Subsequent Events |
6 Months Ended |
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Jul. 04, 2026 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Note 17. Subsequent Events On August 3, 2026, we completed the previously announced separation of our ADI Global Distribution business. Refer to Note 1. Nature of Operations and Basis of Presentation of the Notes to the Unaudited Condensed Consolidated Financial Statements for further discussion. Holders of Resideo’s Preferred Stock did not receive shares of ADIG common stock by virtue of their ownership of Resideo preferred stock. In connection with the ADI Spin-Off, ADIG issued to us 150,000 shares of its Series A Cumulative Convertible Participating Preferred Stock (“ADIG Preferred Stock”) as partial consideration for the transfer and contribution of assets and liabilities to ADIG and its subsidiaries. Pursuant to an exchange agreement, we exchanged the 150,000 shares of ADIG Preferred Stock for an equal number of shares of Resideo Preferred Stock held by certain holders and subsequently cancelled the shares of Resideo Preferred Stock received in the exchange. As a result, immediately following the ADI Spin-Off, 350,000 shares of Resideo Preferred Stock remained issued and outstanding and 150,000 shares of ADIG Preferred Stock were issued and outstanding. In connection with the exchange, the Certificate of Designations, Preferences and Rights of Resideo’s Preferred Stock was amended and restated to give effect to the exchange, including a reduction of authorized shares to 350,000, adjusting the initial conversion price to $18.844 from $26.92, and modifying the timing of our optional conversion and redemption rights by extending through August 3, 2028. Upon consummation of the ADI Spin-Off and satisfaction of the escrow conditions, proceeds of the $400 million aggregate principal amount of 7.125% Senior Notes due 2034 issued by ADIG were released to ADIG from escrow. In addition, the ADIG Credit Agreement became effective on the ADI Spin-Off date, at which time ADIG borrowed $600 million under the Term Facility. The net proceeds from the Senior Notes due 2034 and borrowings under the term loan facility were used in part to fund a one-time cash dividend of $900 million from ADIG to Resideo. We used the proceeds received from ADIG to repay in full $518 million of senior secured term loans that were to mature in February 2028 and to repay $382 million of senior secured term loans maturing in June 2031. In connection with the ADI Spin-Off, we expect by the end of the third quarter to make an additional repayment of approximately $200 million under our A&R Term B Facility following the completion of the post-closing cash adjustment contemplated by the separation and distribution agreement. As the ADI Spin-Off has been consummated, the Senior Notes due 2034, the Term Facility, and the Revolving Facility are obligations of ADIG and/or its subsidiaries and are not our obligations. Refer to Note 11. Long-Term Debt of the Notes to the Unaudited Condensed Consolidated Financial Statements for further discussion.
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