Antidilutive stock options excluded from computation of weighted-average diluted shares outstanding (in shares)

ALLEGION PLCNOTES TO CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS (Continued)(Unaudited)The effective income tax rates for the nine months ended September 30, 2022 and 2021, were 13.7% and 7.2%, respectively. The increase in the effective tax rate compared to 2021 is primarily due to the favorable resolutions of uncertain tax positions and other discrete tax benefits in 2021 that have not recurred in 2022, changes in jurisdictional tax rates, the mix of income earned in higher tax rate jurisdictions and the unfavorable tax impact from the divestiture of Milre.  
NOTE 18 - 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 EPS calculations for the three and nine months ended September 30:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended |  | Nine months ended |
| In millions | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Weighted-average number of basic shares | 87.9  |  |  | 89.7  |  |  | 88.0  |  |  | 90.1  |  |
| Shares issuable under share-based compensation plans | 0.3  |  |  | 0.6  |  |  | 0.4  |  |  | 0.6  |  |
| Weighted-average number of diluted shares | 88.2  |  |  | 90.3  |  |  | 88.4  |  |  | 90.7  |  |

At September 30, 2022, 0.5 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.  
NOTE 19 - NET REVENUESThe following tables show the Company’s Net revenues related to both tangible product sales and services for the three and nine months ended September 30, 2022 and 2021, respectively, disaggregated by business segment. Net revenues are shown by tangible product sales and services, as contract terms, conditions and economic factors affecting the nature, amount, timing and uncertainty around revenue recognition and cash flows are substantially similar within each of these two principal revenue streams:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended September 30, 2022 |  | Nine months ended September 30, 2022 |
| In millions | Allegion Americas |  | Allegion International |  | Total |  | Allegion Americas |  | Allegion International |  | Total |
| Net revenues |  |  |  |  |  |  |  |  |  |  |  |
| Products | $ | 714.6  |  |  | $ | 156.8  |  |  | $ | 871.4  |  |  | $ | 1,834.0  |  |  | $ | 519.5  |  |  | $ | 2,353.5  |  |
| Services | 32.6  |  |  | 9.7  |  |  | 42.3  |  |  | 33.7  |  |  | 23.2  |  |  | 56.9  |  |
| Total Net revenues | $ | 747.2  |  |  | $ | 166.5  |  |  | $ | 913.7  |  |  | $ | 1,867.7  |  |  | $ | 542.7  |  |  | $ | 2,410.4  |  |



|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Three months ended September 30, 2021 |  | Nine months ended September 30, 2021 |
| In millions | Allegion Americas |  | Allegion International |  | Total |  | Allegion Americas |  | Allegion International |  | Total |
| Net revenues |  |  |  |  |  |  |  |  |  |  |  |
| Products | $ | 524.1  |  |  | $ | 185.5  |  |  | $ | 709.6  |  |  | $ | 1,571.2  |  |  | $ | 563.9  |  |  | $ | 2,135.1  |  |
| Services | 0.3  |  |  | 7.1  |  |  | 7.4  |  |  | 1.5  |  |  | 21.6  |  |  | 23.1  |  |
| Total Net revenues | $ | 524.4  |  |  | $ | 192.6  |  |  | $ | 717.0  |  |  | $ | 1,572.7  |  |  | $ | 585.5  |  |  | $ | 2,158.2  |  |

Historically, approximately 99% of the Company's consolidated Net revenues have involved contracts with a single performance obligation, the transfer of control of a product or bundle of products to a customer. However, the percentage of Net revenues from services is expected to increase with the recent acquisition of the Access Technologies business. As of September 30, 2022, neither the contract assets related to the Company’s right to consideration for work completed but not billed, nor the contract liabilities associated with contract revenue were material. The Company does not have any costs to obtain or fulfill a contract that are capitalized on its Condensed and Consolidated Balance Sheets. During the three and nine months ended September 30, 2022 and 2021, no adjustments related to performance obligations satisfied in previous periods were recorded.  
16
