Cover
Cover - shares | 6 Months Ended | |
Jun. 29, 2024 | Jul. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 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 $0.001 per share | |
Trading Symbol | REZI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,412,366 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Entity Central Index Key | 0001740332 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 413 | $ 636 |
Accounts receivable, net | 1,071 | 973 |
Inventories, net | 1,188 | 941 |
Other current assets | 212 | 193 |
Total current assets | 2,884 | 2,743 |
Property, plant and equipment, net | 424 | 390 |
Goodwill | 3,079 | 2,705 |
Intangible assets, net | 1,218 | 461 |
Other assets | 379 | 346 |
Total assets | 7,984 | 6,645 |
Current liabilities: | ||
Accounts payable | 980 | 905 |
Current portion of long-term debt | 12 | 12 |
Accrued liabilities | 602 | 608 |
Total current liabilities | 1,594 | 1,525 |
Long-term debt | 1,979 | 1,396 |
Obligations payable under Indemnification Agreements | 625 | 609 |
Other liabilities | 492 | 366 |
Total liabilities | 4,690 | 3,896 |
COMMITMENTS AND CONTINGENCIES | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value: 100 shares authorized, 0.5 shares issued and outstanding at June 29, 2024 and no shares issued and outstanding at December 31, 2023, respectively | 482 | 0 |
Common stock, $0.001 par value: 700 shares authorized, 152 and 146 shares issued and outstanding at June 29, 2024, respectively, and 151 and 145 shares issued and outstanding at December 31, 2023, respectively | 0 | 0 |
Additional paid-in capital | 2,276 | 2,226 |
Retained earnings | 881 | 810 |
Accumulated other comprehensive loss, net | (242) | (194) |
Treasury stock at cost | (103) | (93) |
Total stockholders’ equity | 3,294 | 2,749 |
Total liabilities and stockholders’ equity | $ 7,984 | $ 6,645 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 29, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 500,000 | 0 |
Preferred stock, shares outstanding (in shares) | 500,000 | 0 |
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 | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Statement [Abstract] | ||||
Net revenue | $ 1,589 | $ 1,602 | $ 3,075 | $ 3,151 |
Cost of goods sold | 1,142 | 1,166 | 2,228 | 2,295 |
Gross profit | 447 | 436 | 847 | 856 |
Operating expenses: | ||||
Research and development expenses | 21 | 29 | 46 | 56 |
Selling, general and administrative expenses | 280 | 242 | 511 | 486 |
Intangible asset amortization | 13 | 10 | 22 | 19 |
Restructuring, impairment and extinguishment costs, net | 11 | 2 | 18 | 4 |
Total operating expenses | 325 | 283 | 597 | 565 |
Income from operations | 122 | 153 | 250 | 291 |
Other expenses, net | 48 | 42 | 90 | 82 |
Interest expense, net | 15 | 17 | 28 | 34 |
Income before taxes | 59 | 94 | 132 | 175 |
Provision for income taxes | 29 | 44 | 59 | 68 |
Net income | $ 30 | $ 50 | $ 73 | $ 107 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.19 | $ 0.34 | $ 0.49 | $ 0.73 |
Diluted (in dollars per share) | $ 0.19 | $ 0.34 | $ 0.48 | $ 0.72 |
Weighted average common shares outstanding: | ||||
Basic (in share) | 146 | 147 | 146 | 147 |
Diluted (in share) | 149 | 149 | 148 | 149 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 30 | $ 50 | $ 73 | $ 107 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign exchange translation (loss) gain | (12) | 10 | (43) | 26 |
Pension liability adjustments | 0 | 1 | 0 | 4 |
Changes in fair value of effective cash flow hedges | (4) | 5 | (5) | (2) |
Total other comprehensive (loss) income, net of tax | (16) | 16 | (48) | 28 |
Comprehensive income | $ 14 | $ 66 | $ 25 | $ 135 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Cash Flows From Operating Activities: | ||
Net income | $ 73 | $ 107 |
Adjustments to reconcile net income to net cash in operating activities: | ||
Depreciation and amortization | 52 | 49 |
Stock-based compensation expense | 29 | 25 |
Other, net | 17 | 6 |
Changes in assets and liabilities, net of acquired companies: | ||
Accounts receivable, net | (57) | (35) |
Inventories, net | (4) | (15) |
Other current assets | 9 | 3 |
Accounts payable | 31 | 44 |
Accrued liabilities | (78) | (94) |
Other liabilities | 22 | 27 |
Net cash provided by operating activities | 94 | 117 |
Cash Flows From Investing Activities: | ||
Acquisitions, net of cash acquired | (1,334) | (6) |
Capital expenditures | (36) | (49) |
Other investing activities, net | 6 | 0 |
Net cash used in investing activities | (1,364) | (55) |
Cash Flows From Financing Activities: | ||
Proceeds from issuance of incremental term loans under the A&R Term B Facility, net | 582 | 0 |
Proceeds from issuance of preferred stock, net of issuance costs | 482 | 0 |
Repayments of long-term debt | (6) | (6) |
Other financing activities, net | (6) | (12) |
Net cash provided by (used in) financing activities | 1,052 | (18) |
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash | (5) | 10 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (223) | 54 |
Cash, cash equivalents and restricted cash at beginning of year | 637 | 329 |
Cash, cash equivalents and restricted cash at end of year | 414 | 383 |
Supplemental Cash Flow Information: | ||
Interest paid, net of swaps | 38 | 46 |
Taxes paid, net of refunds | 88 | 67 |
Capital expenditures in accounts payable | $ 16 | $ 20 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Millions | Total | Snap One Holdings Corp | Preferred Stock | Common Stock | Additional Paid-In Capital | Additional Paid-In Capital Snap One Holdings Corp | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Preferred stock, shares, beginning balance (in shares) at Dec. 31, 2022 | 0 | ||||||||
Beginning of period at Dec. 31, 2022 | $ 2,529 | $ 0 | $ 0 | $ 2,176 | $ 600 | $ (212) | $ (35) | ||
Common stock, shares, beginning balance (in shares) at Dec. 31, 2022 | 146,222,000 | ||||||||
Treasury stock, beginning (in shares) at Dec. 31, 2022 | 2,050,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 107 | 107 | |||||||
Other comprehensive (loss) income, net of tax | 28 | 28 | |||||||
Common stock issuance, net of shares withheld for taxes (in shares) | 1,427,000 | 852,000 | |||||||
Common stock issuance, net of shares withheld for taxes | (12) | 3 | $ (15) | ||||||
Stock-based compensation expense | 25 | 25 | |||||||
Preferred stock, shares, ending balance (in shares) at Jul. 01, 2023 | 0 | ||||||||
End of period at Jul. 01, 2023 | 2,677 | $ 0 | $ 0 | 2,204 | 707 | (184) | $ (50) | ||
Common stock, shares, ending balance (in shares) at Jul. 01, 2023 | 147,649,000 | ||||||||
Treasury stock, ending (in shares) at Jul. 01, 2023 | 2,902,000 | ||||||||
Preferred stock, shares, beginning balance (in shares) at Apr. 01, 2023 | 0 | ||||||||
Beginning of period at Apr. 01, 2023 | 2,604 | $ 0 | $ 0 | 2,191 | 657 | (200) | $ (44) | ||
Common stock, shares, beginning balance (in shares) at Apr. 01, 2023 | 147,084,000 | ||||||||
Treasury stock, beginning (in shares) at Apr. 01, 2023 | 2,547,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 50 | 50 | |||||||
Other comprehensive (loss) income, net of tax | 16 | 16 | |||||||
Common stock issuance, net of shares withheld for taxes (in shares) | 565,000 | 355,000 | |||||||
Common stock issuance, net of shares withheld for taxes | (6) | $ (6) | |||||||
Stock-based compensation expense | 13 | 13 | |||||||
Preferred stock, shares, ending balance (in shares) at Jul. 01, 2023 | 0 | ||||||||
End of period at Jul. 01, 2023 | $ 2,677 | $ 0 | $ 0 | 2,204 | 707 | (184) | $ (50) | ||
Common stock, shares, ending balance (in shares) at Jul. 01, 2023 | 147,649,000 | ||||||||
Treasury stock, ending (in shares) at Jul. 01, 2023 | 2,902,000 | ||||||||
Preferred stock, shares, beginning balance (in shares) at Dec. 31, 2023 | 0 | 0 | |||||||
Beginning of period at Dec. 31, 2023 | $ 2,749 | $ 0 | $ 0 | 2,226 | 810 | (194) | $ (93) | ||
Common stock, shares, beginning balance (in shares) at Dec. 31, 2023 | 145,000,000 | 145,389,000 | |||||||
Treasury stock, beginning (in shares) at Dec. 31, 2023 | 5,536,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | $ 73 | 73 | |||||||
Other comprehensive (loss) income, net of tax | (48) | (48) | |||||||
Preferred stock issuance (in shares) | 500,000 | ||||||||
Preferred stock issuance | 482 | $ 482 | |||||||
Common stock issuance, net of shares withheld for taxes (in shares) | 955,000 | 422,000 | |||||||
Common stock issuance, net of shares withheld for taxes | (5) | 4 | $ (9) | ||||||
Stock-based compensation expense | 29 | $ 17 | 29 | ||||||
Preferred stock dividend | (2) | ||||||||
Common stock repurchases (in shares) | (75,000) | (75,000) | |||||||
Common stock repurchases | $ (1) | $ (1) | |||||||
Preferred stock, shares, ending balance (in shares) at Jun. 29, 2024 | 500,000 | 500,000 | |||||||
End of period at Jun. 29, 2024 | $ 3,294 | $ 482 | $ 0 | 2,276 | 881 | (242) | $ (103) | ||
Common stock, shares, ending balance (in shares) at Jun. 29, 2024 | 146,000,000 | 146,269,000 | |||||||
Treasury stock, ending (in shares) at Jun. 29, 2024 | 6,033,000 | ||||||||
Preferred stock, shares, beginning balance (in shares) at Mar. 30, 2024 | 0 | ||||||||
Beginning of period at Mar. 30, 2024 | $ 2,769 | $ 0 | $ 0 | 2,243 | 853 | (226) | $ (101) | ||
Common stock, shares, beginning balance (in shares) at Mar. 30, 2024 | 146,013,000 | ||||||||
Treasury stock, beginning (in shares) at Mar. 30, 2024 | 5,946,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net income | 30 | 30 | |||||||
Other comprehensive (loss) income, net of tax | (16) | (16) | |||||||
Preferred stock issuance (in shares) | 500,000 | ||||||||
Preferred stock issuance | 482 | $ 482 | |||||||
Common stock issuance, net of shares withheld for taxes (in shares) | 256,000 | 87,000 | |||||||
Common stock issuance, net of shares withheld for taxes | (1) | 1 | $ (2) | ||||||
Stock-based compensation expense | 15 | $ 17 | 15 | $ 17 | |||||
Preferred stock dividend | $ (2) | (2) | |||||||
Preferred stock, shares, ending balance (in shares) at Jun. 29, 2024 | 500,000 | 500,000 | |||||||
End of period at Jun. 29, 2024 | $ 3,294 | $ 482 | $ 0 | $ 2,276 | $ 881 | $ (242) | $ (103) | ||
Common stock, shares, ending balance (in shares) at Jun. 29, 2024 | 146,000,000 | 146,269,000 | |||||||
Treasury stock, ending (in shares) at Jun. 29, 2024 | 6,033,000 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 29, 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 June 29, 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 as reclassified in our Current Report on Form 8-K filed on June 4, 2024 to reflect the impacts of certain corporate functions being decentralized to align with the business strategy. Refer to Note 4. Segment Financial Data for additional information. 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 | 6 Months Ended |
Jun. 29, 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 the accompanying disclosure notes for the six months ended June 29, 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 do not expect adoption of the standard to have a material impact. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 29, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Acquisitions | Acquisitions On June 14, 2024, we acquired 100% of the issued and outstanding equity of Snap One for an aggregate purchase price of $1.4 billion. This acquisition aligns with our strategic objective to expand our distribution network, market presence, and product portfolio within the smart home and audio-visual sectors enhancing our competitive positioning in the industry. The business is included within the ADI Global Distribution segment. The following table presents the preliminary purchase price allocation at estimated fair values as of the date of acquisition: (in millions) Assets acquired: Cash and cash equivalents $ 47 Accounts receivable 49 Inventories 250 Other current assets 32 Property, plant and equipment 63 Goodwill (1) 393 Intangible assets 770 Other assets 69 Total assets acquired 1,673 Liabilities assumed: Accounts payable 48 Accrued liabilities 73 Other liabilities 147 Total liabilities assumed 268 Net assets acquired $ 1,405 (1) Goodwill from this acquisition is partially deductible for tax purposes. The Company expensed approximately $34 million of costs related to the acquisition of Snap One during the six months ended June 29, 2024. These costs are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Operations and consist primarily of advisory, insurance and legal fees. The Company assumed $21 million of seller success fees, which were paid upon the closing of the acquisition. Snap One’s contribution in the period post-acquisition to net revenue and operating income was not material. On a pro forma basis assuming the acquisition occurred at the beginning of the reported period, Resideo’s net revenue for the three and six months ended June 29, 2024 would have been $1,804 million and $3,536 million, respectively. The pro forma operating income would not have been materially different than the amounts reported for both periods. |
Segment Financial Data
Segment Financial Data | 6 Months Ended |
Jun. 29, 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. The Snap One business is included in the ADI Global Distribution segment and expands our distribution into and reach with smart-living products, services, and software. Corporate —On January 1, 2024, certain corporate functions were decentralized into the operating segments aligning with the business strategy. Functional expenses related to information technology, finance, tax, business development, and research and development are now recorded within the Products and Solutions and ADI Global Distribution segments. For the three and six months ended July 1, 2023, $13 million and $25 million of corporate expenses have been reclassified into the Products and Solutions segment while $8 million and $16 million of corporate expenses have been reclassified into the ADI Global Distribution segment, respectively, decreasing reported Income from Operations to conform to the current year presentation. 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 Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net revenue Products and Solutions $ 630 $ 677 $ 1,250 $ 1,335 ADI Global Distribution 959 925 1,825 1,816 Total net revenue $ 1,589 $ 1,602 $ 3,075 $ 3,151 Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Income from operations Products and Solutions $ 130 $ 115 $ 242 $ 220 ADI Global Distribution 62 71 111 135 Corporate (70) (33) (103) (64) Total income from operations $ 122 $ 153 $ 250 $ 291 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 | 6 Months Ended |
Jun. 29, 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. Effective in the second quarter of 2024, the disaggregated regional revenue within ADI Global Distribution were consolidated into two regions, Americas and International. The Snap One revenues are included within the ADI Global Distribution disaggregated regions. 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 Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Products and Solutions Safety and Security $ 227 $ 248 $ 440 $ 476 Air 214 218 405 429 Energy 118 132 252 268 Water 71 79 153 162 Total Products and Solutions 630 677 1,250 1,335 ADI Global Distribution Americas (1) 840 806 1,586 1,574 International (2) 119 119 239 242 Total ADI Global Distribution 959 925 1,825 1,816 Total net revenue $ 1,589 $ 1,602 $ 3,075 $ 3,151 (1) Americas represents North, Central, and South America. (2) International represents all geographies that are not included in Americas. |
Restructuring
Restructuring | 6 Months Ended |
Jun. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The following table represents restructuring expense attributable to the segments: Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Products and Solutions $ — $ — $ 5 $ 2 ADI Global Distribution — 2 2 2 Corporate — — — — Restructuring expenses $ — $ 2 $ 7 $ 4 We took actions 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 or from new 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. Six Months Twelve Months Ended (in millions) June 29, 2024 December 31, 2023 Beginning of period $ 30 $ 27 Charges 7 34 Usage (1) (18) (31) End of period $ 19 $ 30 (1) Usage primarily relates to cash payments associated with employee termination costs. |
Stockholders_ Equity
Stockholders’ Equity | 6 Months Ended |
Jun. 29, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity Preferred Stock On June 14, 2024, in connection with our acquisition of Snap One, we issued 500,000 shares of Series A Cumulative Convertible Participating Preferred Stock (“Preferred Stock”) to Clayton, Dubilier & Rice (“CD&R”) for an aggregate purchase price of $500 million, or $0.001 per share pursuant to an investment agreement dated April 15, 2024. In connection with the issuance of the Preferred Stock, we incurred direct and incremental expenses of $18 million. These direct and incremental expenses reduced the Preferred Stock carrying value. The Preferred Stock is convertible perpetual participating preferred stock of the Company, with an initial conversion price equal to $26.92, and accrues dividends at a rate of 7% per annum, payable in cash or in kind. The Preferred Stock votes on an as-converted basis together with common stockholders. The Preferred Stock had a liquidation preference of $500 million as of June 29, 2024. Preferred stock dividends payable totaling $2 million were included in accrued liabilities as of June 29, 2024. The Preferred Stock can be converted into our common stock at the holder’s option at any time. We can also force conversion if at any time our common stock trading price exceeds 200% of the then-effective conversion price for at least 20 out of 30 trailing trading days. Following the third anniversary of the closing date, we have the option to redeem the Preferred Stock for an aggregate redemption price equal to two times the sum of the Accumulated Amount (as defined in the Certificate of Designations) plus any interim accrued and unpaid dividends (calculated at 1X instead of 2X) on such share of Preferred Stock in effect at the time of redemption. In the event of a change of control, we will have the option to purchase all of the outstanding shares of Preferred Stock at a price per share equal to the 150% of the sum of the Accumulated Amount plus any interim accrued and unpaid dividends (calculated at 100% instead of 150%) on such share of Preferred Stock in effect at the time of such purchase. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans A summary of awards granted follows: Six Months Ended June 29, 2024 Six Months Ended July 1, 2023 Number of Stock Units Granted (1) 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”) (2) 575,249 $ 27.96 553,071 $ 29.89 Restricted Stock Units (“RSUs”) 3,897,778 $ 19.57 1,481,793 $ 19.01 (1) Includes 2 million RSUs granted as part of the Snap One acquisition for a fair value of $43 million of which $17 million was included in purchase consideration. (2) Includes PSUs at target payout. Final common shares issued may be different based upon the actual achievement versus the performance measure target. Stock-based compensation expense, net of tax was $15 million and $29 million for the three and six months ended June 29, 2024, respectively. For the three and six months ended July 1, 2023, stock-based compensation expense, net of tax was $12 million and $24 million, respectively. |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Inventories, net The following table summarizes the details of our inventories, net. (in millions) June 29, 2024 December 31, 2023 Raw materials $ 191 $ 221 Work in process 14 18 Finished products 983 702 Total inventories, net $ 1,188 $ 941 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 6 Months Ended |
Jun. 29, 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 Acquisitions (1) — 393 393 Impact of foreign currency translation (14) (5) (19) Balance at June 29, 2024 $ 2,031 $ 1,048 $ 3,079 (1) Please refer to Note 3. Acquisitions for additional information. The following table summarizes the net carrying amount of intangible assets: (in millions) June 29, 2024 December 31, 2023 Intangible assets subject to amortization $ 1,038 $ 281 Indefinite-lived intangible assets 180 180 Total intangible assets $ 1,218 $ 461 Intangible assets subject to amortization consisted of the following: June 29, 2024 December 31, 2023 (in millions) Gross Accumulated Net Gross Accumulated Net Patents and technology $ 170 $ (30) $ 140 $ 64 $ (26) $ 38 Customer relationships 905 (146) 759 319 (138) 181 Trademarks 79 (8) 71 9 (8) 1 Software 205 (137) 68 193 (132) 61 Intangible assets subject to amortization $ 1,359 $ (321) $ 1,038 $ 585 $ (304) $ 281 Intangible assets amortization expense was $13 million and $22 million for the three and six months ended June 29, 2024, respectively, and $10 million and $19 million for the three and six months ended July 1, 2023. |
Leases
Leases | 6 Months Ended |
Jun. 29, 2024 | |
Leases [Abstract] | |
Leases | Leases Total operating lease costs are as follows: Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Operating lease costs: Cost of goods sold $ 3 $ 5 $ 8 $ 10 Selling, general and administrative expenses 15 15 29 29 Total operating lease costs $ 18 $ 20 $ 37 $ 39 Total operating lease costs include variable lease costs of $4 million and $7 million for the three and six months ended June 29, 2024, respectively. For the three and six months ended July 1, 2023, total operating lease costs include variable lease costs of $6 million and $12 million, respectively. The following table summarizes the carrying amounts of our operating lease assets and liabilities: (in millions) Financial Statement Line Item June 29, 2024 December 31, 2023 Operating lease assets Other assets $ 234 $ 192 Operating lease liabilities - current Accrued liabilities $ 52 $ 39 Operating lease liabilities - non-current Other liabilities $ 196 $ 166 Supplemental cash flow information related to operating leases follows: Six Months Ended (in millions) June 29, 2024 July 1, 2023 Cash paid for operating lease liabilities $ 17 $ 18 Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities $ 6 $ 15 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt is comprised of the following: (in millions) June 29, 2024 December 31, 2023 4.000% Senior Notes due 2029 $ 300 $ 300 Variable rate A&R Term B Facility 1,714 1,119 Gross debt 2,014 1,419 Less: current portion of long-term debt (12) (12) Less: unamortized deferred financing costs (23) (11) Total long-term debt $ 1,979 $ 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 an initial seven - year senior secured term B loan facility in an aggregate principal amount of $950 million. In March 2022, we amended the agreement adding $200 million in additional term loans with a maturity date of February 1, 2028. Additionally, in June 2024 we further amended the agreement adding $600 million of term loans with a maturity date May 14, 2031 to partially finance our acquisition of Snap One (the “A&R Term B Facility”). Included in the A&R Term B Facility is 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”). In June 2024, we also extended the term of our A&R Revolving Credit Facility for a new five-year term. In May 2024, the A&R Term B Facility was repriced by (i) reducing the interest rate margin from 2.25% to 2.00%, (ii) eliminating the SOFR credit spread adjustment, and (iii) reducing the SOFR floor from 0.50% to 0%. During the third quarter of 2024, we issued $600 million in aggregate principal of 6.500% Senior Notes due 2032 (the “Notes”). The issue price of the Notes was equal to 100% of the principal amount. The net proceeds from the Notes were used to repay $596 million principal amount of outstanding indebtedness under the Company’s senior secured Term B loans maturing on February 21, 2028. Refer to Note 19. Subsequent Events . At June 29, 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 7.34% and 7.72%, respectively. There were $5 million letters of credit issued under the A&R Revolving Credit Facility with no outstanding borrowings. As of June 29, 2024, we were in compliance with all covenants related to the A&R Senior Credit Facilities. 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. Additionally, we acquired an interest rate cap as part of the Snap One acquisition which caps the interest on a portion of our variable rate debt. Refer to Note 13. Derivative Financial Instruments for further discussion. 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. 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 | 6 Months Ended |
Jun. 29, 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 hybrid instruments 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. 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. As part of our acquisition of Snap One, we acquired an interest rate cap with a notional of $346 million and a strike rate of 4.79%, which effectively caps SOFR on the notional amount at that rate (the “Interest Rate Cap”). We are required to pay a premium of $7 million at the maturity date of December 31, 2025. The Interest Rate Cap qualifies as a hybrid instrument consisting of a financing component and an embedded at-market derivative that was designated as a cash flow hedge on our A&R Term B Facility as of the Snap One acquisition date. The Swap Agreements and Interest Rate Cap (referred to collectively as “interest rate derivatives”) are adjusted to fair value on a quarterly basis. The following tables 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 June 29, 2024 December 31, 2023 Derivatives designated as hedging instruments Interest rate derivatives Other current assets $ 19 $ 20 Interest rate derivatives Other assets 8 10 Total derivative assets designated as hedging instruments $ 27 $ 30 Fair Value of Derivative Liabilities (in millions) Financial Statement Line Item June 29, 2024 December 31, 2023 Derivatives designated as hedging instruments: Interest rate derivatives Other liabilities $ 6 $ — Total derivative liabilities designated as hedging instruments $ 6 $ — Unrealized gain Accumulated other comprehensive loss $ 20 $ 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 Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Gains recorded in accumulated other comprehensive loss, beginning of period $ 24 $ 35 $ 25 $ 42 Current period gain (loss) recognized in/reclassified from other comprehensive income (4) 13 (3) 7 Gains reclassified from accumulated other comprehensive loss to net income — (8) (2) (9) Gains recorded in accumulated other comprehensive loss, end of period $ 20 $ 40 $ 20 $ 40 Unrealized gains expected to be reclassified from accumulated other comprehensive loss in the next 12 months are estimated to be $19 million as of June 29, 2024. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 29, 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 June 29, 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: June 29, 2024 December 31, 2023 (in millions) Carrying Value Fair Value Carrying Value Fair Value Debt 4.000% Senior Notes due 2029 $ 300 $ 265 $ 300 $ 266 Variable rate A&R Term B Facility 1,714 1,717 1,119 1,122 Total debt $ 2,014 $ 1,982 $ 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 derivatives: June 29, 2024 December 31, 2023 (in millions) Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate derivatives $ 27 $ 27 $ 30 $ 30 Liabilities: Interest rate derivatives 6 6 — — Total, net $ 21 $ 21 $ 30 $ 30 Refer to Note 13. Derivative Financial Instruments to the Unaudited Consolidated Financial Statements for further discussion. There are no material Level 1 or Level 3 assets or liabilities for the periods presented. The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable, accrued liabilities approximate fair value because of the short-term maturity of these amounts. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 29, 2024 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: (in millions) June 29, 2024 December 31, 2023 Obligations payable under Indemnification Agreements $ 140 $ 140 Customer rebate reserve 88 104 Compensation, benefit and other employee-related 74 110 Current operating lease liability 52 39 Deferred revenue 28 4 Product warranties 28 24 Freight payable 26 25 Other (1) 166 162 Total accrued liabilities $ 602 $ 608 (1) Other includes accruals for advertising, legal and professional reserves, taxes, interest, restructuring, royalties and other miscellaneous items. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 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 90 — 90 Payments to Honeywell (70) (4) (74) Balance as of June 29, 2024 $ 672 $ 93 $ 765 The liabilities related to the Reimbursement and Tax Matters Agreements are included in the following balance sheet accounts: (in millions) June 29, 2024 December 31, 2023 Accrued liabilities $ 140 $ 140 Obligations payable under Indemnification Agreements 625 609 Total indemnification liabilities $ 765 $ 749 For the three and six months ended June 29, 2024, net expenses related to the Reimbursement Agreement were $47 million and $90 million, respectively. For the three and six months ended July 1, 2023, net expenses related to the Reimbursement Agreement were $44 million and $85 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 alleged 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 (“PAGA”). The parties executed a Class Action and PAGA Settlement Agreement on or about June 3, 2024 in which they agreed, subject to Court approval, to settle the entire action for a gross amount of $0.3 million. As part of the settlement, the Company denied all liability and the claims against it will be released. 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: Six Months Twelve Months Ended (in millions) June 29, 2024 December 31, 2023 Beginning balance $ 34 $ 48 Accruals for warranties/guarantees issued/acquired during the period 18 24 Settlement of warranty/guarantee claims (12) (38) Ending balance $ 40 $ 34 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 29, 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 and six months ended June 29, 2024, the net tax expense was $29 million and $59 million, respectively, and for the three and six months ended July 1, 2023, net tax expense was $44 million and $68 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 Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The reconciliation of the numerator and denominator used for the computation of basic and diluted earnings per common share follows: Three Months Ended Six Months Ended (in millions, except per share data) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Numerator for basic and diluted earnings per common share: Net income $ 30 $ 50 $ 73 $ 107 Less: preferred stock dividends 2 — 2 — Net income available to common stockholders $ 28 $ 50 $ 71 $ 107 Denominator for basic and diluted earnings per common share: Weighted average basic number of common shares outstanding 146 147 146 147 Plus: dilutive effect of common stock equivalents 3 2 2 2 Weighted average diluted number of common shares outstanding 149 149 148 149 Earnings per common share: Basic $ 0.19 $ 0.34 $ 0.49 $ 0.73 Diluted $ 0.19 $ 0.34 $ 0.48 $ 0.72 Diluted earnings per common 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 if-converted and treasury stock method with the average market price of our common stock for the period. The following potentially dilutive instruments, presented as a weighted average of the instruments outstanding, were excluded from the calculation of diluted net income per common share because their effect would have been antidilutive, and in the case of certain PSUs, the contingency has not been satisfied. Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 RSUs and other rights 0.7 2.1 0.7 1.7 PSUs 0.9 0.9 1.1 0.8 Preferred stock 0.1 — — — |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 29, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 17, 2024, we issued $600 million in aggregate principal of 6.500% Senior Notes due 2032 (the “Notes”). The issue price of the Notes was equal to 100% of the principal amount. The net proceeds from the Notes were used to repay $596 million principal amount of outstanding indebtedness under the Company’s senior secured Term B loans maturing on February 21, 2028. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 30 | $ 50 | $ 73 | $ 107 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 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) | 6 Months Ended |
Jun. 29, 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 June 29, 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 as reclassified in our Current Report on Form 8-K filed on June 4, 2024 to reflect the impacts of certain corporate functions being decentralized to align with the business strategy. Refer to Note 4. Segment Financial Data for additional information. 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 |
Recent Accounting Pronouncements | 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 do not expect adoption of the standard to have a material impact. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Preliminary Allocation of Purchase Price | The following table presents the preliminary purchase price allocation at estimated fair values as of the date of acquisition: (in millions) Assets acquired: Cash and cash equivalents $ 47 Accounts receivable 49 Inventories 250 Other current assets 32 Property, plant and equipment 63 Goodwill (1) 393 Intangible assets 770 Other assets 69 Total assets acquired 1,673 Liabilities assumed: Accounts payable 48 Accrued liabilities 73 Other liabilities 147 Total liabilities assumed 268 Net assets acquired $ 1,405 (1) Goodwill from this acquisition is partially deductible for tax purposes. |
Segment Financial Data (Tables)
Segment Financial Data (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table represents summary financial data attributable to the segments: Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Net revenue Products and Solutions $ 630 $ 677 $ 1,250 $ 1,335 ADI Global Distribution 959 925 1,825 1,816 Total net revenue $ 1,589 $ 1,602 $ 3,075 $ 3,151 Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Income from operations Products and Solutions $ 130 $ 115 $ 242 $ 220 ADI Global Distribution 62 71 111 135 Corporate (70) (33) (103) (64) Total income from operations $ 122 $ 153 $ 250 $ 291 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 29, 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 Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Products and Solutions Safety and Security $ 227 $ 248 $ 440 $ 476 Air 214 218 405 429 Energy 118 132 252 268 Water 71 79 153 162 Total Products and Solutions 630 677 1,250 1,335 ADI Global Distribution Americas (1) 840 806 1,586 1,574 International (2) 119 119 239 242 Total ADI Global Distribution 959 925 1,825 1,816 Total net revenue $ 1,589 $ 1,602 $ 3,075 $ 3,151 (1) Americas represents North, Central, and South America. (2) International represents all geographies that are not included in Americas. |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Expenses | The following table represents restructuring expense attributable to the segments: Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Products and Solutions $ — $ — $ 5 $ 2 ADI Global Distribution — 2 2 2 Corporate — — — — Restructuring expenses $ — $ 2 $ 7 $ 4 The following table summarizes the status of our restructuring expenses included within accrued liabilities on the Unaudited Consolidated Balance Sheets. Six Months Twelve Months Ended (in millions) June 29, 2024 December 31, 2023 Beginning of period $ 30 $ 27 Charges 7 34 Usage (1) (18) (31) End of period $ 19 $ 30 (1) Usage primarily relates to cash payments associated with employee termination costs. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Incentive Plan for Employees and Non-Employee Directors | A summary of awards granted follows: Six Months Ended June 29, 2024 Six Months Ended July 1, 2023 Number of Stock Units Granted (1) 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”) (2) 575,249 $ 27.96 553,071 $ 29.89 Restricted Stock Units (“RSUs”) 3,897,778 $ 19.57 1,481,793 $ 19.01 (1) Includes 2 million RSUs granted as part of the Snap One acquisition for a fair value of $43 million of which $17 million was included in purchase consideration. (2) Includes PSUs at target payout. Final common shares issued may be different based upon the actual achievement versus the performance measure target. |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The following table summarizes the details of our inventories, net. (in millions) June 29, 2024 December 31, 2023 Raw materials $ 191 $ 221 Work in process 14 18 Finished products 983 702 Total inventories, net $ 1,188 $ 941 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 29, 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 Acquisitions (1) — 393 393 Impact of foreign currency translation (14) (5) (19) Balance at June 29, 2024 $ 2,031 $ 1,048 $ 3,079 (1) Please refer to Note 3. Acquisitions for additional information. |
Schedule of Indefinite-Lived Intangible Assets | The following table summarizes the net carrying amount of intangible assets: (in millions) June 29, 2024 December 31, 2023 Intangible assets subject to amortization $ 1,038 $ 281 Indefinite-lived intangible assets 180 180 Total intangible assets $ 1,218 $ 461 |
Schedule of Finite-Lived Intangible Assets | The following table summarizes the net carrying amount of intangible assets: (in millions) June 29, 2024 December 31, 2023 Intangible assets subject to amortization $ 1,038 $ 281 Indefinite-lived intangible assets 180 180 Total intangible assets $ 1,218 $ 461 Intangible assets subject to amortization consisted of the following: June 29, 2024 December 31, 2023 (in millions) Gross Accumulated Net Gross Accumulated Net Patents and technology $ 170 $ (30) $ 140 $ 64 $ (26) $ 38 Customer relationships 905 (146) 759 319 (138) 181 Trademarks 79 (8) 71 9 (8) 1 Software 205 (137) 68 193 (132) 61 Intangible assets subject to amortization $ 1,359 $ (321) $ 1,038 $ 585 $ (304) $ 281 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Leases [Abstract] | |
Schedule of Operating Lease Expense | Total operating lease costs are as follows: Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Operating lease costs: Cost of goods sold $ 3 $ 5 $ 8 $ 10 Selling, general and administrative expenses 15 15 29 29 Total operating lease costs $ 18 $ 20 $ 37 $ 39 |
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 June 29, 2024 December 31, 2023 Operating lease assets Other assets $ 234 $ 192 Operating lease liabilities - current Accrued liabilities $ 52 $ 39 Operating lease liabilities - non-current Other liabilities $ 196 $ 166 |
Schedule of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases follows: Six Months Ended (in millions) June 29, 2024 July 1, 2023 Cash paid for operating lease liabilities $ 17 $ 18 Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities $ 6 $ 15 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt is comprised of the following: (in millions) June 29, 2024 December 31, 2023 4.000% Senior Notes due 2029 $ 300 $ 300 Variable rate A&R Term B Facility 1,714 1,119 Gross debt 2,014 1,419 Less: current portion of long-term debt (12) (12) Less: unamortized deferred financing costs (23) (11) Total long-term debt $ 1,979 $ 1,396 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 29, 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 tables 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 June 29, 2024 December 31, 2023 Derivatives designated as hedging instruments Interest rate derivatives Other current assets $ 19 $ 20 Interest rate derivatives Other assets 8 10 Total derivative assets designated as hedging instruments $ 27 $ 30 Fair Value of Derivative Liabilities (in millions) Financial Statement Line Item June 29, 2024 December 31, 2023 Derivatives designated as hedging instruments: Interest rate derivatives Other liabilities $ 6 $ — Total derivative liabilities designated as hedging instruments $ 6 $ — Unrealized gain Accumulated other comprehensive loss $ 20 $ 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 Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Gains recorded in accumulated other comprehensive loss, beginning of period $ 24 $ 35 $ 25 $ 42 Current period gain (loss) recognized in/reclassified from other comprehensive income (4) 13 (3) 7 Gains reclassified from accumulated other comprehensive loss to net income — (8) (2) (9) Gains recorded in accumulated other comprehensive loss, end of period $ 20 $ 40 $ 20 $ 40 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 29, 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: June 29, 2024 December 31, 2023 (in millions) Carrying Value Fair Value Carrying Value Fair Value Debt 4.000% Senior Notes due 2029 $ 300 $ 265 $ 300 $ 266 Variable rate A&R Term B Facility 1,714 1,717 1,119 1,122 Total debt $ 2,014 $ 1,982 $ 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 derivatives: June 29, 2024 December 31, 2023 (in millions) Carrying Value Fair Value Carrying Value Fair Value Assets: Interest rate derivatives $ 27 $ 27 $ 30 $ 30 Liabilities: Interest rate derivatives 6 6 — — Total, net $ 21 $ 21 $ 30 $ 30 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: (in millions) June 29, 2024 December 31, 2023 Obligations payable under Indemnification Agreements $ 140 $ 140 Customer rebate reserve 88 104 Compensation, benefit and other employee-related 74 110 Current operating lease liability 52 39 Deferred revenue 28 4 Product warranties 28 24 Freight payable 26 25 Other (1) 166 162 Total accrued liabilities $ 602 $ 608 (1) Other includes accruals for advertising, legal and professional reserves, taxes, interest, restructuring, royalties and other miscellaneous items. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 29, 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 90 — 90 Payments to Honeywell (70) (4) (74) Balance as of June 29, 2024 $ 672 $ 93 $ 765 |
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) June 29, 2024 December 31, 2023 Accrued liabilities $ 140 $ 140 Obligations payable under Indemnification Agreements 625 609 Total indemnification liabilities $ 765 $ 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: Six Months Twelve Months Ended (in millions) June 29, 2024 December 31, 2023 Beginning balance $ 34 $ 48 Accruals for warranties/guarantees issued/acquired during the period 18 24 Settlement of warranty/guarantee claims (12) (38) Ending balance $ 40 $ 34 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 29, 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 common share follows: Three Months Ended Six Months Ended (in millions, except per share data) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Numerator for basic and diluted earnings per common share: Net income $ 30 $ 50 $ 73 $ 107 Less: preferred stock dividends 2 — 2 — Net income available to common stockholders $ 28 $ 50 $ 71 $ 107 Denominator for basic and diluted earnings per common share: Weighted average basic number of common shares outstanding 146 147 146 147 Plus: dilutive effect of common stock equivalents 3 2 2 2 Weighted average diluted number of common shares outstanding 149 149 148 149 Earnings per common share: Basic $ 0.19 $ 0.34 $ 0.49 $ 0.73 Diluted $ 0.19 $ 0.34 $ 0.48 $ 0.72 The following potentially dilutive instruments, presented as a weighted average of the instruments outstanding, were excluded from the calculation of diluted net income per common share because their effect would have been antidilutive, and in the case of certain PSUs, the contingency has not been satisfied. Three Months Ended Six Months Ended (in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 RSUs and other rights 0.7 2.1 0.7 1.7 PSUs 0.9 0.9 1.1 0.8 Preferred stock 0.1 — — — |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 14, 2024 | Jun. 29, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | |
Business Acquisition | ||||
Cash purchase price | $ 1,334 | $ 6 | ||
Snap One Holdings Corp | ||||
Business Acquisition | ||||
Percentage of equity acquired | 100% | |||
Cash purchase price | $ 1,400 | |||
Acquisition costs | 34 | |||
Paid for seller success fees | 21 | |||
Revenue | $ 1,804 | 3,536 | ||
Pro forma income | $ 0 | $ 0 |
Acquisitions - Schedule of Prel
Acquisitions - Schedule of Preliminary Allocation of Purchase Price (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Jun. 14, 2024 | Dec. 31, 2023 |
Assets acquired: | |||
Goodwill | $ 3,079 | $ 2,705 | |
Snap One Holdings Corp | |||
Assets acquired: | |||
Cash and cash equivalents | $ 47 | ||
Accounts receivable | 49 | ||
Inventories | 250 | ||
Other current assets | 32 | ||
Property, plant and equipment | 63 | ||
Goodwill | 393 | ||
Intangible assets | 770 | ||
Other assets | 69 | ||
Total assets acquired | 1,673 | ||
Liabilities assumed: | |||
Accounts payable | 48 | ||
Accrued liabilities | 73 | ||
Other liabilities | 147 | ||
Total liabilities assumed | 268 | ||
Net assets acquired | $ 1,405 |
Segment Financial Data - Additi
Segment Financial Data - Additional Information (Details) home in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |
Jul. 01, 2023 USD ($) | Jun. 29, 2024 segment home | Jul. 01, 2023 USD ($) | |
Segment Reporting Information | |||
Number of operating segments (segment) | segment | 2 | ||
Products and Solutions | |||
Segment Reporting Information | |||
Number of homes (in home) | home | 150 | ||
Other non operating expenses | $ 13 | $ 25 | |
ADI Global Distribution | |||
Segment Reporting Information | |||
Other non operating expenses | $ 8 | $ 16 |
Segment Financial Data - Schedu
Segment Financial Data - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Net revenue | ||||
Total net revenue | $ 1,589 | $ 1,602 | $ 3,075 | $ 3,151 |
Income from operations | ||||
Total income from operations | 122 | 153 | 250 | 291 |
Corporate | ||||
Income from operations | ||||
Total income from operations | (70) | (33) | (103) | (64) |
Products and Solutions | ||||
Net revenue | ||||
Total net revenue | 630 | 677 | 1,250 | 1,335 |
Products and Solutions | Operating Segments | ||||
Income from operations | ||||
Total income from operations | 130 | 115 | 242 | 220 |
ADI Global Distribution | ||||
Net revenue | ||||
Total net revenue | 959 | 925 | 1,825 | 1,816 |
ADI Global Distribution | Operating Segments | ||||
Income from operations | ||||
Total income from operations | $ 62 | $ 71 | $ 111 | $ 135 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 6 Months Ended |
Jun. 29, 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 | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Disaggregation of Revenue | ||||
Net revenue | $ 1,589 | $ 1,602 | $ 3,075 | $ 3,151 |
Products and Solutions | ||||
Disaggregation of Revenue | ||||
Net revenue | 630 | 677 | 1,250 | 1,335 |
Products and Solutions | Safety and Security | ||||
Disaggregation of Revenue | ||||
Net revenue | 227 | 248 | 440 | 476 |
Products and Solutions | Air | ||||
Disaggregation of Revenue | ||||
Net revenue | 214 | 218 | 405 | 429 |
Products and Solutions | Energy | ||||
Disaggregation of Revenue | ||||
Net revenue | 118 | 132 | 252 | 268 |
Products and Solutions | Water | ||||
Disaggregation of Revenue | ||||
Net revenue | 71 | 79 | 153 | 162 |
ADI Global Distribution | ||||
Disaggregation of Revenue | ||||
Net revenue | 959 | 925 | 1,825 | 1,816 |
ADI Global Distribution | Americas | ||||
Disaggregation of Revenue | ||||
Net revenue | 840 | 806 | 1,586 | 1,574 |
ADI Global Distribution | International | ||||
Disaggregation of Revenue | ||||
Net revenue | $ 119 | $ 119 | $ 239 | $ 242 |
Restructuring - Schedule Restru
Restructuring - Schedule Restructuring and Impairment Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Restructuring Cost and Reserve | ||||
Restructuring expenses | $ 0 | $ 2 | $ 7 | $ 4 |
Corporate | ||||
Restructuring Cost and Reserve | ||||
Restructuring expenses | 0 | 0 | 0 | 0 |
Products and Solutions | Operating Segments | ||||
Restructuring Cost and Reserve | ||||
Restructuring expenses | 0 | 0 | 5 | 2 |
ADI Global Distribution | Operating Segments | ||||
Restructuring Cost and Reserve | ||||
Restructuring expenses | $ 0 | $ 2 | $ 2 | $ 2 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) | 6 Months Ended |
Jun. 29, 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 | 6 Months Ended | 12 Months Ended |
Jun. 29, 2024 | Dec. 31, 2023 | |
Restructuring Reserve | ||
Beginning of period | $ 30 | $ 27 |
Charges | 7 | 34 |
Usage | (18) | (31) |
End of period | $ 19 | $ 30 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 14, 2024 | Jun. 29, 2024 | Dec. 31, 2023 |
Class of Stock | |||
Preferred stock, shares issued (in shares) | 500,000 | 500,000 | 0 |
Preferred stock, purchase price | $ 500 | $ 482 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Direct and incremental expenses | $ 18 | ||
Preferred stock, per share conversion price (in dollar per share) | $ 26.92 | ||
Preferred stock, coupon rate (percent) | 7% | ||
Liquidation preference stock | $ 500 | ||
Preferred stock dividends payable | $ 2 | ||
Stock trading price exceeds (percent) | 200% | ||
Preferred stock redemption rate upon change of control (percent) | 150% | ||
Preferred stock redemption rate (percent) | 100% | ||
Minimum | |||
Class of Stock | |||
Number of trailing days, trigger | 20 days | ||
Maximum | |||
Class of Stock | |||
Number of trailing days, trigger | 30 days |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Summarized RSU and PSU Activity Related to Stock Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 29, 2024 | Jul. 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) | 3,897,778 | 1,481,793 |
Weighted average grant date fair value per share | ||
Granted (in dollars per share) | $ 19.57 | $ 19.01 |
Restricted Stock Units (“RSUs”) | Snap One Holdings Corp | ||
Number of Stock Units Granted | ||
Number of stock units granted (in shares) | 2,000,000 | |
Weighted average grant date fair value per share | ||
Fair value of shares issued | $ 43 | |
Fair value of RSU's included in purchase consideration | $ 17 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense, net of tax | $ 15 | $ 12 | $ 29 | $ 24 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 191 | $ 221 |
Work in process | 14 | 18 |
Finished products | 983 | 702 |
Total inventories, net | $ 1,188 | $ 941 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net - Schedule of Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Goodwill | |
Balance at January 1, 2024 | $ 2,705 |
Acquisitions | 393 |
Impact of foreign currency translation | (19) |
Balance at June 29, 2024 | 3,079 |
Products and Solutions | |
Goodwill | |
Balance at January 1, 2024 | 2,045 |
Acquisitions | 0 |
Impact of foreign currency translation | (14) |
Balance at June 29, 2024 | 2,031 |
ADI Global Distribution | |
Goodwill | |
Balance at January 1, 2024 | 660 |
Acquisitions | 393 |
Impact of foreign currency translation | (5) |
Balance at June 29, 2024 | $ 1,048 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets subject to amortization | $ 1,038 | $ 281 |
Indefinite-lived intangible assets | 180 | 180 |
Total intangible assets | $ 1,218 | $ 461 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, net - Schedule of Other Intangible Assets With Finite Lives (Detail) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 |
Finite Lived Intangible Assets | ||
Gross Carrying Amount | $ 1,359 | $ 585 |
Accumulated Amortization | (321) | (304) |
Net Carrying Amount | 1,038 | 281 |
Patents and technology | ||
Finite Lived Intangible Assets | ||
Gross Carrying Amount | 170 | 64 |
Accumulated Amortization | (30) | (26) |
Net Carrying Amount | 140 | 38 |
Customer relationships | ||
Finite Lived Intangible Assets | ||
Gross Carrying Amount | 905 | 319 |
Accumulated Amortization | (146) | (138) |
Net Carrying Amount | 759 | 181 |
Trademarks | ||
Finite Lived Intangible Assets | ||
Gross Carrying Amount | 79 | 9 |
Accumulated Amortization | (8) | (8) |
Net Carrying Amount | 71 | 1 |
Software | ||
Finite Lived Intangible Assets | ||
Gross Carrying Amount | 205 | 193 |
Accumulated Amortization | (137) | (132) |
Net Carrying Amount | $ 68 | $ 61 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible asset amortization | $ 13 | $ 10 | $ 22 | $ 19 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Lessee Lease Description | ||||
Total operating lease costs | $ 18 | $ 20 | $ 37 | $ 39 |
Cost of goods sold | ||||
Lessee Lease Description | ||||
Total operating lease costs | 3 | 5 | 8 | 10 |
Selling, general and administrative expenses | ||||
Lessee Lease Description | ||||
Total operating lease costs | $ 15 | $ 15 | $ 29 | $ 29 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Leases [Abstract] | ||||
Variable lease costs | $ 4 | $ 6 | $ 7 | $ 12 |
Leases - Summary of Lease Recog
Leases - Summary of Lease Recognized Related to Operating Leases (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Operating lease assets | $ 234 | $ 192 |
Operating lease liabilities - current | 52 | 39 |
Operating lease liabilities - non-current | $ 196 | $ 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 | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 17 | $ 18 |
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities | $ 6 | $ 15 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 | Aug. 26, 2021 |
Debt Instrument | |||
Gross debt | $ 2,014 | $ 1,419 | |
Less: current portion of long-term debt | (12) | (12) | |
Less: unamortized deferred financing costs | (23) | (11) | |
Long-term debt | $ 1,979 | 1,396 | |
4.000% senior notes due 2029 | |||
Debt Instrument | |||
Interest rate (as a percent) | 4% | 4% | |
Gross debt | $ 300 | 300 | |
Variable rate A&R Term B Facility | |||
Debt Instrument | |||
Gross debt | $ 1,714 | $ 1,119 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||||||||
Jul. 17, 2024 | Apr. 30, 2024 | Mar. 28, 2022 | Feb. 12, 2021 | Jun. 30, 2024 | May 31, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 31, 2023 | Aug. 26, 2021 | |
Debt Instrument | ||||||||||
Repayment of principal amount | $ 6,000,000 | $ 6,000,000 | ||||||||
Gross debt | $ 2,014,000,000 | $ 1,419,000,000 | ||||||||
Senior Notes due 2032 | Senior Notes | Subsequent Event | ||||||||||
Debt Instrument | ||||||||||
Principal amount issued | $ 600,000,000 | |||||||||
Interest rate (as a percent) | 6.50% | |||||||||
Issuance rate (as a percent) | 100% | |||||||||
Senior Secured Term B Loans | Senior Notes | Subsequent Event | ||||||||||
Debt Instrument | ||||||||||
Repayment of principal amount | $ 596,000,000 | |||||||||
4.000% senior notes due 2029 | ||||||||||
Debt Instrument | ||||||||||
Principal amount issued | $ 300,000,000 | |||||||||
Interest rate (as a percent) | 4% | 4% | ||||||||
Gross debt | $ 300,000,000 | $ 300,000,000 | ||||||||
A&R Term B Facility | ||||||||||
Debt Instrument | ||||||||||
Weighted average interest rate (percent) | 7.34% | 7.72% | ||||||||
A&R Term B Facility | A&R Credit Agreement | ||||||||||
Debt Instrument | ||||||||||
Credit facilities term (in years) | 5 years | 7 years | ||||||||
Principal amount issued | $ 200,000,000 | $ 950,000,000 | ||||||||
Debt instrument, basis spread on variable rate | 2.25% | 2% | ||||||||
A&R Term B Facility | A&R Credit Agreement | SOFR | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, basis spread on variable rate | 0.50% | 0% | ||||||||
Variable rate A&R Term B Facility | A&R Credit Agreement | ||||||||||
Debt Instrument | ||||||||||
Principal amount issued | $ 600,000,000 | |||||||||
A&R Revolving Credit Facility | Senior Credit Facilities | ||||||||||
Debt Instrument | ||||||||||
Gross debt | 0 | $ 0 | ||||||||
A&R Revolving Credit Facility | A&R Revolving Credit Facility | ||||||||||
Debt Instrument | ||||||||||
Principal amount issued | $ 500,000,000 | |||||||||
A&R Revolving Credit Facility | A&R Senior Credit Facilities | ||||||||||
Debt Instrument | ||||||||||
Credit facilities term (in years) | 5 years | |||||||||
Letter of Credit | Senior Credit Facilities | ||||||||||
Debt Instrument | ||||||||||
Borrowings from credit facility | $ 5,000,000 | $ 5,000,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) $ in Millions | 6 Months Ended | ||
Jun. 29, 2024 USD ($) | Jun. 14, 2024 USD ($) | Mar. 31, 2021 USD ($) derivative | |
Derivative | |||
Unrealized gains expected to be reclassified from AOCI in next 12 months | $ 19 | ||
Swap Agreements | |||
Derivative | |||
Number of interest rate derivatives held | derivative | 8 | ||
Notional value | $ 560 | ||
Interest Rate Cap | |||
Derivative | |||
Notional value | $ 346 | ||
Strike rate | 4.79% | ||
Premium value | $ 7 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 29, 2024 | Dec. 31, 2023 | |
Derivative | ||
Total derivative assets designated as hedging instruments | $ 27 | $ 30 |
Total derivative liabilities designated as hedging instruments | $ 6 | 0 |
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 | ||
Unrealized gain | $ 20 | 25 |
Designated as Hedging Instrument | Interest rate derivatives | ||
Derivative | ||
Total derivative liabilities designated as hedging instruments | 6 | 0 |
Other current assets | Designated as Hedging Instrument | Interest rate derivatives | ||
Derivative | ||
Total derivative assets designated as hedging instruments | 19 | 20 |
Other assets | Designated as Hedging Instrument | Interest rate derivatives | ||
Derivative | ||
Total derivative assets designated as hedging instruments | $ 8 | $ 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 | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Derivatives used in Net Investment Hedge, Net of Tax | ||||
Beginning of period | $ 2,769 | $ 2,604 | $ 2,749 | $ 2,529 |
End of period | 3,294 | 2,677 | 3,294 | 2,677 |
Accumulated other comprehensive loss | ||||
Derivatives used in Net Investment Hedge, Net of Tax | ||||
Beginning of period | 24 | 35 | 25 | 42 |
Current period gain (loss) recognized in/reclassified from other comprehensive income | (4) | 13 | (3) | 7 |
Gains reclassified from accumulated other comprehensive loss to net income | 0 | (8) | (2) | (9) |
End of period | $ 20 | $ 40 | $ 20 | $ 40 |
Fair Value - Schedule of Carryi
Fair Value - Schedule of Carrying Values and Estimated Fair Value of Debt Instruments (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 | Aug. 26, 2021 |
Debt Instrument | |||
Carrying Value | $ 2,014 | $ 1,419 | |
Fair Value | $ 1,982 | 1,388 | |
4.000% senior notes due 2029 | |||
Debt Instrument | |||
Interest rate (as a percent) | 4% | 4% | |
Carrying Value | $ 300 | 300 | |
Fair Value | 265 | 266 | |
Variable rate A&R Term B Facility | |||
Debt Instrument | |||
Carrying Value | 1,714 | 1,119 | |
Fair Value | $ 1,717 | $ 1,122 |
Fair Value - Summary of the Car
Fair Value - Summary of the Carrying Amount and Fair Value of Interest Rate Swap (Details) - Level 2 - Fair Value, Recurring - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 |
Liabilities: | ||
Total, net Carrying Value | $ 21 | $ 30 |
Total, net Fair Value | 21 | 30 |
Interest rate derivatives | ||
Assets: | ||
Assets, Carrying Value | 27 | 30 |
Assets, Fair Value | 27 | 30 |
Liabilities: | ||
Liabilities, Carrying Value | 6 | 0 |
Liabilities, Fair Value | $ 6 | $ 0 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 |
Accrued Liabilities, Current [Abstract] | ||
Obligations payable under Indemnification Agreements | $ 140 | $ 140 |
Customer rebate reserve | 88 | 104 |
Compensation, benefit and other employee-related | 74 | 110 |
Current operating lease liability | 52 | 39 |
Deferred revenue | 28 | 4 |
Product warranties | 28 | 24 |
Freight payable | 26 | 25 |
Other | 166 | 162 |
Total accrued liabilities | $ 602 | $ 608 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 03, 2024 | Oct. 29, 2018 | Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 31, 2023 | |
Loss Contingencies | |||||||
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Cost of goods sold | Cost of goods sold | |||||
Environmental liabilities | $ 22 | $ 22 | $ 22 | ||||
Claim settlement expense | $ 0.3 | ||||||
Other Expense | |||||||
Loss Contingencies | |||||||
Reimbursement Agreement expense | 47 | $ 44 | 90 | $ 85 | |||
Indemnification Agreement | |||||||
Loss Contingencies | |||||||
Maximum annual reimbursement obligation amount | $ 25 | $ 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 | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Accrual for Reimbursement Agreement | |
Beginning balance | $ 749 |
Accruals for liabilities deemed probable and reasonably estimable | 90 |
Payments to Honeywell | (74) |
Ending balance | 765 |
Reimbursement Agreement | |
Accrual for Reimbursement Agreement | |
Beginning balance | 652 |
Accruals for liabilities deemed probable and reasonably estimable | 90 |
Payments to Honeywell | (70) |
Ending balance | 672 |
Tax Matters Agreement | |
Accrual for Reimbursement Agreement | |
Beginning balance | 97 |
Accruals for liabilities deemed probable and reasonably estimable | 0 |
Payments to Honeywell | (4) |
Ending balance | $ 93 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Reimbursement Agreement Liabilities Included in Balance Sheet Accounts (Details) - Honeywell - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 31, 2023 |
Loss Contingency, Classification of Accrual [Abstract] | ||
Total indemnification liabilities | $ 765 | $ 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 | $ 625 | $ 609 |
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 | 12 Months Ended |
Jun. 29, 2024 | Dec. 31, 2023 | |
Product Warranties and Guarantees | ||
Beginning balance | $ 34 | $ 48 |
Accruals for warranties/guarantees issued/acquired during the period | 18 | 24 |
Settlement of warranty/guarantee claims | (12) | (38) |
Ending balance | $ 40 | $ 34 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 29 | $ 44 | $ 59 | $ 68 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Numerator for basic and diluted earnings per common share: | ||||
Net income | $ 30 | $ 50 | $ 73 | $ 107 |
Less: preferred stock dividends | 2 | 0 | 2 | 0 |
Net income available to common stockholders, basic | 28 | 50 | 71 | 107 |
Net income available to common stockholders, diluted | $ 28 | $ 50 | $ 71 | $ 107 |
Denominator for basic and diluted earnings per common share: | ||||
Weighted average basic number of common shares outstanding (in shares) | 146 | 147 | 146 | 147 |
Plus: dilutive effect of common stock equivalents (in shares) | 3 | 2 | 2 | 2 |
Weighted average diluted number of common shares outstanding (in shares) | 149 | 149 | 148 | 149 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.19 | $ 0.34 | $ 0.49 | $ 0.73 |
Diluted (in dollars per share) | $ 0.19 | $ 0.34 | $ 0.48 | $ 0.72 |
Earnings Per Common Share - Pot
Earnings Per Common Share - Potentially Dilutive Instruments (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
RSUs and other rights | ||||
Earnings Per Share | ||||
Purchase of outstanding common stock were anti-dilutive (in shares) | 0.7 | 2.1 | 0.7 | 1.7 |
PSUs | ||||
Earnings Per Share | ||||
Purchase of outstanding common stock were anti-dilutive (in shares) | 0.9 | 0.9 | 1.1 | 0.8 |
Preferred Stock | ||||
Earnings Per Share | ||||
Purchase of outstanding common stock were anti-dilutive (in shares) | 0.1 | 0 | 0 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 6 Months Ended | ||
Jul. 17, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | |
Subsequent Event | |||
Repayment of principal amount | $ 6,000,000 | $ 6,000,000 | |
Senior Notes | Senior Notes due 2032 | Subsequent Event | |||
Subsequent Event | |||
Principal amount issued | $ 600,000,000 | ||
Interest rate (as a percent) | 6.50% | ||
Issuance rate (as a percent) | 100% | ||
Senior Notes | Senior Secured Term B Loans | Subsequent Event | |||
Subsequent Event | |||
Repayment of principal amount | $ 596,000,000 |