Allegion (ALLE) risk factors, FY2024 10-K

Other

1. 01Our business performance is impacted by the strength of the institutional, commercial and residential construction and remodeling markets and global macroeconomic factors
2. 02Increased prices, whether due to inflationary pressures or other factors, could negatively impact our margin performance and our financial results
3. 03Our global operations subject us to political, economic and regulatory risks, including uncertainty related to the imposition of new or increased tariffs and the global trade environment more generally
4. 04Currency exchange rate fluctuations have had, and may continue to have, an adverse effect on our business, financial condition, results of operations and cash flows
5. 05We may be required to recognize impairment charges for our goodwill, indefinite-lived intangible assets and other long-lived assets
6. 06The capital and credit markets are important to our business
7. 07There are risks associated with our outstanding and future indebtedness

Strategic and Operational Risks

1. 08Increased competition, including from technological developments, could adversely affect our business
2. 09Our growth is dependent, in part, on the development, commercialization and acceptance of new products and services
3. 10Changes in customer and consumer preferences and the inability to maintain beneficial relationships with large customers could adversely affect our business
4. 11If our products or solutions fail to meet certification and specification requirements, are defective, cause, or are alleged to have caused, bodily harm or injury, or otherwise fall short of end-users' needs and expectations, our business may be negatively impacted
5. 12We may pursue business opportunities that diverge from our core business
6. 13Our strategic initiatives, including enterprise excellence efforts among other significant capital expenditure projects, may not achieve the improvements or financial returns we expect
7. 14We may not be able to effectively manage and implement restructuring initiatives or other organizational changes
8. 15The effects of global climate change or other unexpected events, including global health crises, may disrupt our operations and have a negative impact on our business
9. 16We may be subject to risks relating to our information technology and operational technology systems
10. 17Disruptions or breaches of our information systems could adversely affect us
11. 18Our ability to successfully grow and expand our business depends on our ability to recruit and retain a highly qualified and diverse workforce
12. 19Disruptions in our global supply chain, including product manufacturing and logistical services provided by our supplier partners, may negatively impact our business

Legal and Compliance Risks

1. 20We are subject to risks related to corporate social responsibility and reputational matters
2. 21Our brands are important assets of our businesses, and violation of our trademark rights by imitators could negatively impact revenues and brand reputation
3. 22Material legal judgments, fines, penalties or settlements imposed against us or our assets could adversely affect our business, financial condition, results of operations and cash flows
4. 23Allegations that we have infringed the intellectual property rights of third parties could negatively affect us
5. 24Our reputation, ability to do business and results of operations could be impaired by improper conduct by any of our employees, agents or business partners
6. 25Our operations are subject to regulatory risks
7. 26As a global business, we have a relatively complex tax structure, and there is a risk that tax authorities will disagree with our tax positions
8. 27We could be subject to changes in tax rates, the adoption of new tax legislation or exposure to additional tax liabilities
9. 28The implementation of global tax reforms could negatively impact our financial results

Risks Related to Our Incorporation in Ireland

1. 29Irish law differs from the laws in effect in the United States and may afford less protection to holders of our securities
2. 30Changes in tax laws, regulations or treaties, changes in our status under the tax laws of many jurisdictions or adverse determinations by taxing authorities could increase our tax burden or otherwise affect our financial condition or operating results, as well as subject our shareholders to additional taxes
3. 31Dividends received by our shareholders may be subject to Irish dividend withholding tax
4. 32Dividends paid in respect of our shares generally are not subject to Irish income tax where the beneficial owner of these dividends is exempt from Irish dividend withholding tax, unless the beneficial owner of the dividend has some connection with Ireland other than his or her shareholding in Allegion
5. 33Certain provisions in our Memorandum and Articles of Association, among other things, could prevent or delay an acquisition of us, which could decrease the trading price of our ordinary shares