Acquisitions (Tables)

3 Months Ended

Mar. 31, 2023

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of the purchase price to assets acquired and liabilities assumed as of the acquisition date:

In millions
Accounts receivable, net	$	69.7
Inventories	50.8
Other current assets	0.3
Property, plant and equipment	14.6
Goodwill	634.1
Intangible assets	222.5
Other noncurrent assets	6.2
Accounts payable	(20.8)
Accrued expenses and other current liabilities	(31.3)
Other noncurrent liabilities	(23.0)
Total net assets acquired and liabilities assumed	$	923.1

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

Intangible assets recognized as of the acquisition date were comprised of the following:

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

Business Acquisition, Pro Forma Information

The following unaudited pro forma financial information for the three months ended March 31, 2023 and 2022, reflects the consolidated results of operations of the Company as if the Access Technologies business acquisition had taken place on January 1, 2021:

In millions	2023		2022
Net revenues	$	923.0	$	812.9
Net earnings attributable to Allegion plc	128.2		94.5

The unaudited pro forma financial information is presented for informational purposes only and does not purport to be indicative of results of operations that would have occurred had the pro forma events taken place on the date indicated or the future consolidated results of operations of the combined company. The unaudited pro forma financial information has been calculated after applying the Company's accounting policies and adjusting the historical financial results to reflect additional items directly attributable to the acquisition that would have been incurred assuming the acquisition had occurred on January 1, 2021. Adjustments to historical financial information for the three months ended March 31, 2023 and 2022, include:

In millions	2023		2022
Intangible asset amortization expense, net of tax	$	1.6	$	(5.1)
Interest expense, net of tax	—		(6.2)
Acquisition and integration costs, net of tax	3.1		2.9

The following financial information reflects the Net revenues and Earnings before income taxes generated by the Access Technologies business included within the Company's Condensed and Consolidated Statement of Comprehensive Income for the three months ended March 31, 2023:

In millions
Net revenues	$	103.1
Earnings before income taxes	7.9