Resideo (REZI) 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 01, 2020
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Trading Symbol	REZI
Entity Registrant Name	Resideo Technologies, Inc.
Entity Central Index Key	0001740332
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		123,148,033
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity File Number	001-38635
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-5318796
Entity Address, Address Line One	901 E 6th Street
Entity Address, City or Town	Austin
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	78702
City Area Code	512
Local Phone Number	726-3500
Document Quarterly Report	true
Document Transition Report	false

CONSOLIDATED INTERIM STATEMENTS

CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net revenue	$ 1,179	$ 1,216
Cost of goods sold	895	884
Gross profit	284	332
Selling, general and administrative expenses	250	247
Operating profit	34	85
Other expense (income), net	42	(16)
Interest expense	17	17
(Loss) income before taxes	(25)	84
Tax (benefit) expense	(4)	36
Net (loss) income	$ (21)	$ 48
Weighted Average Number of Common Shares Outstanding (in thousands)
Basic	122,962	122,570
Diluted	122,962	123,472
(Loss) Earnings Per Share
Basic	$ (0.17)	$ 0.39
Diluted	$ (0.17)	$ 0.39

CONSOLIDATED INTERIM STATEMEN_2

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (21)	$ 48
Other comprehensive (loss) income, net of tax
Foreign exchange translation adjustment	(66)	6
Total other comprehensive (loss) income, net of tax	(66)	6
Comprehensive (loss) income	$ (87)	$ 54

CONSOLIDATED INTERIM BALANCE SH

CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 338	$ 122
Accounts receivable – net	820	817
Inventories – net	671	671
Other current assets	164	175
Total current assets	1,993	1,785
Property, plant and equipment – net	304	316
Goodwill	2,612	2,642
Other assets	378	385
Total assets	5,287	5,128
Current liabilities:
Accounts payable	906	920
Current maturities of long-term debt	382	22
Accrued liabilities	467	552
Total current liabilities	1,755	1,494
Long-term debt	1,149	1,158
Obligations payable to Honeywell	592	594
Other liabilities	270	280
COMMITMENTS AND CONTINGENCIES (Note 13)
EQUITY
Common stock, $0.001 par value, 700,000 shares authorized, 123,874 and 123,121 shares issued and outstanding as of March 31, 2020, 123,488 and 122,873 shares issued and outstanding as of December 31, 2019, respectively	0	0
Additional paid-in capital	1,768	1,761
Treasury stock, at cost	(4)	(3)
Retained earnings	17	38
Accumulated other comprehensive (loss)	(260)	(194)
Total equity	1,521	1,602
Total liabilities and equity	$ 5,287	$ 5,128

CONSOLIDATED INTERIM BALANCE _2

CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	700,000,000	700,000,000
Common stock, shares issued	123,874,000	123,488,000
Common stock, shares outstanding	123,121,000	122,873,000

CONSOLIDATED INTERIM STATEMEN_3

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Cash flows used for operating activities:
Net (loss) income		$ (21)	$ 48
Adjustments to reconcile net (loss) income to net cash used for operating activities:
Depreciation and amortization		21	16
Restructuring charges, net of payments		5
Stock compensation expense	[1]	7	7
Other		12	3
Changes in assets and liabilities:
Accounts receivable		(17)	(17)
Inventories – net		(6)	(72)
Other current assets		10	(16)
Accounts payable		(1)	70
Accrued liabilities		(80)	(6)
Obligations payable to Honeywell		(2)	(49)
Other		(2)	6
Net cash used for operating activities		(74)	(10)
Cash flows used for investing activities:
Expenditures for property, plant, equipment and other intangibles		(16)	(15)
Cash paid for acquisitions, net of cash acquired		(35)	(6)
Net cash used for investing activities		(51)	(21)
Cash flows provided by (used for) financing activities:
Net proceeds from revolving credit facility		350
Repayment of long-term debt			(6)
Non-operating obligations paid to Honeywell, net			(15)
Tax payments related to stock vestings		(1)	(2)
Net cash provided by (used for) financing activities		349	(23)
Effect of foreign exchange rate changes on cash and cash equivalents		(8)	1
Net increase (decrease) in cash and cash equivalents		216	(53)
Cash and cash equivalents at beginning of period		122	265
Cash and cash equivalents at end of period		$ 338	$ 212
[1]	Stock compensation expense adjustment includes only non-cash expenses.

CONSOLIDATED INTERIM STATEMEN_4

CONSOLIDATED INTERIM STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Treasury Shares	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2018	$ 1,533			$ 1,720	$ 2	$ (189)
Beginning Balance, Shares at Dec. 31, 2018		122,499,000	468,000
Net (loss) income	48				48
Other comprehensive (loss) income, net of tax	6					6
Issuance of common stock under stock-based compensation plans, net of shares withheld for employee taxes	(2)		$ (2)
Issuance of common stock under stock-based compensation plans, net of shares withheld for employee taxes, Shares		187,000	84,000
Stock-based compensation	7			7
Ending Balance at Mar. 31, 2019	1,592		$ (2)	1,727	50	(183)
Ending Balance, Shares at Mar. 31, 2019		122,686,000	552,000
Beginning Balance at Dec. 31, 2019	1,602		$ (3)	1,761	38	(194)
Beginning Balance, Shares at Dec. 31, 2019		122,873,000	615,000
Net (loss) income	(21)				(21)
Other comprehensive (loss) income, net of tax	(66)					(66)
Issuance of common stock under stock-based compensation plans, net of shares withheld for employee taxes	(1)		$ (1)
Issuance of common stock under stock-based compensation plans, net of shares withheld for employee taxes, Shares		248,000	137,000
Stock-based compensation	7			7
Ending Balance at Mar. 31, 2020	$ 1,521		$ (4)	$ 1,768	$ 17	$ (260)
Ending Balance, Shares at Mar. 31, 2020		123,121,000	752,000

Organization, Consolidation and

Organization, Consolidation and Presentation of Financial Statements	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Organization, Operations and Basis of Presentation	Note 1. Organization, Operations and Basis of Presentation Business Description Resideo Technologies, Inc. (“Resideo” or “the Company”), is a global provider of products, software, solutions and technologies that help homeowners stay connected and in control of their comfort, security and energy use. The Company is a leader in the home heating, ventilation and air conditioning controls and security markets, and a leading global distributor of low-voltage electronic and security products. Separation from Honeywell The Company was incorporated in Delaware on April 24, 2018. The Company separated from Honeywell International Inc. (“Honeywell”) on October 29, 2018, becoming an independent publicly traded company as a result of a pro rata distribution of the Company’s common stock to shareholders of Honeywell (the “Spin-Off”). On October 29, 2018, Honeywell’s shareholders of record as of October 16, 2018 (“Record Date”) received one share of the Company’s common stock, par value $0.001 per share, for every six shares of Honeywell’s common stock, par value $1.00 per share, held as of the Record Date, and cash for any fractional shares of the Company’s common stock. The Company began trading “regular way” under the ticker symbol “REZI” on the New York Stock Exchange on October 29, 2018. In connection with the separation, Resideo and Honeywell entered into a Honeywell Reimbursement Agreement, a Tax Matters Agreement and a Trademark Agreement (each as defined in Note 13. Commitments and Contingencies), a Separation and Distribution Agreement, an Employee Matters Agreement, a Transition Services Agreement, and a Patent Cross-License Agreement. The agreements govern the relationship between Resideo and Honeywell following the separation and provide for the allocation of various assets, liabilities, rights and obligations. These agreements also include arrangements for transition services to be provided by Honeywell to Resideo and by Resideo to Honeywell. Prior to the Spin-Off, Honeywell provided certain services, such as legal, accounting, information technology, human resources and other infrastructure support, on behalf of the Company. After the Spin-Off, a number of services have continued under a Transition Services Agreement with Honeywell, which the Company expenses as incurred based on the contractual pricing terms. Basis of Presentation The Company’s financial statements are presented on a consolidated basis (collectively, the “Interim Financial Statements”) and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). All intercompany transactions have been eliminated for all periods presented. The Interim Financial Statements are unaudited; however, in the opinion of management, they contain all the adjustments (consisting of those of a normal recurring nature) considered necessary to state fairly the financial position, results of operations and cash flows for the periods presented in conformity with U.S. GAAP applicable to interim periods. In periods subsequent to the Spin-Off, we may have made and may continue to make adjustments to balances transferred at the Spin-Off, including adjustments to the classification of assets or liabilities transferred. Any such adjustments are recorded directly to equity in Adjustments due to the Spin-Off and are considered immaterial. The Company reports its quarterly financial information using a calendar convention; the first, second and third quarters are consistently reported as ending on March 31, June 30 and September 30. It is the Company’s practice to establish actual quarterly closing dates using a predetermined fiscal calendar, which requires its businesses to close their books on the last Saturday of the month in order to minimize the potentially disruptive effects of quarterly closing on business processes. The effects of this practice are generally not significant to reported results for any quarter and only exist within a re porting year. In the event that differences in actual closing dates are material to year-over-year comparisons of quarterly or year-to-d ate results, the Company will provide appropriate disclosures. A ctual closing dates for the three months ended March 31, 2020 and 2 019 were March 28 , 20 20 and March 30 , 2019, respectively . Reclassification On January 1, 2020, the Company changed its classification of research and development expenses in the Consolidated Interim Statements of Operations from Cost of goods sold to Selling, general and administrative expenses, such that research and development expenses are excluded from the calculation of Gross profit. The impact on the March 31, 2019 Consolidated Interim Statement of Operations is a reduction of Cost of goods sold, an increase in Gross profit and an increase in Selling, general and administrative expenses of $19 million. This reclassification had no effect on the previously reported Net income or the Company’s Consolidated Interim Statements of Comprehensive (loss) income, Cash flows, or Balance sheets.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2. Summary of Significant Accounting Policies The Company’s accounting policies are set forth in “Note 2. Summary of Significant Accounting Policies” of the Company’s Notes to Consolidated and Combined Financial Statements included in the 2019 Annual Report on Form 10-K. Included herein are certain updates to those policies. In December 2019, a novel coronavirus disease (“COVID-19”) was reported and in January 2020, the World Health Organization (“WHO”) declared it a Public Health Emergency of International Concern. On February 28, 2020, the WHO raised its assessment of the COVID-19 threat from high to very high at a global level due to the continued increase in the number of cases and affected countries, and on March 11, 2020, the WHO characterized COVID-19 as a pandemic. The broader implications of COVID-19 on the Company’s results of operations and overall financial performance remain uncertain. The Company may experience constrained supply or slowed customer demand that could materially adversely impact the Company’s business, results of operations and overall financial performance in future periods. See “Item 1A. Risk Factors” for further discussion of the possible impact of the COVID-19 pandemic on the Company’s business. As there remains a high degree of uncertainty around the impacts of the COVID-19 pandemic, the Company addresses and evaluates the impacts frequently. At March 31, 2020, the Company believes that the accounting policies most likely to be affected by the COVID-19 pandemic are the following: Use of Estimates —The preparation of the Company’s Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and related disclosures in the accompanying Notes to Consolidated Financial Statements. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed, and the effects of changes are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Estimates are used when accounting for stock-based compensation, pension benefits, contingent consideration, indemnification liabilities, goodwill and intangible assets and valuation allowances for receivables and inventory reserves, deferred tax assets, and the amounts of revenue and expenses reported during the period. The Company has used information available to identify potential impacts caused by the COVID-19 pandemic at March 31, 2020 in these estimates. Goodwill — Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. For the 2019 annual impairment test, the Company used a weighting of fair values derived from the income approach and market approach. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows. The income approach requires the exercise of significant judgment, including judgment about the amount and timing of expected future cash flows, assumed terminal value and appropriate discount rates. Under the market approach, the Company utilizes the pu blic company guideline method. As a corroborative source of information, the Company reconciles the estimated fair value of its reporting units to within a reasonable range of its market capitalization, which includes an assumed control premium to verify the reasonableness of the fair value of its reporting units. The Company believes the estimates and assumptions used in the calculations are reasonable and have not significantly changed considering the expected impacts of the COVID-19 pandemic. However, the extent to which COVID-19 may adversely impact our business depends on future developments, which are highly uncertain and unpredictable, depending upon the severity and duration of the outbreak, and the effectiveness of actions taken globally to contain or mitigate its effects. Any resulting financial impact cannot be estimated reasonably at this time but may materially adversely affect our business and financial results. It is possible that, during the remainder of 2020, business conditions could further deteriorate to a greater extent than we currently anticipate and if there was an adverse change in the facts and circumstances, then an impairment charge may be necessary in the future. Specifically, the fair value of our Products & Solutions reporting unit, with goodwill of approximately $1,978 million, exceeded its carrying value by 10% and therefore is highly sensitive to adverse changes in the facts and circumstances that could result in a possible future impairment. Should the fair value of the Company’s reporting units fall below its carrying amount because of reduced operating performance, market declines, changes in the discount rate, a more significant impact than expected from the COVID-19 pandemic, or other conditions, charges for impairment may be necessary. The Company monitors its reporting units to determine if there is an indicator of potential impairment. Recent Accounting Pronouncements —The Company considers the applicability and impact of all recent accounting standards updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial position or results of operations. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) In August 2018, the FASB issued guidance that amends the current disclosure requirements regarding defined benefit pensions and other post retirement plans and allows for the removal of certain disclosures, while adding certain new disclosure requirements. This standard is effective for fiscal years beginning after December 15, 2020 and allows for early adoption. The Company does not expect this new standard to have a significant impact to its disclosures. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . This ASU simplifies the accounting for income taxes by, among other things, eliminating certain existing exceptions related to the general approach in ASC 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for transactions outside of business combination that result in a step-up in the tax basis of goodwill. The transition requirements are primarily prospective and the effective date for Resideo is January 1, 2021, with early adoption permitted. The Company early adopted the provisions of this guidance on January 1, 2020. Adoption of this guidance did not have a material financial statement impact. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,

(Loss) Earnings Per Share

(Loss) Earnings Per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
(Loss) Earnings Per Share	Note 3. (Loss) Earnings Per Share The details of the earnings per share calculations for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31, Basic: 2020 2019 Net (loss) income $ (21 ) $ 48 Weighted average common shares outstanding (in thousands) 122,962 122,570 (Loss) earnings per share - Basic $ (0.17 ) $ 0.39 Three Months Ended March 31, Diluted: 2020 2019 Net (loss) income $ (21 ) $ 48 Weighted average common shares outstanding - Basic (in thousands) 122,962 122,570 Dilutive effect of common stock equivalents - 902 Weighted average common shares outstanding - Diluted (in thousands) 122,962 123,472 (Loss) earnings per share - Diluted $ (0.17 ) $ 0.39 (Loss) earnings per share Diluted earnings per share is computed based upon the weighted average number of common shares outstanding for the period plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the three months ended March 31, 2020 and 2019. In periods where the Company has a net loss, no dilutive common shares are included in the calculation for diluted shares as they are considered anti-dilutive.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
Acquisitions	Note 4. Acquisitions On February 10, 2020, the Company completed the acquisition of privately held Herman ProAV, a leading provider and distributer of professional audio-visual products, procurement services and labor resources to systems integrators in the commercial audio-visual industry. The purchase price paid for this acquisition was approximately $36 million. In connection with this acquisition, the Company recognized goodwill and intangible assets of $4 million and $18 million, respectively. This acquisition was integrated into and builds upon ADI Global Distribution’s product portfolio and expands its presence in the pro-AV market. The Herman ProAV acquisition agreements include deferred payments for certain individuals that are contingent upon employment as well as financial performance. The Company determined that these deferred payments are accounted for as compensation expense over the requisite service period. The Company is still assessing the final allocation of the purchase price to the assets and liabilities of the business. Pro-forma disclosures are not provided as the acquisition has an immaterial financial statement impact.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2020
Revenue From Contract With Customer [Abstract]
Revenue Recognition	Note 5. Revenue Recognition Disaggregated Revenue Revenues by channel are as follows: Three Months Ended March 31, 2020 2019 U.S. and Canada $ 576 $ 536 EMEA (1) 114 115 APAC (2) 14 14 ADI Global Distribution 704 665 Comfort 230 272 Security 122 132 Residential Thermal Solutions 123 147 Products & Solutions 475 551 Net revenue $ 1,179 $ 1,216 (1) EMEA represents Europe, the Middle East and Africa. (2) APAC represents Asia and Pacific countries. The Company recognizes the majority of its revenue from performance obligations outlined in contracts with its customers that are satisfied at a point in time. Less than 3% of the Company’s revenue is satisfied over time. As of March 31, 2020, and 2019 contract assets and liabilities are not material.

Restructuring and Other Charges

Restructuring and Other Charges	3 Months Ended
	Mar. 31, 2020
Restructuring And Related Activities [Abstract]
Restructuring and Other Charges	Note 6. Restructuring and Other Charges During the fourth quarter of 2019, the Company announced commencement of a comprehensive operational and financial review focused on product cost, gross margin improvement, and general and administrative expense simplification. The review is being overseen by the Strategic and Operational Committee of our board, comprised of independent directors. We have retained industry-recognized experts in supply chain optimization and organizational excellence to assist in the review. Certain restructuring actions have been and are continuing to be implemented under this program as well as previous programs. For the three months ended March 31, 2020, restructuring and related expenses for the Products & Solutions segment and the ADI Global Distribution segment were $8 million and $1 million, respectively, and primarily related to severance. There were no material restructuring charges for the three months ended March 31, 2019. The following table summarizes the pretax distribution of total net restructuring charges by unaudited Consolidated Statements of Operations classification: Three Months Ended March 31, 2020 Cost of goods sold $ 3 Selling, general and administrative expenses 6 $ 9 The following table summarizes the status of total restructuring reserves related to severance cost included in Accrued liabilities in the unaudited Consolidated Balance Sheets: Three Months Ended March 31, 2020 Beginning of period $ 19 Charges 9 Usage – cash (4 ) End of period $ 24

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 7. Income Taxes The Company recorded a tax benefit of $4 million for the three months ended March 31, 2020. For interim periods, income tax is equal to the total of (1) year-to-date pretax income multiplied by our forecasted effective tax rate plus (2) tax expense items specific to the period. In situations where we expect to report losses that we do not expect to receive a tax benefit, we are required to apply separate forecasted effective tax rates to those jurisdictions, rather than including them in the consolidated effective tax rate. For the three months ended March 31, 2020, income tax expense was impacted by this set of rules, resulting in an additional cost of $1 million compared to what would have been recorded under the general rule on a consolidated basis. For the three months ended March 31, 2020, the net tax benefit of $ 4 million , was driven by tax expense specific to the period of approximately $ 17 million primarily related to $ 15 million for valuation allowances in foreign jurisdictions and $ 2 million related to the estimated tax impact of the CARES Act on prior years , offset by the impact of our estimated annual effective tax rate applied to pre-tax losses. In addition to items specific to the period our income tax rate is impacted by the mix of earnings across the jurisdictions in which we operate, non-deductible expenses, and U.S. taxation of foreign earnings.

Inventories Net

Inventories Net	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories Net	Note 8. Inventories—Net March 31, December 31, 2020 2019 Raw materials $ 155 $ 154 Work in process 18 18 Finished products 569 568 Inventory reserves (71 ) (69 ) $ 671 $ 671

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2020
Payables And Accruals [Abstract]
Accrued Liabilities	Note 9. Accrued Liabilities March 31, December 31, 2020 2019 Obligations payable to Honeywell $ 140 $ 140 Taxes payable 40 66 Compensation, benefit and other employee-related 49 66 Customer rebate reserve 35 78 Other 203 202 $ 467 $ 552 Refer to “Note 13. Commitments and Contingencies” for further details on Obligations payable to Honeywell.

Long-term Debt and Credit Agree

Long-term Debt and Credit Agreement	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Long-term Debt and Credit Agreement	Note 10. Long-term Debt and Credit Agreement The Company’s debt at March 31, 2020 and December 31, 2019 consisted of the following: March 31, December 31, 2020 2019 6.125% notes due 2026 $ 400 $ 400 Five-year variable rate term loan A due 2023 333 333 Seven-year variable rate term loan B due 2025 470 470 Revolving Credit Facility 350 - Unamortized deferred financing costs (22 ) (23 ) Total outstanding indebtedness 1,531 1,180 Less: amounts due within one year 382 22 Total long-term debt due after one year $ 1,149 $ 1,158 In October of 2018, the Company issued $400 million in principal amount of its 6.125% senior unsecured notes (the “Senior Notes”), entered into term loan facilities in the form of a seven-year five-year (the “Term Loans”) and established a five-year On November 26, 2019, the Company entered into a First Amendment to the Credit Agreement (the “Credit Agreement Amendment”). The Credit Agreement Amendment amended the Term Loans and Revolving Credit Facility credit agreement (the “Credit Agreement”) to, among other things: (i) increase the levels of the maximum consolidated total leverage ratio under the Credit Agreement, to not greater than 5.25 4.75 4.25 3.75 As of March 31, 2020, there were $350 million of borrowings and no of letters of credit issued under the $350 million Revolving Credit Facility. The Company assessed the amount recorded under the Term Loans, the Senior Notes, and the Revolving Credit Facility and determined the Revolving Credit Facility approximated fair value. The senior secured first-lien term A loan facility, senior secured first-lien term B loan facility and the Senior Notes’ fair values are approximately $308, $375 and $348 million, respectively. The fair values of the debt are based on the quoted inactive prices and are therefore classified as Level 2 within the valuation hierarchy. At March 31, 2020, the interest rate for the Term Loans was 4.20% and the weighted average interest rate for the Revolving Credit Facility was 3.17%. The interest expense Revolving Credit Facility, Term Loans and , . For more information, please refer to “Note 15. Long-term Debt and Credit Agreement” in our 2019 Annual Report on Form 10-K.

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Note 11. Leases The Company is party to operating leases for the majority of its manufacturing sites, offices, engineering and lab sites, stocking locations, warehouses, automobiles, and certain equipment. The Company’s operating lease costs for the three months ended March 31, 2020 and 2019 consisted of the following: Three Months Ended March 31, 2020 2019 Selling, general & administrative $ 10 $ 8 Cost of goods sold 4 4 Total operating lease costs $ 14 $ 12 Total operating lease costs include variable lease costs of $3 million for the three months ended March 31, 2020 The Company recognized the following related to its operating leases: Financial Statement Line Item At March 31, 2020 At December 31, 2019 Operating right-of-use assets Other assets $ 129 $ 137 Operating lease liabilities - current Accrued liabilities $ 32 $ 31 Operating lease liabilities - noncurrent Other liabilities $ 105 $ 111 Maturities of the Company’s operating lease liabilities were as follows: At March 31, 2020 2020 $ 28 2021 35 2022 30 2023 23 2024 12 Thereafter 32 Total lease payments 160 Less: imputed interest 23 Present value of operating lease liabilities $ 137 Weighted-average remaining lease term (years) 5.64 Weighted-average incremental borrowing rate 5.89 % Supplemental cash flow information related to the Company’s operating leases was as follows: Three Months Ended March 31, 2020 2019 Operating cash outflows $ 7 $ 9 Operating right-of-use assets obtained in exchange for operating lease liabilities $ 5 $ 12 As of March 31, 2020 , the Company has additional operating lease s that have not yet commenced. Obligations under these leases are not material . Additionally, as a lessor, the Company leases all or a portion of certain owned properties . Rental income for the three months ended March 31, 2020 and 2019 was not material .

Stock-Based Compensation Plans

Stock-Based Compensation Plans	3 Months Ended
	Mar. 31, 2020
Compensation Related Costs [Abstract]
Stock-Based Compensation Plans	Note 12. Stock-Based Compensation Plans Restricted Stock Units (“RSUs”) During the three months ended March 31, 2020, as part of the Company’s annual long-term compensation under the 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates and the 2018 Stock Incentive Plan for Non-Employee Directors of Resideo Technologies, Inc. as may be amended from time to time (together, the “Stock Incentive Plan”), it granted 545,588 performance-based RSUs and 1,056,354 time-based RSUs to eligible employees. The weighted average grant date fair value per share for these shares was $10.80. Stock Options During the three months ended March 31, 2020, as part of the Company’s annual long-term compensation under the Stock Incentive Plan, 650,367 stock options were granted to eligible employees at a weighted average exercise price per share of $10.27 and weighted average grant date fair value per share of $2.84.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13. Commitments and Contingencies Environmental Matters The Company is subject to various federal, state, local and foreign government requirements relating to the protection of the environment and accrues costs related to environmental matters when it is probable that it has incurred a liability related to a contaminated site and the amount can be reasonably estimated. Environmental-related expenses for sites owned and operated by Resideo are presented within Cost of goods sold for operating sites. For the three months ended March 31, 2020 and March 31, 2019 environmental expenses related to these operating sites were not material. Liabilities for environmental cost were $22 million as of March 31, 2020 and December 31, 2019. The Company does not currently possess sufficient information to reasonably estimate the amounts of environmental liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined although they could be material to our unaudited consolidated results of operations and operating cash flows in the periods recognized or paid. Honeywell Reimbursement Agreement On October 29, 2018, in connection with the Spin-Off, the Company entered into an indemnification and reimbursement agreement with Honeywell (the “Honeywell Reimbursement Agreement”) contaminants at upland and sediment sites, which include, among others, metals, organic compounds and polychlorinated biphenyls, through a variety of methods, which include, among others, excavation, capping, in-situ stabilization, groundwater treatment and dredging. In addition, the C ompany obligations subject to the Honeywell Reimbursement Agreement include certain liabilit ies with respect to (i) hazardous exposure or toxic tort claims associated with the specified sites that arise after the Spin-Off, if any, (ii) currently unidentified releases of hazardous substances at or associated with the specified sites, (iii) other environmental claims associated with the specified sites and (iv) consequential damages. Payments in respect of the liabilities arising in a given year will be made quarterly throughout such year on the basis of an estimate of the liabilities and recoveries provided by Honeywell. Following the end of any such year, Honeywell will provide the Company with a calculation of the amount of payments and the recoveries actually received. Payment amounts under the Honeywell Reimbursement Agreement will be deferred to the extent that a specified event of default has occurred and is continuing under certain indebtedness, including under the Company’s principal credit agreement, or the payment thereof causes the Company to not be compliant with certain financial covenants in certain indebtedness, including the Company’s principal credit agreement on a pro forma basis, including the maximum total leverage ratio (ratio of consolidated debt to consolidated EBITDA, which excludes any amounts owed to Honeywell under the Honeywell Reimbursement Agreement), and the minimum interest coverage ratio. A 5% late payment fee will accrue on all amounts that are not otherwise entitled to be deferred under the terms of the Honeywell Reimbursement Agreement, without prejudice to any other rights that Honeywell may have for late payments. The obligations under the Honeywell Reimbursement Agreement will continue until the earlier of: (1) December 31, 2043; or (2) December 31 of the third consecutive year during which the annual reimbursement obligation (including in respect of deferred payment amounts) has been less than $25 million. The following table summarizes information concerning our Honeywell Reimbursement Agreement liabilities: Three Months Ended March 31, 2020 2019 Beginning balance $ 585 $ 616 Accruals for indemnification liabilities deemed probable and reasonably estimable 34 67 Reduction (1) - (81 ) Indemnification payment (35 ) (35 ) Ending balance $ 584 $ 567 (1) Reduction in indemnification liabilities relates to a provision in the Honeywell Reimbursement Agreement that reduces the obligation due to Honeywell for any proceeds received by Honeywell from a property sale of a site under the agreement. For the three months ended March 31, 2020 and 2019, net expenses (gains) related to the Honeywell Reimbursement Agreement were $34 million and $(14) million, respectively and are recorded in Other expense, net. Honeywell Reimbursement Agreement liabilities are included in the following balance sheet accounts: March 31, 2020 December 31, 2019 Accrued liabilities $ 140 $ 140 Obligations payable to Honeywell 444 445 $ 584 $ 585 The Company does not currently possess sufficient information to reasonably estimate the amounts of indemnification liabilities to be recorded upon future completion of studies, litigation or settlements, and neither the timing nor the amount of the ultimate costs associated with environmental matters can be determined although they could be material to our unaudited consolidated results of operations and operating cash flows in the periods recognized or paid. Tax Matters Agreement In connection with the Spin-Off, the Company entered into a tax matters agreement (the “Tax Matters Agreement”) with Honeywell pursuant to which it is responsible and will indemnify Honeywell for all taxes, including income taxes, sales taxes, VAT and payroll taxes, relating to the business for all periods, including periods prior to the consummation of the Spin-Off. As of March 31, 2020 and December 31, 2019, the Company has indemnified Honeywell for future tax payments of $148 million and $149 million, which is included in Obligations payable to Honeywell. Trademark Agreement In connection with the Spin-Off, the Company and Honeywell entered into a 40-year Trademark License Agreement (the “Trademark Agreement”) that authorizes the Company’s use of certain licensed trademarks in the operation of Resideo’s business for the advertising, sale and distribution of certain licensed products. In exchange, the Company pays a royalty fee of 1.5% on net revenue to Honeywell related to such licensed products which is recorded in Selling, general and administrative expense on the unaudited Consolidated Interim Statements of Operations. For the three months ended March 31, 2020 and 2019 royalty fees were $6 million and $8 million, respectively. Other Matters The Company is subject to other lawsuits, investigations and disputes arising out of the conduct of its business, including matters relating to commercial transactions, government contracts, product liability, prior acquisitions and divestitures, employee matters, intellectual property, and environmental, health and safety matters. The Company recognizes a liability for any contingency that is probable of occurrence and reasonably estimable. The Company continually assesses the likelihood of adverse judgments of outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful The Company is involved in the class action suit described below: Between November 8, 2019 and January 7, 2020, four separate purported class action complaints alleging violations of the federal securities laws were filed against the Company, the Company’s CEO Michael Nefkens, and the Company’s former CFO Joseph Ragan, in the United States District Court for the District of Minnesota (the “Minnesota Court”). On January 27, 2020, the Minnesota Court granted an order on a stipulation addressing various motions for consolidation and appointment of lead plaintiff and lead counsel in the pending actions. By this ruling, the court consolidated the pending actions into a single proceeding styled In re Resideo Technologies, Inc. Securities Litigation, 19-cv-02889. The court also appointed co-lead plaintiffs and co-lead plaintiffs’ counsel. On April 10, 2020, an amended consolidated complaint was filed that named the Company, the Company’s CEO Michael Nefkens, the Company’s former CFO Joseph Ragan, and the Company’s CIO Niccolo de Masi as defendants. The complaint is a class action securities suit with the class defined as all persons or entities who purchased or otherwise acquired common stock of Resideo during the class period of October 29, 2018 to November 6, 2019. The complaint asserts claims under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, broadly alleging that defendants made false and misleading statements regarding, among other things, the Company’s performance, its ability to launch new products, the capacity of its engineering team, the efficiency of its supply chain, and resolution of operational issues arising from the spin-off from Honeywell. Based on these claims, the complaint alleges that the Company’s financial guidance lacked a reasonable basis and that the Company was not on track to make its full-year 2019 guidance as originally claimed. The defendants’ response to the complaint is due June 10, 2020. See “Note 19. Commitments and Contingencies” of Notes to Consolidated and Combined Financial Statements in our 2019 Annual Report on Form 10-K for further discussion. The Company intends to vigorously defend against the allegations in the amended consolidated complaint, but there can be no assurance that the defense will be successful. Warranties and Guarantees In the normal course of business, the Company issues product warranties and product performance guarantees. It accrues for the estimated cost of product warranties and performance guarantees based on contract terms and historical experience at the time of sale. Adjustments to initial obligations for warranties and guarantees are made as changes to the obligations become reasonably estimable. Product warranties and product performance guarantees are included in Accrued liabilities. The following table summarizes information concerning recorded obligations for product warranties and product performance guarantees: March 31, 2020 2019 Beginning of period $ 25 $ 26 Accruals for warranties/guarantees issued during the year 5 5 Adjustment of pre-existing warranties/guarantees (3 ) (1 ) Settlement of warranty/guarantee claims (4 ) (6 ) End of period $ 23 $ 24

Pension

Pension	3 Months Ended
	Mar. 31, 2020
Compensation And Retirement Disclosure [Abstract]
Pension	Note 14. Pension The Company sponsors multiple funded and unfunded U.S. and non-U.S. defined benefit pension plans. Pension benefits for many of its U.S. employees are provided through non-contributory, qualified and non-qualified defined benefit plans. It also sponsors defined benefit pension plans which cover non-U.S. employees who are not U.S. citizens, in certain jurisdictions, principally Germany, Austria, Belgium, France, India, Switzerland, and the Netherlands. The components of net periodic benefit costs other than the service cost are included in Other expense (income), net in the unaudited Consolidated Interim Statements of Operations for the three months ended March 31, 2020 and 2019.

Segment Financial Data

Segment Financial Data	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Financial Data	Note 15. Segment Financial Data The Company globally manages its business operations through two reportable operating segments, Products & Solutions Products & Solutions —The Products & Solutions business is a leading global provider of products, software solutions and technologies that help homeowners stay connected and in control of their comfort, security and energy use. ADI Global Distribution —The ADI Global Distribution business is a leading global distributor of low-voltage electronic and security products. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The Company’s Chief Operating Decision Maker evaluates segment performance based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as segment net income before income taxes, net interest (income) expense, depreciation and amortization plus environmental expense, Honeywell Reimbursement Agreement expense, stock compensation expense, restructuring charges and other adjustments. Three Months Ended March 31, 2020 2019 Revenue Total Products & Solutions revenue $ 559 $ 622 Less: Intersegment revenue 84 71 External Products & Solutions revenue 475 551 External ADI Global Distribution revenue 704 665 Total revenue $ 1,179 $ 1,216 Three Months Ended March 31, 2020 2019 Segment Adjusted EBITDA Products & Solutions $ 53 $ 81 ADI Global Distribution 46 46 Segment Adjusted EBITDA $ 99 $ 127 The table below provides a reconciliation of net income to Segment Adjusted EBITDA: Three Months Ended March 31, 2020 2019 Net (loss) income $ (21 ) $ 48 Net interest expense (1) 17 16 Tax (benefit) expense (4 ) 36 Depreciation and amortization 21 16 Honeywell Reimbursement Agreement net expense (gain) (2) 34 (14 ) Stock compensation expense (3) 7 7 Restructuring charges 9 - Other (4) 36 18 Segment Adjusted EBITDA $ 99 $ 127 (1) For the three months ended March 31, 2020 and 2019 interest expense was $17 million and $17 million net of interest income of $- million and $1 million, respectively. (2) Represents recorded net expenses (gains) related to the Honeywell Reimbursement Agreement. ( 3 ) Stock compensation expense adjustment includes only non-cash expenses. (4 ) For the three months ended March 31, 2020, Other represents $12 million of items related to the Spin-Off, $14 million of consulting and other fees related to transformation programs, $9 million of non-operating expense adjustment which excludes net interest (income), and $1 million of acquisition-related expenses. For the three months ended March 31, 2019, Other represents $19 million of items related to the Spin-Off and ($1) million in non-operating (income) expense adjustment which excludes interest (income). The Company’s CODM does not use segment assets information to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates —The preparation of the Company’s Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and related disclosures in the accompanying Notes to Consolidated Financial Statements. Actual results could differ from those estimates. Estimates and assumptions are periodically reviewed, and the effects of changes are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Estimates are used when accounting for stock-based compensation, pension benefits, contingent consideration, indemnification liabilities, goodwill and intangible assets and valuation allowances for receivables and inventory reserves, deferred tax assets, and the amounts of revenue and expenses reported during the period. The Company has used information available to identify potential impacts caused by the COVID-19 pandemic at March 31, 2020 in these estimates.
Goodwill	Goodwill — Determining the fair value of a reporting unit involves the use of significant estimates and assumptions. For the 2019 annual impairment test, the Company used a weighting of fair values derived from the income approach and market approach. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows. The income approach requires the exercise of significant judgment, including judgment about the amount and timing of expected future cash flows, assumed terminal value and appropriate discount rates. Under the market approach, the Company utilizes the pu blic company guideline method. As a corroborative source of information, the Company reconciles the estimated fair value of its reporting units to within a reasonable range of its market capitalization, which includes an assumed control premium to verify the reasonableness of the fair value of its reporting units. The Company believes the estimates and assumptions used in the calculations are reasonable and have not significantly changed considering the expected impacts of the COVID-19 pandemic. However, the extent to which COVID-19 may adversely impact our business depends on future developments, which are highly uncertain and unpredictable, depending upon the severity and duration of the outbreak, and the effectiveness of actions taken globally to contain or mitigate its effects. Any resulting financial impact cannot be estimated reasonably at this time but may materially adversely affect our business and financial results. It is possible that, during the remainder of 2020, business conditions could further deteriorate to a greater extent than we currently anticipate and if there was an adverse change in the facts and circumstances, then an impairment charge may be necessary in the future. Specifically, the fair value of our Products & Solutions reporting unit, with goodwill of approximately $1,978 million, exceeded its carrying value by 10% and therefore is highly sensitive to adverse changes in the facts and circumstances that could result in a possible future impairment. Should the fair value of the Company’s reporting units fall below its carrying amount because of reduced operating performance, market declines, changes in the discount rate, a more significant impact than expected from the COVID-19 pandemic, or other conditions, charges for impairment may be necessary. The Company monitors its reporting units to determine if there is an indicator of potential impairment.
Recent Accounting Pronouncements	Recent Accounting Pronouncements —The Company considers the applicability and impact of all recent accounting standards updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on the Company’s consolidated financial position or results of operations. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) In August 2018, the FASB issued guidance that amends the current disclosure requirements regarding defined benefit pensions and other post retirement plans and allows for the removal of certain disclosures, while adding certain new disclosure requirements. This standard is effective for fiscal years beginning after December 15, 2020 and allows for early adoption. The Company does not expect this new standard to have a significant impact to its disclosures. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) . This ASU simplifies the accounting for income taxes by, among other things, eliminating certain existing exceptions related to the general approach in ASC 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for transactions outside of business combination that result in a step-up in the tax basis of goodwill. The transition requirements are primarily prospective and the effective date for Resideo is January 1, 2021, with early adoption permitted. The Company early adopted the provisions of this guidance on January 1, 2020. Adoption of this guidance did not have a material financial statement impact. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,

(Loss) Earnings Per Share (Tabl

(Loss) Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	The details of the earnings per share calculations for the three months ended March 31, 2020 and 2019 are as follows: Three Months Ended March 31, Basic: 2020 2019 Net (loss) income $ (21 ) $ 48 Weighted average common shares outstanding (in thousands) 122,962 122,570 (Loss) earnings per share - Basic $ (0.17 ) $ 0.39 Three Months Ended March 31, Diluted: 2020 2019 Net (loss) income $ (21 ) $ 48 Weighted average common shares outstanding - Basic (in thousands) 122,962 122,570 Dilutive effect of common stock equivalents - 902 Weighted average common shares outstanding - Diluted (in thousands) 122,962 123,472 (Loss) earnings per share - Diluted $ (0.17 ) $ 0.39

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue From Contract With Customer [Abstract]
Schedule of Disaggregated Revenue	Revenues by channel are as follows: Three Months Ended March 31, 2020 2019 U.S. and Canada $ 576 $ 536 EMEA (1) 114 115 APAC (2) 14 14 ADI Global Distribution 704 665 Comfort 230 272 Security 122 132 Residential Thermal Solutions 123 147 Products & Solutions 475 551 Net revenue $ 1,179 $ 1,216 (1) EMEA represents Europe, the Middle East and Africa. (2) APAC represents Asia and Pacific countries.

Restructuring and Other Charg_2

Restructuring and Other Charges (Tables)	3 Months Ended
	Mar. 31, 2020
Restructuring And Related Activities [Abstract]
Summary of Pretax Distribution of Total Net Restructuring Charges by Unaudited Consolidated Statements of Operations Classification	The following table summarizes the pretax distribution of total net restructuring charges by unaudited Consolidated Statements of Operations classification: Three Months Ended March 31, 2020 Cost of goods sold $ 3 Selling, general and administrative expenses 6 $ 9
Summary of Status of Total Restructuring Reserves Related to Severance Cost Included in Accrued Liabilities in the Unaudited Consolidated Balance Sheets	The following table summarizes the status of total restructuring reserves related to severance cost included in Accrued liabilities in the unaudited Consolidated Balance Sheets: Three Months Ended March 31, 2020 Beginning of period $ 19 Charges 9 Usage – cash (4 ) End of period $ 24

Inventories Net (Tables)

Inventories Net (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	March 31, December 31, 2020 2019 Raw materials $ 155 $ 154 Work in process 18 18 Finished products 569 568 Inventory reserves (71 ) (69 ) $ 671 $ 671

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Payables And Accruals [Abstract]
Summary of Accrued Liabilities	March 31, December 31, 2020 2019 Obligations payable to Honeywell $ 140 $ 140 Taxes payable 40 66 Compensation, benefit and other employee-related 49 66 Customer rebate reserve 35 78 Other 203 202 $ 467 $ 552

Long-term Debt and Credit Agr_2

Long-term Debt and Credit Agreement (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of Debt	The Company’s debt at March 31, 2020 and December 31, 2019 consisted of the following: March 31, December 31, 2020 2019 6.125% notes due 2026 $ 400 $ 400 Five-year variable rate term loan A due 2023 333 333 Seven-year variable rate term loan B due 2025 470 470 Revolving Credit Facility 350 - Unamortized deferred financing costs (22 ) (23 ) Total outstanding indebtedness 1,531 1,180 Less: amounts due within one year 382 22 Total long-term debt due after one year $ 1,149 $ 1,158

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of Operating Lease Costs	The Company’s operating lease costs for the three months ended March 31, 2020 and 2019 consisted of the following: Three Months Ended March 31, 2020 2019 Selling, general & administrative $ 10 $ 8 Cost of goods sold 4 4 Total operating lease costs $ 14 $ 12
Summary of Lease Recognized Related to Operating Leases	The Company recognized the following related to its operating leases: Financial Statement Line Item At March 31, 2020 At December 31, 2019 Operating right-of-use assets Other assets $ 129 $ 137 Operating lease liabilities - current Accrued liabilities $ 32 $ 31 Operating lease liabilities - noncurrent Other liabilities $ 105 $ 111
Maturities of Operating Lease Liabilities	Maturities of the Company’s operating lease liabilities were as follows: At March 31, 2020 2020 $ 28 2021 35 2022 30 2023 23 2024 12 Thereafter 32 Total lease payments 160 Less: imputed interest 23 Present value of operating lease liabilities $ 137 Weighted-average remaining lease term (years) 5.64 Weighted-average incremental borrowing rate 5.89 %
Supplemental Cash Flow Information Related to Operating Leases	Supplemental cash flow information related to the Company’s operating leases was as follows: Three Months Ended March 31, 2020 2019 Operating cash outflows $ 7 $ 9 Operating right-of-use assets obtained in exchange for operating lease liabilities $ 5 $ 12

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2020
Loss Contingencies [Line Items]
Summary of Recorded Obligations for Product Warranties and Product Performance Guarantee	The following table summarizes information concerning recorded obligations for product warranties and product performance guarantees: March 31, 2020 2019 Beginning of period $ 25 $ 26 Accruals for warranties/guarantees issued during the year 5 5 Adjustment of pre-existing warranties/guarantees (3 ) (1 ) Settlement of warranty/guarantee claims (4 ) (6 ) End of period $ 23 $ 24
Honeywell
Loss Contingencies [Line Items]
Summary of Honeywell Reimbursement Agreement Liabilities	The following table summarizes information concerning our Honeywell Reimbursement Agreement liabilities: Three Months Ended March 31, 2020 2019 Beginning balance $ 585 $ 616 Accruals for indemnification liabilities deemed probable and reasonably estimable 34 67 Reduction (1) - (81 ) Indemnification payment (35 ) (35 ) Ending balance $ 584 $ 567 (1) Reduction in indemnification liabilities relates to a provision in the Honeywell Reimbursement Agreement that reduces the obligation due to Honeywell for any proceeds received by Honeywell from a property sale of a site under the agreement.
Summary of Honeywell Reimbursement Agreement Liabilities Included in Balance Sheet Accounts	Honeywell Reimbursement Agreement liabilities are included in the following balance sheet accounts: March 31, 2020 December 31, 2019 Accrued liabilities $ 140 $ 140 Obligations payable to Honeywell 444 445 $ 584 $ 585

Segment Financial Data (Tables)

Segment Financial Data (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of Segment Information	Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The Company’s Chief Operating Decision Maker evaluates segment performance based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as segment net income before income taxes, net interest (income) expense, depreciation and amortization plus environmental expense, Honeywell Reimbursement Agreement expense, stock compensation expense, restructuring charges and other adjustments. Three Months Ended March 31, 2020 2019 Revenue Total Products & Solutions revenue $ 559 $ 622 Less: Intersegment revenue 84 71 External Products & Solutions revenue 475 551 External ADI Global Distribution revenue 704 665 Total revenue $ 1,179 $ 1,216 Three Months Ended March 31, 2020 2019 Segment Adjusted EBITDA Products & Solutions $ 53 $ 81 ADI Global Distribution 46 46 Segment Adjusted EBITDA $ 99 $ 127
Schedule of Reconciliation of Adjusted EBITDA	The table below provides a reconciliation of net income to Segment Adjusted EBITDA: Three Months Ended March 31, 2020 2019 Net (loss) income $ (21 ) $ 48 Net interest expense (1) 17 16 Tax (benefit) expense (4 ) 36 Depreciation and amortization 21 16 Honeywell Reimbursement Agreement net expense (gain) (2) 34 (14 ) Stock compensation expense (3) 7 7 Restructuring charges 9 - Other (4) 36 18 Segment Adjusted EBITDA $ 99 $ 127 (1) For the three months ended March 31, 2020 and 2019 interest expense was $17 million and $17 million net of interest income of $- million and $1 million, respectively. (2) Represents recorded net expenses (gains) related to the Honeywell Reimbursement Agreement. ( 3 ) Stock compensation expense adjustment includes only non-cash expenses. (4 ) For the three months ended March 31, 2020, Other represents $12 million of items related to the Spin-Off, $14 million of consulting and other fees related to transformation programs, $9 million of non-operating expense adjustment which excludes net interest (income), and $1 million of acquisition-related expenses. For the three months ended March 31, 2019, Other represents $19 million of items related to the Spin-Off and ($1) million in non-operating (income) expense adjustment which excludes interest (income).

Organization, Operations and Ba

Organization, Operations and Basis of Presentation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Jan. 01, 2020	Oct. 29, 2018	Oct. 16, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Spin-off transaction, common stock share conversion		one share	six shares
Spin-off transaction, common stock conversion of par value per share				$ 0.001		$ 0.001
Spin-off transaction record date				Oct. 16, 2018
Date of business spin-off				Oct. 29, 2018
Spin-off common stock, description				On October 29, 2018, Honeywell’s shareholders of record as of October 16, 2018 (“Record Date”) received one share of the Company’s common stock, par value $0.001 per share, for every six shares of Honeywell’s common stock, par value $1.00 per share, held as of the Record Date, and cash for any fractional shares of the Company’s common stock.
Cost of goods sold				$ 895	$ 884
Gross profit				284	332
Selling, general and administrative expenses				$ 250	$ 247
Restatement Adjustment
Cost of goods sold	$ (19)
Gross profit	19
Selling, general and administrative expenses	$ 19
Rezi
Spin-off transaction, common stock conversion of par value per share		$ 0.001
Honeywell
Spin-off transaction, common stock conversion of par value per share			$ 1

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Summary Of Significant Accounting Policies [Line Items]
Goodwill	$ 2,612	$ 2,642
Products & Solutions Reporting Unit
Summary Of Significant Accounting Policies [Line Items]
Goodwill	$ 1,978
Goodwill percentage of fair value in excess of carrying value	10.00%

(Loss) Earnings Per Share - Sch

(Loss) Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Basic:
Net (loss) income	$ (21)	$ 48
Weighted average common shares outstanding (in thousands)	122,962	122,570
(Loss) earnings per share - Basic	$ (0.17)	$ 0.39
Diluted:
Dilutive effect of common stock equivalents		902
Weighted average common shares outstanding - Diluted (in thousands)	122,962	123,472
(Loss) earnings per share - Diluted	$ (0.17)	$ 0.39

(Loss) Earnings Per Share - Add

(Loss) Earnings Per Share - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Line Items]
Purchase of outstanding common stock were anti-dilutive	0
Treasury shares excluded from (loss) earnings per share calculation	752.4	552
Options and Other Rights
Earnings Per Share [Line Items]
Purchase of outstanding common stock were anti-dilutive	4,500,000	1,800,000
Performance Based Unit Awards
Earnings Per Share [Line Items]
Purchase of outstanding common stock were anti-dilutive	400,000	300,000

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ in Millions	Feb. 10, 2020	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Business acquisition		$ 35	$ 6
Goodwill		$ 2,612		$ 2,642
Herman ProAV
Business Acquisition [Line Items]
Business acquisition	$ 36
Goodwill	4
Business acquisition, intangible assets acquired	$ 18

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Disaggregation Of Revenue [Line Items]
Revenue		$ 1,179	$ 1,216
ADI Global Distribution
Disaggregation Of Revenue [Line Items]
Revenue		704	665
ADI Global Distribution | U.S. and Canada
Disaggregation Of Revenue [Line Items]
Revenue		576	536
ADI Global Distribution | EMEA
Disaggregation Of Revenue [Line Items]
Revenue	[1]	114	115
ADI Global Distribution | APAC
Disaggregation Of Revenue [Line Items]
Revenue	[2]	14	14
Products & Solutions
Disaggregation Of Revenue [Line Items]
Revenue		475	551
Products & Solutions | Comfort
Disaggregation Of Revenue [Line Items]
Revenue		230	272
Products & Solutions | Security
Disaggregation Of Revenue [Line Items]
Revenue		122	132
Products & Solutions | Residential Thermal Solutions
Disaggregation Of Revenue [Line Items]
Revenue		$ 123	$ 147
[1]	EMEA represents Europe, the Middle East and Africa.
[2]	APAC represents Asia and Pacific countries.

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details)	Mar. 31, 2020
Maximum
Disaggregation Of Revenue [Line Items]
Percentage of revenue satisfied over time	3.00%

Restructuring and Other Charg_3

Restructuring and Other Charges - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Restructuring Cost And Reserve [Line Items]
Restructuring and related expenses	$ 9,000,000
Severance
Restructuring Cost And Reserve [Line Items]
Restructuring and related expenses		$ 0
Products & Solutions | Severance
Restructuring Cost And Reserve [Line Items]
Restructuring and related expenses	8,000,000
ADI Global Distribution | Severance
Restructuring Cost And Reserve [Line Items]
Restructuring and related expenses	$ 1,000,000

Restructuring and Other Charg_4

Restructuring and Other Charges - Summary of Pretax Distribution of Total Net Restructuring Charges by Unaudited Consolidated Statements of Operations Classification (Details) $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)
Restructuring Cost And Reserve [Line Items]
Total net restructuring charges	$ 9
Cost of Goods Sold
Restructuring Cost And Reserve [Line Items]
Total net restructuring charges	3
Selling, General and Administrative Expenses
Restructuring Cost And Reserve [Line Items]
Total net restructuring charges	$ 6

Restructuring and Other Charg_5

Restructuring and Other Charges - Summary of Status of Total Restructuring Reserves Related to Severance Cost Included in Accrued Liabilities in the Unaudited Consolidated Balance Sheets (Details) - Accrued Liabilities $ in Millions	3 Months Ended
	Mar. 31, 2020USD ($)
Restructuring Cost And Reserve [Line Items]
Beginning of period	$ 19
Charges	9
Usage – cash	(4)
End of period	$ 24

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Tax expense (benefit)	$ (4)	$ 36
Additional cost impacting income tax expense	1
Tax expense	17
Valuation allowance	15
Estimated tax impact of CARES Act	$ 2

Inventories Net (Details)

Inventories Net (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 155	$ 154
Work in process	18	18
Finished products	569	568
Inventory reserves	(71)	(69)
Inventory, Net	$ 671	$ 671

Accrued Liabilities - Summary o

Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Accrued Liabilities, Current [Abstract]
Obligations payable to Honeywell	$ 140	$ 140
Taxes payable	40	66
Compensation, benefit and other employee-related	49	66
Customer rebate reserve	35	78
Other	203	202
Total accrued liabilities	$ 467	$ 552

Long-term Debt and Credit Agr_3

Long-term Debt and Credit Agreement - Schedule of Debt (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Unamortized deferred financing costs	$ (22)	$ (23)
Total outstanding indebtedness	1,531	1,180
Less: amounts due within one year	382	22
Total long-term debt due after one year	1,149	1,158
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit Facility	350
6.125% notes due 2026
Debt Instrument [Line Items]
Long-term debt, gross	400	400
Five Year Variable Rate Term Loan A Due 2023
Debt Instrument [Line Items]
Long-term debt, gross	333	333
Seven Year Variable Rate Term Loan B Due 2025
Debt Instrument [Line Items]
Long-term debt, gross	$ 470	$ 470

Long-term Debt and Credit Agr_4

Long-term Debt and Credit Agreement - Schedule of Debt (Parenthetical) (Details)	3 Months Ended
	Mar. 31, 2020	Oct. 30, 2018
6.125% notes due 2026
Debt Instrument [Line Items]
Interest rate	6.125%	6.125%
Debt instrument maturity year	2026
Five Year Variable Rate Term Loan A Due 2023
Debt Instrument [Line Items]
Debt instrument maturity year	2023
Seven Year Variable Rate Term Loan B Due 2025
Debt Instrument [Line Items]
Debt instrument maturity year	2025

Long-term Debt and Credit Agr_5

Long-term Debt and Credit Agreement - Additional Information (Details) $ in Millions	Oct. 30, 2018USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2020USD ($)	Dec. 31, 2019	Nov. 26, 2019
Debt Instrument [Line Items]
Interest expense, debt					$ 17
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowings from credit facility					$ 350
Credit Agreement Amendment
Debt Instrument [Line Items]
Consolidated total leverage ratio						525.00%
Increase in applicable interest rate margin							0.0025
Credit Agreement Amendment | Scenario Forecast
Debt Instrument [Line Items]
Consolidated total leverage ratio		375.00%	425.00%	475.00%
Credit Agreement Amendment | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Applicable interest rate on borrowings							2.25%
Credit Agreement Amendment | Base Rate
Debt Instrument [Line Items]
Applicable interest rate on borrowings							1.25%
6.125% notes due 2026
Debt Instrument [Line Items]
Principal amount issued	$ 400
Interest rate	6.125%				6.125%
Senior Credit Facilities | Term B Loan Facility
Debt Instrument [Line Items]
Principal amount issued	$ 475
Credit facilities term	7 years
Debt instrument, basis spread on variable rate	2.25%
Debt Instrument fair value					$ 375
Senior Credit Facilities | Term A Loan Facility
Debt Instrument [Line Items]
Principal amount issued	$ 350
Credit facilities term	5 years
Debt instrument, basis spread on variable rate	2.25%
Debt Instrument fair value					308
Senior Credit Facilities | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facilities term	5 years
Credit facility, maximum borrowing amount	$ 350				350
Borrowings from credit facility					$ 350
Weighted average interest rate					3.17%
Senior Credit Facilities | Revolving Credit Facility | Federal Funds Effective Rate
Debt Instrument [Line Items]
Applicable interest rate on borrowings	0.75%
Senior Credit Facilities | Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Applicable interest rate on borrowings	1.25%
Senior Credit Facilities | Letter of Credit
Debt Instrument [Line Items]
Borrowings from credit facility					$ 0
Senior Credit Facilities | Term Loan Facilities
Debt Instrument [Line Items]
Interest rate					4.20%
Term B Loan Facility | Credit Agreement Amendment | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Applicable interest rate on borrowings							2.25%
Term B Loan Facility | Credit Agreement Amendment | Base Rate | Minimum
Debt Instrument [Line Items]
Applicable interest rate on borrowings							1.75%
Term A Loan Facility | Credit Agreement Amendment | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Applicable interest rate on borrowings							1.25%
Term A Loan Facility | Credit Agreement Amendment | Base Rate | Minimum
Debt Instrument [Line Items]
Applicable interest rate on borrowings							0.75%
Senior Notes
Debt Instrument [Line Items]
Debt Instrument fair value					$ 348

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Lessee Lease Description [Line Items]
Total operating lease costs	$ 14	$ 12
Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Total operating lease costs	10	8
Cost of Goods Sold
Lessee Lease Description [Line Items]
Total operating lease costs	$ 4	$ 4

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Variable lease costs	$ 3	$ 3

Leases - Summary of Lease Recog

Leases - Summary of Lease Recognized Related to Operating Leases (Details) - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating right-of-use assets	$ 129	$ 137
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssets	us-gaap:OtherAssets
Operating lease liabilities - current	$ 32	$ 31
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent
Operating lease liabilities - noncurrent	$ 105	$ 111
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions	Mar. 31, 2020USD ($)
Leases [Abstract]
2020	$ 28
2021	35
2022	30
2023	23
2024	12
Thereafter	32
Total lease payments	160
Less: imputed interest	23
Present value of operating lease liabilities	$ 137
Weighted-average remaining lease term (years)	5 years 7 months 20 days
Weighted-average incremental borrowing rate	5.89%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Leases [Abstract]
Operating cash outflows	$ 7	$ 9
Operating right-of-use assets obtained in exchange for operating lease liabilities	$ 5	$ 12

Stock-Based Compensation Plans

Stock-Based Compensation Plans - Additional Information (Details) - 2018 Stock Incentive Plan	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Performance-Based Restricted Stock Units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted | shares	545,588
Time Based Restricted Stock Units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted | shares	1,056,354
Performance-Based and Service Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value | $ / shares	$ 10.80
Stock Options | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted | shares	650,367
Weighted average exercise price per share | $ / shares	$ 10.27
Weighted average grant date fair value per share | $ / shares	$ 2.84

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)		Oct. 29, 2018USD ($)Site	Mar. 31, 2020USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2019USD ($)
Loss Contingencies [Line Items]
Environmental liabilities			$ 22,000,000		$ 22,000,000
Honeywell reimbursement agreement net expenses (gains)	[1]		$ 34,000,000	$ (14,000,000)
Trademark license agreement			40 years
Other Expense, Net
Loss Contingencies [Line Items]
Honeywell reimbursement agreement net expenses (gains)			$ 34,000,000	(14,000,000)
Indemnification Agreement
Loss Contingencies [Line Items]
Indemnification payable, late payment fee percentage		5.00%
Site contingency, number of sites | Site		230
Indemnification agreement description			On October 29, 2018, in connection with the Spin-Off, the Company entered into an indemnification and reimbursement agreement with Honeywell (the “Honeywell Reimbursement Agreement”) pursuant to which the Company has an obligation to make cash payments to Honeywell in amounts equal to 90% of payments for certain Honeywell environmental-liability payments, which include amounts billed (“payments”), less 90% of Honeywell’s net insurance receipts relating to such liabilities, and less 90% of the net proceeds received by Honeywell in connection with (i) affirmative claims relating to such liabilities, (ii) contributions by other parties relating to such liabilities and (iii) certain property sales (the “recoveries”). The amount payable by the Company in respect of such liabilities arising in respect of any given year is subject to a cap of $140 million (exclusive of any late payment fees up to 5% per annum). The scope of the Company’s current environmental remediation obligations subject to the Honeywell Reimbursement Agreement relates to approximately 230 sites or groups of sites that are undergoing environmental remediation under U.S. federal or state law and agency oversight for contamination associated with Honeywell historical business operations. The ongoing environmental remediation is designed to address contaminants at upland and sediment sites, which include, among others, metals, organic compounds and polychlorinated biphenyls, through a variety of methods, which include, among others, excavation, capping, in-situ stabilization, groundwater treatment and dredging. In addition, the Company obligations subject to the Honeywell Reimbursement Agreement include certain liabilities with respect to (i) hazardous exposure or toxic tort claims associated with the specified sites that arise after the Spin-Off, if any, (ii) currently unidentified releases of hazardous substances at or associated with the specified sites, (iii) other environmental claims associated with the specified sites and (iv) consequential damages.
Maximum annual reimbursement obligation amount			$ 25,000,000
Indemnification Agreement | Maximum
Loss Contingencies [Line Items]
Indemnity liability annual cap		$ 140,000,000
Tax Matters Agreement
Loss Contingencies [Line Items]
Indemnified amount			$ 148,000,000		$ 149,000,000
Honeywell | Trademark Agreement
Loss Contingencies [Line Items]
Royalty fee on net revenue			1.50%
Royalty expense			$ 6,000,000	$ 8,000,000
Honeywell | Indemnification Agreement
Loss Contingencies [Line Items]
Indemnification payable percentage of payments		90.00%
Indemnification payable percentage of net insurance receipts		90.00%
Indemnification payable percentage of net proceeds received		90.00%
[1]	Represents recorded net expenses (gains) related to the Honeywell Reimbursement Agreement.

Commitments and Contingencies_2

Commitments and Contingencies - Summary of Honeywell Reimbursement Agreement Liabilities (Details) - Honeywell - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Accrual for Honeywell Reimbursement Agreement
Beginning balance	$ 585	$ 616
Accruals for indemnification liabilities deemed probable and reasonably estimable	34	67
Reduction		(81)
Indemnification payment	(35)	(35)
Ending balance	$ 584	$ 567

Commitments and Contingencies_3

Commitments and Contingencies - Summary of Honeywell Reimbursement Agreement Liabilities Included in Balance Sheet Accounts (Details) - Honeywell - USD ($) $ in Millions	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Loss Contingency, Classification of Accrual [Abstract]
Honeywell Reimbursement Agreement liabilities	$ 584	$ 585	$ 567	$ 616
Accrued Liabilities
Loss Contingency, Classification of Accrual [Abstract]
Honeywell Reimbursement agreement current portion	140	140
Obligations Payable to Honeywell
Loss Contingency, Classification of Accrual [Abstract]
Honeywell Reimbursement Agreement Long Term Portion	$ 444	$ 445

Commitments and Contingencies_4

Commitments and Contingencies - Summary of Recorded Obligations for Product Warranties and Product Performance Guarantee (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Product Warranties and Guarantees [Roll forward]
Beginning of period	$ 25	$ 26
Accruals for warranties/guarantees issued during the year	5	5
Adjustment of pre-existing warranties/guarantees	(3)	(1)
Settlement of warranty/guarantee claims	(4)	(6)
End of period	$ 23	$ 24

Pension - Additional Informatio

Pension - Additional Information (Details) - Pension Plans - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Pension obligations	$ 122		$ 124
Net periodic benefit cost	$ 2	$ 1

Segment Financial Data - Additi

Segment Financial Data - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020Segment
Segment Reporting [Abstract]
Number of operating segments	2

Segment Financial Data - Schedu

Segment Financial Data - Schedule of Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue
Revenue	$ 1,179	$ 1,216
Segment Adjusted EBITDA
Total	34	85
Total	99	127
Products & Solutions
Revenue
Revenue	475	551
Segment Adjusted EBITDA
Total	53	81
ADI Global Distribution
Revenue
Revenue	704	665
Segment Adjusted EBITDA
Total	46	46
Operating Segments | Products & Solutions
Revenue
Revenue	559	622
Intersegment Revenue Eliminations | Products & Solutions
Revenue
Revenue	$ (84)	$ (71)

Segment Financial Data - Sche_2

Segment Financial Data - Schedule of Reconciliation of Segment Adjusted EBITDA (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Segment Reporting [Abstract]
Net (loss) income		$ (21)	$ 48
Net interest expense	[1]	17	16
Tax (benefit) expense		(4)	36
Depreciation and amortization		21	16
Honeywell Reimbursement Agreement net expense (gain)	[2]	34	(14)
Stock compensation expense	[3]	7	7
Restructuring charges		9
Other	[4]	36	18
Total		$ 99	$ 127
[1]	For the three months ended March 31, 2020 and 2019 interest expense was $17 million and $17 million net of interest income of $- million and $1 million, respectively.
[2]	Represents recorded net expenses (gains) related to the Honeywell Reimbursement Agreement.
[3]	Stock compensation expense adjustment includes only non-cash expenses.
[4]	For the three months ended March 31, 2020, Other represents $12 million of items related to the Spin-Off, $14 million of consulting and other fees related to transformation programs, $9 million of non-operating expense adjustment which excludes net interest (income), and $1 million of acquisition-related expenses. For the three months ended March 31, 2019, Other represents $19 million of items related to the Spin-Off and ($1) million in non-operating (income) expense adjustment which excludes interest (income)

Segment Financial Data - Sche_3

Segment Financial Data - Schedule of Reconciliation of Segment Adjusted EBITDA (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Loss Contingencies [Line Items]
Interest expense	$ 17	$ 17
Interest income		1
Spin-off costs	9
Consulting and other fees related to transformation programs	14
Non-operating (income) expense adjustment	9	(1)
Acquisition-related expenses	1
Honeywell
Loss Contingencies [Line Items]
Spin-off costs	$ 12	$ 19