During the first quarter of fiscal 2026, the Company signed a definitive agreement to sell a component of its EMEA Security business and determined that it met the criteria to be classified as held for sale. As the estimated fair value less costs to sell was below its carrying value, the Company recorded non-cash impairment charges in the first quarter of fiscal 2026 of $50 million within restructuring and impairment costs in the consolidated statements of income.

As of March 31, 2026, $117 million of assets and $35 million of liabilities associated with the business were separately presented in the consolidated statements of financial position. The remaining assets and liabilities classified as held for sale as of March 31, 2026 relate to other immaterial disposal groups.

The business did not meet the criteria to be classified as a discontinued operation as the divestiture does not represent a strategic shift that will have a major effect on the Company's operations and financial results. The Company closed the transaction after the close of the second quarter of fiscal 2026, with no expected gain or loss.

On October 31, 2025, the Company completed the sale of its ADT Mexico Security business for net proceeds of $207 million. In connection with the sale, the Company recognized a pre-tax gain of $70 million within selling, general and administrative expenses in the consolidated statements of income for the six months ended March 31, 2026.

The held for sale assets and liabilities in the consolidated balance sheet at September 30, 2025 included $154 million of assets and $21 million of liabilities associated with the ADT Mexico Security business as the Company determined that the held for sale criteria was met in the third quarter of 2025.

In 2024, the Company determined that the R&LC HVAC business, which was previously reported in the Global Products segment, met the criteria to be classified as discontinued operations as it represented a strategic shift in the Company's operations and resulted in the exit of substantially all of its residential and light commercial HVAC businesses. In July 2025, the Company completed the sale of its R&LC HVAC business.

The results of the R&LC HVAC business recorded in income from discontinued operations, net of tax, was a gain of $4 million for the three months ended March 31, 2026 and loss of $27 million for the six months ended March 31, 2026, reflecting the impacts of post-closing working capital, net debt and other discontinued operations adjustments.

The following table summarizes the results of the R&LC HVAC business which were reported as discontinued operations (in millions) for the three and six months ended March 31, 2025:


	Three Months Ended March 31, 2025		Six Months Ended March 31, 2025

Net sales	$	1,069	$	2,035
Cost of goods sold	841		1,572
Gross profit	228		463
Selling, general and administrative expenses	189		372
Restructuring and impairment costs	5		9
Net financing charges	2		1
Equity income	69		134
Income from discontinued operations before income taxes	101		215
Provision for income taxes on discontinued operations	50		74
Income from discontinued operations, net of tax	51		141
Income from discontinued operations attributable to noncontrolling interest, net of tax	46		80
Income from discontinued operations	$	5	$	61

In April 2026, the Company paid approximately $155 million related to final purchase price adjustments associated with the sale of the R&LC HVAC business to the Bosch Group.