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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2020

or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 001-35971

ALLEGION PUBLIC LIMITED COMPANY

(Exact name of registrant as specified in its charter**)**

Ireland						98-1108930
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

Block D

Iveagh Court

Harcourt Road

Dublin 2, D02 VH94, Ireland

(Address of principal executive offices, including zip code)

+(353) (1) 2546200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading symbols			Name of each exchange on which registered
Ordinary shares, par value $0.01 per share			ALLE			New York Stock Exchange
3.500% Senior Notes due 2029			ALLE 3 ½			New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.:

Large accelerated filer			☒			Accelerated filer			☐
Non-accelerated filer			☐			Smaller reporting company			☐
						Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of

the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.

7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

The aggregate market value of ordinary shares held by non-affiliates on June 30, 2020 was approximately $9.4 billion based on the closing price of such stock on the New York Stock Exchange.

The number of ordinary shares outstanding of Allegion plc as of February 11, 2021 was 90,732,297.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive proxy statement to be filed within 120 days of the close of the registrant’s fiscal year in connection with the registrant’s Annual General Meeting of Shareholders to be held June 3, 2021 (the "Proxy Statement") are incorporated by reference into Part II and Part III of this Form 10-K as described herein.

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ALLEGION PLC

Form 10-K

For the Fiscal Year Ended December 31, 2020

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									Page
Part I			Item 1.			Business			4
			Item 1A.			Risk Factors			16
			Item 1B.			Unresolved Staff Comments			27
			Item 2.			Properties			27
			Item 3.			Legal Proceedings			27
			Item 4.			Mine Safety Disclosures			27
Part II			Item 5.			Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities			29
			Item 6.			Selected Financial Data			31
			Item 7.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			32
			Item 7A.			Quantitative and Qualitative Disclosures About Market Risk			48
			Item 8.			Financial Statements and Supplementary Data			49
			Item 9.			Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			50
			Item 9A.			Controls and Procedures			50
			Item 9B.			Other Information			50
Part III			Item 10.			Directors, Executive Officers and Corporate Governance			51
			Item 11.			Executive Compensation			51
			Item 12.			Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters			51
			Item 13.			Certain Relationships and Related Transactions, and Director Independence			51
			Item 14.			Principal Accountant Fees and Services			51
Part IV			Item 15.			Exhibits, Financial Statement Schedules			52
			Item 16.			Form 10-K Summary			56
			Signatures						57

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CAUTIONARY STATEMENT FOR FORWARD LOOKING STATEMENTS

Certain statements in this report, other than purely historical information, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "forecast," "outlook," "intend," "strategy," "future", "opportunity", "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements.

Forward-looking statements may relate to such matters as: statements regarding the potential impacts of the global COVID-19 pandemic, projections of revenue, margins, expenses, tax provisions, earnings, cash flows, benefit obligations, dividends, share purchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including those relating to any statements concerning expected development, performance or market share relating to our products and services; any statements regarding future economic conditions or our performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. These statements are based on currently available information and our current assumptions, expectations and projections about future events. While we believe that our assumptions, expectations and projections are reasonable in view of the currently available information, you are cautioned not to place undue reliance on our forward-looking statements. You are advised to review any further disclosures we make on related subjects in materials we file with or furnish to the United States Securities and Exchange Commission (SEC). Forward-looking statements speak only as of the date they are made and are not guarantees of future performance. They are subject to future events, risks and uncertainties – many of which are beyond our control – as well as potentially inaccurate assumptions, that could cause actual results to differ materially from our expectations and projections. We do not undertake to update any forward-looking statements.

Factors that might affect our forward-looking statements include, among other things:

• adverse impacts to our normal business operations due to the global COVID-19 pandemic;

• competitive factors in the industry in which we compete, including technological developments and increased competition from private label brands;

• the development, commercialization and acceptance of new products and services that meet the varied and evolving needs of our customers;

• the demand for our products and services, including changes in customer and consumer preferences, and our ability to maintain beneficial relationships with large customers;

• our products or solutions fail to meet certification and specification requirements, are defective or otherwise fall short of customers’ needs and expectations;

• the ability to complete and integrate any acquisitions and/or losses related to our investments in external companies;

• business opportunities that diverge from our core business;

• our ability to operate efficiently and productively;

• our ability to effectively manage and implement restructuring initiatives and other organizational changes;

• disruptions in our global supply chain, including product manufacturing and logistical services provided by supplier partners;

• the effects of global climate change or other unexpected events, including global health crises, that may disrupt our operations;

• our ability to manage risks related to our information technology and operational technology systems and cybersecurity, including implementation of new processes that may cause disruptions and be more difficult, costly or time consuming than expected;

• our reliance on third-party vendors for many of the critical elements of our global information and operational technology infrastructure and their failure to provide effective support for such infrastructure;

• disruption and breaches of our information systems;

• ability to recruit and retain a highly qualified and diverse workforce;

• economic, political and business conditions in the markets in which we operate, including changes to trade agreements, sanctions, import and export regulations and custom duties;

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• conditions of the institutional, commercial and residential construction and remodeling markets, including the impact of work-from-home trends;

• fluctuations in currency exchange rates;

• 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;

• interest rate fluctuations and other changes in borrowing costs, in addition to risks associated with our outstanding and future indebtedness;

• the impact our outstanding indebtedness may have on our business and operations and other capital market conditions, including availability of funding sources and currency exchange rate fluctuations;

• risks related to corporate social responsibility and reputational matters;

• the ability to protect our brand reputation and trademarks;

• the outcome of any litigation, governmental investigations or proceedings;

• claims of infringement of intellectual property rights by third parties;

• adverse publicity or improper conduct by any of our employees, agents or business partners;

• changes to, or changes in interpretations of, current laws and regulations;

• uncertainty and inherent subjectivity related to transfer pricing regulations;

• changes in tax requirements, including tax rate changes, the adoption of new tax legislation or exposure to additional tax liabilities and revised tax law interpretations; and

• risks related to our incorporation in Ireland, including the possible effects on us of future legislation or interpretations 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.

Some of the significant risks and uncertainties that could cause actual results to differ materially from our expectations and projections are described more fully in Item 1A. "Risk Factors." You should read that information in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 7 of this report and our Consolidated Financial Statements and related notes in Item 8 of this report. We note such information for investors as permitted by the Private Securities Litigation Reform Act of 1995.

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PART I