v3.26.1
Segment Financial Data
 6 Months Ended
Jul. 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 Condensed Consolidated Financial Statements.

Products and Solutions—Our Products and Solutions segment is a leading global manufacturer, developer and distributor of technology-driven sensing and controls products and solutions for residential and commercial end markets. We benefit from differentiated products and solutions for comfort, energy management, safety, and security and 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 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, business separation costs, and non-operating items such as Indemnification Agreement expense, interest expense (income), 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 EndedSix Months Ended
(in millions)July 4, 2026June 28, 2025July 4, 2026June 28, 2025
Revenue$695 $666 $1,401 $1,315 
Cost of goods sold392 380 803 760 
Research and development expenses37 32 73 59 
Selling, general and administrative expenses110 104 229 205 
Intangible asset amortization6 6 12 12 
Restructuring expenses12 2 18 1 
Segment income from operations$138 $142 $266 $278 

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

Three Months EndedSix Months Ended
(in millions)July 4, 2026June 28, 2025July 4, 2026June 28, 2025
Revenue$1,286 $1,277 $2,492 $2,398 
Cost of goods sold994 994 1,944 1,873 
Research and development expenses11 9 23 17 
Selling, general and administrative expenses187 179 373 352 
Intangible asset amortization25 23 49 46 
Restructuring expenses5 1 5 5 
Segment income from operations$64 $71 $98 $105 
The following table provides a reconciliation of segment Income from operations to consolidated Net income (loss) before taxes:

Three Months EndedSix Months Ended
(in millions)July 4, 2026June 28, 2025July 4, 2026June 28, 2025
Segment income from operations
Products and Solutions$138 $142 $266 $278 
ADI Global Distribution64 71 98 105 
Total segment income from operations202 213 364 383 
Unallocated amounts:
Selling, general and administrative expenses35 36 70 68 
Restructuring expenses5 (1)5 — 
Business separation costs31 — 55 — 
Indemnification Agreement expense— 882 — 972 
Other (income) expense, net(81)9 (81)15 
Interest expense, net46 24 93 49 
Other corporate items— 1 1 2 
Net income (loss) before taxes$166 $(738)$221 $(723)

The following table provides detail on capital expenditures which are regularly reviewed by the CODM:

Three Months EndedSix Months Ended
(in millions)July 4, 2026June 28, 2025July 4, 2026June 28, 2025
Cash paid for capital expenditures
Products and Solutions$16 $10 $39 $30 
ADI Global Distribution13 10 26 21 
Total capital expenditures$29 $20 $65 $51 

For the six months ended July 4, 2026 and June 28, 2025, capital expenditures in accounts payable were $24 million and $18 million, respectively.