Allegion (ALLE) risk factors, FY2025 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 indebtedness25% rewritten

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 business31% rewritten
9. 16industry standards, as well as any international treaties and accords, is uncertain given the wide scope of potential regulatory change in the countries in which we operateNew
10. 17We may be subject to risks relating to systems failures or disruptions to our information technology and operational technology systems26% rewritten
11. 18Cybersecurity incidents could disrupt business operations, result in the loss of critical and confidential information, and adversely impact the Company's reputation, operating results, and financial conditionNew
12. 19We are exposed to risks related to compliance with data privacy and governance lawsNew
13. 20Our ability to successfully grow and expand our business depends on our ability to recruit and retain a highly qualified and diverse workforce
14. 21Disruptions 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. 22We are subject to risks related to corporate social responsibility and reputational matters
2. 23Our brands are important assets of our businesses, and violation of our trademark rights by imitators could negatively impact revenues and brand reputation
3. 24Material 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. 25Allegations that we have infringed the intellectual property rights of third parties could negatively affect us
5. 26Our 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. 27Our operations are subject to regulatory risks related to domestic and international, environmental, health and safety lawsNew
7. 28As 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. 29We could be subject to changes in tax rates, the adoption of new tax legislation or exposure to additional tax liabilities
9. 30The implementation of global tax reforms could negatively impact our financial results

Risks Related to Our Incorporation in Ireland

1. 31Irish law differs from the laws in effect in the United States and may afford less protection to holders of our securities
2. 32Changes 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. 33Dividends received by our shareholders may be subject to Irish dividend withholding tax
4. 34Dividends 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. 35Certain 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