Resideo (REZI) 10-Q 4 Aug 20 2020 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Jul. 29, 2020
Cover [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
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		123,432,114
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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net revenue	$ 1,029	$ 1,242	$ 2,208	$ 2,458
Cost of goods sold	793	919	1,688	1,803
Gross profit	236	323	520	655
Selling, general and administrative expenses	242	281	492	528
Operating (loss) profit	(6)	42	28	127
Other expense, net	29	35	71	19
Interest expense	18	18	35	35
(Loss) income before taxes	(53)	(11)	(78)	73
Tax expense	23		19	36
Net (loss) income	$ (76)	$ (11)	$ (97)	$ 37
Weighted Average Number of Common Shares Outstanding (in thousands)
Basic	123,203	122,700	123,083	122,635
Diluted	123,203	122,700	123,083	123,490
(Loss) Earnings Per Share
Basic	$ (0.62)	$ (0.09)	$ (0.79)	$ 0.30
Diluted	$ (0.62)	$ (0.09)	$ (0.79)	$ 0.30

CONSOLIDATED INTERIM STATEMEN_2

CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (76)	$ (11)	$ (97)	$ 37
Other comprehensive income (loss), net of tax
Foreign exchange translation adjustment	44	(4)	(22)	2
Total other comprehensive income (loss), net of tax	44	(4)	(22)	2
Comprehensive (loss) income	$ (32)	$ (15)	$ (119)	$ 39

CONSOLIDATED INTERIM BALANCE SH

CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 362	$ 122
Accounts receivable – net	704	817
Inventories – net	614	671
Other current assets	163	175
Total current assets	1,843	1,785
Property, plant and equipment – net	311	316
Goodwill	2,638	2,642
Other assets	374	385
Total assets	5,166	5,128
Current liabilities:
Accounts payable	811	920
Current maturities of debt	287	22
Accrued liabilities	564	552
Total current liabilities	1,662	1,494
Long-term debt	1,140	1,158
Obligations payable to Honeywell under Indemnification Agreements	585	594
Other liabilities	284	280
COMMITMENTS AND CONTINGENCIES (Note 13)
EQUITY
Common stock, $0.001 par value, 700,000 shares authorized, 124,230 and 123,378 shares issued and outstanding as of June 30, 2020, 123,488 and 122,873 shares issued and outstanding as of December 31, 2019, respectively	0	0
Additional paid-in capital	1,775	1,761
Treasury stock, at cost	(5)	(3)
Retained (deficit) earnings	(59)	38
Accumulated other comprehensive (loss)	(216)	(194)
Total equity	1,495	1,602
Total liabilities and equity	$ 5,166	$ 5,128

CONSOLIDATED INTERIM BALANCE _2

CONSOLIDATED INTERIM BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 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	124,230,000	123,488,000
Common stock, shares outstanding	123,378,000	122,873,000

CONSOLIDATED INTERIM STATEMEN_3

CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019
Cash flows provided by (used for) operating activities:
Net (loss) income		$ (97)	$ 37
Adjustments to reconcile net (loss) income to net cash provided by (used for) operating activities:
Depreciation and amortization		42	36
Restructuring charges, net of payments		6	14
Stock compensation expense	[1]	14	14
Other		21	6
Changes in assets and liabilities:
Accounts receivable		113	(7)
Inventories – net		58	(95)
Other current assets		13	(8)
Accounts payable		(109)	25
Accrued liabilities		8	(17)
Obligations payable to Honeywell under Indemnification Agreements		(9)	(48)
Other		11	6
Net cash provided by (used for) operating activities		71	(37)
Cash flows used for investing activities:
Expenditures for property, plant, equipment and other intangibles		(31)	(38)
Cash paid for acquisitions, net of cash acquired		(35)	(17)
Net cash used for investing activities		(66)	(55)
Cash flows provided by (used for) financing activities:
Net proceeds from revolving credit facility		250
Repayment of long-term debt		(6)	(11)
Non-operating obligations paid to Honeywell, net		(1)	(18)
Tax payments related to stock vestings		(2)	(2)
Net cash provided by (used for) financing activities		241	(31)
Effect of foreign exchange rate changes on cash and cash equivalents		(6)
Net increase (decrease) in cash and cash equivalents		240	(123)
Cash and cash equivalents at beginning of period		122	265
Cash and cash equivalents at end of period		$ 362	$ 142
[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 (Deficit)	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	37				37
Other comprehensive (loss) income, net of tax	2					2
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		211,000	90,000
Stock-based compensation	14			14
Adjustments due to Spin-Off	9			9
Ending Balance at Jun. 30, 2019	1,593		$ (2)	1,743	39	(187)
Ending Balance, Shares at Jun. 30, 2019		122,710,000	558,000
Beginning Balance at Mar. 31, 2019	1,592		$ (2)	1,727	50	(183)
Beginning Balance, Shares at Mar. 31, 2019		122,686,000	552,000
Net (loss) income	(11)				(11)
Other comprehensive (loss) income, net of tax	(4)					(4)
Issuance of common stock under stock-based compensation plans, net of shares withheld for employee taxes, Shares		24,000	6,000
Stock-based compensation	7			7
Adjustments due to Spin-Off	9			9
Ending Balance at Jun. 30, 2019	1,593		$ (2)	1,743	39	(187)
Ending Balance, Shares at Jun. 30, 2019		122,710,000	558,000
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	(97)				(97)
Other comprehensive (loss) income, net of tax	(22)					(22)
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		505,000	237,000
Stock-based compensation	14			14
Ending Balance at Jun. 30, 2020	1,495		$ (5)	1,775	(59)	(216)
Ending Balance, Shares at Jun. 30, 2020		123,378,000	852,000
Beginning Balance at Mar. 31, 2020	1,521		$ (4)	1,768	17	(260)
Beginning Balance, Shares at Mar. 31, 2020		123,121,000	752,000
Net (loss) income	(76)				(76)
Other comprehensive (loss) income, net of tax	44					44
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		257,000	100,000
Stock-based compensation	7			7
Ending Balance at Jun. 30, 2020	$ 1,495		$ (5)	$ 1,775	$ (59)	$ (216)
Ending Balance, Shares at Jun. 30, 2020		123,378,000	852,000

Organization, Consolidation and

Organization, Consolidation and Presentation of Financial Statements	6 Months Ended
	Jun. 30, 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 (collectively, the “Indemnification Agreements”) 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 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 reporting 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 and six months ended June 30, 2020 and 2 019 were June 27 , 20 20 and June 29 , 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 June 30, 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 for the three and six months ended June 30, 2019 of $27 million and $46 million, respectively. This reclassification had no effect on the previously reported Net (loss) income or the Company’s Consolidated Interim Statements of Comprehensive (Loss) Income, Consolidated Interim Statements of Cash flows, or Consolidated Interim Balance sheets.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 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. The World Health Organization (“WHO”) declared the novel coronavirus disease ("COVID-19") a pandemic in March 2020. The broader implications of COVID-19 on the Company’s results of operations and overall financial performance remain uncertain. The Company has and may continue to 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 June 30, 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 accounts receivable, inventory, 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 June 30, 2020 in these estimates. Goodwill — The Company has determined that it is not more likely than not that the carrying value of goodwill exceeds the fair value at June 30, 2020. 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 likely that, during the remainder of 2020 and possibly beyond, macroeconomic conditions will be volatile and could impact our business. If there is an adverse change in 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 $1,997 million at June 30, 2020, 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 regularly 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 January 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which provides guidance designed to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. From November 2018 to November 2019, amendments to Topic 326 were issued to clarify numerous accounting topics. When determining such expected credit losses, the guidance requires companies to apply a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Adoption of this pronouncement did not have a material financial statement impact. 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 will adopt on January 1, 2021 and 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) 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended Six Months Ended June 30, June 30, Basic: 2020 2019 2020 2019 Net (loss) income $ (76 ) $ (11 ) $ (97 ) $ 37 Weighted average common shares outstanding (in thousands) 123,203 122,700 123,083 122,635 (Loss) earnings per share - Basic $ (0.62 ) $ (0.09 ) $ (0.79 ) $ 0.30 Three Months Ended Six Months Ended June 30, June 30, Diluted: 2020 2019 2020 2019 Net (loss) income $ (76 ) $ (11 ) $ (97 ) $ 37 Weighted average common shares outstanding - Basic (in thousands) 123,203 122,700 123,083 122,635 Dilutive effect of common stock equivalents - - - 855 Weighted average common shares outstanding - Diluted (in thousands) 123,203 122,700 123,083 123,490 (Loss) earnings per share - Diluted $ (0.62 ) $ (0.09 ) $ (0.79 ) $ 0.30 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 and six months ended June 30, 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	6 Months Ended
	Jun. 30, 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 substantially complete with the allocation of purchase price, however, amounts are still subject to finalization. Pro-forma disclosures are not provided as the acquisition has an immaterial financial statement impact.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2020
Revenue From Contract With Customer [Abstract]
Revenue Recognition	Note 5. Revenue Recognition Disaggregated Revenue Revenues by geography and business line are as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 U.S. and Canada $ 532 $ 579 $ 1,108 $ 1,115 EMEA (1) 95 112 209 227 APAC (2) 4 14 18 28 ADI Global Distribution 631 705 1,335 1,370 Comfort 198 271 428 543 Security 115 137 237 269 Residential Thermal Solutions 85 129 208 276 Products & Solutions 398 537 873 1,088 Net revenue $ 1,029 $ 1,242 $ 2,208 $ 2,458 (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. Approximately 3% of the Company’s revenue is satisfied over time. As of June 30, 2020, and 2019 contract assets and liabilities were not material.

Restructuring and Other Charges

Restructuring and Other Charges	6 Months Ended
	Jun. 30, 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 financial and operational 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 the board, comprised of independent directors. The Company 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. Products & Solutions segment restructuring and related expenses for the three and six months ended June 30, 2020 were $9 million and $17 million, respectively, and for both the three and six months ended June 30, 2019, restructuring and related expense were $19 $6 The following table summarizes the pretax distribution of total net restructuring charges by unaudited Consolidated Statements of Operations classification: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Cost of goods sold $ 4 $ 13 $ 7 $ 13 Selling, general and administrative expenses 7 12 13 12 $ 11 $ 25 $ 20 $ 25 The following table summarizes the status of total restructuring reserves related to severance cost included in Accrued liabilities in the unaudited Consolidated Balance Sheets: Six Months Ended June 30, 2020 Beginning of period $ 19 Charges 20 Usage – cash payments (14 ) End of period $ 25

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 7. Income Taxes The Company recorded a tax expense of $23 million and $19 million for the three and six months ended June 30, 2020, respectively. 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 for which we do not expect to receive tax benefits, we are required to apply separate forecasted effective tax rates to those jurisdictions rather than including them in the consolidated forecasted effective tax rate. In situations in which our forecasted effective tax rate is highly sensitive to changes in forecasted pretax income/loss, we are required to use year-to-date actual amounts, while still observing the ‘tax benefit of losses’ rule above, to calculate income tax for the interim period. For the three and six months ended June 30, 2020, the calculation of income tax expense was governed by this set of rules. For the three months ended June 30, 2020, the net tax expense of $23 million was driven by interim period tax expense of $25 million based on year-to-date actual amounts, offset by a tax benefit specific to the period of approximately $2 million consisting primarily of a $3 million tax benefit for changes in estimates related to prior years, which was partially offset by tax expense for share-based excess cost of $1 million. 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	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Inventories Net	Note 8. Inventories—Net June 30, December 31, 2020 2019 Raw materials $ 170 $ 154 Work in process 18 18 Finished products 501 568 Inventory reserves (75 ) (69 ) $ 614 $ 671

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2020
Payables And Accruals [Abstract]
Accrued Liabilities	Note 9. Accrued Liabilities June 30, December 31, 2020 2019 Obligations payable to Honeywell under Indemnification Agreements $ 175 $ 140 Taxes payable 55 66 Compensation, benefit and other employee-related 74 66 Customer rebate reserve 45 78 Other 215 202 $ 564 $ 552 Refer to “ Note 1 3 . Commitments and Contingencies ” for further details on Obligations payable to Honeywell under Indemnification Agreements .

Leases

Leases	6 Months Ended
	Jun. 30, 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. lease agreements include rental payments which fluctuate based on mileage. Generally, the Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The Company’s operating lease costs for the three and six months ended June 30, 2020 and 2019 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Cost of goods sold $ 4 $ 4 $ 8 $ 8 Selling, general & administrative 10 9 20 17 Total operating lease costs $ 14 $ 13 $ 28 $ 25 Total operating lease costs include variable lease costs of $4 million and $7 million, respectively, for the three and six months ended June 30, 2020 The Company recognized the following related to its operating leases: Financial Statement Line Item At June 30, 2020 At December 31, 2019 Operating right-of-use assets Other assets $ 129 $ 137 Operating lease liabilities - current Accrued liabilities $ 30 $ 31 Operating lease liabilities - noncurrent Other liabilities $ 106 $ 111 Maturities of the Company’s operating lease liabilities were as follows: At June 30, 2020 2020 $ 19 2021 37 2022 32 2023 25 2024 14 Thereafter 35 Total lease payments 162 Less: imputed interest 26 Present value of operating lease liabilities $ 136 Weighted-average remaining lease term (years) 5.58 Weighted-average incremental borrowing rate 6.11 % Supplemental cash flow information related to the Company’s operating leases was as follows: Six Months Ended June 30, 2020 2019 Operating cash outflows $ 15 $ 18 Operating right-of-use assets obtained in exchange for operating lease liabilities $ 10 $ 38 As of June 30, 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 and six months ended June 30, 2020 and 2019 was not material .

Stock-Based Compensation Plans

Stock-Based Compensation Plans	6 Months Ended
	Jun. 30, 2020
Compensation Related Costs [Abstract]
Stock-Based Compensation Plans	Note 12. Stock-Based Compensation Plans Restricted Stock Units (“RSUs”) During the six months ended June 30, 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 786,692 performance-based RSUs and 1,977,494 time-based RSUs to eligible employees. The weighted average grant date fair value per share for these shares was $8.85. Stock Options During the six months ended June 30, 2020, as part of the Company’s annual long-term compensation under the Stock Incentive Plan, 1,083,665 stock options were granted to eligible employees at a weighted average exercise price per share of $9.17 and weighted average grant date fair value per share of $2.61.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2020 and June 30, 2019 environmental expenses related to these operating sites were not material. Liabilities for environmental costs were $22 million as of June 30, 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”) 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. On April 21, 2020, the Company and Honeywell entered into an amendment to the Honeywell Reimbursement Agreement (the "Reimbursement Agreement Amendment"). Pursuant to the Reimbursement Agreement Amendment, certain covenants in Exhibit G of the Reimbursement Agreement were modified to conform, if applicable, to the amended covenants included in the Credit Agreement Amendment. The modified covenants include the leverage ratio, which, consistent with the Credit Agreement Amendment, increased the levels of the maximum consolidated total leverage ratio to not greater than 5.25 4.75 4.25 3.75 Other Agreements See “Note 16. Subsequent Events" of Notes to Consolidated Interim Financial Statements of this Form 10-Q for a discussion of the Honeywell Reimbursement Agreement. The following table summarizes information concerning our Honeywell Reimbursement Agreement liabilities: Six Months Ended June 30, 2020 2019 Beginning balance $ 585 $ 616 Accruals for indemnification liabilities deemed probable and reasonably estimable 69 103 Reduction (1) - (81 ) Indemnification payment (35 ) (70 ) Ending balance $ 619 $ 568 (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 and six months ended June 30, 2020, net expenses related to the Honeywell Reimbursement Agreement were $35 million and $69 million, respectively, and for the three and six months ended June 30, 2019, expenses related to the Honeywell Reimbursement Agreement were $36 million and $22 million, respectively, and are recorded in Other expense, net. Honeywell Reimbursement Agreement liabilities are included in the following balance sheet accounts: June 30, 2020 December 31, 2019 Accrued liabilities $ 175 $ 140 Obligations payable to Honeywell under Indemnification Agreements 444 445 $ 619 $ 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 June 30, 2020 and December 31, 2019, the Company had an indemnity outstanding to Honeywell for future tax payments of $141 million and $149 million, which is included in Obligations payable to Honeywell under Indemnification Agreements. 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 and six months ended June 30, 2020 royalty fees were $5 million and $11 million, respectively. For the three and six months ended June 30, 2019, royalty fees were $6 million and $13 million, respectively. In addition, on April 21, 2020, Resideo and Honeywell entered into a First Amendment to the Trademark Agreement (the “Trademark License Amendment”). Pursuant to the Trademark License Amendment, the parties agreed to defer until no later than July 30, 2020 the approximately $6 million royalty payment otherwise payable to Honeywell within 60 days of the end of the quarter ended March 31, 2020. See “Note 16. Subsequent Events" of Notes to Consolidated Interim Financial Statements of this Form 10-Q for a discussion of the Trademark Agreement. 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 or outcomes in these matters, as well as potential ranges of possible losses (taking into consideration any insurance recoveries), based on a careful The Company, the Company’s former CEO Michael Nefkens, the Company’s former CFO Joseph Ragan, and the Company’s former CIO Niccolo de Masi are named defendants of a class action securities suit styled In re Resideo Technologies, Inc. Securities Litigation, 19cv-02889 (the "Securities Litigation"). The Securities Litigation 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 , among other things, that the defendants (or some of them) made false and misleading statements regarding, among other things, Resideo’s business, performance, the efficiency of its supply chain, operational and administrative issues resulting from the spin-off from Honeywell, certain business initiatives, and financial guidance in 2019 . T he defendants filed a motion to dismiss the c omplaint on July 10, 2020 . A tentative argument is scheduled for December 1, 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 Securities Litigation, but there can be no assurance that the defense will be successful. On July 6, 2020, Jawad A. Ayaz as Trustee of the Shiv Venkatasetty 2016 Trust (“Derivative Plaintiff”) filed a shareholder derivative complaint (the “Derivative Complaint”) against certain current or former directors and officers of the Company (“Derivative Defendants”) in the District Court for the District of Delaware, captioned Ayaz v. Nefkens, 20-cv-00915. Derivative Plaintiff alleges generally that Derivative Defendants breached fiduciary duties owed to the Company by allegedly causing or allowing the Company to make materially false and misleading statements to the public regarding the Company’s business operations and financial prospects. Derivative Plaintiff also alleges that the Company’s 2019 proxy statement was materially false and misleading, in violation of Section 14(a) of the Securities Exchange Act of 1934, and asserts claims of corporate waste and unjust enrichment, among other allegations, and relies on a similar set of facts as alleged in the Securities Litigation. The Derivative Complaint seeks declaratory relief and unspecified money damages on behalf of the Company. On July 28, 2020 certain of the Derivative Defendants filed a stipulation to stay the proceedings pending the resolution of the motion to dismiss in the Securities Litigation. The stipulation is subject to the court’s approval. The Company intends to defend this action vigorously, 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: Six Months Ended June 30, 2020 2019 Beginning of period $ 25 $ 26 Accruals for warranties/guarantees issued during the year 12 7 Adjustment of pre-existing warranties/guarantees (2 ) (2 ) Settlement of warranty/guarantee claims (9 ) (8 ) End of period $ 26 $ 23

Pension

Pension	6 Months Ended
	Jun. 30, 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, net in the unaudited Consolidated Interim Statements of Operations for the three and six months ended June 30, 2020 and 2019.

Segment Financial Data

Segment Financial Data	6 Months Ended
	Jun. 30, 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 (loss) 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 Six Months Ended June 30, June 30, 2020 2019 2020 2019 Revenue Total Products & Solutions revenue $ 482 $ 611 $ 1,041 $ 1,233 Less: Intersegment revenue 84 74 168 145 External Products & Solutions revenue 398 537 873 1,088 External ADI Global Distribution revenue 631 705 1,335 1,370 Total revenue $ 1,029 $ 1,242 $ 2,208 $ 2,458 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Segment Adjusted EBITDA Products & Solutions $ 35 $ 75 $ 88 $ 156 ADI Global Distribution 28 47 74 93 Segment Adjusted EBITDA $ 63 $ 122 $ 162 $ 249 The table below provides a reconciliation of net (loss) income to Segment Adjusted EBITDA: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net (loss) income $ (76 ) $ (11 ) $ (97 ) $ 37 Net interest expense (1) 17 17 34 33 Tax expense 23 - 19 36 Depreciation and amortization 21 20 42 36 Honeywell Reimbursement Agreement net expense (2) 35 36 69 22 Stock compensation expense (3) 7 7 14 14 Restructuring charges 11 25 20 25 Other (4) 25 28 61 46 Segment Adjusted EBITDA $ 63 $ 122 $ 162 $ 249 (1) For the three and six months ended June 30, 2020 interest expense was $18 million and $35 million net of interest income of $1 million and $1 million, respectively. For the three and six months ended June 30, 2019 interest expense was $18 million and $35 million net of interest income of $1 million and $2 million, respectively. (2) Represents recorded net expenses related to the Honeywell Reimbursement Agreement. ( 3 ) Stock compensation expense adjustment includes only non-cash expenses. (4 ) For the three and six months ended June 30, 2020, Other represents $15 million and $27 million of items related to the Spin-Off, $14 million and $28 million of consulting and other fees related to transformation programs, ($4) million and $5 million of non-operating (income) expense adjustment which excludes net interest (income), and $0 million and $1 million of acquisition-related expenses, respectively. For the three and six months ended June 30, 2019, Other represents $16 million and $34 million of cost directly related to the Spin-Off, $12 million and $13 million related to developments on legal claims that arose prior to Spin-Off, and $0 million and ($1) million in non-operating (income) expense adjustment which excludes net interest (income). The three and six months ended June 30, 2019 includes an adjustment for $6 million of costs directly related to the Spin-Off. Costs from the second quarter of 2019 were identified during the third quarter of 2019 as Spin-Off costs and are now included in our three and six months ended adjustments. 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.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 16. Subsequent Events On July 28, 2020, the Company and Honeywell entered into the Second Reimbursement Agreement Amendment. Pursuant to the Second Reimbursement Agreement Amendment, the parties agreed to further defer until no later than October 30, 2020 the $35 million quarterly payment that was originally due thirty days following the start of the second quarter of 2020 and was previously deferred until no later than July 30, 2020 pursuant to the Reimbursement Agreement Amendment. In connection with the execution of the Second Reimbursement Agreement Amendment, the Company confirmed that it would pay, no later than July 30, 2020, the $35 million quarterly payment that is due thirty days following the start of the third quarter of 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 accounts receivable, inventory, 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 June 30, 2020 in these estimates.
Goodwill	Goodwill — The Company has determined that it is not more likely than not that the carrying value of goodwill exceeds the fair value at June 30, 2020. 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 likely that, during the remainder of 2020 and possibly beyond, macroeconomic conditions will be volatile and could impact our business. If there is an adverse change in 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 $1,997 million at June 30, 2020, 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 regularly 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 January 2020, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) , which provides guidance designed to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. From November 2018 to November 2019, amendments to Topic 326 were issued to clarify numerous accounting topics. When determining such expected credit losses, the guidance requires companies to apply a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. Adoption of this pronouncement did not have a material financial statement impact. 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 will adopt on January 1, 2021 and 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) 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)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	The details of the earnings per share calculations for the three and six months ended June 30, 2020 and 2019 are as follows: Three Months Ended Six Months Ended June 30, June 30, Basic: 2020 2019 2020 2019 Net (loss) income $ (76 ) $ (11 ) $ (97 ) $ 37 Weighted average common shares outstanding (in thousands) 123,203 122,700 123,083 122,635 (Loss) earnings per share - Basic $ (0.62 ) $ (0.09 ) $ (0.79 ) $ 0.30 Three Months Ended Six Months Ended June 30, June 30, Diluted: 2020 2019 2020 2019 Net (loss) income $ (76 ) $ (11 ) $ (97 ) $ 37 Weighted average common shares outstanding - Basic (in thousands) 123,203 122,700 123,083 122,635 Dilutive effect of common stock equivalents - - - 855 Weighted average common shares outstanding - Diluted (in thousands) 123,203 122,700 123,083 123,490 (Loss) earnings per share - Diluted $ (0.62 ) $ (0.09 ) $ (0.79 ) $ 0.30

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue From Contract With Customer [Abstract]
Schedule of Disaggregated Revenue	Revenues by geography and business line are as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 U.S. and Canada $ 532 $ 579 $ 1,108 $ 1,115 EMEA (1) 95 112 209 227 APAC (2) 4 14 18 28 ADI Global Distribution 631 705 1,335 1,370 Comfort 198 271 428 543 Security 115 137 237 269 Residential Thermal Solutions 85 129 208 276 Products & Solutions 398 537 873 1,088 Net revenue $ 1,029 $ 1,242 $ 2,208 $ 2,458 (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)	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, June 30, 2020 2019 2020 2019 Cost of goods sold $ 4 $ 13 $ 7 $ 13 Selling, general and administrative expenses 7 12 13 12 $ 11 $ 25 $ 20 $ 25
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: Six Months Ended June 30, 2020 Beginning of period $ 19 Charges 20 Usage – cash payments (14 ) End of period $ 25

Inventories Net (Tables)

Inventories Net (Tables)	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Inventories	June 30, December 31, 2020 2019 Raw materials $ 170 $ 154 Work in process 18 18 Finished products 501 568 Inventory reserves (75 ) (69 ) $ 614 $ 671

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2020
Payables And Accruals [Abstract]
Summary of Accrued Liabilities	June 30, December 31, 2020 2019 Obligations payable to Honeywell under Indemnification Agreements $ 175 $ 140 Taxes payable 55 66 Compensation, benefit and other employee-related 74 66 Customer rebate reserve 45 78 Other 215 202 $ 564 $ 552

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Schedule of Operating Lease Costs	The Company’s operating lease costs for the three and six months ended June 30, 2020 and 2019 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Cost of goods sold $ 4 $ 4 $ 8 $ 8 Selling, general & administrative 10 9 20 17 Total operating lease costs $ 14 $ 13 $ 28 $ 25
Summary of Lease Recognized Related to Operating Leases	The Company recognized the following related to its operating leases: Financial Statement Line Item At June 30, 2020 At December 31, 2019 Operating right-of-use assets Other assets $ 129 $ 137 Operating lease liabilities - current Accrued liabilities $ 30 $ 31 Operating lease liabilities - noncurrent Other liabilities $ 106 $ 111
Maturities of Operating Lease Liabilities	Maturities of the Company’s operating lease liabilities were as follows: At June 30, 2020 2020 $ 19 2021 37 2022 32 2023 25 2024 14 Thereafter 35 Total lease payments 162 Less: imputed interest 26 Present value of operating lease liabilities $ 136 Weighted-average remaining lease term (years) 5.58 Weighted-average incremental borrowing rate 6.11 %
Supplemental Cash Flow Information Related to Operating Leases	Supplemental cash flow information related to the Company’s operating leases was as follows: Six Months Ended June 30, 2020 2019 Operating cash outflows $ 15 $ 18 Operating right-of-use assets obtained in exchange for operating lease liabilities $ 10 $ 38

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 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: Six Months Ended June 30, 2020 2019 Beginning of period $ 25 $ 26 Accruals for warranties/guarantees issued during the year 12 7 Adjustment of pre-existing warranties/guarantees (2 ) (2 ) Settlement of warranty/guarantee claims (9 ) (8 ) End of period $ 26 $ 23
Honeywell
Loss Contingencies [Line Items]
Summary of Honeywell Reimbursement Agreement Liabilities	The following table summarizes information concerning our Honeywell Reimbursement Agreement liabilities: Six Months Ended June 30, 2020 2019 Beginning balance $ 585 $ 616 Accruals for indemnification liabilities deemed probable and reasonably estimable 69 103 Reduction (1) - (81 ) Indemnification payment (35 ) (70 ) Ending balance $ 619 $ 568 (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: June 30, 2020 December 31, 2019 Accrued liabilities $ 175 $ 140 Obligations payable to Honeywell under Indemnification Agreements 444 445 $ 619 $ 585

Segment Financial Data (Tables)

Segment Financial Data (Tables)	6 Months Ended
	Jun. 30, 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 (loss) 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 Six Months Ended June 30, June 30, 2020 2019 2020 2019 Revenue Total Products & Solutions revenue $ 482 $ 611 $ 1,041 $ 1,233 Less: Intersegment revenue 84 74 168 145 External Products & Solutions revenue 398 537 873 1,088 External ADI Global Distribution revenue 631 705 1,335 1,370 Total revenue $ 1,029 $ 1,242 $ 2,208 $ 2,458 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Segment Adjusted EBITDA Products & Solutions $ 35 $ 75 $ 88 $ 156 ADI Global Distribution 28 47 74 93 Segment Adjusted EBITDA $ 63 $ 122 $ 162 $ 249
Schedule of Reconciliation of Adjusted EBITDA	The table below provides a reconciliation of net (loss) income to Segment Adjusted EBITDA: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net (loss) income $ (76 ) $ (11 ) $ (97 ) $ 37 Net interest expense (1) 17 17 34 33 Tax expense 23 - 19 36 Depreciation and amortization 21 20 42 36 Honeywell Reimbursement Agreement net expense (2) 35 36 69 22 Stock compensation expense (3) 7 7 14 14 Restructuring charges 11 25 20 25 Other (4) 25 28 61 46 Segment Adjusted EBITDA $ 63 $ 122 $ 162 $ 249 (1) For the three and six months ended June 30, 2020 interest expense was $18 million and $35 million net of interest income of $1 million and $1 million, respectively. For the three and six months ended June 30, 2019 interest expense was $18 million and $35 million net of interest income of $1 million and $2 million, respectively. (2) Represents recorded net expenses related to the Honeywell Reimbursement Agreement. ( 3 ) Stock compensation expense adjustment includes only non-cash expenses. (4 ) For the three and six months ended June 30, 2020, Other represents $15 million and $27 million of items related to the Spin-Off, $14 million and $28 million of consulting and other fees related to transformation programs, ($4) million and $5 million of non-operating (income) expense adjustment which excludes net interest (income), and $0 million and $1 million of acquisition-related expenses, respectively. For the three and six months ended June 30, 2019, Other represents $16 million and $34 million of cost directly related to the Spin-Off, $12 million and $13 million related to developments on legal claims that arose prior to Spin-Off, and $0 million and ($1) million in non-operating (income) expense adjustment which excludes net interest (income). The three and six months ended June 30, 2019 includes an adjustment for $6 million of costs directly related to the Spin-Off. Costs from the second quarter of 2019 were identified during the third quarter of 2019 as Spin-Off costs and are now included in our three and six months ended adjustments.

Organization, Operations and Ba

Organization, Operations and Basis of Presentation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 29, 2018	Oct. 16, 2018	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 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		$ 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			$ 793	$ 919	$ 1,688	$ 1,803
Gross profit			236	323	520	655
Selling, general and administrative expenses			$ 242	281	$ 492	528
Restatement Adjustment
Cost of goods sold				(27)		(46)
Gross profit				27		46
Selling, general and administrative expenses				$ 27		$ 46
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	Jun. 30, 2020	Dec. 31, 2019
Summary Of Significant Accounting Policies [Line Items]
Goodwill	$ 2,638	$ 2,642
Products & Solutions Reporting Unit
Summary Of Significant Accounting Policies [Line Items]
Goodwill	$ 1,997
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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Basic:
Net (loss) income	$ (76)	$ (11)	$ (97)	$ 37
Weighted average common shares outstanding (in thousands)	123,203	122,700	123,083	122,635
(Loss) earnings per share - Basic	$ (0.62)	$ (0.09)	$ (0.79)	$ 0.30
Diluted:
Dilutive effect of common stock equivalents				855
Weighted average common shares outstanding - Diluted (in thousands)	123,203	122,700	123,083	123,490
(Loss) earnings per share - Diluted	$ (0.62)	$ (0.09)	$ (0.79)	$ 0.30

(Loss) Earnings Per Share - Add

(Loss) Earnings Per Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Line Items]
Purchase of outstanding common stock were anti-dilutive	0	0	0	0
Options and Other Rights
Earnings Per Share [Line Items]
Purchase of outstanding common stock were anti-dilutive	4,700	1,500	4,100	1,400
Performance Based Unit Awards
Earnings Per Share [Line Items]
Purchase of outstanding common stock were anti-dilutive	600	300	500	200

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ in Millions	Feb. 10, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Business acquisition		$ 35	$ 17
Goodwill		$ 2,638		$ 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		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation Of Revenue [Line Items]
Revenue		$ 1,029	$ 1,242	$ 2,208	$ 2,458
ADI Global Distribution
Disaggregation Of Revenue [Line Items]
Revenue		631	705	1,335	1,370
ADI Global Distribution | U.S. and Canada
Disaggregation Of Revenue [Line Items]
Revenue		532	579	1,108	1,115
ADI Global Distribution | EMEA
Disaggregation Of Revenue [Line Items]
Revenue	[1]	95	112	209	227
ADI Global Distribution | APAC
Disaggregation Of Revenue [Line Items]
Revenue	[2]	4	14	18	28
Products & Solutions
Disaggregation Of Revenue [Line Items]
Revenue		398	537	873	1,088
Products & Solutions | Comfort
Disaggregation Of Revenue [Line Items]
Revenue		198	271	428	543
Products & Solutions | Security
Disaggregation Of Revenue [Line Items]
Revenue		115	137	237	269
Products & Solutions | Residential Thermal Solutions
Disaggregation Of Revenue [Line Items]
Revenue		$ 85	$ 129	$ 208	$ 276
[1]	EMEA represents Europe, the Middle East and Africa.
[2]	APAC represents Asia and Pacific countries.

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details)	Jun. 30, 2020
Restructuring And Related Activities [Abstract]
Percentage of revenue satisfied over time	3.00%

Restructuring and Other Charg_3

Restructuring and Other Charges - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restructuring Cost And Reserve [Line Items]
Restructuring and related expenses	$ 11	$ 25	$ 20	$ 25
Severance | Products & Solutions
Restructuring Cost And Reserve [Line Items]
Restructuring and related expenses	9	19	17	19
Severance | ADI Global Distribution
Restructuring Cost And Reserve [Line Items]
Restructuring and related expenses	$ 2	$ 6	$ 3	$ 6

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) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restructuring Cost And Reserve [Line Items]
Total net restructuring charges	$ 11	$ 25	$ 20	$ 25
Cost of Goods Sold
Restructuring Cost And Reserve [Line Items]
Total net restructuring charges	4	13	7	13
Selling, General and Administrative Expenses
Restructuring Cost And Reserve [Line Items]
Total net restructuring charges	$ 7	$ 12	$ 13	$ 12

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	6 Months Ended
	Jun. 30, 2020USD ($)
Restructuring Cost And Reserve [Line Items]
Beginning of period	$ 19
Charges	20
Usage – cash payments	(14)
End of period	$ 25

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Tax expense	$ 23	$ 19	$ 36
Tax expense (benefit)	25	$ (2)
Tax benefit for changes in estimates related to prior years	3
Tax expense for share-based excess cost	$ 1

Inventories Net (Details)

Inventories Net (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 170	$ 154
Work in process	18	18
Finished products	501	568
Inventory reserves	(75)	(69)
Inventory, Net	$ 614	$ 671

Accrued Liabilities - Summary o

Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Accrued Liabilities, Current [Abstract]
Obligations payable to Honeywell under Indemnification Agreements	$ 175	$ 140
Taxes payable	55	66
Compensation, benefit and other employee-related	74	66
Customer rebate reserve	45	78
Other	215	202
Total accrued liabilities	$ 564	$ 552

Long-term Debt and Credit Agree

Long-term Debt and Credit Agreement - Schedule of Debt (Details) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Unamortized deferred financing costs and debt discounts	$ (20)	$ (23)
Total outstanding indebtedness	1,427	1,180
Less: amounts due within one year	287	22
Total long-term debt due after one year	1,140	1,158
Revolving Credit Facility
Debt Instrument [Line Items]
Revolving Credit Facility	250
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	328	333
Seven Year Variable Rate Term Loan B Due 2025
Debt Instrument [Line Items]
Long-term debt, gross	$ 469	$ 470

Long-term Debt and Credit Agr_2

Long-term Debt and Credit Agreement - Schedule of Debt (Parenthetical) (Details)	Nov. 26, 2019	Jun. 30, 2020
6.125% notes due 2026
Debt Instrument [Line Items]
Interest rate		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	2023
Seven Year Variable Rate Term Loan B Due 2025
Debt Instrument [Line Items]
Debt instrument maturity year	2025	2025

Long-term Debt and Credit Agr_3

Long-term Debt and Credit Agreement - Additional Information (Details) $ in Millions	Nov. 26, 2019	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2020USD ($)	Dec. 31, 2019	Jun. 30, 2020USD ($)
Debt Instrument [Line Items]
Interest expense, debt					$ 18		$ 35
Five Year Variable Rate Term Loan A Due 2023
Debt Instrument [Line Items]
Debt instrument maturity year	2023						2023
Seven Year Variable Rate Term Loan B Due 2025
Debt Instrument [Line Items]
Debt instrument maturity year	2025						2025
6.125% notes due 2026
Debt Instrument [Line Items]
Debt instrument maturity year							2026
Interest rate					6.125%		6.125%
Senior Notes
Debt Instrument [Line Items]
Debt Instrument fair value					$ 388		$ 388
Credit Agreement Amendment
Debt Instrument [Line Items]
Consolidated total leverage ratio						525.00%
Increase in applicable interest rate margin	0.0025
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%
Credit Agreement Amendment | Term B Loan Facility | London Interbank Offered Rate LIBOR | Maximum
Debt Instrument [Line Items]
Applicable interest rate on borrowings	2.25%
Credit Agreement Amendment | Term B Loan Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Applicable interest rate on borrowings	1.75%
Credit Agreement Amendment | Term A Loan Facility | London Interbank Offered Rate LIBOR | Maximum
Debt Instrument [Line Items]
Applicable interest rate on borrowings	1.25%
Credit Agreement Amendment | Term A Loan Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Applicable interest rate on borrowings	0.75%
Credit Agreement Amendment | Scenario Forecast
Debt Instrument [Line Items]
Consolidated total leverage ratio		375.00%	425.00%	475.00%
Term A Loan Facility | Senior Credit Facilities
Debt Instrument [Line Items]
Debt Instrument fair value					313		313
Term B Loan Facility | Senior Credit Facilities
Debt Instrument [Line Items]
Debt Instrument fair value					453		453
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowings from credit facility					250		250
Revolving Credit Facility | Senior Credit Facilities
Debt Instrument [Line Items]
Borrowings from credit facility					250		250
Credit facility, maximum borrowing amount					$ 350		$ 350
Weighted average interest rate					2.44%		2.44%
Letter of Credit | Senior Credit Facilities
Debt Instrument [Line Items]
Borrowings from credit facility					$ 0		$ 0
Term Loan Facilities | Senior Credit Facilities
Debt Instrument [Line Items]
Interest rate					2.56%		2.56%

Leases - Schedule of Operating

Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Lessee Lease Description [Line Items]
Total operating lease costs	$ 14	$ 13	$ 28	$ 25
Cost of Goods Sold
Lessee Lease Description [Line Items]
Total operating lease costs	4	4	8	8
Selling, General and Administrative Expenses
Lessee Lease Description [Line Items]
Total operating lease costs	$ 10	$ 9	$ 20	$ 17

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Variable lease costs	$ 4	$ 2	$ 7	$ 5

Leases - Summary of Lease Recog

Leases - Summary of Lease Recognized Related to Operating Leases (Details) - USD ($) $ in Millions	Jun. 30, 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	$ 30	$ 31
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent
Operating lease liabilities - noncurrent	$ 106	$ 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	Jun. 30, 2020USD ($)
Leases [Abstract]
2020	$ 19
2021	37
2022	32
2023	25
2024	14
Thereafter	35
Total lease payments	162
Less: imputed interest	26
Present value of operating lease liabilities	$ 136
Weighted-average remaining lease term (years)	5 years 6 months 29 days
Weighted-average incremental borrowing rate	6.11%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating cash outflows	$ 15	$ 18
Operating right-of-use assets obtained in exchange for operating lease liabilities	$ 10	$ 38

Stock-Based Compensation Plans

Stock-Based Compensation Plans - Additional Information (Details) - 2018 Stock Incentive Plan	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Performance-Based Restricted Stock Units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted | shares	786,692
Time Based Restricted Stock Units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted | shares	1,977,494
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	$ 8.85
Stock Options | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted | shares	1,083,665
Weighted average exercise price per share | $ / shares	$ 9.17
Weighted average grant date fair value per share | $ / shares	$ 2.61

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details)

Apr. 30, 2020USD ($)

Oct. 29, 2018USD ($)Site

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2020

Jul. 30, 2020USD ($)

Jun. 30, 2020USD ($)

Dec. 31, 2019USD ($)

Jun. 30, 2019USD ($)

Jun. 30, 2020USD ($)

Jun. 30, 2019USD ($)

Loss Contingencies [Line Items]

Environmental liabilities

$ 22,000,000

$ 22,000,000

$ 22,000,000

Honeywell reimbursement agreement net expenses

[1]

35,000,000

$ 36,000,000

$ 69,000,000

$ 22,000,000

Trademark license agreement

40 years

Other Expense, Net

Loss Contingencies [Line Items]

Honeywell reimbursement agreement net expenses

35,000,000

36,000,000

$ 69,000,000

22,000,000

Credit Agreement Amendment

Loss Contingencies [Line Items]

Consolidated total leverage ratio

525.00%

Indemnification payment defer

$ 35,000,000

Scenario Forecast | Credit Agreement Amendment

Loss Contingencies [Line Items]

Consolidated total leverage ratio

375.00%

425.00%

475.00%

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

$ 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

$ 141,000,000

$ 149,000,000

$ 141,000,000

Honeywell | Trademark Agreement

Loss Contingencies [Line Items]

Royalty fee on net revenue

1.50%

1.50%

Royalty expense

$ 5,000,000

$ 6,000,000

$ 11,000,000

$ 13,000,000

Honeywell | Trademark License Amendment

Loss Contingencies [Line Items]

Royalty payment term description before amendment

royalty payment otherwise payable to Honeywell within 60 days of the end of the quarter ended March 31, 2020

Honeywell | Trademark License Amendment | Subsequent Event

Loss Contingencies [Line Items]

Royalty expense

$ 6,000,000

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 related to the Honeywell Reimbursement Agreement.

Commitments and Contingencies_2

Commitments and Contingencies - Summary of Honeywell Reimbursement Agreement Liabilities (Details) - Honeywell - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Accrual for Honeywell Reimbursement Agreement
Beginning balance	$ 585	$ 616
Accruals for indemnification liabilities deemed probable and reasonably estimable	69	103
Reduction		(81)
Indemnification payment	(35)	(70)
Ending balance	$ 619	$ 568

Commitments and Contingencies_3

Commitments and Contingencies - Summary of Honeywell Reimbursement Agreement Liabilities Included in Balance Sheet Accounts (Details) - Honeywell - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Loss Contingency, Classification of Accrual [Abstract]
Honeywell Reimbursement Agreement liabilities	$ 619	$ 585	$ 568	$ 616
Accrued Liabilities
Loss Contingency, Classification of Accrual [Abstract]
Honeywell Reimbursement agreement current portion	175	140
Obligations Payable to Honeywell under Indemnification Agreements
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	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Product Warranties and Guarantees [Roll forward]
Beginning of period	$ 25	$ 26
Accruals for warranties/guarantees issued during the year	12	7
Adjustment of pre-existing warranties/guarantees	(2)	(2)
Settlement of warranty/guarantee claims	(9)	(8)
End of period	$ 26	$ 23

Pension - Additional Informatio

Pension - Additional Information (Details) - Pension Plans - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Pension obligations	$ 129		$ 129		$ 124
Net periodic benefit cost	$ 2	$ 2	$ 4	$ 4

Segment Financial Data - Additi

Segment Financial Data - Additional Information (Details)	6 Months Ended
	Jun. 30, 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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue
Revenue	$ 1,029	$ 1,242	$ 2,208	$ 2,458
Segment Adjusted EBITDA
Total	(6)	42	28	127
Total	63	122	162	249
Products & Solutions
Revenue
Revenue	398	537	873	1,088
Segment Adjusted EBITDA
Total	35	75	88	156
ADI Global Distribution
Revenue
Revenue	631	705	1,335	1,370
Segment Adjusted EBITDA
Total	28	47	74	93
Operating Segments | Products & Solutions
Revenue
Revenue	482	611	1,041	1,233
Intersegment Revenue Eliminations | Products & Solutions
Revenue
Revenue	$ (84)	$ (74)	$ (168)	$ (145)

Segment Financial Data - Sche_2

Segment Financial Data - Schedule of Reconciliation of Segment Adjusted EBITDA (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting [Abstract]
Net (loss) income		$ (76)	$ (11)	$ (97)	$ 37
Net interest expense	[1]	17	17	34	33
Tax expense		23		19	36
Depreciation and amortization		21	20	42	36
Honeywell Reimbursement Agreement net expense	[2]	35	36	69	22
Stock compensation expense	[3]	7	7	14	14
Restructuring charges		11	25	20	25
Other	[4]	25	28	61	46
Total		$ 63	$ 122	$ 162	$ 249
[1]	For the three and six months ended June 30, 2020 interest expense was $18 million and $35 million net of interest income of $1 million and $1 million, respectively. For the three and six months ended June 30, 2019 interest expense was $18 million and $35 million net of interest income of $1 million and $2 million, respectively.
[2]	Represents recorded net expenses related to the Honeywell Reimbursement Agreement.
[3]	Stock compensation expense adjustment includes only non-cash expenses.
[4]	For the three and six months ended June 30, 2020, Other represents $15 million and $27 million of items related to the Spin-Off, $14 million and $28 million of consulting and other fees related to transformation programs, ($4) million and $5 million of non-operating (income) expense adjustment which excludes net interest (income), and $0 million and $1 million of acquisition-related expenses, respectively. For the three and six months ended June 30, 2019, Other represents $16 million and $34 million of cost directly related to the Spin-Off, $12 million and $13 million related to developments on legal claims that arose prior to Spin-Off, and $0 million and ($1) million in non-operating (income) expense adjustment which excludes net interest (income). The three and six months ended June 30, 2019 includes an adjustment for $6 million of costs directly related to the Spin-Off. Costs from the second quarter of 2019 were identified during the third quarter of 2019 as Spin-Off costs and are now included in our three and six months ended adjustments.

Segment Financial Data - Sche_3

Segment Financial Data - Schedule of Reconciliation of Segment Adjusted EBITDA (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Loss Contingencies [Line Items]
Interest expense	$ 18	$ 18	$ 35	$ 35
Interest income	1	1	1	2
Spin-off costs	11	25	20	25
Consulting and other fees related to transformation programs	14		28
Non-operating (income) expense adjustment	(4)	0	5	(1)
Acquisition-related expenses	0		1
Developments on legal claims prior to spin-off		12		13
Adjustment related to spin-off costs		6		6
Honeywell
Loss Contingencies [Line Items]
Spin-off costs	$ 15	$ 16	$ 27	$ 34

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Subsequent Event - Honeywell - Second Reimbursement Agreement Amendment $ in Millions	Jul. 28, 2020USD ($)
Subsequent Event [Line Items]
Reimbursement obligation quarterly payment	$ 35
Reimbursement obligation quarterly payment description	Pursuant to the Second Reimbursement Agreement Amendment, the parties agreed to further defer until no later than October 30, 2020 the $35 million quarterly payment that was originally due thirty days following the start of the second quarter of 2020 and was previously deferred until no later than July 30, 2020 pursuant to the Reimbursement Agreement Amendment. In connection with the execution of the Second Reimbursement Agreement Amendment, the Company confirmed that it would pay, no later than July 30, 2020, the $35 million quarterly payment that is due thirty days following the start of the third quarter of 2020.