Senior Vice President and Chief Financial Officer at Allegion
Thanks, Dave, and good morning, everyone. Thank you for joining today's call. Please go to Slide number 6. This slide reflects our earnings per share reconciliation for the fourth quarter. For the fourth quarter of 2020, reported earnings per share was $1.01. Adjusting $0.48 for charges related to restructuring, M&A costs, impairments as well as a loss on held-for-sale assets, the 2020 adjusted earnings per share was $1.49. Favorable year-over-year tax rate and share count drove another $0.04 and $0.03 increase respectively.
Interest and other income were slightly positive as were the impact of acquisitions and divestitures, both added $0.01 per share. The story for the quarter is reflected in the operational results, which decreased earnings per share by $0.41. The inflation of productivity headwinds were predominantly driven from higher input costs, wage increases, inefficiencies from supply chain challenges and the bounce back of variable-related costs, which were not as high in the prior year. These added costs were partially offset by price. Pricing sequentially improved in the quarter and will continue to accelerate in 2022.
Investment spending increased during the quarter and reduced earnings per share by $0.06. We remain committed to investing in new product innovation and technology that will accelerate future growth and deliver solutions that enhance customer and end user experiences and connectivity. This results in adjusted fourth quarter 2021 earnings per share of $1.11, a decrease of $0.38 or 25.5% compared to the prior year. Lastly, we have a $0.15 per share increase for the combination of a non-cash gain on a remeasurement of an Allegion Ventures investment offset by charges related to restructuring, M&A and debt refinancing. After giving effect to these items, you arrive at the fourth quarter 2021 reported earnings per share of $1.26.
Please go to Slide number 7. This slide depicts the components of our revenue growth for the fourth quarter as well as for the full year of 2021. As indicated, we experienced a 1.4% organic revenue decline in the fourth quarter. Like Q3, the electronics and other component shortages, primarily in the Americas region, had an impact on our ability to meet continued strong demand. We achieved the highest quarter of price realization in the year, which offset some of the volume decline.
For the full year, you can see that total revenue was up 5.4% with organic revenue growth of 4.5%. Both segments of the business delivered organic growth for the year, with the International segment at 10.4% and Americas at 2.4%. As mentioned, end market demand increased considerably faster than we anticipated in 2021. And although we were able to deliver significantly more than our initial outlook, we were unable to meet the full market opportunity currently. However, our record backlogs will enable accelerated revenue in the future once the supply chain constraints are mitigated.
Please go to Slide number 8. Fourth quarter revenues for the Allegion Americas segment were $499.5 million, down 4.2% on a reported basis and 4.3% organically. The organic decline was driven by continued supply chain pressures for both mechanical and electronic products. On the plus side, we did see sequential improvement in price, and the Americas has announced another increase that goes into effect this month. We are driving price in all channels and products and our expectation is that pricing will exceed inflation in 2022.
The Americas non-residential business was up low-single-digits as strong price was offset by delayed volume related to electronic allocations and other component shortages. These supply chain constraints, paired with robust market demand slowed the pace of revenue realization and led to historic levels of backlogs at the end of the year. Americas residential was down mid-teens.
Similar to last quarter and mentioned previously, the main drivers of the decrease are the prior year being inflated by channel refill coming out of the pandemic shutdowns experienced in Q2 2020 and the shortage of electronic components that primarily impact us in the DIY space, a big box retail and e-commerce. Electronics revenue was down low-20% driven by continued shortages of electronic components in both the non-residential and residential businesses. The prior-year residential channel refill also had an impact on year-over-year electronics performance.
Allegion Americas adjusted operating income of $105.5 million decreased 29% versus the prior year period and adjusted operating margin for the quarter was down 740 basis points. The decrease was driven by inflationary pressures, productivity challenges related to supply chain and volume deleverage. Incremental investments had a 90 basis point dilutive impact on adjusted margins. Although margins were down significantly in the quarter, down 370 basis points for the full year, margins will improve in 2022 compared to 2021 from increased price realization, volume leverage and improved business mix.
Please go to slide number 9. The Allegion International segment had another solid quarter. Fourth quarter revenues were $209.7 million, up 1.7% and up 5.8% on an organic basis. The organic growth was driven by strength in our Global Portable Security business along with good price realization. Reported growth reflect the impact of currency headwinds and divestitures.
Allegion International adjusted operating income of $29.4 million decreased 11.2% versus the prior year period. Adjusted operating margin for the quarter decreased by 200 basis points. The margin decrease was driven primarily by inflation exceeding price and productivity along with negative product mix, which more than offset the positive volume leverage. Incremental investments reduced margins by 50 basis points. I would also note the full year performance of the International segment; double-digit organic growth and achievement of 11% operating margin. This was a record year for the segment and reflects a tremendous amount of effort and dedication by the entire team.
Please go to Slide number 10. Available cash flow for 2021 came in at $443 million, which is flat compared to the prior year period. The adjusted net earnings were slightly lower and was offset by slightly lower capital expenditures. In total, the working capital impact was near neutral with increased inventories offset by other components of working capital. Looking at the working capital chart, it shows working capital as a percentage of revenues and the cash conversion cycle decreased based on a four-point quarter average.
Last chart on the slide shows our net leverage. The net debt to EBITDA ratio increased from 1.5 last year to 1.7 this year. The increase in the ratio was driven primarily by reduced cash position from shareholder distributions for the year. The business continues to generate strong cash flow and conversion of net earnings. We have a healthy balance sheet, and we executed $542 million in shareholder distributions with $413 million in share repurchases and $129 million in dividends. We also recently announced a 14% increase in our dividend coming later in March.
During the quarter, we entered into a new $750 million unsecured credit agreement consisting of a $250 million term facility and a $500 million revolving facility. We obtained a rating upgrade with Moody's and moved to positive outlook by Fitch. Our capital structure is an asset of the company and we continue to execute on our balanced capital allocation strategy that will deploy capital through incremental high returning organic investments, capex, M&A or shareholder distributions.
I will now hand it back over to Dave for some comments on 2022.