v3.26.1
Segment Financial Data
 3 Months Ended
Apr. 04, 2026
Segment Reporting [Abstract]  
Segment Financial Data Segment Financial Data
We monitor our operations through two reportable segments: Products and Solutions and ADI Global Distribution, with Corporate reported separately. We identified these segments because we have organized our business and reporting structure into Products and Solutions and ADI Global Distribution. Segment information is evaluated by our Chief Executive Officer who is also the Chief Operating Decision Maker (“CODM”). The CODM uses income from operations to evaluate the performance of the overall business, make investing decisions, and allocate resources predominantly in the annual budget and forecasting process and the monthly results review, which includes variance analysis against the forecast, the budget, and the prior year. Disaggregated assets by segment are not used to allocate resources or to assess performance of the segments and therefore, segment assets have not been disclosed. Capital expenditures for each segment are reviewed by the CODM. The accounting policies used to derive segment results are substantially the same as those used in preparing the Unaudited Consolidated Financial Statements.

Products and Solutions—Our Products and Solutions segment is a leading building products manufacturer focused on residential controls and sensing solutions. Our products and solutions for comfort, energy management, safety, and security benefit from trusted, well-established branded offerings such as Braukmann, BRK, First Alert, Honeywell Home, Resideo, and others. Our offerings include temperature and humidity control, water and air solutions, smoke and carbon monoxide detection home safety products, residential and small business security products, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software. We also sell components to manufacturers of water heaters, heat pumps, and boilers.

ADI Global Distribution—Our ADI Global Distribution segment is a leading, global specialty distributor of professionally installed low-voltage products, including security and AV solutions, serving commercial and residential markets through an omnichannel go-to-market platform. ADI Global Distribution sells primarily to licensed professional installers, dealers, and integrators. We offer an expansive list of products from leading suppliers across key specialty low-voltage categories. ADI complements our third-party supplier products with a suite of exclusive brands and services offerings.

Corporate—Corporate expenses include costs related to the corporate functions such as the executive function, legal, accounting, tax, treasury, corporate development, human resources, investor relations, and information technology. Additionally, unallocated amounts for restructuring expenses, business separation costs, and non-operating items such as Indemnification Agreement expense, interest income (expense), other income (expense), and provision for income taxes are reported within Corporate.
Segment results of operations for Products and Solutions, including significant segment expenses that are regularly reviewed by the CODM, are included in the table below:

Three Months Ended
(in millions)April 4, 2026March 29, 2025
Net revenue$706 $649 
Cost of goods sold411 380 
Research and development expenses36 27 
Selling, general and administrative expenses119 101 
Intangible asset amortization6 6 
Restructuring expenses6 (1)
Segment income from operations$128 $136 

Segment results of operations for ADI Global Distribution, including significant segment expenses that are regularly reviewed by the CODM, are included in the table below:

Three Months Ended
(in millions)April 4, 2026March 29, 2025
Net revenue$1,206 $1,121 
Cost of goods sold950 879 
Research and development expenses12 8 
Selling, general and administrative expenses186 173 
Intangible asset amortization24 23 
Restructuring expenses— 4 
Segment income from operations$34 $34 

The following table provides a reconciliation of segment income from operations to consolidated income before taxes:

Three Months Ended
(in millions)April 4, 2026March 29, 2025
Segment income from operations
Products and Solutions$128 $136 
ADI Global Distribution34 34 
Total segment income from operations
162 170 
Unallocated amounts:
Selling, general and administrative expenses35 32 
Restructuring expenses— 1 
Business separation costs24 — 
Indemnification Agreement expense— 90 
Other expense (income), net— 6 
Interest expense, net47 25 
Other corporate items1 1 
Net income before taxes$55 $15 
The following table provides detail on capital expenditures which are regularly reviewed by the CODM:

Three Months Ended
(in millions)April 4, 2026March 29, 2025
Cash paid for capital expenditures
Products and Solutions$23 $20 
ADI Global Distribution13 11 
Total capital expenditures$36 $31 

For the three months ended April 4, 2026 and March 29, 2025, capital expenditures in accounts payable were $18 million and $12 million, respectively.