Cover
Cover - shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-38635 | |
Entity Registrant Name | Resideo Technologies, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-5318796 | |
Entity Address, Address Line One | 16100 N. 71st Street | |
Entity Address, Address Line Two | Suite 550 | |
Entity Address, City or Town | Scottsdale | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85254 | |
City Area Code | 480 | |
Local Phone Number | 573-5340 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | REZI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,016,926 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Entity Central Index Key | 0001740332 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 603 | $ 636 |
Accounts receivable, net | 933 | 973 |
Inventories, net | 929 | 941 |
Other current assets | 212 | 193 |
Total current assets | 2,677 | 2,743 |
Property, plant and equipment, net | 369 | 390 |
Goodwill | 2,689 | 2,705 |
Intangible assets, net | 456 | 461 |
Other assets | 329 | 346 |
Total assets | 6,520 | 6,645 |
Current liabilities: | ||
Accounts payable | 858 | 905 |
Current portion of long-term debt | 12 | 12 |
Accrued liabilities | 515 | 608 |
Total current liabilities | 1,385 | 1,525 |
Long-term debt | 1,394 | 1,396 |
Obligations payable under Indemnification Agreements | 617 | 609 |
Other liabilities | 355 | 366 |
Total liabilities | 3,751 | 3,896 |
COMMITMENTS AND CONTINGENCIES | ||
Stockholders’ equity | ||
Common stock, $0.001 par value: 700 shares authorized, 152 and 146 shares issued and outstanding at March 30, 2024, respectively, and 151 and 145 shares issued and outstanding at December 31, 2023, respectively | 0 | 0 |
Additional paid-in capital | 2,243 | 2,226 |
Retained earnings | 853 | 810 |
Accumulated other comprehensive loss, net | (226) | (194) |
Treasury stock at cost | (101) | (93) |
Total stockholders’ equity | 2,769 | 2,749 |
Total liabilities and stockholders’ equity | $ 6,520 | $ 6,645 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, shares issued (in shares) | 152,000,000 | 151,000,000 |
Common stock, shares outstanding (in shares) | 146,000,000 | 145,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Statement [Abstract] | ||
Net revenue | $ 1,486 | $ 1,549 |
Cost of goods sold | 1,086 | 1,131 |
Gross profit | 400 | 418 |
Operating expenses: | ||
Research and development expenses | 25 | 25 |
Selling, general and administrative expenses | 231 | 244 |
Intangible asset amortization | 9 | 9 |
Restructuring expenses | 7 | 2 |
Total operating expenses | 272 | 280 |
Income from operations | 128 | 138 |
Other expenses, net | 42 | 40 |
Interest expense, net | 13 | 17 |
Income before taxes | 73 | 81 |
Provision for income taxes | 30 | 24 |
Net income | $ 43 | $ 57 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.29 | $ 0.39 |
Diluted (in dollars per share) | $ 0.29 | $ 0.38 |
Weighted average number of shares outstanding: | ||
Basic (in dollars per share) | 146 | 147 |
Diluted (in dollars per share) | 148 | 149 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 43 | $ 57 |
Other comprehensive (loss) income, net of tax: | ||
Foreign exchange translation (loss) gain | (31) | 16 |
Pension liability adjustments | 0 | 3 |
Changes in fair value of effective cash flow hedges | (1) | (7) |
Total other comprehensive (loss) income, net of tax | (32) | 12 |
Comprehensive income | $ 11 | $ 69 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Cash Flows From Operating Activities: | ||
Net income | $ 43 | $ 57 |
Adjustments to reconcile net income to net cash in operating activities: | ||
Depreciation and amortization | 24 | 24 |
Restructuring expenses | 7 | 2 |
Stock-based compensation expense | 14 | 12 |
Other, net | 3 | 0 |
Changes in assets and liabilities, net of acquired companies: | ||
Accounts receivable, net | 34 | 23 |
Inventories, net | 7 | (27) |
Other current assets | 3 | (8) |
Accounts payable | (44) | (12) |
Accrued liabilities | (89) | (86) |
Other, net | 0 | 11 |
Net cash provided by (used in) operating activities | 2 | (4) |
Cash Flows From Investing Activities: | ||
Capital expenditures | (21) | (20) |
Acquisitions, net of cash acquired | 0 | (6) |
Other investing activities, net | (1) | 0 |
Net cash used in investing activities | (22) | (26) |
Cash Flows From Financing Activities: | ||
Common stock repurchases | (1) | 0 |
Repayments of long-term debt | (3) | (3) |
Other financing activities, net | (4) | (6) |
Net cash used in financing activities | (8) | (9) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (5) | 6 |
Net decrease in cash, cash equivalents and restricted cash | (33) | (33) |
Cash, cash equivalents and restricted cash at beginning of year | 637 | 329 |
Cash, cash equivalents and restricted cash at end of year | 604 | 296 |
Supplemental Cash Flow Information: | ||
Interest paid, net of swaps | 22 | 27 |
Taxes paid, net of refunds | 28 | 19 |
Capital expenditures in accounts payable | $ 11 | $ 15 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning of period at Dec. 31, 2022 | $ 2,529 | $ 0 | $ 2,176 | $ 600 | $ (212) | $ (35) |
Shares outstanding, beginning (in shares) at Dec. 31, 2022 | 146,222 | |||||
Treasury stock, beginning (in shares) at Dec. 31, 2022 | 2,050 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 57 | 57 | ||||
Other comprehensive income, net of tax | 12 | 12 | ||||
Common stock issuance, net of shares withheld for taxes | (6) | 3 | $ (9) | |||
Common stock issuance, net of shares withheld for taxes (in shares) | 862 | 497 | ||||
Stock-based compensation expense | 12 | 12 | ||||
End of period at Apr. 01, 2023 | 2,604 | $ 0 | 2,191 | 657 | (200) | $ (44) |
Shares outstanding, ending (in shares) at Apr. 01, 2023 | 147,084 | |||||
Treasury stock, ending (in shares) at Apr. 01, 2023 | 2,547 | |||||
Beginning of period at Dec. 31, 2023 | 2,749 | $ 0 | 2,226 | 810 | (194) | $ (93) |
Shares outstanding, beginning (in shares) at Dec. 31, 2023 | 145,389 | |||||
Treasury stock, beginning (in shares) at Dec. 31, 2023 | 5,536 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 43 | 43 | ||||
Other comprehensive income, net of tax | (32) | (32) | ||||
Common stock issuance, net of shares withheld for taxes | (4) | 3 | $ (7) | |||
Common stock issuance, net of shares withheld for taxes (in shares) | 699 | 335 | ||||
Stock-based compensation expense | 14 | 14 | ||||
Common stock repurchases | (1) | $ (1) | ||||
Common stock repurchases (shares) | (75) | (75) | ||||
End of period at Mar. 30, 2024 | $ 2,769 | $ 0 | $ 2,243 | $ 853 | $ (226) | $ (101) |
Shares outstanding, ending (in shares) at Mar. 30, 2024 | 146,013 | |||||
Treasury stock, ending (in shares) at Mar. 30, 2024 | 5,946 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 3 Months Ended |
Mar. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | Nature of Operations and Basis of Presentation Nature of Operations Resideo Technologies, Inc. (“Resideo”, the “Company”, “we”, “us”, or “our”) is a leading manufacturer and developer of technology-driven products that provide critical comfort, energy, smoke and carbon monoxide detection home safety products and security solutions to homes globally. We are also a leading wholesale distributor of low-voltage security products including access control, fire detection, fire suppression, security, and video products, and participate significantly in the broader related markets of audio, communications, data communications, networking, power, ProAV, smart home, and wire and cable. Our global footprint serves both commercial and residential end markets. Basis of Consolidation and Reporting The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the Unaudited Consolidated Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the Unaudited Consolidated Financial Statements included herein contain all adjustments, which consist of normal recurring adjustments, necessary to fairly present our financial position, results of operations and cash flows for the periods indicated. Operating results for the period from January 1, 2024 through March 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. For additional information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”), filed with the United States Securities and Exchange Commission (the “SEC”) on February 14, 2024. Reporting Period We report financial information on a fiscal quarter basis using a modified four-four-five week calendar. Our fiscal calendar begins on January 1 and ends on December 31. We have elected the first, second and third quarters to end on a Saturday in order to not disrupt business processes. The effects of this election are generally not significant to reported results for any quarter and only exist within a reporting year. Reclassification For the purpose of comparability, certain prior period amounts have been reclassified to conform to current period classification. Refer to Note 4. Segment Financial Data |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Our significant accounting policies are detailed in Note 2. Summary of Significant Accounting Policies of the Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes to these policies that have had a material impact on the Unaudited Consolidated Financial Statements and accompanying notes for the three months ended March 30, 2024. We consider the applicability and impact of all recent accounting standards updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) and U.S. Securities and Exchange Commission (“SEC”) rules and disclose only those that may have a material impact. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This ASU requires entities to disclose, on an annual and interim basis, significant segment expenses that are regularly reviewed by the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. The ASU also requires disclosure of the name and title of the CODM. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We are currently assessing the impact of adoption on our Consolidated Financial Statements and related disclosures. |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Mar. 30, 2024 | |
Assets And Liabilities Held For Sale [Abstract] | |
Assets Held for Sale | Assets Held for Sale Assets and Liabilities Held for Sale |
Segment Financial Data
Segment Financial Data | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Financial Data | Segment Financial Data The Company’s segment information is evaluated by our Chief Executive Officer, who is also the CODM, and is consistent with how management reviews and assesses the performance of the business as well as makes investing and resource allocation decisions. We monitor our operations through our two reportable segments: Products and Solutions and ADI Global Distribution, and report Corporate separately. These operating segments follow the same accounting policies used for the financial statements. We evaluate a segment’s performance on a U.S. GAAP basis, primarily operating income before corporate expenses. Products and Solutions —The Products and Solutions business is a leading global manufacturer and developer of technology-driven products and components that provide critical comfort, energy management, and safety and security solutions to over 150 million homes globally. Our offerings include temperature and humidity control, thermal water and air solutions, as well as security panels, sensors, peripherals, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software. ADI Global Distribution —The ADI Global Distribution business is a leading wholesale distributor of low-voltage security products including security and life safety, access control and video products and participates significantly in the broader related markets of smart home, power, audio, ProAV, networking, communications, wire and cable, and data communications. Corporate —On January 1, 2024, certain corporate functions were decentralized into the operating segments aligning with the business strategy. As a result, $11 million and $7 million of information technology, finance, tax, business development, and research and development functional expenses incurred during the first quarter are now recorded within the Products and Solutions and ADI Global Distribution segments, respectively. For the period ending April 1, 2023, $12 million and $8 million of corporate expenses have been reclassified into the Products and Solutions and ADI Global Distribution segments, respectively, decreasing reported Income from Operations to conform to the current year presentation. Additionally, certain other immaterial prior period amounts have been reclassified to conform to the current period classification. Corporate expenses include costs related to the corporate office such as the executive function, legal, accounting, tax, treasury, corporate development, human resources, and information technology. Additionally, unallocated amounts for non-operating items such as Reimbursement Agreement expense, interest income (expense), other income (expense) and provision for income taxes are reported within Corporate. The following table represents summary financial data attributable to the segments: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Net revenue Products and Solutions $ 620 $ 658 ADI Global Distribution 866 891 Total net revenue $ 1,486 $ 1,549 Three Months Ended (in millions) March 30, 2024 April 1, 2023 Income from operations Products and Solutions $ 112 $ 105 ADI Global Distribution 49 64 Corporate (33) (31) Total income from operations $ 128 $ 138 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. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition We have two operating segments, Products and Solutions and ADI Global Distribution. Disaggregated revenue information for Products and Solutions is presented by product grouping, while ADI Global Distribution is presented by region. The following table presents revenue by business line and geographic location, as we believe this presentation best depicts how the nature, amount, timing, and uncertainty of net revenue and cash flows are affected by economic factors: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Products and Solutions Air $ 191 $ 211 Safety and Security 213 228 Energy 134 136 Water 82 83 Total Products and Solutions 620 658 ADI Global Distribution U.S. and Canada 746 768 EMEA (1) 120 123 Total ADI Global Distribution 866 891 Total net revenue $ 1,486 $ 1,549 (1) EMEA represents Europe, the Middle East and Africa. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The following table represents restructuring expense attributable to the segments: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Products and Solutions $ 5 $ 2 ADI Global Distribution 2 — Restructuring expenses $ 7 $ 2 We took actions during the quarter to align our cost structure with the Company’s strategic objectives and our outlook of market conditions. The intent of these actions is to lower costs, increase margins, and position us for long-term growth. We expect to fully execute on our restructuring programs over the next 12 to 24 months, and we may incur future additional restructuring expenses associated with these plans. We are unable at this time to make a good faith determination of cost estimates, or ranges of cost estimates, associated with future phases of the programs or the total costs we may incur in connection with these programs. Refer to Note 6. Restructuring Expenses in our 2023 Annual Report on Form 10-K for further discussion of our restructuring programs. The following table summarizes the status of our restructuring expenses included within accrued liabilities on the Unaudited Consolidated Balance Sheets. Three Months Ended Twelve Months Ended (in millions) March 30, 2024 December 31, 2023 Beginning of period $ 30 $ 27 Charges 7 34 Usage (1) (11) (31) End of period $ 26 $ 30 (1) Usage primarily relates to cash payments associated with employee termination costs. |
Stockholders_ Equity
Stockholders’ Equity | 3 Months Ended |
Mar. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity On August 3, 2023, we announced that our Board of Directors authorized a share repurchase program for the repurchase of up to $150 million of our common stock over an unlimited time period (the “Share Repurchase Program”). |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Mar. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans The Stock Incentive Plan, which consists of the Amended and Restated 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., provides for the grant of stock options, stock appreciation rights, restricted stock units, restricted stock and other stock-based awards. The maximum aggregate shares of common stock that may be granted under these plans are 19.5 million with 3.2 million available to be granted at March 30, 2024. A summary of awards granted as part of our annual long-term compensation follows: Three Months Ended March 30, 2024 Three Months Ended April 1, 2023 Number of Stock Units Granted Weighted average grant date fair value per share Number of Stock Units Granted Weighted average grant date fair value per share Performance Stock Units (“PSUs”) (1) 575,249 $ 27.96 553,071 $ 29.89 Restricted Stock Units (“RSUs”) 1,783,299 $ 17.82 1,466,307 $ 19.03 (1) Included herein are PSUs at target payout. Final shares issued may be different based upon the actual achievement versus the performance measure target. Stock-based compensation expense, net of tax was $14 million and $12 million for the three months ended March 30, 2024 and April 1, 2023, respectively. |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net The following table summarizes the details of our inventories, net: (in millions) March 30, 2024 December 31, 2023 Raw materials $ 212 $ 221 Work in process 13 18 Finished products 704 702 Total inventories, net $ 929 $ 941 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | Goodwill and Intangible Assets, net Our goodwill balance and changes in carrying value by segment are as follows: (in millions) Products and Solutions ADI Global Distribution Total Balance at January 1, 2024 $ 2,045 $ 660 $ 2,705 Impact of foreign currency translation (12) (4) (16) Balance at March 30, 2024 $ 2,033 $ 656 $ 2,689 The following table summarizes the net carrying amount of intangible assets: (in millions) March 30, 2024 December 31, 2023 Intangible assets subject to amortization $ 276 $ 281 Indefinite-lived intangible assets 180 180 Total intangible assets $ 456 $ 461 Intangible assets subject to amortization consisted of the following: March 30, 2024 December 31, 2023 (in millions) Gross Accumulated Net Gross Accumulated Net Patents and technology $ 63 $ (28) $ 35 $ 64 $ (26) $ 38 Customer relationships 316 (140) 176 319 (138) 181 Trademarks 9 (8) 1 9 (8) 1 Software 198 (134) 64 193 (132) 61 Intangible assets subject to amortization $ 586 $ (310) $ 276 $ 585 $ (304) $ 281 |
Leases
Leases | 3 Months Ended |
Mar. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases Total operating lease costs are as follows: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Operating lease costs: Cost of goods sold $ 5 $ 5 Selling, general and administrative expenses 14 14 Total operating lease costs $ 19 $ 19 Total operating lease costs include variable lease costs of $3 million and $6 million for the three months ended March 30, 2024 and the three months ended April 1, 2023. The following table summarizes the carrying amounts of our operating lease assets and liabilities: (in millions) Financial Statement Line Item March 30, 2024 December 31, 2023 Operating lease assets Other assets $ 183 $ 192 Operating lease liabilities - current Accrued liabilities $ 38 $ 39 Operating lease liabilities - non-current Other liabilities $ 159 $ 166 Supplemental cash flow information related to operating leases was as follows: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Cash paid for operating lease liabilities $ 9 $ 9 Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities $ 6 $ 7 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt is comprised of the following: (in millions) March 30, 2024 December 31, 2023 4.000% Senior Notes due 2029 $ 300 $ 300 Variable rate A&R Term B Facility 1,117 1,119 Gross debt 1,417 1,419 Less: current portion of long-term debt (12) (12) Less: unamortized deferred financing costs (11) (11) Total long-term debt $ 1,394 $ 1,396 A&R Senior Credit Facilities On February 12, 2021, we entered into an Amendment and Restatement Agreement with JP Morgan Chase Bank N.A. as administrative agent (the “A&R Credit Agreement”). The A&R Credit Agreement provides for (i) an initial seven - year senior secured Term B loan facility in an aggregate principal amount of $950 million, which was later amended to add $200 million in additional term loans (the “A&R Term B Facility”) and (ii) a five - year senior secured revolving credit facility in an aggregate principal amount of $500 million (the “A&R Revolving Credit Facility” and, together with the A&R Term B Facility, the “A&R Senior Credit Facilities”). On June 30, 2023, we modified the calculation of interest under the A&R Senior Credit Facilities from being calculated based on LIBOR to being calculated based on the SOFR. At March 30, 2024 and December 31, 2023, the weighted average interest rate for the A&R Term B Facility, excluding the effect of the interest rate swaps, was 7.69% and 7.72%, respectively, and there were no borrowings and no letters of credit issued under the A&R Revolving Credit Facility. As of March 30, 2024, we were in compliance with all covenants related to the A&R Senior Credit Facilities. Senior Notes due 2029 On August 26, 2021, we issued $300 million in principal amount of 4.00% Senior Notes due 2029 (the “Senior Notes due 2029”). The Senior Notes due 2029 are senior unsecured obligations guaranteed by the Company’s existing and future domestic subsidiaries and rank equally with all senior unsecured debt and senior to all subordinated debt. We entered into certain interest rate swap agreements in March 2021, which were amended in June 2023 to transition from a hedge of LIBOR-based cash flows to a hedge of SOFR-based cash flows. These interest rate swap agreements effectively convert a portion of our variable-rate debt to fixed rate debt. Refer to Note 13. Derivative Financial Instruments for further discussion. Refer to Note 11. Long-Term Debt in our 2023 Annual Report on Form 10-K for further discussion. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments In March 2021, we entered into eight interest rate swap agreements (“Swap Agreements”) with several financial institutions for a combined notional value of $560 million. The Swap Agreements were entered into to reduce the consolidated interest rate risk associated with variable rate, long-term debt. During 2023, we modified the Swap Agreements blending the asset positions of the original interest rate swap agreements into new interest swap agreements and extending the term of our hedged positions. The new pay-fixed interest rate swap agreements qualify as a hybrid instrument in accordance with Accounting Standards Codification 815, Derivatives and Hedging , consisting of financing components and embedded at-market derivatives that were designated as cash flow hedges. The amounts remaining in accumulated other comprehensive loss for the modified interest rate swap agreements as of March 30, 2024 were immaterial. We also amended the Swap Agreements to transition from a hedge of LIBOR-based cash flows to a hedge of SOFR-based cash flows. Refer to Note 12.Derivative Financial Instruments in our 2023 Annual Report on Form 10-K for further discussion. The Swap Agreements are adjusted to fair value on a quarterly basis. The following table summarizes the fair value and presentation of derivative instruments in the Unaudited Consolidated Balance Sheets as well as the changes in fair value recorded in accumulated other comprehensive loss: Fair Value of Derivative Assets (in millions) Financial Statement Line Item March 30, 2024 December 31, 2023 Derivatives designated as hedging instruments Interest rate swaps Other current assets $ 20 $ 20 Interest rate swaps Other assets 10 10 Total derivative assets designated as hedging instruments $ 30 $ 30 Unrealized gain Accumulated other comprehensive loss $ 24 $ 25 The following table summarizes the effect of derivative instruments designated as cash flow hedges in other comprehensive income and the Unaudited Consolidated Statements of Operations: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Gains recorded in accumulated other comprehensive loss, beginning of period $ 25 $ 42 Current period gain (loss) recognized in/reclassified from other comprehensive income 1 (6) Gains reclassified from accumulated other comprehensive loss to net income (2) (1) Gains recorded in accumulated other comprehensive loss, end of period $ 24 $ 35 Unrealized gains expected to be reclassified from accumulated other comprehensive loss in the next 12 months are estimated to be $21 million as of March 30, 2024. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The estimated fair value of our financial instruments held, and when applicable, issued to finance our operations, is summarized below. Certain estimates and judgments were required to develop the fair value amounts. The fair value amounts shown below are not necessarily indicative of the amounts that we would realize upon disposition, nor do they indicate our intent or ability to dispose of the financial instrument. Assets and liabilities that are carried at fair value are required to be classified and disclosed in one of the following three categories: Level 1—quoted market prices in active markets for identical assets and liabilities Level 2—observable market-based inputs or unobservable inputs that are corroborated by market data Level 3—unobservable inputs that are not corroborated by market data Financial and non-financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. There were no changes in the methodologies used in our valuation practices as of March 30, 2024. The fair values of long-term debt instruments were determined using quoted market prices in inactive markets or discounted cash flows based upon current observable market interest rates and therefore were classified as Level 2 measurements in the fair value hierarchy. The following table provides a summary of the carrying amount and fair value of outstanding debt: March 30, 2024 December 31, 2023 (in millions) Carrying Value Fair Value Carrying Value Fair Value Debt 4.000% Senior Notes due 2029 $ 300 $ 269 $ 300 $ 266 Variable rate A&R Term B Facility 1,117 1,119 1,119 1,122 Total debt $ 1,417 $ 1,388 $ 1,419 $ 1,388 Refer to Note 12. Long-Term Debt to the Unaudited Consolidated Financial Statements for further discussion. Interest Rate Risk— We have exposure to movements in interest rates associated with cash and borrowings. We have entered, and in the future may enter, into various interest rate protection agreements in order to limit the impact of movements in interest rates. The fair values of interest rate swaps have been determined based on market value equivalents at the balance sheet date, taking into account the current interest rate environment and therefore, were classified as Level 2 measurements in the fair value hierarchy. The following table provides a summary of the carrying amount and fair value of our interest rate swaps: March 30, 2024 December 31, 2023 (in millions) Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate swaps $ 30 $ 30 $ 30 $ 30 Refer to Note 13. Derivative Financial Instruments to the Unaudited Consolidated Financial Statements for further discussion. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: (in millions) March 30, 2024 December 31, 2023 Obligations payable under Indemnification Agreements $ 140 $ 140 Compensation, benefit and other employee-related 71 110 Customer rebate reserve 65 104 Current operating lease liability 38 39 Taxes payable 29 34 Restructuring 26 30 Freight payable 25 25 Product warranties 21 24 Other (1) 100 103 Total accrued liabilities $ 515 $ 608 (1) Other includes accruals for advertising, legal and professional reserves, royalties, interest, and other miscellaneous items. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental Matters We are subject to various federal, state, local, and foreign government requirements relating to the protection of the environment and accrue costs related to environmental matters when it is probable that we have incurred a liability related to a contaminated site and the amount can be reasonably estimated. We believe that, as a general matter, our policies, practices and procedures are properly designed to prevent unreasonable risk of environmental damage and personal injury and that our handling, manufacture, use and disposal of hazardous substances are in accordance with environmental and safety laws and regulations. We have incurred remedial response and voluntary cleanup costs for site contamination and are a party to claims associated with environmental and safety matters, including products containing hazardous substances. Additional claims and costs involving environmental matters are likely to continue to arise in the future. Environment-related expenses for sites owned and operated by us are presented within cost of goods sold Obligations Payable Under Indemnification Agreements The Reimbursement Agreement and the Tax Matters Agreement (collectively, the “Indemnification Agreements”) are further described below. Reimbursement Agreement We 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 our common stock to shareholders of Honeywell (the “Spin-off”). In connection with the Spin-Off, we entered into a reimbursement agreement, pursuant to which we have an obligation to make cash payments to Honeywell in amounts equal to 90% of payments for certain Honeywell environmental-liability payments (the “Reimbursement Agreement”) 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 Reimbursement Agreement extends until the earlier of (1) December 31, 2043; or (2) December 31 of the third consecutive anniversary where the annual reimbursement obligation (including accrued amounts) has been less than $25 million. While the amount payable by us in respect of such liabilities arising in any given year is subject to a cap of $140 million under the Reimbursement Agreement, the estimated liability for resolution of pending and future environmental-related liabilities recorded on our balance sheets are calculated as if we were responsible for 100% of the environmental-liability payments associated with certain sites. Refer to Note 15. Commitments and Contingencies in our 2023 Annual Report on Form 10-K for further discussion. Tax Matters Agreement In connection with the Spin-Off, we entered into the Tax Matters Agreement with Honeywell, pursuant to which we are responsible and will indemnify Honeywell for certain taxes, including certain 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. In addition, the Tax Matters Agreement addresses the allocation of liability for taxes that are incurred as a result of restructuring activities undertaken to effectuate the Spin-Off. We are required to indemnify Honeywell for any taxes resulting from the failure of the Spin-Off and related internal transactions to qualify for their intended tax treatment under U.S. federal, state and local income tax law, as well as foreign tax law, where such taxes result from our action or omission not permitted by the Separation and Distribution Agreement between Honeywell and Resideo dated as of October 19, 2018 or the Tax Matters Agreement. The following table summarizes information concerning the Reimbursement and Tax Matter Agreements’ liabilities: (in millions) Reimbursement Agreement Tax Matters Agreement Total Balance as of January 1, 2024 $ 652 $ 97 $ 749 Accruals for liabilities deemed probable and reasonably estimable 43 — 43 Payments to Honeywell (35) — (35) Balance as of March 30, 2024 $ 660 $ 97 $ 757 The liabilities related to the Reimbursement and Tax Matters Agreements are included in the following balance sheet accounts: (in millions) March 30, 2024 December 31, 2023 Accrued liabilities $ 140 $ 140 Obligations payable under Indemnification Agreements 617 609 Total indemnification liabilities $ 757 $ 749 For the three months ended March 30, 2024 and April 1, 2023, net expenses related to the Reimbursement Agreement were $43 million and $41 million, respectively. We do 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 such indemnification liability payments can be determined although they could be material to our consolidated results of operations and operating cash flows in the periods recognized or paid. Independent of our payments under the Reimbursement Agreement, we will have ongoing liability for certain environmental claims, which are part of our ongoing business. Other Matters We are subject to lawsuits, investigations and disputes arising out of the conduct of our business, including matters relating to commercial transactions, government contracts, product liability, acquisitions and divestitures, employee matters, intellectual property, and environmental, health, and safety matters. We recognize a liability for any contingency that is probable of occurrence and reasonably estimable. We continually assess the likelihood of adverse judgments or outcomes in these matters, as well as potential ranges of possible losses, based on a careful analysis of each matter with the assistance of outside legal counsel and, if applicable, other experts. No such matters are material to our financial statements. Refer to Note 15. Commitments and Contingencies in our 2023 Annual Report on Form 10-K for further discussion of these matters. On June 28, 2023, Lisset Tredo, a Company employee, filed a putative class action complaint in the San Diego County Superior Court on behalf of all non-exempt employees in California, in which she alleges violations by the Company of the California Labor Code related to sick leave pay, accurate wage statements, recordkeeping, and pay timing, and on August 28, 2023 she filed a first amended complaint adding a claim under the California Private Attorneys General Act (the “Tredo Lawsuit”). In the Tredo Lawsuit, Tredo seeks alleged unpaid wages, restitution, interest, statutory penalties, civil penalties, attorneys’ fees and costs in an unknown amount. The Company answered the Tredo Lawsuit in which it asserted a general denial of plaintiff’s allegations and asserted various defenses. We are investigating the allegations and defenses. At the request of plaintiff’s counsel, the parties have agreed to postpone mediation from January 2024 to May 2024, and to stay formal discovery pending the outcome of the mediation. If the case is not resolved at mediation, we intend to defend the matter vigorously; however, there can be no assurance that we will be successful in such defense. At this stage we are unable to estimate the total costs to defend the matter and have estimated the potential liability to be immaterial to us in the event that we are not successful in our defense. Warranties and Guarantees In the normal course of business, we issue product warranties and product performance guarantees. We accrue for the estimated cost of product warranties and product 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 and other liabilities. The following table summarizes information concerning recorded obligations for product warranties and product performance guarantees: (in millions) March 30, 2024 December 31, 2023 Beginning balance $ 34 $ 48 Accruals for warranties/guarantees issued during the year 4 24 Settlement of warranty/guarantee claims (8) (38) Ending balance $ 30 $ 34 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For interim periods, income tax is equal to the total of (1) year-to-date pretax income multiplied by the forecasted effective tax rate plus (2) tax expense items specific to the period. In situations where we expect to report losses and where we do not expect to receive tax benefits, we apply separate forecast effective tax rates to those jurisdictions rather than including them in the consolidated forecast effective tax rate. For the three months ended March 30, 2024 and April 1, 2023, the net tax expense was $30 million and $24 million, respectively, and consists primarily of interim period tax expense based on year-to-date pretax income multiplied by our forecasted effective tax rate. 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. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The reconciliation of the numerator and denominator used for the computation of basic and diluted earnings per share follows: Three Months Ended (in millions, except per share data) March 30, 2024 April 1, 2023 Numerator for basic and diluted earnings per share: Net income $ 43 $ 57 Denominator for basic and diluted earnings per share: Weighted average basic number of common shares outstanding 146 147 Plus: dilutive effect of common stock equivalents 2 2 Weighted average diluted number of common shares outstanding 148 149 Earnings per share: Basic $ 0.29 $ 0.39 Diluted $ 0.29 $ 0.38 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 period. The following potentially dilutive instruments were excluded from the calculation of diluted net income per share because their effect would have been antidilutive, and in the case of certain PSUs, the contingency has not been satisfied: Three Months Ended (in millions) March 30, 2024 April 1, 2023 RSUs and other rights 0.7 1.4 PSUs 1.2 0.8 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 15, 2024, we announced a definitive agreement to acquire Snap One Holdings Corp. (Nasdaq: SNPO) for $10.75 per share in cash, for a transaction value of approximately $1.4 billion, inclusive of net debt. Snap One is a leading provider of smart-living products, services, and software to professional integrators. The transaction is expected to be completed in the second half of 2024, and is subject to customary closing conditions, including receipt of applicable antitrust and other regulatory approvals. Resideo intends to use proceeds from committed debt financing, cash on hand, and a $500 million perpetual convertible preferred equity investment from Clayton, Dubilier & Rice LLC ("CD&R") to fund the transaction. Terms of the CD&R investment include a 7% coupon, payable in cash or payment-in-kind at Resideo's option, and a conversion price of $26.92. CD&R brings a long track record of value creation through its investments and significant experience in the specialty distribution market. Effective upon the closing, CD&R will have the right to designate two members to the Board of Directors of Resideo. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 43 | $ 57 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Consolidation and Reporting | Basis of Consolidation and Reporting The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the Unaudited Consolidated Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the Unaudited Consolidated Financial Statements included herein contain all adjustments, which consist of normal recurring adjustments, necessary to fairly present our financial position, results of operations and cash flows for the periods indicated. Operating results for the period from January 1, 2024 through March 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. For additional information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 Annual Report on Form 10-K”), filed with the United States Securities and Exchange Commission (the “SEC”) on February 14, 2024. Reporting Period We report financial information on a fiscal quarter basis using a modified four-four-five week calendar. Our fiscal calendar begins on January 1 and ends on December 31. We have elected the first, second and third quarters to end on a Saturday in order to not disrupt business processes. The effects of this election are generally not significant to reported results for any quarter and only exist within a reporting year. |
Reclassification | Reclassification For the purpose of comparability, certain prior period amounts have been reclassified to conform to current period classification. Refer to Note 4. Segment Financial Data |
Accounting Pronouncements | Our significant accounting policies are detailed in Note 2. Summary of Significant Accounting Policies of the Annual Report on Form 10-K for the year ended December 31, 2023. There have been no significant changes to these policies that have had a material impact on the Unaudited Consolidated Financial Statements and accompanying notes for the three months ended March 30, 2024. We consider the applicability and impact of all recent accounting standards updates (“ASUs”) issued by the Financial Accounting Standards Board (“FASB”) and U.S. Securities and Exchange Commission (“SEC”) rules and disclose only those that may have a material impact. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . This ASU requires entities to disclose, on an annual and interim basis, significant segment expenses that are regularly reviewed by the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. The ASU also requires disclosure of the name and title of the CODM. The guidance is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We are currently assessing the impact of adoption on our Consolidated Financial Statements and related disclosures. |
Segment Financial Data (Tables)
Segment Financial Data (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table represents summary financial data attributable to the segments: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Net revenue Products and Solutions $ 620 $ 658 ADI Global Distribution 866 891 Total net revenue $ 1,486 $ 1,549 Three Months Ended (in millions) March 30, 2024 April 1, 2023 Income from operations Products and Solutions $ 112 $ 105 ADI Global Distribution 49 64 Corporate (33) (31) Total income from operations $ 128 $ 138 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue By Business Line and Geographic Location | The following table presents revenue by business line and geographic location, as we believe this presentation best depicts how the nature, amount, timing, and uncertainty of net revenue and cash flows are affected by economic factors: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Products and Solutions Air $ 191 $ 211 Safety and Security 213 228 Energy 134 136 Water 82 83 Total Products and Solutions 620 658 ADI Global Distribution U.S. and Canada 746 768 EMEA (1) 120 123 Total ADI Global Distribution 866 891 Total net revenue $ 1,486 $ 1,549 (1) EMEA represents Europe, the Middle East and Africa. |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expenses | The following table represents restructuring expense attributable to the segments: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Products and Solutions $ 5 $ 2 ADI Global Distribution 2 — Restructuring expenses $ 7 $ 2 The following table summarizes the status of our restructuring expenses included within accrued liabilities on the Unaudited Consolidated Balance Sheets. Three Months Ended Twelve Months Ended (in millions) March 30, 2024 December 31, 2023 Beginning of period $ 30 $ 27 Charges 7 34 Usage (1) (11) (31) End of period $ 26 $ 30 (1) Usage primarily relates to cash payments associated with employee termination costs. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Incentive Plan For Employees and Non-Employee Directors | A summary of awards granted as part of our annual long-term compensation follows: Three Months Ended March 30, 2024 Three Months Ended April 1, 2023 Number of Stock Units Granted Weighted average grant date fair value per share Number of Stock Units Granted Weighted average grant date fair value per share Performance Stock Units (“PSUs”) (1) 575,249 $ 27.96 553,071 $ 29.89 Restricted Stock Units (“RSUs”) 1,783,299 $ 17.82 1,466,307 $ 19.03 (1) |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following table summarizes the details of our inventories, net: (in millions) March 30, 2024 December 31, 2023 Raw materials $ 212 $ 221 Work in process 13 18 Finished products 704 702 Total inventories, net $ 929 $ 941 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Our goodwill balance and changes in carrying value by segment are as follows: (in millions) Products and Solutions ADI Global Distribution Total Balance at January 1, 2024 $ 2,045 $ 660 $ 2,705 Impact of foreign currency translation (12) (4) (16) Balance at March 30, 2024 $ 2,033 $ 656 $ 2,689 |
Schedule of Indefinite-Lived Intangible Assets | The following table summarizes the net carrying amount of intangible assets: (in millions) March 30, 2024 December 31, 2023 Intangible assets subject to amortization $ 276 $ 281 Indefinite-lived intangible assets 180 180 Total intangible assets $ 456 $ 461 |
Schedule of Intangible Assets With Finite Lives | The following table summarizes the net carrying amount of intangible assets: (in millions) March 30, 2024 December 31, 2023 Intangible assets subject to amortization $ 276 $ 281 Indefinite-lived intangible assets 180 180 Total intangible assets $ 456 $ 461 Intangible assets subject to amortization consisted of the following: March 30, 2024 December 31, 2023 (in millions) Gross Accumulated Net Gross Accumulated Net Patents and technology $ 63 $ (28) $ 35 $ 64 $ (26) $ 38 Customer relationships 316 (140) 176 319 (138) 181 Trademarks 9 (8) 1 9 (8) 1 Software 198 (134) 64 193 (132) 61 Intangible assets subject to amortization $ 586 $ (310) $ 276 $ 585 $ (304) $ 281 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Leases [Abstract] | |
Schedule of Operating Lease Expense | Total operating lease costs are as follows: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Operating lease costs: Cost of goods sold $ 5 $ 5 Selling, general and administrative expenses 14 14 Total operating lease costs $ 19 $ 19 |
Schedule of Carrying Amounts of Operating Leased Assets and Liabilities | The following table summarizes the carrying amounts of our operating lease assets and liabilities: (in millions) Financial Statement Line Item March 30, 2024 December 31, 2023 Operating lease assets Other assets $ 183 $ 192 Operating lease liabilities - current Accrued liabilities $ 38 $ 39 Operating lease liabilities - non-current Other liabilities $ 159 $ 166 |
Schedule of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases was as follows: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Cash paid for operating lease liabilities $ 9 $ 9 Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities $ 6 $ 7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt is comprised of the following: (in millions) March 30, 2024 December 31, 2023 4.000% Senior Notes due 2029 $ 300 $ 300 Variable rate A&R Term B Facility 1,117 1,119 Gross debt 1,417 1,419 Less: current portion of long-term debt (12) (12) Less: unamortized deferred financing costs (11) (11) Total long-term debt $ 1,394 $ 1,396 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Consolidated Balance Sheets and Pre-Tax Gain (Loss) in Accumulated Other Comprehensive Loss | The following table summarizes the fair value and presentation of derivative instruments in the Unaudited Consolidated Balance Sheets as well as the changes in fair value recorded in accumulated other comprehensive loss: Fair Value of Derivative Assets (in millions) Financial Statement Line Item March 30, 2024 December 31, 2023 Derivatives designated as hedging instruments Interest rate swaps Other current assets $ 20 $ 20 Interest rate swaps Other assets 10 10 Total derivative assets designated as hedging instruments $ 30 $ 30 Unrealized gain Accumulated other comprehensive loss $ 24 $ 25 |
Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges | The following table summarizes the effect of derivative instruments designated as cash flow hedges in other comprehensive income and the Unaudited Consolidated Statements of Operations: Three Months Ended (in millions) March 30, 2024 April 1, 2023 Gains recorded in accumulated other comprehensive loss, beginning of period $ 25 $ 42 Current period gain (loss) recognized in/reclassified from other comprehensive income 1 (6) Gains reclassified from accumulated other comprehensive loss to net income (2) (1) Gains recorded in accumulated other comprehensive loss, end of period $ 24 $ 35 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table provides a summary of the carrying amount and fair value of outstanding debt: March 30, 2024 December 31, 2023 (in millions) Carrying Value Fair Value Carrying Value Fair Value Debt 4.000% Senior Notes due 2029 $ 300 $ 269 $ 300 $ 266 Variable rate A&R Term B Facility 1,117 1,119 1,119 1,122 Total debt $ 1,417 $ 1,388 $ 1,419 $ 1,388 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides a summary of the carrying amount and fair value of our interest rate swaps: March 30, 2024 December 31, 2023 (in millions) Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate swaps $ 30 $ 30 $ 30 $ 30 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: (in millions) March 30, 2024 December 31, 2023 Obligations payable under Indemnification Agreements $ 140 $ 140 Compensation, benefit and other employee-related 71 110 Customer rebate reserve 65 104 Current operating lease liability 38 39 Taxes payable 29 34 Restructuring 26 30 Freight payable 25 25 Product warranties 21 24 Other (1) 100 103 Total accrued liabilities $ 515 $ 608 (1) Other includes accruals for advertising, legal and professional reserves, royalties, interest, and other miscellaneous items. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Reimbursement Agreement Liabilities | The following table summarizes information concerning the Reimbursement and Tax Matter Agreements’ liabilities: (in millions) Reimbursement Agreement Tax Matters Agreement Total Balance as of January 1, 2024 $ 652 $ 97 $ 749 Accruals for liabilities deemed probable and reasonably estimable 43 — 43 Payments to Honeywell (35) — (35) Balance as of March 30, 2024 $ 660 $ 97 $ 757 |
Schedule of Reimbursement Agreement Liabilities Included in Balance Sheet Accounts | The liabilities related to the Reimbursement and Tax Matters Agreements are included in the following balance sheet accounts: (in millions) March 30, 2024 December 31, 2023 Accrued liabilities $ 140 $ 140 Obligations payable under Indemnification Agreements 617 609 Total indemnification liabilities $ 757 $ 749 |
Schedule 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: (in millions) March 30, 2024 December 31, 2023 Beginning balance $ 34 $ 48 Accruals for warranties/guarantees issued during the year 4 24 Settlement of warranty/guarantee claims (8) (38) Ending balance $ 30 $ 34 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The reconciliation of the numerator and denominator used for the computation of basic and diluted earnings per share follows: Three Months Ended (in millions, except per share data) March 30, 2024 April 1, 2023 Numerator for basic and diluted earnings per share: Net income $ 43 $ 57 Denominator for basic and diluted earnings per share: Weighted average basic number of common shares outstanding 146 147 Plus: dilutive effect of common stock equivalents 2 2 Weighted average diluted number of common shares outstanding 148 149 Earnings per share: Basic $ 0.29 $ 0.39 Diluted $ 0.29 $ 0.38 The following potentially dilutive instruments were excluded from the calculation of diluted net income per share because their effect would have been antidilutive, and in the case of certain PSUs, the contingency has not been satisfied: Three Months Ended (in millions) March 30, 2024 April 1, 2023 RSUs and other rights 0.7 1.4 PSUs 1.2 0.8 |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Research and development expense | $ 25 | $ 25 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) | Mar. 30, 2024 | Dec. 31, 2023 |
Assets And Liabilities Held For Sale [Abstract] | ||
Assets held for sale, current | $ 38,000,000 | $ 0 |
Liabilities held for sale, current | $ 18,000,000 | $ 0 |
Segment Financial Data - Additi
Segment Financial Data - Additional Information (Details) home in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2024 USD ($) segment home | Apr. 01, 2023 USD ($) | |
Segment Reporting Information | ||
Number of operating segments (segment) | segment | 2 | |
Number of homes (in home) | home | 150 | |
Net revenue | $ 1,486 | $ 1,549 |
Total income from operations | 128 | 138 |
Products and Solutions | ||
Segment Reporting Information | ||
Other non operating expenses | 11 | 12 |
Net revenue | 620 | 658 |
ADI Global Distribution | ||
Segment Reporting Information | ||
Other non operating expenses | 7 | 8 |
Net revenue | $ 866 | $ 891 |
Segment Financial Data - Schedu
Segment Financial Data - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Revenues [Abstract] | ||
Total net revenue | $ 1,486 | $ 1,549 |
Income from operations | ||
Total income from operations | 128 | 138 |
Corporate, Non-Segment | ||
Income from operations | ||
Total income from operations | (33) | (31) |
Products and Solutions | ||
Revenues [Abstract] | ||
Total net revenue | 620 | 658 |
Products and Solutions | Operating Segments | ||
Income from operations | ||
Total income from operations | 112 | 105 |
ADI Global Distribution | ||
Revenues [Abstract] | ||
Total net revenue | 866 | 891 |
ADI Global Distribution | Operating Segments | ||
Income from operations | ||
Total income from operations | $ 49 | $ 64 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 3 Months Ended |
Mar. 30, 2024 segment | |
Revenue from Contract with Customer [Abstract] | |
Number of operating segments (segment) | 2 |
Revenue Recognition - Revenue B
Revenue Recognition - Revenue By Business Line and Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Disaggregation Of Revenue | ||
Net revenue | $ 1,486 | $ 1,549 |
Products and Solutions | ||
Disaggregation Of Revenue | ||
Net revenue | 620 | 658 |
Products and Solutions | Air | ||
Disaggregation Of Revenue | ||
Net revenue | 191 | 211 |
Products and Solutions | Safety and Security | ||
Disaggregation Of Revenue | ||
Net revenue | 213 | 228 |
Products and Solutions | Energy | ||
Disaggregation Of Revenue | ||
Net revenue | 134 | 136 |
Products and Solutions | Water | ||
Disaggregation Of Revenue | ||
Net revenue | 82 | 83 |
ADI Global Distribution | ||
Disaggregation Of Revenue | ||
Net revenue | 866 | 891 |
ADI Global Distribution | U.S. and Canada | ||
Disaggregation Of Revenue | ||
Net revenue | 746 | 768 |
ADI Global Distribution | EMEA | ||
Disaggregation Of Revenue | ||
Net revenue | $ 120 | $ 123 |
Restructuring - Schedule Restru
Restructuring - Schedule Restructuring and Impairment Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Cost And Reserve | ||
Restructuring expenses | $ 7 | $ 2 |
Products and Solutions | Operating Segments | ||
Restructuring Cost And Reserve | ||
Restructuring expenses | 5 | 2 |
ADI Global Distribution | Operating Segments | ||
Restructuring Cost And Reserve | ||
Restructuring expenses | $ 2 | $ 0 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) | 3 Months Ended |
Mar. 30, 2024 | |
Minimum | |
Restructuring Cost And Reserve | |
Restructuring initiatives execution (in months) | 12 months |
Maximum | |
Restructuring Cost And Reserve | |
Restructuring initiatives execution (in months) | 24 months |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Restructuring Reserve | ||
Beginning of year | $ 30 | $ 27 |
Charges | 7 | 34 |
Usage | (11) | $ (31) |
End of year | $ 26 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) | 3 Months Ended | |
Mar. 30, 2024 | Aug. 03, 2023 | |
Class of Stock | ||
Common stock repurchases | $ 1,000,000 | |
Share Repurchase Program | ||
Class of Stock | ||
Stock repurchase program, authorized amount | $ 150,000,000 | |
Share Repurchase Program | Common Stock | ||
Class of Stock | ||
Treasury stock, shares, acquired | 100,000 | |
Common stock repurchases | $ 1,000,000 | |
Remaining authorized repurchase amount | $ 108,000,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Shares available for issuance (in shares) | 19,500,000 | ||
Stock-based compensation expense, net of tax | $ 14 | $ 12 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares available for grant (in shares) | 3,200,000 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Summarized RSU and PSU Activity Related to Stock Incentive Plan (Details) - $ / shares | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Performance Stock Units (“PSUs”) | ||
Number of Stock Units Granted | ||
Number of stock units granted (in shares) | 575,249 | 553,071 |
Weighted average grant date fair value per share | ||
Granted (in dollars per share) | $ 27.96 | $ 29.89 |
Restricted Stock Units (“RSUs”) | ||
Number of Stock Units Granted | ||
Number of stock units granted (in shares) | 1,783,299 | 1,466,307 |
Weighted average grant date fair value per share | ||
Granted (in dollars per share) | $ 17.82 | $ 19.03 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 212 | $ 221 |
Work in process | 13 | 18 |
Finished products | 704 | 702 |
Total inventories, net | $ 929 | $ 941 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 30, 2024 USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 2,705 |
Impact of foreign currency translation | (16) |
Goodwill, ending balance | 2,689 |
Products and Solutions | |
Goodwill | |
Goodwill, beginning balance | 2,045 |
Impact of foreign currency translation | (12) |
Goodwill, ending balance | 2,033 |
ADI Global Distribution | |
Goodwill | |
Goodwill, beginning balance | 660 |
Impact of foreign currency translation | (4) |
Goodwill, ending balance | $ 656 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets subject to amortization | $ 276 | $ 281 |
Indefinite-lived intangible assets | 180 | 180 |
Total intangible assets | $ 456 | $ 461 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, net - Schedule of Other Intangible Assets With Finite Lives (Detail) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Finite Lived Intangible Assets | ||
Gross Carrying Amount | $ 586 | $ 585 |
Accumulated Amortization | (310) | (304) |
Net Carrying Amount | 276 | 281 |
Patents and technology | ||
Finite Lived Intangible Assets | ||
Gross Carrying Amount | 63 | 64 |
Accumulated Amortization | (28) | (26) |
Net Carrying Amount | 35 | 38 |
Customer relationships | ||
Finite Lived Intangible Assets | ||
Gross Carrying Amount | 316 | 319 |
Accumulated Amortization | (140) | (138) |
Net Carrying Amount | 176 | 181 |
Trademarks | ||
Finite Lived Intangible Assets | ||
Gross Carrying Amount | 9 | 9 |
Accumulated Amortization | (8) | (8) |
Net Carrying Amount | 1 | 1 |
Software | ||
Finite Lived Intangible Assets | ||
Gross Carrying Amount | 198 | 193 |
Accumulated Amortization | (134) | (132) |
Net Carrying Amount | $ 64 | $ 61 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible asset amortization | $ 9 | $ 9 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Lessee Lease Description | ||
Total operating lease costs | $ 19 | $ 19 |
Cost of goods sold | ||
Lessee Lease Description | ||
Total operating lease costs | 5 | 5 |
Selling, general and administrative expenses | ||
Lessee Lease Description | ||
Total operating lease costs | $ 14 | $ 14 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Leases [Abstract] | ||
Variable lease costs | $ 3 | $ 6 |
Leases - Summary of Lease Recog
Leases - Summary of Lease Recognized Related to Operating Leases (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease assets | $ 183 | $ 192 |
Operating lease liabilities - current | 38 | 39 |
Operating lease liabilities - non-current | $ 159 | $ 166 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 9 | $ 9 |
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities | $ 6 | $ 7 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 | Aug. 26, 2021 |
Debt Instrument | |||
Gross debt | $ 1,417 | $ 1,419 | |
Less: current portion of long-term debt | (12) | (12) | |
Less: unamortized deferred financing costs | (11) | (11) | |
Long-term debt | 1,394 | 1,396 | |
4.000% senior notes due 2029 | |||
Debt Instrument | |||
Gross debt | $ 300 | 300 | |
Interest rate (as a percent) | 4% | 4% | |
Variable rate A&R Term B Facility | |||
Debt Instrument | |||
Gross debt | $ 1,117 | $ 1,119 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | Mar. 28, 2022 | Feb. 12, 2021 | Mar. 30, 2024 | Dec. 31, 2023 | Aug. 26, 2021 |
A&R Term B Facility | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 7.69% | 7.72% | |||
A&R Credit Agreement | A&R Term B Facility | |||||
Debt Instrument | |||||
Credit facilities term (in years) | 7 years | ||||
Principal amount issued | $ 200,000,000 | $ 950,000,000 | |||
A&R Credit Agreement | A&R Revolving Credit Facility | |||||
Debt Instrument | |||||
Credit facilities term (in years) | 5 years | ||||
Principal amount issued | $ 500,000,000 | ||||
Senior Credit Facilities | A&R Revolving Credit Facility | |||||
Debt Instrument | |||||
Borrowings from credit facility | $ 0 | $ 0 | |||
Senior Credit Facilities | Letter of Credit | |||||
Debt Instrument | |||||
Borrowings from credit facility | $ 0 | $ 0 | |||
4.000% senior notes due 2029 | |||||
Debt Instrument | |||||
Principal amount issued | $ 300,000,000 | ||||
Interest rate (as a percent) | 4% | 4% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 USD ($) | Mar. 31, 2021 USD ($) derivative | |
Derivative | ||
Unrealized gains expected to be reclassified from AOCI in next 12 months | $ 21 | |
Swap Agreements | ||
Derivative | ||
Number of interest rate derivatives held | derivative | 8 | |
Notional value | $ 560 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 30, 2024 | Jul. 01, 2023 | Dec. 31, 2023 | |
Derivative | |||
Derivative asset designated as hedging instruments | $ 30 | $ 30 | |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other current assets | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | ||
Accumulated other comprehensive loss | |||
Derivative | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ 24 | $ 25 | |
Interest rate swaps | Other current assets | Designated as Hedging Instrument | |||
Derivative | |||
Derivative asset designated as hedging instruments | 20 | 20 | |
Interest rate swaps | Other assets | Designated as Hedging Instrument | |||
Derivative | |||
Derivative asset designated as hedging instruments | $ 10 | $ 10 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Summary of Effect of Derivative Instruments Designated As Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Derivatives used in Net Investment Hedge, Net of Tax | ||
Beginning of period | $ 2,749 | $ 2,529 |
End of period | 2,769 | 2,604 |
Accumulated other comprehensive loss | ||
Derivatives used in Net Investment Hedge, Net of Tax | ||
Beginning of period | 25 | 42 |
Current period gain (loss) recognized in/reclassified from other comprehensive income | 1 | (6) |
Gains reclassified from accumulated other comprehensive loss to net income | (2) | (1) |
End of period | $ 24 | $ 35 |
Fair Value - Schedule of Carryi
Fair Value - Schedule of Carrying Values and Estimated Fair Value of Debt Instruments (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 | Aug. 26, 2021 |
Debt Instrument | |||
Debt, carrying value | $ 1,417 | $ 1,419 | |
Debt, fair value | $ 1,388 | 1,388 | |
4.000% senior notes due 2029 | |||
Debt Instrument | |||
Interest rate (as a percent) | 4% | 4% | |
Debt, carrying value | $ 300 | 300 | |
Debt, fair value | 269 | 266 | |
Variable rate A&R Term B Facility | |||
Debt Instrument | |||
Debt, carrying value | 1,117 | 1,119 | |
Debt, fair value | $ 1,119 | $ 1,122 |
Fair Value - Summary of the Car
Fair Value - Summary of the Carrying Amount and Fair Value of Interest Rate Swap (Details) - Fair Value, Recurring - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | ||
Carrying value, assets, interest rate swaps | $ 30 | $ 30 |
Level 2 | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | ||
Assets, interest rate swaps | $ 30 | $ 30 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | |||
Obligations payable under Indemnification Agreements | $ 140 | $ 140 | |
Compensation, benefit and other employee-related | 71 | 110 | |
Customer rebate reserve | 65 | 104 | |
Current operating lease liability | 38 | 39 | |
Taxes payable | 29 | 34 | |
Restructuring | 26 | 30 | $ 27 |
Freight payable | 25 | 25 | |
Product warranties | 21 | 24 | |
Other | 100 | 103 | |
Total accrued liabilities | $ 515 | $ 608 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Oct. 29, 2018 | Mar. 30, 2024 | Apr. 01, 2023 | Dec. 31, 2023 | |
Loss Contingencies | ||||
Environmental liabilities | $ 22 | $ 22 | ||
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Cost of goods sold | |||
Other Expense | ||||
Loss Contingencies | ||||
Reimbursement Agreement expense | $ 43 | $ 41 | ||
Indemnification Agreement | ||||
Loss Contingencies | ||||
Maximum annual reimbursement obligation amount | $ 25 | |||
Honeywell | Indemnification Agreement | ||||
Loss Contingencies | ||||
Indemnification payable percentage of payments | 90% | |||
Honeywell | Indemnification Agreement | Maximum | ||||
Loss Contingencies | ||||
Indemnity liability annual cap | $ 140 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Reimbursement Agreement Liabilities (Details) - Honeywell $ in Millions | 3 Months Ended |
Mar. 30, 2024 USD ($) | |
Accrual for Reimbursement Agreement | |
Beginning balance | $ 749 |
Accruals for liabilities deemed probable and reasonably estimable | 43 |
Payments to Honeywell | (35) |
Ending balance | 757 |
Reimbursement Agreement | |
Accrual for Reimbursement Agreement | |
Beginning balance | 652 |
Accruals for liabilities deemed probable and reasonably estimable | 43 |
Payments to Honeywell | (35) |
Ending balance | 660 |
Tax Matters Agreement | |
Accrual for Reimbursement Agreement | |
Beginning balance | 97 |
Accruals for liabilities deemed probable and reasonably estimable | 0 |
Payments to Honeywell | 0 |
Ending balance | $ 97 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Reimbursement Agreement Liabilities Included in Balance Sheet Accounts (Details) - Honeywell - USD ($) $ in Millions | Mar. 30, 2024 | Dec. 31, 2023 |
Loss Contingency, Classification of Accrual [Abstract] | ||
Total indemnification liabilities | $ 757 | $ 749 |
Accrued liabilities | ||
Loss Contingency, Classification of Accrual [Abstract] | ||
Accrued liabilities | 140 | 140 |
Obligations payable under Indemnification Agreements | ||
Loss Contingency, Classification of Accrual [Abstract] | ||
Obligations payable under Indemnification Agreements | $ 617 | $ 609 |
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. 30, 2024 | Apr. 01, 2023 | |
Product Warranties and Guarantees | ||
Standard Product Warranty Accrual, Beginning Balance | $ 34 | $ 48 |
Accruals for warranties/guarantees issued during the year | 4 | 24 |
Settlement of warranty/guarantee claims | (8) | $ (38) |
Ending balance | $ 30 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 30 | $ 24 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Numerator for basic and diluted earnings per share: | ||
Net income | $ 43 | $ 57 |
Denominator for basic and diluted earnings per share: | ||
Weighted average basic number of common shares outstanding (in shares) | 146 | 147 |
Plus: dilutive effect of common stock equivalents (in shares) | 2 | 2 |
Weighted average diluted number of common shares outstanding (in shares) | 148 | 149 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.29 | $ 0.39 |
Diluted (in dollars per share) | $ 0.29 | $ 0.38 |
Earnings Per Share - Potentiall
Earnings Per Share - Potentially Dilutive Instruments (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
RSUs and other rights | ||
Earnings Per Share | ||
Purchase of outstanding common stock were anti-dilutive (in shares) | 0.7 | 1.4 |
PSUs | ||
Earnings Per Share | ||
Purchase of outstanding common stock were anti-dilutive (in shares) | 1.2 | 0.8 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) | 6 Months Ended | |
Apr. 15, 2024 | Dec. 31, 2024 | |
Scenario, Plan | ||
Subsequent Event | ||
Potential proceeds from stock issuance | $ 500,000,000 | |
Preferred Stock, coupon rate | 7% | |
Preferred Stock, per share conversion price (per share) | $ 26.92 | |
Snap One Holdings Corp | Scenario Forecast | ||
Subsequent Event | ||
Share Price (in dollar per share) | $ 10.75 | |
Purchase price | $ 1,400,000,000 |