable affiliates | 0.3 | 57.5 | 636.4 | 611.2 | (1,305.4 | ) | — | ||||||||||||||||
Total current liabilities | 55.4 | 61.8 | 993.2 | 642.1 | (1,305.4 | ) | 447.1 | ||||||||||||||||
Long-term debt | 1,168.4 | 289.1 | — | — | — | 1,457.5 | |||||||||||||||||
Note payable affiliate | — | 2,750.8 | — | 3,669.6 | (6,420.4 | ) | — | ||||||||||||||||
Other noncurrent liabilities | — | 1.2 | 124.7 | 202.8 | — | 328.7 | |||||||||||||||||
Total liabilities | 1,223.8 | 3,102.9 | 1,117.9 | 4,514.5 | (7,725.8 | ) | 2,233.3 | ||||||||||||||||
Equity: | |||||||||||||||||||||||
Total shareholders equity (deficit) | 25.6 | 1,445.6 | 3,723.9 | 3,671.2 | (8,840.7 | ) | 25.6 | ||||||||||||||||
Noncontrolling interests | — | — | — | 4.1 | — | 4.1 | |||||||||||||||||
Total equity (deficit) | 25.6 | 1,445.6 | 3,723.9 | 3,675.3 | (8,840.7 | ) | 29.7 | ||||||||||||||||
Total liabilities and equity | $ | 1,249.4 | $ | 4,548.5 | $ | 4,841.8 | $ | 8,189.8 | $ | (16,566.5 | ) | $ | 2,263.0 |
In millions | Allegion plc | Allegion US Holding | Other Subsidiary Guarantors | Other Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||||
Net cash provided by (used in) operating activities | 69.3 | (9.3 | ) | 195.4 | 153.4 | (307.6 | ) | 101.2 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | — | (3.8 | ) | (12.7 | ) | — | (16.5 | ) | ||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | — | (31.4 | ) | — | (31.4 | ) | |||||||||||||||
Proceeds from sales of marketable securities | — | — | — | 14.1 | — | 14.1 | |||||||||||||||||
Other investing activities, net | — | — | — | (4.7 | ) | — | (4.7 | ) | |||||||||||||||
Net cash used in investing activities | — | — | (3.8 | ) | (34.7 | ) | — | (38.5 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Debt repayments, net | (23.5 | ) | — | — | (17.0 | ) | — | (40.5 | ) | ||||||||||||||
Net inter-company proceeds (payments) | — | 9.2 | (8.5 | ) | (0.7 | ) | — | — | |||||||||||||||
Dividends (paid) received | — | — | (193.1 | ) | (114.5 | ) | 307.6 | — | |||||||||||||||
Dividends paid to shareholders | (22.9 | ) | — | — | — | — | (22.9 | ) | |||||||||||||||
Acquisition of noncontrolling interest | — | — | — | (0.4 | ) | — | (0.4 | ) | |||||||||||||||
Repurchase of ordinary shares | (30.0 | ) | — | — | — | — | (30.0 | ) | |||||||||||||||
Other financing activities, net | 4.2 | — | — | (5.4 | ) | — | (1.2 | ) | |||||||||||||||
Net cash provided by (used in) financing activities | (72.2 | ) | 9.2 | (201.6 | ) | (138.0 | ) | 307.6 | (95.0 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | 1.7 | — | 1.7 | |||||||||||||||||
Net decrease in cash and cash equivalents | (2.9 | ) | (0.1 | ) | (10.0 | ) | (17.6 | ) | — | (30.6 | ) | ||||||||||||
Cash and cash equivalents - beginning of period | 3.3 | 0.3 | 73.8 | 122.3 | — | 199.7 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | 0.4 | $ | 0.2 | $ | 63.8 | $ | 104.7 | $ | — | $ | 169.1 |
In millions | Allegion plc | Allegion US Holding | Other Subsidiary Guarantors | Other Subsidiaries | Consolidating Adjustments | Total | |||||||||||||||||
Net cash provided by (used in) continuing operating activities | $ | 40.0 | $ | 24.2 | $ | 112.8 | $ | 92.2 | $ | (235.8 | ) | $ | 33.4 | ||||||||||
Net cash used in discontinued operating activities | — | — | (0.1 | ) | (0.1 | ) | — | (0.2 | ) | ||||||||||||||
Net cash provided by (used in) operating activities | 40.0 | 24.2 | 112.7 | 92.1 | (235.8 | ) | 33.2 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | — | — | (14.9 | ) | (3.7 | ) | — | (18.6 | ) | ||||||||||||||
Acquisition of businesses, net of cash acquired | — | — | (31.3 | ) | (20.7 | ) | — | (52.0 | ) | ||||||||||||||
Other investing activities, net | — | — | 3.9 | 0.2 | — | 4.1 | |||||||||||||||||
Net cash used in investing activities | — | — | (42.3 | ) | (24.2 | ) | — | (66.5 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Debt repayments, net | (24.4 | ) | — | — | 12.2 | — | (12.2 | ) | |||||||||||||||
Net inter-company proceeds (payments) | — | (24.4 | ) | (48.9 | ) | 73.3 | — | — | |||||||||||||||
Dividends (paid) received | — | — | (68.0 | ) | (167.8 | ) | 235.8 | — | |||||||||||||||
Dividends paid to shareholders | (19.1 | ) | — | — | — | — | (19.1 | ) | |||||||||||||||
Repurchase of ordinary shares | (30.0 | ) | — | — | — | — | (30.0 | ) | |||||||||||||||
Other financing activities, net | 8.8 | — | — | (0.1 | ) | — | 8.7 | ||||||||||||||||
Net cash provided by (used in) financing activities | (64.7 | ) | (24.4 | ) | (116.9 | ) | (82.4 | ) | 235.8 | (52.6 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | (3.6 | ) | — | (3.6 | ) | |||||||||||||||
Net decrease in cash and cash equivalents | (24.7 | ) | (0.2 | ) | (46.5 | ) | (18.1 | ) | — | (89.5 | ) | ||||||||||||
Cash and cash equivalents - beginning of period | 27.1 | 0.5 | 126.3 | 136.6 | — | 290.5 | |||||||||||||||||
Cash and cash equivalents - end of period | $ | 2.4 | $ | 0.3 | $ | 79.8 | $ | 118.5 | $ | — | $ | 201.0 |
Acquisitions / Investments | Divestitures | |||
Business | Month | Business | Month | |
iDevices | February 2015 | Venezuela | August 2015 | |
Zero | April 2015 | Bocom | November 2015 | |
Brio | May 2015 | |||
Milre | July 2015 | |||
SimonsVoss | September 2015 | |||
AXA | September 2015 | |||
Trelock | June 2016 |
In millions, except per share amounts | 2016 | % of revenues | 2015 | % of revenues | |||||||||
Net revenues | $ | 584.9 | $ | 519.5 | |||||||||
Cost of goods sold | 317.5 | 54.3 | % | 297.7 | 57.3 | % | |||||||
Selling and administrative expenses | 143.1 | 24.5 | % | 126.1 | 24.3 | % | |||||||
Operating income | 124.3 | 21.3 | % | 95.7 | 18.4 | % | |||||||
Interest expense | 16.5 | 11.3 | |||||||||||
Other (income) expense, net | (8.6 | ) | 0.4 | ||||||||||
Earnings before income taxes | 116.4 | 84.0 | |||||||||||
Provision for income taxes | 21.0 | 19.0 | |||||||||||
Earnings from continuing operations | 95.4 | 65.0 | |||||||||||
Net earnings | 95.4 | 65.0 | |||||||||||
Less: Net earnings attributable to noncontrolling interests | 0.4 | 1.1 | |||||||||||
Net earnings attributable to Allegion plc | $ | 95.0 | $ | 63.9 | |||||||||
Diluted net earnings per ordinary share attributable to Allegion plc ordinary shareholders: | |||||||||||||
Continuing operations | $ | 0.98 | $ | 0.66 | |||||||||
Discontinued operations | — | — | |||||||||||
Net earnings | $ | 0.98 | $ | 0.66 |
Pricing | 0.4 | % |
Volume/product mix | 8.5 | % |
Acquisitions/divestitures | 4.1 | % |
Currency exchange rates | (0.4 | )% |
Total | 12.6 | % |
In millions | Operating Income | Operating Margin | ||||
June 30, 2015 | $ | 95.7 | 18.4 | % | ||
Inflation in excess of pricing and productivity | (1.6 | ) | (0.5 | )% | ||
Volume/product mix | 22.6 | 2.6 | % | |||
Currency exchange rates | 1.1 | 0.3 | % | |||
Investment spending and other items | (1.1 | ) | (0.2 | )% | ||
Acquisitions / divestitures | 3.5 | (0.1 | )% | |||
Restructuring / acquisition costs | 4.1 | 0.8 | % | |||
June 30, 2016 | $ | 124.3 | 21.3 | % |
In millions | 2016 | 2015 | |||||
Interest income | $ | (0.9 | ) | $ | (0.5 | ) | |
Exchange (gain) loss | (0.6 | ) | 0.6 | ||||
Loss (earnings) from equity investments | (0.5 | ) | — | ||||
Other | (6.6 | ) | 0.3 | ||||
Other (income) expense, net | $ | (8.6 | ) | $ | 0.4 |
In millions, except per share amounts | 2016 | % of revenues | 2015 | % of revenues | |||||||||
Net revenues | $ | 1,087.2 | $ | 978.2 | |||||||||
Cost of goods sold | 603.5 | 55.5 | % | 569.3 | 58.2 | % | |||||||
Selling and administrative expenses | 276.9 | 25.5 | % | 242.2 | 24.8 | % | |||||||
Operating income | 206.8 | 19.0 | % | 166.7 | 17.0 | % | |||||||
Interest expense | 32.8 | 22.9 | |||||||||||
Other (income) expense, net | (17.4 | ) | 3.5 | ||||||||||
Earnings before income taxes | 191.4 | 140.3 | |||||||||||
Provision for income taxes | 37.2 | 31.4 | |||||||||||
Earnings from continuing operations | 154.2 | 108.9 | |||||||||||
Discontinued operations, net of tax | — | (0.2 | ) | ||||||||||
Net earnings | 154.2 | 108.7 | |||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 1.5 | (0.6 | ) | ||||||||||
Net earnings attributable to Allegion plc | $ | 152.7 | $ | 109.3 | |||||||||
Diluted net earnings per ordinary share attributable to Allegion plc ordinary shareholders: | |||||||||||||
Continuing operations | $ | 1.58 | $ | 1.13 | |||||||||
Discontinued operations | — | — | |||||||||||
Net earnings | $ | 1.58 | $ | 1.13 |
Pricing | 0.7 | % |
Volume/product mix | 5.7 | % |
Acquisitions/divestitures | 5.5 | % |
Currency exchange rates | (0.8 | )% |
Total | 11.1 | % |
In millions | Operating Income | Operating Margin | ||||
June 30, 2015 | $ | 166.7 | 17.0 | % | ||
Pricing and productivity in excess of inflation | 4.8 | 0.2 | % | |||
Volume/product mix | 23.6 | 1.4 | % | |||
Non-cash inventory impairment | 4.2 | 0.4 | % | |||
Restructuring / acquisition costs | 2.0 | 0.2 | % | |||
Acquisitions / divestitures | 8.3 | (0.1 | )% | |||
Currency exchange rates | 2.2 | 0.4 | % | |||
Investment spending and other items | (5.0 | ) | (0.5 | )% | ||
June 30, 2016 | $ | 206.8 | 19.0 | % |
In millions | 2016 | 2015 | |||||
Interest income | $ | (1.4 | ) | $ | (0.8 | ) | |
Exchange loss | 2.4 | 3.9 | |||||
Loss (earnings) from equity investments | (4.0 | ) | 0.2 | ||||
Other | (14.4 | ) | 0.2 | ||||
Other (income) expense, net | $ | (17.4 | ) | $ | 3.5 |
Three months ended | Six months ended | ||||||||||||||||||||
in millions | 2016 | 2015 | % Change | 2016 | 2015 | % Change | |||||||||||||||
Net revenues | |||||||||||||||||||||
Americas | $ | 436.5 | $ | 402.1 | 8.6 | % | $ | 799.5 | $ | 756.4 | 5.7 | % | |||||||||
EMEIA | 121.6 | 83.9 | 44.9 | % | 240.1 | 165.6 | 45.0 | % | |||||||||||||
Asia Pacific | 26.8 | 33.5 | (20.0 | )% | 47.6 | 56.2 | (15.3 | )% | |||||||||||||
Total | $ | 584.9 | $ | 519.5 | $ | 1,087.2 | $ | 978.2 | |||||||||||||
Segment operating income (loss) | |||||||||||||||||||||
Americas | $ | 130.0 | 111.9 | 16.2 | % | $ | 220.2 | 196.1 | 12.3 | % | |||||||||||
EMEIA | 8.9 | 0.5 | 1,680.0 | % | 16.9 | 3.1 | 445.2 | % | |||||||||||||
Asia Pacific | 2.1 | (1.4 | ) | 250.0 | % | 2.0 | (4.0 | ) | 150.0 | % | |||||||||||
Total | $ | 141.0 | $ | 111.0 | $ | 239.1 | $ | 195.2 | |||||||||||||
Segment operating margin | |||||||||||||||||||||
Americas | 29.8 | % | 27.8 | % | 27.5 | % | 25.9 | % | |||||||||||||
EMEIA | 7.3 | % | 0.6 | % | 7.0 | % | 1.9 | % | |||||||||||||
Asia Pacific | 7.8 | % | (4.2 | )% | 4.3 | % | (7.1 | )% |
Pricing | 0.2 | % | |
Volume | 9.6 | % | |
Acquisitions / Divestitures | (0.9 | )% | |
Currency exchange rates | (0.3 | )% | |
Total | 8.6 | % |
Pricing | 0.6 | % | |
Volume | 6.2 | % | |
Acquisitions / Divestitures | (0.5 | )% | |
Currency exchange rates | (0.6 | )% | |
Total | 5.7 | % |
In millions | Operating Income | Operating Margin | ||||
June 30, 2015 | $ | 111.9 | 27.8 | % | ||
Inflation in excess of pricing and productivity | (2.6 | ) | (0.6 | )% | ||
Volume/product mix | 20.7 | 2.3 | % | |||
Currency exchange rates | 1.5 | 0.5 | % | |||
Investment spending | 0.5 | 0.1 | % | |||
Acquisitions / divestitures | (2.0 | ) | (0.3 | )% | ||
June 30, 2016 | $ | 130.0 | 29.8 | % |
In millions | Operating Income | Operating Margin | ||||
June 30, 2015 | $ | 196.1 | 25.9 | % | ||
Pricing and productivity in excess of inflation | 3.0 | 0.2 | % | |||
Volume/product mix | 20.3 | 1.0 | % | |||
Non-cash inventory impairment | 4.2 | 0.6 | % | |||
Currency exchange rates | 2.9 | 0.5 | % | |||
Investment spending | (1.6 | ) | (0.2 | )% | ||
Acquisitions / divestitures | (3.3 | ) | (0.3 | )% | ||
Restructuring / acquisition expenses | (1.4 | ) | (0.2 | )% | ||
June 30, 2016 | $ | 220.2 | 27.5 | % |
Pricing | 1.5 | % | |
Volume | 1.5 | % | |
Acquisitions / Divestitures | 41.6 | % | |
Currency exchange rates | 0.3 | % | |
Total | 44.9 | % |
Pricing | 1.3 | % | |
Volume | 1.9 | % | |
Acquisitions / Divestitures | 43.0 | % | |
Currency exchange rates | (1.2 | )% | |
Total | 45.0 | % |
In millions | Operating Income | Operating Margin | ||||
June 30, 2015 | $ | 0.5 | 0.6 | % | ||
Pricing and productivity in excess of inflation | 2.6 | 1.3 | % | |||
Volume/product mix | 0.2 | 0.2 | % | |||
Currency exchange rates | (0.1 | ) | (0.1 | )% | ||
Investment spending | (1.4 | ) | (1.6 | )% | ||
Acquisitions / divestitures | 3.7 | 2.9 | % | |||
Restructuring expenses | 3.4 | 4.0 | % | |||
June 30, 2016 | $ | 8.9 | 7.3 | % |
In millions | Operating Income | Operating Margin | ||||
June 30, 2015 | $ | 3.1 | 1.9 | % | ||
Pricing and productivity in excess of inflation | 3.8 | 1.2 | % | |||
Volume/product mix | 0.8 | 0.4 | % | |||
Currency exchange rates | (0.2 | ) | (0.1 | )% | ||
Investment spending | (1.8 | ) | (1.1 | )% | ||
Acquisitions / divestitures | 8.2 | 2.9 | % | |||
Restructuring expenses | 3.0 | 1.9 | % | |||
June 30, 2016 | $ | 16.9 | 7.1 | % |
Pricing | 0.4 | % | |
Volume | 12.5 | % | |
Acquisitions / Divestitures | (30.0 | )% | |
Currency exchange rates | (2.9 | )% | |
Total | (20.0 | )% |
Pricing | 0.5 | % | |
Volume | 10.5 | % | |
Acquisitions / Divestitures | (22.9 | )% | |
Currency exchange rates | (3.4 | )% | |
Total | (15.3 | )% |
In millions | Operating Income | Operating Margin | ||||
June 30, 2015 | $ | (1.4 | ) | (4.2 | )% | |
Pricing and productivity in excess of inflation | 0.8 | 3.5 | % | |||
Volume/product mix | 1.8 | 5.2 | % | |||
Currency exchange rates | (0.3 | ) | (1.0 | )% | ||
Investment spending | (0.4 | ) | (1.2 | )% | ||
Acquisitions / divestitures | 1.8 | 6.1 | % | |||
Restructuring expenses | (0.2 | ) | (0.6 | )% | ||
June 30, 2016 | $ | 2.1 | 7.8 | % |
In millions | Operating Income | Operating Margin | ||||
June 30, 2015 | $ | (4.0 | ) | (7.1 | )% | |
Pricing and productivity in excess of inflation | 1.2 | 3.1 | % | |||
Volume/product mix | 2.5 | 4.7 | % | |||
Currency exchange rates | (0.5 | ) | (1.2 | )% | ||
Investment spending | (0.4 | ) | (0.7 | )% | ||
Acquisitions / divestitures | 3.5 | 5.9 | % | |||
Restructuring expenses | (0.3 | ) | (0.5 | )% | ||
June 30, 2016 | $ | 2.0 | 4.2 | % |
In millions | 2016 | 2015 | |||||
Operating cash flow provided by continuing operations | $ | 101.2 | $ | 33.4 | |||
Investing cash flow used in continuing operations | (38.5 | ) | (66.5 | ) | |||
Financing cash flow used in continuing operations | (95.0 | ) | (52.6 | ) |
In millions | June 30, 2016 | December 31, 2015 | |||||
Term Loan A Facility | $ | 903.2 | $ | 926.7 | |||
5.75% Senior notes due 2021 | 300.0 | 300.0 | |||||
5.875% Senior notes due 2023 | 300.0 | 300.0 | |||||
Other debt, including capital leases, maturing in various amounts through 2024 | 2.8 | 18.7 | |||||
Unamortized debt issuance costs, net | (20.3 | ) | (22.3 | ) | |||
Total debt | $ | 1,485.7 | $ | 1,523.1 | |||
Less current portion of long-term debt | 48.6 | 65.6 | |||||
$ | 1,437.1 | $ | 1,457.5 |
• | economic, political and business conditions in the markets in which we operate; |
• | the demand for our products and services; |
• | competitive factors in the industry in which we compete; |
• | the ability to protect and use intellectual property; |
• | fluctuations in currency exchange rates; |
• | the ability to complete and integrate any acquisitions; |
• | our ability to operate efficiently and productively; |
• | our ability to manage risks related to our information technology; |
• | changes in tax requirements (including tax rate changes, new tax laws and revised tax law interpretations); |
• | the outcome of any litigation, governmental investigations or proceedings; |
• | interest rate fluctuations and other changes in borrowing costs; |
• | other capital market conditions, including availability of funding sources and currency exchange rate fluctuations; |
• | availability of and fluctuations in the prices of key commodities and the impact of higher energy prices; |
• | potential further impairment of our goodwill, indefinite-lived intangible assets and/or our long-lived assets; |
• | the possible effects on us of future legislation in the U.S. that may limit or eliminate potential U.S. tax benefits resulting from our incorporation in a non-U.S. jurisdiction, such as Ireland, or deny U.S. government contracts to us based upon our incorporation in such non-U.S. jurisdiction; |
• | the impact our substantial leverage may have on our business and operations; and |
• | our ability to successfully implement new information technology systems. |
Exhibit No. | Description | Method of Filing | ||
3.1 | Amended and Restated Memorandum and Articles of Association of Allegion plc | Incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed with the SEC on June 8, 2016 (File No. 001-35971). | ||
12.1 | Ratio of Earnings to Fixed Charges | Filed herewith. | ||
31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | Filed herewith. | ||
31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | Filed herewith. | ||
32 | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | Furnished herewith. | ||
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed and Consolidated Statements of Comprehensive Income, (ii) the Condensed and Consolidated Balance Sheets, (iii) the Condensed and Consolidated Statement of Cash Flows, and (iv) Notes to Condensed and Consolidated Financial Statements. | Filed herewith. | ||
ALLEGION PLC (Registrant) | ||
Date: | July 28, 2016 | /s/ Patrick S. Shannon |
Patrick S. Shannon, Senior Vice President and Chief Financial Officer Principal Financial Officer | ||
Date: | July 28, 2016 | /s/ Douglas P. Ranck |
Douglas P. Ranck Vice President and Corporate Controller Principal Accounting Officer |
Exhibit No. | Description | |
3.1 | Amended and Restated Memorandum and Articles of Association of Allegion plc | |
12.1 | Ratio of Earnings to Fixed Charges | |
31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32 | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed and Consolidated Statements of Comprehensive Income, (ii) the Condensed and Consolidated Balance Sheets, (iii) the Condensed and Consolidated Statement of Cash Flows, and (iv) Notes to Condensed and Consolidated Financial Statements. | |
Six months ended June 30, | Year Ended December 31, | ||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Earnings from continuing operations | |||||||||||||||||||||||||||
before income taxes | $ | 187.4 | $ | 140.5 | $ | 209.5 | 267.4 | $ | 223.4 | $ | 366.7 | $ | 362.2 | ||||||||||||||
Fixed charges | 38.4 | 28.1 | 63.6 | 60.1 | 22.0 | 13.3 | 9.0 | ||||||||||||||||||||
Total earnings | $ | 225.8 | $ | 168.6 | $ | 273.1 | $ | 327.5 | $ | 245.4 | $ | 380.0 | $ | 371.2 | |||||||||||||
Fixed charges: | |||||||||||||||||||||||||||
Interest expense* | $ | 32.8 | $ | 22.9 | $ | 52.9 | $ | 49.3 | $ | 10.2 | $ | 1.5 | $ | 1.4 | |||||||||||||
Rentals (one-third of rentals) | 5.6 | 5.2 | 10.7 | 10.8 | 11.8 | 11.8 | 7.6 | ||||||||||||||||||||
Total fixed charges | $ | 38.4 | $ | 28.1 | $ | 63.6 | $ | 60.1 | $ | 22.0 | $ | 13.3 | $ | 9.0 | |||||||||||||
Ratio of earnings to fixed charges | 5.9 | 6.0 | 4.3 | 5.4 | 11.2 | 28.6 | 41.2 |
1. | I have reviewed the Quarterly Report on Form 10-Q of Allegion plc for the three and six months ended June 30, 2016; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 28, 2016 | /s/ David D. Petratis | |
David D. Petratis | |||
Principal Executive Officer |
1. | I have reviewed the Quarterly Report on Form 10-Q of Allegion plc for the three and six months ended June 30, 2016; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | July 28, 2016 | /s/ Patrick S. Shannon | |
Patrick S. Shannon | |||
Principal Financial Officer |
/s/ David D. Petratis |
David D. Petratis |
Principal Executive Officer |
July 28, 2016 |
/s/ Patrick S. Shannon |
Patrick S. Shannon |
Principal Financial Officer |
July 28, 2016 |
Document and Entity Information Document - shares |
6 Months Ended | |
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Jun. 30, 2016 |
Jul. 25, 2016 |
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Document and Entity Information [Abstract] | ||
Entity Registrant Name | Allegion plc | |
Entity Central Index Key | 0001579241 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 95,897,958 |
Basis of Presentation |
6 Months Ended |
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Jun. 30, 2016 | |
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, 2015. 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 Pronouncements |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements: In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of as an asset. The ASU is effective for annual reporting periods beginning after December 15, 2015. As further reflected in Note 8 to the Condensed and Consolidated Financial Statements, we retrospectively adopted ASU 2015-03 in the first quarter of 2016. As a result of the adoption of ASU 2015-03, the Company reclassified $22.3 million of unamortized debt issuance costs from Other noncurrent assets to Long term debt within its previously reported Consolidated Balance Sheet as of December 31, 2015. In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 802): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Prior to the issuance of the standard, entities were required to retrospectively apply adjustments made to provisional amounts recognized in a business combination. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and early adoption is permitted. The Company made one immaterial measurement-period adjustment related to a business combination from September 2015 during the six months ended June 30, 2016. The impact of ASU 2015-16 on this adjustment did not have a material impact on the Condensed and Consolidated Financial Statements. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." ASU 2014-09 is the result of a joint project between the FASB and International Accounting Standards Board ("IASB") to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards ("IFRS") that would remove inconsistencies and weaknesses in revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, provide more useful information to users of financial statements through improved disclosure requirements and simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. On July 9, 2015, the FASB voted to defer the effective date by one year to the interim and annual periods beginning on or after December 15, 2017. Early adoption is permitted for periods beginning on or after December 15, 2016. The Company is assessing the impact ASU 2014-09 will have on the Condensed and Consolidated Financial Statements. 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 must now be recognized as assets and liabilities on the balance sheet of the lessee. Under ASU 2016-02, a right-of-use asset and lease obligation will be recorded for all leases, whether operating or financing, while the income statement will reflect lease expense for operating leases and amortization/interest expense for financing leases. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted. ASU 2016-05 is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. The Company is assessing what impact ASU 2016-02 will have on the Condensed and Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is assessing what impact ASU 2016-09 will have on the Condensed and Consolidated Financial Statements. 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, 2020, 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. |
Inventories |
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Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value using the first-in first-out (FIFO) method. The major classes of inventory were as follows:
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Goodwill |
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Goodwill Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The changes in the carrying amount of goodwill for the six months ended June 30, 2016 were as follows:
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Intangible Assets |
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Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets The gross amount of the Company’s intangible assets and related accumulated amortization were as follows:
Intangible asset amortization expense was $10.2 million and $3.8 million for the six months ended June 30, 2016 and 2015, respectively. Future estimated amortization expense on existing intangible assets in each of the next five years amounts to approximately $20.0 million for full year 2016, $19.9 million for 2017, $19.9 million for 2018, $19.9 million for 2019, and $19.9 million for 2020. |
Acquisition |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions 2016 In June 2016 the Company acquired 100% of Trelock GmbH, a portable safety and security provider, and certain affiliated companies. 2015 In 2015, the Company completed six acquisitions or investments:
Total consideration paid for the acquisitions was $511.3 million (net of cash acquired). The preliminary allocation of the aggregate purchase price to assets acquired and liabilities assumed for the acquisitions described above is as follows:
The Milre, SimonsVoss, and AXA purchase price allocations for the acquisitions are pending completion of calculation of certain tax balances. Also, final environmental reserve estimates at AXA are still pending completion. These acquisitions are accounted for as business combinations. The following unaudited pro forma financial information for the three and six months ended June 30, 2015 reflects the consolidated results of operations of the Company as if the acquisitions had taken place on January 1, 2014.
During the three and six months ended June 30, 2015 the Company incurred $1.7 million of acquisition related costs. These expenses are included in selling and administrative expenses in the Condensed and Consolidated Statement of Comprehensive Income. For pro forma purposes, the expenses were assumed to have been incurred on January 1, 2014. Pro forma Net earnings (loss) attributable to Allegion plc in the table above has been adjusted to reflect the costs in the assumed acquisition period. The Company’s historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the acquisitions. This unaudited pro forma financial information has been 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 results of the acquired companies to reflect the additional amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied from January 1, 2014 with the consequential tax effects. Additionally, interest related to the issuance of $300 million of senior notes and the borrowing of $100 million on the revolving facility has been included in the pro forma results above as if the debt was outstanding as of January 1, 2014. For purposes of calculating interest on the additional debt amounts, the Company has assumed the total amount is outstanding for all pro forma periods presented. The following financial information reflects the results of revenue and earnings of the acquisitions since their respective acquisition dates included in the Condensed and Consolidated Statement of Comprehensive Income as of the three and six months ended June 30, 2016 and 2015.
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Divestitures Divestitures (Notes) |
6 Months Ended |
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Jun. 30, 2016 | |
Divestitures [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Divestitures As previously disclosed, the Company sold a majority stake of Bocom Wincent Technologies Co., Ltd. ("Bocom") in the fourth quarter of 2015. Bocom operates a security system integration business exclusively in China and provides services primarily to Chinese governments and government agencies. Under the terms of the transaction, the Company may receive consideration of up to $75 million based on the future cash collection performance of Bocom and additional payments of approximately $8.3 million related to working capital transferred with the sale. Additionally, the Company has retained 15% of the shares of Bocom. The Company currently estimates the fair value of the consideration to be $75.3 million, of which $57.1 million is classified in Accounts and notes receivable, net and the remaining amount is classified within Other assets within the Condensed and Consolidated Balance Sheet. The Company currently estimates payment to be completed in approximately 2 years; however repayment may be delayed depending on the timing of future cash collections. The Company may incur additional charges if it is determined that future cash collections will no longer occur. The consideration has been accounted for as a receivable and recorded net of an unamortized discount. A nominal discount was amortized and recognized as interest income on the Condensed and Consolidated Statement of Comprehensive Income based on the expected term of the receivable. The fair value of the receivable was estimated by discounting the expected future cash flows. The assumptions used in this estimate are considered unobservable inputs. Fair value measurements that utilize significant unobservable inputs are categorized as Level 3 measurements under the accounting guidance. |
Debt and Credit Facilities |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Credit Facilities | Debt and Credit Facilities At June 30, long-term debt and other borrowings consisted of the following:
Senior Secured Credit Facilities The Company has credit facilities that provide for (i) $1.438 billion of Senior Secured Facilities, consisting of a $938.4 million Term Loan Facility due in 2020 (the "Term Loan A Facility") and (ii) a $500.0 million Senior Secured Revolving Credit Facility (the "Revolver") maturing in 2020. The Company refers to these credit facilities as its "Senior Secured Credit Facilities." The applicable margin for LIBOR rate borrowings ranges from 1.375% to 1.875% and the applicable margin for base rate borrowings ranges from 0.375% to 0.875%, in each case depending on the corporate credit or family rating. The Revolver and the Term Loan A Facility mature on October 15, 2020. Outstanding borrowings under the Senior Secured Credit Facilities currently accrue interest at LIBOR plus an applicable margin. The margin for the Term Loan Facility borrowings was 1.625% at June 30, 2016. To manage the Company's exposure to fluctuations in LIBOR rates, the Company has interest rate swaps for $300.0 million of the Company's variable rate Term Loan Facility. See Note 9 for more information on interest rate swaps. The Company repaid $23.4 million of principal on its Term Loan A Facility during the six months ended June 30, 2016 in accordance with the terms of its Senior Secured Credit Facility. At June 30, 2016, the Company did not have any borrowings outstanding under the Revolver and had $17.1 million of letters of credit outstanding. Allegion plc is primary borrower under the Senior Secured Credit Facility. Senior Notes A wholly-owned subsidiary of the Company has issued $300.0 million of 5.75% senior notes due 2021 (the "2021 Senior Notes"). The 2021 Senior Notes accrue interest at the rate of 5.75% per annum, payable semi-annually on April 1 and October 1 of each year. The 2021 Senior Notes mature on October 1, 2021. In September 2015, Allegion plc issued $300.0 million of 5.875% senior notes due 2023 (the "2023 Senior Notes"). The 2023 Senior Notes accrue interest at the rate of 5.875% per annum, payable semi-annually on March 15 and September 15 of each year, beginning March 15, 2016. The 2023 Senior Notes mature on September 15, 2023. The weighted-average interest rate for borrowings was 2.3% under the Term Loan Facility (including the effect of interest rate swaps) at June 30, 2016, 5.75% under the 2021 Senior Notes and 5.875% under the 2023 Senior Notes. |
Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments In the normal course of business, the Company uses various financial instruments, including derivative instruments, to manage the risks associated with interest and currency rate exposures. These financial instruments are not used for trading or speculative purposes. On the date a derivative contract is entered into, the Company designates the derivative instrument as a cash flow hedge of a forecasted transaction, a cash flow hedge of a recognized asset or liability, or as an undesignated derivative. The Company formally documents its hedge relationships, including identification of the derivative instruments and the hedged items, as well as its risk management objectives and strategies for undertaking the hedge transaction. This process includes linking derivative instruments that are designated as hedges to specific assets, liabilities or forecasted transactions. The fair market value of derivative instruments is determined through market-based valuations and may not be representative of the actual gains or losses that will be recorded when these instruments mature due to future fluctuations in the markets in which they are traded. The Company assesses at inception and at least quarterly thereafter, whether the derivatives used in cash flow hedging transactions are highly effective in offsetting the changes in the cash flows of the hedged item. To the extent the derivative is deemed to be a highly effective hedge, the fair market value changes of the instrument are recorded to accumulated other comprehensive loss. Any ineffective portion of a derivative instrument’s change in fair value is recorded in net earnings in the period of change. If the hedging relationship ceases to be highly effective, or it becomes probable that a forecasted transaction is no longer expected to occur, the hedging relationship will be undesignated and any future gains and losses on the derivative instrument will be recorded in net earnings. Currency Hedging Instruments The gross notional amount of the Company’s currency derivatives was $356.6 million and $269.4 million at June 30, 2016 and December 31, 2015, respectively. At June 30, 2016 and December 31, 2015, a loss of $0.5 million and a gain $1.7 million, net of tax, respectively, were included in accumulated other comprehensive loss related to the fair value of the Company’s currency derivatives designated as cash flow hedges. The amount expected to be reclassified into net earnings over the next twelve months is a loss of $0.5 million. The actual amounts that will be reclassified to net earnings may vary from this amount as a result of changes in market conditions. Gains and losses associated with the Company’s currency derivatives not designated as hedges are recorded in net earnings as changes in fair value occur. At June 30, 2016, the maximum term of the Company’s currency derivatives was less than one year. Interest Rate Swaps In June 2014, the Company entered into forward starting interest rate swaps to fix the interest rate paid during the contract period for up to $300.0 million of the Company's variable rate $938.4 million Term Loan Facility. Swaps with notional amounts totaling $275.0 million are effective January 2015 and expire in September 2017 and swaps with notional amounts totaling $25.0 million are effective January 2015 and expire in December 2016. In February 2016, the Company entered into additional forward starting interest rate swaps with notional amounts totaling $250.0 million, which become effective September 2017 and expire in September 2020. These interest rate swaps met the criteria to be accounted for as cash flow hedges of variable rate interest payments. Consequently, the changes in fair value of the interest rate swaps were recognized in accumulated other comprehensive loss. At June 30, 2016, $4.6 million of losses were recorded in accumulated other comprehensive loss related to these interest rate swaps and less than $0.1 million are expected to be reclassified into Interest expense over the next twelve months. The fair values of derivative instruments included within the Condensed and Consolidated Balance Sheets were as follows:
Asset and liability derivatives included in the table above are recorded within Other current assets and Accrued expenses and other current liabilities within the Condensed and Consolidated Balance Sheets. The amounts associated with derivatives designated as hedges affecting Net earnings and Accumulated other comprehensive loss for the three months ended June 30 were as follows:
The amounts associated with derivatives designated as hedges affecting Net earnings and Accumulated other comprehensive loss for the six months ended June 30 were as follows:
The gains and losses associated with the Company's non designated currency derivatives are included within Other (income) expense, net in the Condensed and Consolidated Statement 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 Benefits Other than Pensions |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions and Postretirement Benefits Other than Pensions | Pensions and Postretirement Benefits Other than Pensions The Company sponsors several U.S. defined benefit and defined contribution plans covering substantially all of its U.S. employees. Additionally, the Company has non-U.S. defined benefit and defined contribution plans covering eligible non-U.S. employees. Postretirement benefits, other than pensions, provide healthcare benefits, and in some instances, life insurance benefits for certain eligible employees. Pension Plans The noncontributory defined benefit pension plans covering non-collectively bargained U.S. employees provide benefits on an average pay formula while most plans for collectively bargained U.S. employees provide benefits on a flat dollar benefit formula. The non-U.S. pension plans generally provide benefits based on earnings and years of service. The Company also maintains additional other supplemental plans for officers and other key employees. The components of the Company’s net periodic pension benefit costs for the three and six months ended June 30 were as follows:
Beginning in 2016, the Company elected to change the method used to estimate the service and interest cost components of net periodic benefit cost to a full yield-curve approach. Historically, the Company estimated the service and interest cost components using a single weighted-average discount rate, rounded to the nearest 25 basis points, derived from the yield curve used to measure the benefit obligation at the beginning of the period. Under the new approach, the Company applied discounting using the applicable spot rates derived from the yield curve to discount the cash flows used to measure the benefit obligation. These spot rates align to each of the projected benefit obligations and service cost cash flows. This change was made to better align the projected benefit cash flows and the corresponding yield curve spot rates to provide a better estimate of service and interest cost components of net periodic benefit costs. This change was considered a change in estimate and was accounted for on a prospective basis beginning January 1, 2016. This change did not have a material impact on 2016 pension expense. The Company made employer contributions of $2.1 million and $0.2 million during the six months ended June 30, 2016 and 2015 to its defined benefit pension plans. Additional contributions of approximately $8.8 million are expected during the remainder of 2016. Postretirement Benefits Other Than Pensions The Company sponsors several postretirement plans that provide for healthcare benefits, and in some instances, life insurance benefits that cover certain eligible retired employees. The Company funds postretirement benefit obligations principally on a pay as you go basis. Generally, postretirement health benefits are contributory with contributions adjusted annually. Life insurance plans for retirees are primarily noncontributory. The components of net periodic postretirement benefit income for the three and six months ended June 30 were as follows:
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Fair Value Measurement |
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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:
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 June 30, 2016 were as follows:
Assets and liabilities measured at fair value at December 31, 2015 were as follows:
The Company determines the fair value of its financial assets and liabilities using the following methodologies:
The carrying values of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings are a reasonable estimate of their fair value due to the short-term nature of these instruments. These methodologies used by the Company to determine the fair value of its financial assets and liabilities at June 30, 2016 are the same as those used at December 31, 2015. There have been no significant transfers between Level 1 and Level 2 categories. |
Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity The reconciliation of Ordinary shares is as follows:
During the six months ended June 30, 2016, the Company paid $30.0 million to repurchase 0.5 million ordinary shares on the open market under a share repurchase program previously approved by its Board of Directors. The components of Equity for the six months ended June 30, 2016 were as follows:
The components of Equity for the six months ended June 30, 2015 were as follows:
Other Comprehensive Income (Loss) The changes in Accumulated other comprehensive income (loss) for the six months ended June 30, 2016 are as follows:
The changes in Accumulated other comprehensive income (loss) for the six months ended June 30, 2015 are as follows:
Reclassifications out of Accumulated other comprehensive income (loss) for the three and six months ended June 30, 2016 were as follows:
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 10 for additional details). Reclassifications out of Accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 were as follows:
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 10 for additional details). |
Share-Based Compensation |
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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 relates to continuing operations and is included in selling and administrative expenses. The expenses recognized for the three and six months ended June 30 were as follows:
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 six months ended June 30 were as follows:
The fair value of each of the Company's stock option and RSU awards is expensed on a straight-line basis over the required service period, which is generally the 3-year vesting period. However, for stock options and RSUs granted to retirement eligible employees, the Company recognizes expense for the fair value at the grant date. The average fair value of the stock options granted is determined using the Black-Scholes option-pricing model. The following assumptions were used during the six months ended June 30:
Expected volatility is based on the weighted average of the implied volatility of a group of the Company’s peers due to the lack of trading history for the Company's ordinary shares. The risk-free rate of return is based on the yield curve of a zero-coupon U.S. Treasury bond on the date the award is granted with a maturity equal to the expected life of the award. Historical peer data is used to estimate forfeitures within the Company’s valuation model. The expected life of the Company’s stock option awards is derived from the simplified approach based on the weighted average time to vest and the remaining contractual term and represents the period of time that awards are expected to be outstanding. Performance Shares The Company has a Performance Share Program for key employees. The program provides awards in the form of PSUs based on performance against pre-established objectives. The annual target award level is expressed as a number of the Company's ordinary shares. All PSUs are settled in the form of ordinary shares unless deferred. During the six months ended June 30, 2016, the Company granted PSUs with a maximum award level of approximately 0.1 million shares. In March 2014, and in February 2015 and 2016, the Company’s Compensation Committee granted PSUs that were based 50% upon a performance condition, measured at each performance period by earnings per share ("EPS") growth, and 50% upon a market condition, measured by the Company’s relative total shareholder return ("TSR") as compared to the TSR of the industrial group of companies in the S&P 400 Capital Goods Index over the one-year, two-year, and three-year performance periods. The fair values of the market condition were estimated using a Monte Carlo Simulation approach in a risk-neutral framework based upon historical volatility, risk-free rates and correlation matrix. Deferred Compensation The Company allows key employees to defer a portion of their eligible compensation into a number of investment choices including its ordinary share equivalents. Any amounts invested in ordinary share equivalents will be settled in ordinary shares of the Company at the time of distribution. |
Restructuring Activities |
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Restructuring Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Activities | Restructuring Activities The changes in the restructuring reserve during the six months ended June 30, 2016 were as follows:
The majority of the costs accrued as of June 30, 2016 will be paid within one year. 2015 Italy Restructuring Plan In the second quarter of 2015, management committed to a restructuring plan in Italy. The plan aims to improve competitive position, ensure long-term viability and enhance customer experience. Expenses incurred for this plan for the three and six months ended June 30 were as follows:
The above expenses primarily relate to severance charges. Restructuring charges relating to this plan were $14.7 million in 2015. The Company incurred other non-qualified restructuring charges of $0.2 million and $0.3 million during the three and six months ended June 30, 2016 in conjunction with the other restructuring plans, which represent costs that are directly attributable to restructuring activities, but do not fall into the severance, exit or disposal category. Other Restructuring Plans Other restructuring charges of $1.4 million and $1.5 million were recorded during the three and six months ended June 30, 2016 as part of other restructuring plans. These charges primarily relate to workforce reductions in an effort to increase efficiencies across multiple lines of business. There were no other restructuring charges for the three and six months ended June 30, 2015 as part of other restructuring plans. |
Other, Net |
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Other Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, Net | The components of Other (income) expense, net for the three and six months ended June 30 were as follows:
During the three and six months ended June 30, 2016 the Company recorded gains from the sale of marketable securities of $6.6 million and $12.4 million, which is included in Other in the table above. During the six months ended June 30, 2016 earnings from equity method investments increased primarily due to a gain recognized by an investment in the first quarter of 2016 that is not expected to recur in future periods. In February 2015, the Venezuelan government announced changes to its exchange rate system that included the launch of a new, market-based system called the Marginal Currency System, or “SIMADI.” During the six months ended June 30, 2015 the Company recorded a charge of $2.8 million in order to remeasure net monetary assets at the SIMADI rate and other unfavorable currency impacts. These losses are within Exchange (gain) loss in the table above. |
Income Taxes |
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Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rates for the three months ended June 30, 2016 and 2015 were 18.0% and 22.6%. The decrease in the effective tax rate compared to 2015 is primarily due to favorable changes in the mix of income earned in lower rate jurisdictions. The effective income tax rates for the six months ended June 30, 2016 and 2015 were 19.4% and 22.4%. The decrease in the effective tax rate compared to 2015 is primarily due to favorable changes in the mix of income earned in lower rate jurisdictions partially offset by the year over year change in the timing of amounts recognized for uncertain tax positions. In connection with the Spin-off, the Company and Ingersoll Rand entered into a Tax Matters Agreement for the allocation of taxes. In the second quarter of 2016 we reached a settlement agreement on a competent authority matter. The Company has recorded a net $49.2 million indemnity payable to Ingersoll Rand related to this competent authority matter, which is reflected as an Other current liability as of June 30, 2016. Per the terms of the Tax Matters agreement, this payable will be remitted to Ingersoll Rand during the third quarter of 2016. Also as part of this competent authority matter, the Company has recorded a $49.2 million Other current asset (net of tax on interest income accrued on the refund), which is due from the Canadian Revenue Agency. The timing of the receipt of the Other current asset may not be received in the same quarter that the corresponding Other current liability will be remitted creating a short term net cash outflow. |
Discontinued Operations (Notes) |
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Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Divestitures As previously disclosed, the Company sold a majority stake of Bocom Wincent Technologies Co., Ltd. ("Bocom") in the fourth quarter of 2015. Bocom operates a security system integration business exclusively in China and provides services primarily to Chinese governments and government agencies. Under the terms of the transaction, the Company may receive consideration of up to $75 million based on the future cash collection performance of Bocom and additional payments of approximately $8.3 million related to working capital transferred with the sale. Additionally, the Company has retained 15% of the shares of Bocom. The Company currently estimates the fair value of the consideration to be $75.3 million, of which $57.1 million is classified in Accounts and notes receivable, net and the remaining amount is classified within Other assets within the Condensed and Consolidated Balance Sheet. The Company currently estimates payment to be completed in approximately 2 years; however repayment may be delayed depending on the timing of future cash collections. The Company may incur additional charges if it is determined that future cash collections will no longer occur. The consideration has been accounted for as a receivable and recorded net of an unamortized discount. A nominal discount was amortized and recognized as interest income on the Condensed and Consolidated Statement of Comprehensive Income based on the expected term of the receivable. The fair value of the receivable was estimated by discounting the expected future cash flows. The assumptions used in this estimate are considered unobservable inputs. Fair value measurements that utilize significant unobservable inputs are categorized as Level 3 measurements under the accounting guidance. |
Earnings Per Share (EPS) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share (EPS) | Earnings Per Share (EPS) Basic EPS is calculated by dividing Net earnings attributable to Allegion plc by the weighted-average number of ordinary shares outstanding for the applicable period. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potentially dilutive ordinary shares, which in the Company’s case, includes shares issuable under share-based compensation plans. The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations for the three and six months ended June 30:
At June 30, 2016, 0.4 million stock options were excluded from the computation of weighted-average diluted shares outstanding because the effect of including these shares would have been anti-dilutive. |
Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information The Company classifies its businesses into the following three reportable segments based on industry and market focus: Americas, EMEIA and Asia Pacific. Segment operating income is the measure of profit and loss that the Company’s chief operating decision maker uses to evaluate the financial performance of the business and as the basis for resource allocation, performance reviews, and compensation. For these reasons, the Company believes that Segment operating income represents the most relevant measure of segment profit and loss. The Company’s chief operating decision maker may exclude certain charges or gains, such as corporate charges and other special charges, from Operating income to arrive at a Segment operating income that is a more meaningful measure of profit and loss upon which to base 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 six months ended June 30 was as follows:
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Commitments and Contingencies |
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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 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 June 30, 2016 and 2015, the Company incurred $2.1 million and $0.5 million of expenses for environmental remediation at sites presently or formerly owned or leased by us. During the six months ended June 30, 2016 and 2015, the Company incurred $3.1 million and $2.3 million of expenses for environmental remediation at sites presently or formerly owned or leased by us. As of June 30, 2016 and December 31, 2015, the Company has recorded reserves for environmental matters of $16.2 million and $15.2 million. Of the total reserve, $2.7 million and $2.8 million relate to remediation of sites previously disposed by the Company. Environmental reserves are classified as Accrued expenses and other current liabilities or Other noncurrent liabilities based on their expected term. The Company's total current environmental reserve at June 30, 2016 and December 31, 2015 was $3.1 million and $3.7 million, and the remainder is classified as non-current. Given the evolving nature of environmental laws, regulations and technology, the ultimate cost of future compliance is uncertain. Warranty Liability Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience. The Company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available. The changes in the standard product warranty liability for the six months ended June 30 were as follows:
Standard product warranty liabilities are classified as Accrued expenses and other current liabilities. |
Guarantor Financial Information (Notes) |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Guarantor Financial Information Allegion US Holding Company, Inc. ("Allegion US Holding") is the issuer of the 2021 Senior Notes and a guarantor of the 2023 Senior Notes. Allegion plc is the issuer of the 2023 Senior Notes and a guarantor of the 2021 Senior Notes. Schlage Lock Company LLC and Von Duprin LLC (together, the “Other Subsidiary Guarantors”) are all guarantors of the 2021 Senior Notes and the 2023 Senior Notes. The following condensed and consolidated financial information of Allegion plc, Allegion US Holding, the Other Subsidiary Guarantors and the other Allegion subsidiaries that are not guarantors (the “Other Subsidiaries”) on a combined basis as of June 30, 2016 and for the three and six months ended June 30, 2016 and 2015, is being presented in order to meet the reporting requirements under the 2021 Senior Notes and 2023 Senior Notes indentures and Rule 3-10 of Regulation S-X. In accordance with Rule 3-10(d) of Regulation S-X, separate financial statements for Allegion plc, Allegion US Holding and the Other Subsidiary Guarantors are not required to be filed with the SEC, as the subsidiary debt issuer and the guarantors are directly or indirectly 100% owned by the Parent and the guarantees are full and unconditional and joint and several. Condensed and Consolidated Statement of Comprehensive Income For the three months ended June 30, 2016
Condensed and Consolidated Statement of Comprehensive Income For the six months ended June 30, 2016
Condensed and Consolidated Statement of Comprehensive Income For the three months ended June 30, 2015
Condensed and Consolidated Statement of Comprehensive Income For the six months ended June 30, 2015
Condensed and Consolidated Balance Sheet June 30, 2016
Condensed and Consolidated Balance Sheet December 31, 2015
Condensed and Consolidated Statement of Cash Flows For the six months ended June 30, 2016
Condensed and Consolidated Statement of Cash Flows For the six months ended June 30, 2015
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In October 2015, the Company reached an agreement to provide severance benefits to certain employees in Italy as part of our previously announced 2015 Italy Restructuring Plan. As a result of the agreement, the Company will record additional severance charges of approximately $8.4 million. These charges will result in cash expenditures, primarily in 2016. |
Recent Accounting Pronouncements (Policies) |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of as an asset. The ASU is effective for annual reporting periods beginning after December 15, 2015. As further reflected in Note 8 to the Condensed and Consolidated Financial Statements, we retrospectively adopted ASU 2015-03 in the first quarter of 2016. As a result of the adoption of ASU 2015-03, the Company reclassified $22.3 million of unamortized debt issuance costs from Other noncurrent assets to Long term debt within its previously reported Consolidated Balance Sheet as of December 31, 2015. In September 2015, the FASB issued ASU 2015-16, "Business Combinations (Topic 802): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Prior to the issuance of the standard, entities were required to retrospectively apply adjustments made to provisional amounts recognized in a business combination. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, and early adoption is permitted. The Company made one immaterial measurement-period adjustment related to a business combination from September 2015 during the six months ended June 30, 2016. The impact of ASU 2015-16 on this adjustment did not have a material impact on the Condensed and Consolidated Financial Statements. |
Inventories (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Classes Of Inventory | The major classes of inventory were as follows:
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Goodwill (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Goodwill Carrying Amounts | The changes in the carrying amount of goodwill for the six months ended June 30, 2016 were as follows:
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Intangible Assets (Tables) |
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Acquisition Acquisition (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Total consideration paid for the acquisitions was $511.3 million (net of cash acquired). The preliminary allocation of the aggregate purchase price to assets acquired and liabilities assumed for the acquisitions described above is as follows:
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Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited pro forma financial information for the three and six months ended June 30, 2015 reflects the consolidated results of operations of the Company as if the acquisitions had taken place on January 1, 2014.
The following financial information reflects the results of revenue and earnings of the acquisitions since their respective acquisition dates included in the Condensed and Consolidated Statement of Comprehensive Income as of the three and six months ended June 30, 2016 and 2015.
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Debt and Credit Facilities (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | ong-term debt and other borrowings consisted of the following:
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Financial Instruments (Tables) |
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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:
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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 June 30 were as follows:
The amounts associated with derivatives designated as hedges affecting Net earnings and Accumulated other comprehensive loss for the six months ended June 30 were as follows:
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Pensions and Postretirement Benefits Other than Pensions (Tables) |
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Pension Plans [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost | The components of the Company’s net periodic pension benefit costs for the three and six months ended June 30 were as follows:
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Schedule of Net Periodic Benefit Cost | The components of net periodic postretirement benefit income for the three and six months ended June 30 were as follows:
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Fair Value Measurement (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | Assets and liabilities measured at fair value at June 30, 2016 were as follows:
Assets and liabilities measured at fair value at December 31, 2015 were as follows:
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Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Ordinary Shares | The reconciliation of Ordinary shares is as follows:
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Components Of Shareholders Equity Rollforward | The components of Equity for the six months ended June 30, 2016 were as follows:
The components of Equity for the six months ended June 30, 2015 were as follows:
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Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in Accumulated other comprehensive income (loss) for the six months ended June 30, 2016 are as follows:
The changes in Accumulated other comprehensive income (loss) for the six months ended June 30, 2015 are as follows:
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Disclosure of Reclassification Amount | eclassifications out of Accumulated other comprehensive income (loss) for the three and six months ended June 30, 2016 were as follows:
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 10 for additional details). Reclassifications out of Accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 were as follows:
(a) These accumulated other comprehensive income components are included in the computation of net periodic pension cost and net periodic postretirement benefit cost (see Note 10 for additional details). |
Share-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation Expense | The expenses recognized for the three and six months ended June 30 were as follows:
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Grants of Stock Options and RSUs | Grants issued during the six months ended June 30 were as follows:
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Average fair value of stock options, assumptions | The following assumptions were used during the six months ended June 30:
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Restructuring Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Charges Recorded | Expenses incurred for this plan for the three and six months ended June 30 were as follows:
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Schedule of Changes in Restructuring Reserve | The changes in the restructuring reserve during the six months ended June 30, 2016 were as follows:
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Other, Net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, Net | The components of Other (income) expense, net for the three and six months ended June 30 were as follows:
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Earnings Per Share (EPS) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Basic and Diluted Shares | The following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations for the three and six months ended June 30:
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Business Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Operations by Reportable Segments | A summary of operations by reportable segment for the three and six months ended June 30 was as follows:
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Commitments and Contingencies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | The changes in the standard product warranty liability for the six months ended June 30 were as follows:
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Guarantor Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Cash Flow Statement [Table Text Block] | Condensed and Consolidated Statement of Cash Flows For the six months ended June 30, 2016
Condensed and Consolidated Statement of Cash Flows For the six months ended June 30, 2015
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Condensed Balance Sheet [Table Text Block] | Condensed and Consolidated Balance Sheet June 30, 2016
Condensed and Consolidated Balance Sheet December 31, 2015
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Condensed Statement Of Comprehensive Income [Table Text Block] | Condensed and Consolidated Statement of Comprehensive Income For the three months ended June 30, 2016
Condensed and Consolidated Statement of Comprehensive Income For the six months ended June 30, 2016
Condensed and Consolidated Statement of Comprehensive Income For the three months ended June 30, 2015
Condensed and Consolidated Statement of Comprehensive Income For the six months ended June 30, 2015
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Inventories (Schedule of Major Classes of Inventory) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory, Net [Abstract] | ||
Raw materials | $ 58.2 | $ 58.9 |
Work-in-process | 26.6 | 30.0 |
Finished goods | 140.5 | 115.2 |
Total | $ 225.3 | $ 204.1 |
Goodwill (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
|
Goodwill [Roll Forward] | ||
December 31, 2015 (gross) | $ 1,199.6 | |
Accumulated impairment | $ (485.5) | |
Goodwill, Acquired During Period | 9.4 | |
Currency translation | 5.3 | |
June 30, 2016 Goodwill (net) | 728.8 | 714.1 |
Americas [Member] | ||
Goodwill [Roll Forward] | ||
December 31, 2015 (gross) | 372.8 | |
Accumulated impairment | 0.0 | |
Goodwill, Acquired During Period | 0.0 | |
Currency translation | 0.1 | |
June 30, 2016 Goodwill (net) | 372.9 | 372.8 |
EMEIA [Member] | ||
Goodwill [Roll Forward] | ||
December 31, 2015 (gross) | 733.4 | |
Accumulated impairment | (478.6) | |
Goodwill, Acquired During Period | 9.4 | |
Currency translation | 4.6 | |
June 30, 2016 Goodwill (net) | 268.8 | 254.8 |
Asia Pacific [Member] | ||
Goodwill [Roll Forward] | ||
December 31, 2015 (gross) | 93.4 | |
Accumulated impairment | (6.9) | |
Goodwill, Acquired During Period | 0.0 | |
Currency translation | 0.6 | |
June 30, 2016 Goodwill (net) | $ 87.1 | $ 86.5 |
Divestitures Divestitures Assets and Liabilities Held for Sale (Details) - Bocom Divestiture [Member] $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Schedule of Assets and Liabilities Held for Sale [Line Items] | |
Business Combination, Consideration Transferred | $ 8.3 |
Business Combination, Contingent Consideration, Asset | 75.3 |
Business Combination, Contingent Consideration, Asset, Current | $ 57.1 |
Divestitures Divestitures Results of Operations (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Bocom Divestiture [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Other Significant Noncash Transaction, Value of Consideration Received | $ 75.0 |
Pensions and Postretirement Benefits Other than Pensions (Narrative) (Details) - Pension Plans [Member] - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Company contributions | $ 2.1 | $ 0.2 |
Additional contributions expected during the remainder of the year | $ 8.8 |
Pensions and Postretirement Benefits Other than Pensions (Components of the Company's Pension-Related Costs) (Details) - Pension Cost [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Net curtailment and settlement losses | $ 0.0 | $ 0.0 | $ 0.0 | $ (0.6) |
Net periodic pension benefit cost after curtailment | 3.8 | 3.6 | 7.6 | 7.8 |
UNITED STATES | ||||
Service cost | 2.4 | 2.3 | 4.7 | 4.7 |
Interest cost | 2.5 | 2.8 | 5.0 | 5.5 |
Expected return on plan assets | (2.6) | (2.9) | (5.1) | (5.7) |
Net amortization of prior service costs | 0.1 | 0.2 | 0.3 | 0.4 |
Net amortization of plan net actuarial losses | 1.4 | 1.2 | 2.7 | 2.3 |
Net periodic pension benefit cost | 3.8 | 3.6 | 7.6 | 7.2 |
Non-U.S. [Member] | ||||
Service cost | 0.9 | 0.9 | 1.7 | 1.7 |
Interest cost | 2.9 | 3.5 | 5.8 | 6.9 |
Expected return on plan assets | (3.7) | (4.5) | (7.4) | (8.9) |
Net amortization of plan net actuarial losses | 0.5 | 0.3 | 1.1 | 0.7 |
Net periodic pension benefit cost | $ 0.6 | $ 0.2 | $ 1.2 | $ 0.4 |
Pensions and Postretirement Benefits Other than Pensions (Components of Net Periodic Postretirement Benefit Cost) (Details) - Postretirement Benefit Costs [Member] - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Service cost | $ 0.0 | $ 0.1 | $ 0.0 | $ 0.1 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Net amortization of prior service gains | (0.4) | (0.4) | (0.8) | (0.8) |
Total | $ (0.3) | $ (0.2) | $ (0.6) | $ (0.5) |
Equity (Reconciliation of Ordinary Shares) (Details) - USD ($) shares in Millions, $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Increase (Decrease) In Ordinary Shares [Roll Forward] | ||
Treasury Stock, Shares, Acquired | (0.5) | |
Treasury Stock, Value, Acquired, Cost Method | $ (30.0) | $ (30.0) |
Common Stock [Member] | ||
Increase (Decrease) In Ordinary Shares [Roll Forward] | ||
December 31, 2015 | 96.0 | |
Shares issued under incentive plans, net | 0.3 | |
Treasury Stock, Shares, Acquired | (0.5) | |
June 30, 2016 | 95.8 |
Share-Based Compensation (Narrative) (Details) - shares shares in Millions |
1 Months Ended | 6 Months Ended |
---|---|---|
Mar. 31, 2014 |
Jun. 30, 2016 |
|
Stock options and Restricted Stock Units (RSUs) [Member] | ||
Vesting period, in years | 3 years | |
Performance Shares [Member] | ||
Maximum award level for eligible employees (in shares) | 0.1 | |
Percentage of awards applied to performance condition | 50.00% | |
Percentage of awards applied to market condition | 50.00% |
Share-Based Compensation (Share-Based Compensation Expense) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share based compensation expense | $ 4.4 | $ 3.4 | $ 9.2 | $ 7.4 |
Tax benefit | (1.3) | (1.2) | (2.7) | (2.5) |
After-tax expense | 3.1 | 2.2 | 6.5 | 4.9 |
Stock Options [Member] | ||||
Share based compensation expense | 0.9 | 0.9 | 2.2 | 1.9 |
Restricted Stock Units (RSUs) [Member] | ||||
Share based compensation expense | 2.1 | 1.3 | 4.1 | 2.9 |
Performance Shares [Member] | ||||
Share based compensation expense | 1.2 | 1.1 | 2.5 | 2.1 |
Deferred Compensation [Member] | ||||
Share based compensation expense | $ (0.2) | $ (0.1) | $ (0.4) | $ 0.5 |
Share-Based Compensation (Grants of Stock Options and RSUs) (Details) - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Stock Options [Member] | ||
Equity awards, granted, in shares | 230,259 | 220,679 |
Weighted average fair value per award, in dollars per share | $ 15.86 | $ 17.88 |
RSUs [Member] | ||
Equity awards, granted, in shares | 109,241 | 96,387 |
Weighted average fair value per award, in dollars per share | $ 58.42 | $ 58.45 |
Share-Based Compensation (Average Fair Value of Stock Options Granted, Assumptions) (Details) |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Share-based Compensation [Abstract] | ||
Dividend yield | 0.83% | 0.69% |
Volatility | 28.85% | 34.02% |
Risk-free rate of return | 1.38% | 1.78% |
Expected life, in years | 6 years | 6 years |
Restructuring Activities (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve, current | $ 8.3 | $ 8.3 | $ 10.2 | ||
Restructuring charges | 1.9 | ||||
Italy 2015 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0.2 | $ 3.8 | 0.4 | $ 3.8 | |
Other Restructuring [Member] | Italy 2015 Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0.2 | $ 0.3 | $ 14.7 | ||
Other Restructuring [Member] | Other Restructuring Plans [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $ 1.4 | $ 1.5 |
Restructuring Activities (Schedule of Restructuring Charges Recorded) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Restructuring charges | $ 1.9 | |||
Americas [Member] | ||||
Restructuring charges | 1.3 | |||
EMEIA [Member] | ||||
Restructuring charges | 0.4 | |||
Asia Pacific [Member] | ||||
Restructuring charges | 0.2 | |||
Italy 2015 Restructuring Plan [Member] | ||||
Restructuring charges | $ 0.2 | $ 3.8 | 0.4 | $ 3.8 |
Italy 2015 Restructuring Plan [Member] | EMEIA [Member] | ||||
Restructuring charges | 0.2 | 3.8 | 0.4 | 3.8 |
Italy 2015 Restructuring Plan [Member] | Cost of Goods Sold [Member] | ||||
Restructuring charges | 0.1 | 3.5 | 0.2 | 3.5 |
Italy 2015 Restructuring Plan [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring charges | $ 0.1 | $ 0.3 | $ 0.2 | $ 0.3 |
Restructuring Activities (Schedule of Changes in Restructuring Reserve) (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
December 31, 2014 | $ 10.2 |
Additions | 1.9 |
June 30, 2015 | 8.3 |
Restructuring Reserve, Translation Adjustment | 0.1 |
Payments for Restructuring | (3.9) |
Americas [Member] | |
Restructuring Reserve [Roll Forward] | |
December 31, 2014 | 0.0 |
Additions | 1.3 |
June 30, 2015 | 0.0 |
Restructuring Reserve, Translation Adjustment | 0.0 |
Payments for Restructuring | (1.3) |
EMEIA [Member] | |
Restructuring Reserve [Roll Forward] | |
December 31, 2014 | 10.0 |
Additions | 0.4 |
June 30, 2015 | 8.3 |
Restructuring Reserve, Translation Adjustment | 0.1 |
Payments for Restructuring | (2.2) |
Asia Pacific [Member] | |
Restructuring Reserve [Roll Forward] | |
December 31, 2014 | 0.2 |
Additions | 0.2 |
June 30, 2015 | 0.0 |
Restructuring Reserve, Translation Adjustment | 0.0 |
Payments for Restructuring | $ (0.4) |
Other, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Other Net [Abstract] | ||||
Marketable Securities, Realized Gain (Loss) | $ 6.6 | $ 12.4 | ||
Interest income | (0.9) | $ (0.5) | (1.4) | $ (0.8) |
Exchange gain (loss) | (0.6) | 0.6 | 2.4 | 3.9 |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | (0.5) | 0.0 | (4.0) | 0.2 |
Other | (6.6) | 0.3 | (14.4) | 0.2 |
Other, net | $ (8.6) | $ 0.4 | $ (17.4) | 3.5 |
Foreign currency translation loss related to the devaluation of the Venezuelan Bolivar | $ 2.8 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Effective income tax rate (percent) | 18.00% | 22.60% | 19.40% | 22.40% |
Canada Revenue Agency [Member] | ||||
Income Taxes Receivable, Current | $ 49.2 | $ 49.2 | ||
Taxes Payable, Current | $ 49.2 | $ 49.2 |
Discontinued Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued operations, net of tax | $ 0.0 | $ 0.0 | $ 0.0 | $ (0.2) |
Earnings Per Share (EPS) (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.4 | |||
Weighted-average number of basic shares | 95.8 | 95.8 | 95.9 | 95.8 |
Shares issuable under incentive stock plans | 1.0 | 0.9 | 0.9 | 1.1 |
Weighted average number of diluted shares | 96.8 | 96.7 | 96.8 | 96.9 |
Business Segment Information (Narrative) (Details) |
6 Months Ended |
---|---|
Jun. 30, 2016
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segment Information (Summary of Operations by Reportable Segments) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Net revenues | $ 584.9 | $ 519.5 | $ 1,087.2 | $ 978.2 |
Segment operating income | 141.0 | 111.0 | 239.1 | 195.2 |
Operating income (loss) | 124.3 | 95.7 | 206.8 | 166.7 |
Interest expense | 16.5 | 11.3 | 32.8 | 22.9 |
Other (income) expense, net | 8.6 | (0.4) | 17.4 | (3.5) |
Earnings before income taxes | 116.4 | 84.0 | 191.4 | 140.3 |
Americas [Member] | ||||
Net revenues | 436.5 | 402.1 | 799.5 | 756.4 |
Segment operating income | 130.0 | 111.9 | 220.2 | 196.1 |
EMEIA [Member] | ||||
Net revenues | 121.6 | 83.9 | 240.1 | 165.6 |
Segment operating income | 8.9 | 0.5 | 16.9 | 3.1 |
Asia Pacific [Member] | ||||
Net revenues | 26.8 | 33.5 | 47.6 | 56.2 |
Segment operating income | 2.1 | (1.4) | 2.0 | (4.0) |
Unallocated Amount to Segment [Member] | ||||
Unallocated corporate expense | $ (16.7) | $ (15.3) | $ (32.3) | $ (28.5) |
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
Dec. 31, 2015 |
|
Expense for environmental remediation | $ 2.1 | $ 0.5 | $ 3.1 | $ 2.3 | |
Reserves for environmental matters | 16.2 | 16.2 | $ 15.2 | ||
Reserves for environmental matters, current | 3.1 | 3.1 | 3.7 | ||
Segment, Discontinued Operations [Member] | |||||
Reserves for environmental matters | $ 2.7 | $ 2.7 | $ 2.8 |
Commitments and Contingencies (Product Warranty Liability) (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 11.7 | $ 10.3 |
Reductions for payments | (2.9) | (3.1) |
Accruals for warranties issued during the current period | 3.6 | 2.6 |
Changes to accruals related to preexisting warranties | (0.3) | 0.1 |
Translation | 0.0 | (0.1) |
Balance at end of period | $ 12.1 | $ 9.8 |
Subsequent Events (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Subsequent Event [Line Items] | ||||
Dividends declared per ordinary share (in dollars per share) | $ 0.12 | $ 0.10 | $ 0.24 | $ 0.20 |