RESIDEO TECHNOLOGIES, INC., 10-K filed on 2/14/2024
Annual Report
v3.24.0.1
Cover - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2023
Feb. 02, 2024
Jul. 01, 2023
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
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    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 2.6
Entity Common Stock, Shares Outstanding   145,318,782  
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2024 Annual Meeting of Shareholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission not later than 120 days following the end of the registrant’s fiscal year ended December 31, 2023 		   
Amendment Flag false    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2023    
Entity Central Index Key 0001740332    
v3.24.0.1
Audit Information
 12 Months Ended
Dec. 31, 2023
Audit Information [Abstract]  
Auditor Name Deloitte & Touche LLP
Auditor Location Minneapolis, Minnesota
Auditor Firm ID 34
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 636 $ 326
Accounts receivable, net 973 1,002
Inventories, net 941 975
Other current assets 193 199
Total current assets 2,743 2,502
Property, plant and equipment, net 390 366
Goodwill 2,705 2,724
Intangible assets, net 461 475
Other assets 346 320
Total assets 6,645 6,387
Current liabilities:    
Accounts payable 905 894
Current portion of long-term debt 12 12
Accrued liabilities 608 640
Total current liabilities 1,525 1,546
Long-term debt 1,396 1,404
Obligations payable under Indemnification Agreements 609 580
Other liabilities 366 328
Total liabilities 3,896 3,858
COMMITMENTS AND CONTINGENCIES
Stockholders’ equity    
Common stock, $0.001 par value: 700 shares authorized, 151 and 145 shares issued and outstanding at December 31, 2023, respectively, and 148 and 146 shares issued and outstanding at December 31, 2022, respectively 0 0
Additional paid-in capital 2,226 2,176
Retained earnings 810 600
Accumulated other comprehensive loss, net (194) (212)
Treasury stock at cost (93) (35)
Total stockholders’ equity 2,749 2,529
Total liabilities and stockholders’ equity $ 6,645 $ 6,387
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Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
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) 151,000,000 148,000,000
Common stock, shares outstanding (in shares) 145,000,000 146,000,000
v3.24.0.1
Consolidated Statements of Operations - USD ($)
shares in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Net revenue $ 6,242,000,000 $ 6,370,000,000 $ 5,846,000,000
Cost of goods sold 4,546,000,000 4,604,000,000 4,262,000,000
Gross profit 1,696,000,000 1,766,000,000 1,584,000,000
Operating expenses:      
Research and development expenses 109,000,000 111,000,000 86,000,000
Selling, general and administrative expenses 960,000,000 974,000,000 909,000,000
Intangible asset amortization 38,000,000 35,000,000 30,000,000
Restructuring and impairment expenses 42,000,000 35,000,000 0
Total operating expenses 1,149,000,000 1,155,000,000 1,025,000,000
Income from operations 547,000,000 611,000,000 559,000,000
Other expenses, net 169,000,000 139,000,000 159,000,000
Interest expense, net 65,000,000 54,000,000 47,000,000
Income before taxes 313,000,000 418,000,000 353,000,000
Provision for income taxes 103,000,000 135,000,000 111,000,000
Net income $ 210,000,000 $ 283,000,000 $ 242,000,000
Earnings per share:      
Basic (in dollars per share) $ 1.43 $ 1.94 $ 1.68
Diluted (in dollars per share) $ 1.42 $ 1.90 $ 1.63
Weighted average number of shares outstanding:      
Basic (in dollars per share) 147 146 144
Diluted (in dollars per share) 148 149 148
v3.24.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net income $ 210 $ 283 $ 242
Other comprehensive income (loss), net of tax:      
Foreign exchange translation gain (loss) 47 (74) (57)
Pension liability adjustments (12) (9) 32
Changes in fair value of effective cash flow hedges (17) 36 6
Total other comprehensive income (loss), net of tax 18 (47) (19)
Comprehensive income $ 228 $ 236 $ 223
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Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash Flows From Operating Activities:      
Net income $ 210,000,000 $ 283,000,000 $ 242,000,000
Adjustments to reconcile net income to net cash in operating activities:      
Depreciation and amortization 98,000,000 94,000,000 88,000,000
Restructuring and impairment expenses 42,000,000 35,000,000 0
Stock-based compensation expense 44,000,000 50,000,000 39,000,000
Deferred income taxes (28,000,000) (3,000,000) 6,000,000
Other, net (14,000,000) 6,000,000 44,000,000
Changes in assets and liabilities, net of acquired companies:      
Accounts receivable, net 19,000,000 (72,000,000) (30,000,000)
Inventories, net 32,000,000 (122,000,000) (73,000,000)
Other current assets 6,000,000 (26,000,000) 27,000,000
Accounts payable 18,000,000 (43,000,000) (42,000,000)
Accrued liabilities (34,000,000) (21,000,000) 14,000,000
Other, net 47,000,000 (29,000,000) 0
Net cash provided by operating activities 440,000,000 152,000,000 315,000,000
Cash Flows From Investing Activities:      
Capital expenditures (105,000,000) (85,000,000) (63,000,000)
Proceeds from sale of business 86,000,000 0 0
Acquisitions, net of cash acquired (16,000,000) (665,000,000) (11,000,000)
Other investing activities, net (9,000,000) (14,000,000) 9,000,000
Net cash used in investing activities (44,000,000) (764,000,000) (65,000,000)
Cash Flows From Financing Activities:      
Common stock repurchases (41,000,000) 0 0
Proceeds from issuance of A&R Term B Facility 0 200,000,000 1,250,000,000
Repayments of long-term debt (12,000,000) (12,000,000) (1,188,000,000)
Other financing activities, net (11,000,000) (18,000,000) (42,000,000)
Net cash (used in) provided by financing activities (64,000,000) 170,000,000 20,000,000
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (24,000,000) (8,000,000) (8,000,000)
Net increase (decrease) in cash, cash equivalents and restricted cash 308,000,000 (450,000,000) 262,000,000
Cash, cash equivalents and restricted cash at beginning of year 329,000,000 779,000,000 517,000,000
Cash, cash equivalents and restricted cash at end of year 637,000,000 329,000,000 779,000,000
Supplemental Cash Flow Information:      
Interest paid 80,000,000 54,000,000 39,000,000
Taxes paid, net of refunds 123,000,000 159,000,000 107,000,000
Capital expenditures in accounts payable $ 14,000,000 $ 21,000,000 $ 14,000,000
v3.24.0.1
Consolidated Statements of Stockholders’ Equity - USD ($)
$ in Millions
Total
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Treasury Stock
Beginning of period at Dec. 31, 2020 $ 1,993 $ 0 $ 2,070 $ 75 $ (146) $ (6)
Shares outstanding, beginning (in shares) at Dec. 31, 2020   143,059,000        
Treasury stock, beginning (in shares) at Dec. 31, 2020           900,000
Increase (Decrease) in Stockholders' Equity            
Net income 242     242    
Other comprehensive income, net of tax (19)       (19)  
Common stock issuance, net of shares withheld for taxes (3)   12     $ (15)
Common stock issuance, net of shares withheld for taxes (in shares)   1,749,000       540,000
Stock-based compensation expense 39   39      
End of period at Dec. 31, 2021 2,252 $ 0 2,121 317 (165) $ (21)
Shares outstanding, ending (in shares) at Dec. 31, 2021   144,808,000        
Treasury stock, ending (in shares) at Dec. 31, 2021           1,440,000
Increase (Decrease) in Stockholders' Equity            
Net income 283     283    
Other comprehensive income, net of tax (47)       (47)  
Common stock issuance, net of shares withheld for taxes (9)   5     $ (14)
Common stock issuance, net of shares withheld for taxes (in shares)   1,414,000       610,000
Stock-based compensation expense 50   50      
End of period at Dec. 31, 2022 2,529 $ 0 2,176 600 (212) $ (35)
Shares outstanding, ending (in shares) at Dec. 31, 2022   146,222,000        
Treasury stock, ending (in shares) at Dec. 31, 2022           2,050,000
Increase (Decrease) in Stockholders' Equity            
Net income 210     210    
Other comprehensive income, net of tax 18       18  
Common stock issuance, net of shares withheld for taxes (11)   6     $ (17)
Common stock issuance, net of shares withheld for taxes (in shares)   1,726,000       927,000
Stock-based compensation expense 44   44      
Common stock repurchases (41)         $ (41)
Common stock repurchases (shares)   (2,559,000)       (2,559,000)
End of period at Dec. 31, 2023 $ 2,749 $ 0 $ 2,226 $ 810 $ (194) $ (93)
Shares outstanding, ending (in shares) at Dec. 31, 2023   145,389,000        
Treasury stock, ending (in shares) at Dec. 31, 2023           5,536,000
v3.24.0.1
Nature of Operations and Basis of Presentation
 12 Months Ended
Dec. 31, 2023
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 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 Consolidated Financial Statements include the accounts of the Company and our wholly-owned subsidiaries and have been prepared in accordance with U.S. GAAP. All intercompany accounts, transactions and profits arising from consolidated entities have been eliminated in consolidation.
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 purposes of comparability, certain prior period amounts have been reclassified to conform to current period classification.
Subsequent Events
None
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Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
We consider the following policies to be beneficial in understanding the judgment involved in the preparation of our Consolidated Financial Statements and the uncertainties that could impact our financial condition, results of operations and cash flows.
(a) Use of Estimates—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities in the Consolidated Financial Statements and accompanying notes. Estimates are used for, but not limited to, provisions for expected credit losses and inventory reserves, accounting for business combinations and dispositions, valuation of reporting units for purposes of assessing goodwill for impairment, valuation of long-lived asset groups for impairment testing, accruals for employee benefits, stock-based compensation, pension benefits, indemnification liabilities, deferred taxes, warranties and certain contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.
(b) Cash, Cash Equivalents and Restricted Cash—Cash and cash equivalents may consist of cash on hand, money market instruments, time deposits and highly liquid investments. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted as to the withdrawal or use under terms of certain contractual agreements are recorded in other current assets on the Consolidated Balance Sheets and primarily relate to collateral to support certain bank guarantees. Restricted cash for the periods presented were not material. Cash, cash equivalents and restricted cash are carried at cost, which approximates fair value.

(c) Accounts Receivable and Allowance for Doubtful Accounts—Accounts receivable are recorded at the invoiced amount, presented net of allowance for doubtful accounts and do not bear interest. We review the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic
conditions to make adjustments in the allowance when it is considered necessary. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Allowance for doubtful accounts was not material as of December 31, 2023 and 2022, respectively.
(d) Inventories—Inventories are stated at lower of cost or net realizable value and valued by the first-in-first-out method. Inventory reserves are maintained for obsolete and surplus items.

The following tables summarize the details of our inventory, net:
December 31,
(in millions)20232022
Raw materials$221 $251 
Work in process18 25 
Finished products702 699 
Total inventories, net$941 $975 

(e) Property, Plant and Equipment—Property, plant and equipment are stated at cost, less accumulated depreciation. For financial reporting purposes the straight-line method of depreciation is used over the estimated useful lives. Leasehold improvements are capitalized and amortized using the straight-line method over the shorter of their estimated useful lives or the term of the underlying lease. Depreciation is recognized in cost of sales, research and development, and selling, general and administrative expenses based on the nature and use of the underlying assets.

The following table summarizes the details of our property, plant and equipment, including useful lives:

December 31,
(in millions)20232022Useful Lives
Machinery and equipment$659 $647 
3-16 years
Buildings and improvements314 303 
10-50 years
Construction in progress85 80 NA
Land10 9 NA
Gross property, plant and equipment1,068 1,039 
Accumulated depreciation(678)(673)
Total property, plant and equipment, net$390 $366 
NA = Not applicable; assets categorized as construction in progress and land are not depreciated.

Depreciation expense was $59 million, $59 million and $58 million for the years ended December 31, 2023, 2022 and 2021, respectively.

(f) Impairment of Long-Lived Assets—We assess the recoverability of the carrying amount of property, plant and equipment if events or changes in circumstances indicate that the carrying amount or related group of assets may not be recoverable. If the expected undiscounted cash flows are less than the carrying amount of the asset an impairment loss is recognized.

(g) Goodwill and Intangible Assets—We review the carrying values of goodwill and identifiable intangibles whenever events or changes in circumstances indicate that such carrying values may not be recoverable and annually, on the first day of the fourth quarter. If the carrying value of a reporting unit exceeds its fair value, we record a goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Refer to Note 9. Goodwill and Intangible Assets, net to Consolidated Financial Statements.

(h) Restructuring—We enter into various restructuring initiatives, optimization projects, strategic transactions, and other business activities that may include the recognition of exit or disposal costs. Exit or disposal costs are typically costs of termination benefits, such as severance and costs associated with the closure or consolidation of operating facilities.
Impairment of property and equipment and other current or long-term assets as a result of a restructuring initiative is recognized as a reduction of the appropriate asset. Refer to Note 6. Restructuring to Consolidated Financial Statements.

(i) Derivatives—Our interest rate swap agreements effectively modify our exposure to interest rate risk by converting floating rate debt to a fixed rate for the term of the swap agreements, reducing the impact of interest rate changes on future interest expense. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreement without an exchange of the underlying principal amount.

Our interest rate swap agreements are designated as cash flow hedges with effectiveness of the hedges assessed at inception and quarterly thereafter. To the extent the hedging relationship is highly effective, the unrealized gains or losses on the swaps are recorded in accumulated other comprehensive loss and reclassified into earnings within interest expense, net when the payments occur. We classify our cash flows related to interest rate swap agreements as operating activities in the Consolidated Statements of Cash Flows.

The fair values of the interest rate swaps are reflected as an other asset or liability in the Consolidated Balance Sheets and the change in fair value is reported in accumulated other comprehensive loss. The fair values of the interest rate swaps are estimated as the net present value of projected cash flows based upon forward interest rates at the balance sheet date. We do not offset fair value amounts recognized in our Consolidated Balance Sheets for presentation purposes. Refer to Note 12. Derivative Financial Instruments to Consolidated Financial Statements.
(j) Warranties and Guarantees—Expected warranty costs for products sold are recognized based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, length of the warranty and various other considerations. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of the warranty accrual at the time an obligation becomes probable and can be reasonably estimated. We periodically adjust these provisions to reflect actual experience and other facts and circumstances that impact the status of existing claims. Refer to Note 15. Commitments and Contingencies to Consolidated Financial Statements.

(k) Leases—Included in our Consolidated Balance Sheets are certain operating leases that are reported as a component of other assets and other liabilities. The leased assets represent our right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. An incremental borrowing rate is used to calculate the present value of the remaining lease payments.

Each contract is reviewed at inception to determine if it contains a lease and whether the lease qualifies as an operating or financing lease. For short-term leases (leases with a term of 12 months or less), right-of-use assets or lease liabilities are not recognized in the Consolidated Balance Sheets. Operating leases are expensed on a straight-line basis over the term of the lease. In determining the lease term, we consider the probability of exercising renewal or early termination options. In addition to the monthly base rent, we are often charged separately for common area maintenance, utilities and taxes, which are considered a non-lease component. These non-lease component payments are expensed as incurred and are not included in operating lease assets or liabilities.

Right-of-use assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable in accordance with our long-lived asset impairment assessment policy. Refer to Note 10. Leases to Consolidated Financial Statements.

(l) Revenue Recognition—We enter into contracts that pertain to products, which are accounted for as separate performance obligations and are typically one year or less in duration. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For product sales, typically each product sold to a customer represents a distinct performance obligation. Revenue is measured as the amount of consideration expected to be received in exchange for our products. We recognize the majority of our revenue from performance obligations outlined in contracts with our customers that are satisfied at a point in time, generally when the product has shipped from our facility and control has transferred to the customer. For certain products, it is industry practice that customers take title to products upon delivery, at which time revenue is then recognized. Allowances for cash discounts, volume rebates and other customer incentive programs, as well as gross customer returns, among others, are recorded as a reduction of sales at the time of sale based upon the estimated future outcome. Cash discounts, volume rebates and other customer incentive programs are based upon certain percentages agreed upon with various customers, which are typically earned by the customer over an annual period.
Revenue is adjusted for variable consideration, which includes customer volume rebates and prompt payment discounts. We measure variable consideration by estimating expected outcomes using analysis and inputs based upon anticipated performance, historical data, and current and forecasted information. Customer returns are recorded as a reduction to sales on an actual basis throughout the year and also include an estimate at the end of each reporting period for future customer returns related to sales recorded prior to the end of the period. We generally estimate customer returns based upon the time lag that historically occurs between the sale date and the return date, while also factoring in any new business conditions that might impact the historical analysis such as new product introduction. Measurement of variable consideration is reviewed by management periodically and revenue is adjusted accordingly. We do not have significant financing components.

Sales, use and value added taxes collected and remitted to various government authorities were not recognized as revenue and are reported on a net basis. Shipping and handling fees billed to customers are included in cost of goods sold. Refer to Note 5. Revenue Recognition to Consolidated Financial Statements.

(m) Royalty—In connection with the Spin-Off, we entered into a 40-year Trademark License Agreement (the “Trademark Agreement”) with Honeywell that authorizes our use of certain licensed trademarks in the operation of Resideo’s business for the advertising, sale and distribution of certain licensed products. In exchange, we pay a royalty fee of 1.5% of net revenue of the licensed products to Honeywell, which is recorded in selling, general and administrative expense on the Consolidated Statements of Operations. Refer to Note 15. Commitments and Contingencies to Consolidated Financial Statements.

(n) Reimbursement Agreement—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, which include amounts billed, with respect to certain environmental claims, remediation and, to the extent arising after the Spin-Off, hazardous exposure or toxic tort claims, in each case, including consequential damages (the liabilities) in respect of specified Honeywell properties contaminated through historical business operations prior to the Spin-Off (Honeywell Sites), including the legal and other costs of defending and resolving such liabilities, 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 amount payable in respect of such liabilities arising in any given year is subject to a cap of $140 million. Reimbursement Agreement expenses are presented within other expense, net in the Consolidated Statements of Operations and within obligations payable under Indemnification Agreements in the Consolidated Balance Sheets. Refer to Note 15. Commitments and Contingencies to Consolidated Financial Statements.

(o) Environmental—We 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. Environmental costs for our owned sites are presented within cost of goods sold for operating sites in the Consolidated Statements of Operations. Refer to Note 15. Commitments and Contingencies.

(p) Tax Indemnification Agreement—The Tax Matters Agreement provides that Resideo is required to indemnify Honeywell for any taxes (and reasonable expenses) 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 (a) breaches of covenants and representations we make and agree to in connection with the Spin-Off, (b) the application of certain provisions of U.S. federal income tax law to these transactions or (c) any other action taken or omission made (other than actions expressly required or permitted by the Separation and Distribution Agreement, the Tax Matters Agreement or other ancillary agreements) after the consummation of the Spin-Off that gives rise to these taxes. As of December 31, 2023 and 2022, we had an indemnity outstanding to Honeywell for past and potential future tax payments of $97 million and $106 million, respectively. Refer to Note 15. Commitments and Contingencies to Consolidated Financial Statements.

(q) Research and Development—We conduct research and development activities, which consist primarily of the development of new products and solutions as well as enhancements and improvements to existing products that substantially change the product. Research and development costs primarily relate to employee compensation and consulting fees, which are charged to expense as incurred.

(r) Defined Contribution Plans—We sponsor various defined contribution plans with varying terms depending on the country of employment. For the years ended December 31, 2023, 2022 and 2021, we recognized compensation expense related to the defined contribution plans of $22 million, $22 million, and $19 million, respectively.
(s) Stock-Based Compensation Plans—The principal awards issued under our stock-based compensation plans, which are described in Note 8. Stock-Based Compensation Plans, are restricted stock units. The cost for such awards is measured at the grant date based on the fair value of the award. Some awards are issued with a market condition, which are valued on the grant date utilizing a Monte Carlo simulation model. Stock options are also issued under our stock-based compensation plans and are valued on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model and the Monte Carlo simulation model require estimates of future stock price volatility, expected term, risk-free interest rate and forfeitures.

For all stock-based compensation, the fair value of the award is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. Our time-based restricted stock awards are typically subject to graded vesting over a service period; while our performance or market based awards are typically subject to cliff vesting at the end of the service period.

(t) Pension—We disaggregate the service cost component of net benefit costs and report those costs in the same line item or items in the Consolidated Statements of Operations as other compensation costs arising from services rendered by the pertinent employees during the period. The other non-service components of net benefit costs are required to be presented separately from the service cost component and outside of income from operations.

We have recorded the service cost component of pension expense in costs of goods sold and selling, general and administrative expenses based on the classification of the employees it relates to. The remaining components of net benefit costs within pension expense, primarily interest costs and expected return on plan assets, are recorded in other expense, net. We recognize net actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plans’ projected benefit obligation (the “corridor”) annually in the fourth quarter of each year. This adjustment is reported in other expense, net in the Consolidated Statements of Operations. Refer to Note 7. Pension Plans to Consolidated Financial Statements.

(u) Foreign Currency Translation—Assets and liabilities of operations outside the U.S. with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Revenue, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss.

(v) Income Taxes—Significant judgment is required in evaluating tax positions. We established additional reserves for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum recognition threshold. The approach for evaluating certain and uncertain tax positions is defined by the authoritative guidance, which determines when a tax position is more likely than not to be sustained upon examination by the applicable taxing authority. In the normal course of business, the Company and our subsidiaries are examined by various federal, state and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a change in estimate become known. Refer to Note 17. Income Taxes to Consolidated Financial Statements.

(w) Accounting Pronouncements—We consider the applicability and impact of all recent accounting standards updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on our Consolidated Financial Statements.

Adopted Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and subsequent amendment to the initial guidance: ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. This guidance may be applied prospectively to contract modifications made and hedging relationships entered into or
evaluated on or before December 31, 2024. We adopted these ASUs during the second quarter of 2023. The impact of the adoption of this standard on our financial statements and related disclosures, including accounting policies, processes, and systems, was not material. Refer to Note 11. Long-Term Debt and Note 12. Derivative Financial Instruments to Consolidated Financial Statements.
v3.24.0.1
Acquisitions and Divestitures
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisitions and Divestitures Acquisitions and Divestitures
Pro forma results of operations for the following acquisitions have not been presented, as the impacts on our consolidated financial results were not material.

2023

Genesis Cable—On October 16, 2023, we sold the Genesis Cable business in a cash transaction for $86 million, subject to working capital and other closing adjustments. We recognized a pre-tax gain of $18 million in other expenses, net in our Consolidated Statements of Operations, which includes $5 million of divestiture related costs. The divested business did not represent a strategic shift that has a major effect on our operations and financial results, and, as such, it was not presented as discontinued operations.

Sfty AS—On August 9, 2023, we acquired 100% of the outstanding equity of Sfty AS, a developer of cloud-based services providing alerts to multifamily homes and property managers with smoke, carbon monoxide and water leak detection products. We report Sfty AS’s results within the Products and Solutions segment. We completed the accounting for the acquisition during the fourth quarter of 2023, which did not result in any material adjustments.

BTX Technologies, Inc.—On January 23, 2023, we acquired 100% of the outstanding equity of BTX Technologies, Inc., (“BTX”) a leading distributor of professional audio, video, data communications, and broadcast equipment. We report BTX’s results within the ADI Global Distribution segment. We completed the accounting for the acquisition during the fourth quarter of 2023, which did not result in any material adjustments.

2022

Teknique Limited—On December 23, 2022, we acquired 100% of the outstanding equity of Teknique Limited, a developer and producer of edge-based, artificial intelligence-enabled video camera solutions. We report Teknique Limited’s results within the Products and Solutions segment. Purchase consideration included cash and a note payable with the former owner. We completed the accounting for the acquisition during the fourth quarter of 2023, which did not result in any material adjustments.

Electronic Custom Distributors, Inc.—On July 5, 2022, we acquired 100% of the outstanding equity of Electronic Custom Distributors, Inc., a regional distributor of residential audio, video, automation, security, wire and telecommunication products. We report Electronic Customer Distributors, Inc.’s results within the ADI Global Distribution segment. We completed the accounting for the acquisition during the first quarter of 2023, which did not result in any adjustments.

First Alert, Inc.—On March 31, 2022, we acquired 100% of the outstanding equity of First Alert, Inc. (“First Alert”), a leading provider of home safety products. We report First Alert, Inc.’s results within the Products and Solutions segment. We completed the accounting for the acquisition during the first quarter of 2023, which did not result in any adjustments.

Arrow Wire and Cable, Inc.—On February 14, 2022, we acquired 100% of the outstanding equity of Arrow Wire and Cable, Inc., a leading regional distributor of data communications, connectivity and security products. The business is included within the ADI Global Distribution segment and is expected to strengthen our global distribution portfolio in the
data communications category with an assortment of copper and fiber cabling and connectivity, connectors, racking solutions, and network equipment. We completed the accounting for the acquisition during the first quarter of 2023, which did not result in any adjustments.
v3.24.0.1
Segment Financial Data
 12 Months Ended
Dec. 31, 2023
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.

Corporate—Corporate expenses include expenses related to the corporate office as well as supporting the operating segments, but do not relate directly to revenue-generating activities primarily including unallocated stock-based compensation expenses, unallocated pension expense, restructuring expenses, acquisition-related costs, and other expenses related to executive, legal, finance, tax, treasury, human resources, IT, strategy, communications, and corporate travel expenses. Additional unallocated amounts primarily include non-operating items such as Reimbursement Agreement expense, interest income, interest expense, and other income (expense). The Reimbursement Agreement is further described in Note 15. Commitments and Contingencies to Consolidated Financial Statements.

The following tables represent summary financial data attributable to the segments:

Years Ended December 31,
(in millions)202320222021
Net revenue
Products and Solutions$2,672 $2,783 $2,468 
ADI Global Distribution3,570 3,587 3,378 
Total net revenue$6,242 $6,370 $5,846 

Years Ended December 31,
(in millions)202320222021
Income from operations
Products and Solutions$495 $527 $541 
ADI Global Distribution270 313 268 
Corporate(218)(229)(250)
Total income from operations$547 $611 $559 
Years Ended December 31,
(in millions)202320222021
Depreciation and amortization
Products and Solutions$71 $69 $65 
ADI Global Distribution18 14 11 
Corporate9 11 12 
Total depreciation and amortization$98 $94 $88 

Years Ended December 31,
(in millions)202320222021
Capital expenditures
Products and Solutions$77 $55 $37 
ADI Global Distribution26 29 24 
Corporate2 1 2 
Total capital expenditures$105 $85 $63 

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.
v3.24.0.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregated Revenue
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. Beginning January 1, 2022, the Products and Solutions operating segment further disaggregated the Comfort product grouping into Air and Water and Residential Thermal Solutions is now referenced as Energy. As of April 1, 2022, the First Alert business is included in the Security and Safety grouping.
A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For product sales, typically each product sold to a customer represents a distinct performance obligation. We recognize the majority of our revenue from performance obligations outlined in contracts with our customers that are satisfied at a point in time. Approximately 2% of our revenue is satisfied over time. As of December 31, 2023 and 2022, contract assets and liabilities were not material.
The timing of satisfaction of performance obligations does not significantly vary from the typical timing of payment. For some contracts, we may be entitled to receive an advance payment.
We have applied the practical expedient to not disclose the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which it recognizes revenue in proportion to the amount it has the right to invoice for services performed.
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:
Years Ended December 31,
(in millions)202320222021
Products and Solutions
Air$862 $953 $858 
Safety and Security965 913 667 
Energy525 595 594 
Water320 322 349 
Total Products and Solutions2,672 2,783 2,468 
ADI Global Distribution
U.S. and Canada3,085 3,087 2,814 
EMEA (1)
485 474 523 
APAC (2)
— 26 41 
Total ADI Global Distribution3,570 3,587 3,378 
Total net revenue$6,242 $6,370 $5,846 
(1)EMEA represents Europe, the Middle East and Africa.
(2)APAC represents Asia and Pacific countries.
v3.24.0.1
Restructuring
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring Restructuring
In the fourth quarter of 2022 and during 2023, we took actions to align our cost structure with market conditions. The intent of these actions is to lower costs, increase margins, and position us for long-term growth. Restructuring and impairment expense was $42 million and $35 million for the years ended December 31, 2023 and 2022, respectively. During 2021, there were no new restructuring programs or restructuring and impairment charges.

The following table represents restructuring and impairment expense attributable to the segments:

Years Ended December 31,
(in millions)20232022
Products and Solutions$27 $29 
ADI Global Distribution12 2 
Corporate3 4 
Restructuring and impairment expenses$42 $35 

Restructuring and impairment expense, net is presented in the Consolidated Statements of Operations and relate to workforce reductions as well as the impairment of certain long-lived assets. We expect to fully execute our restructuring initiatives and programs over the next 12 to 24 months, and we may incur future additional restructuring expenses associated with these 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 plans or the total costs we may incur in connection with these plans.
The following table summarizes the status of our restructuring expenses included within accrued liabilities on the Consolidated Balance Sheets.

December 31,
(in millions)202320222021
Beginning of year$27 $9 $24 
Charges34 26 — 
Usage (1)
(31)(5)(11)
Other— (3)(4)
End of year$30 $27 $9 
v3.24.0.1
Pension Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Pension Plans Pension Plans
We sponsor multiple funded and unfunded U.S. and non-U.S. defined benefit pension plans. Pension benefits for many of our U.S. employees are provided through non-contributory, qualified and non-qualified defined benefit plans. We also sponsor defined benefit pension plans that cover non-U.S. employees, in certain jurisdictions, principally Germany, Switzerland, the Netherlands, Belgium, India, Austria, and France.

We triggered settlement accounting and performed a remeasurement of our U.S. qualified defined benefit pension plan as a result of a voluntary lump sum window offering and the purchase of a group annuity contract that transferred a portion of the assets and liabilities to an insurance company during the first quarter of 2023. Non-cash pension settlement losses of $6 million was recognized within other expense, net in the Consolidated Statements of Operations for the year ended December 31, 2023. The corresponding remeasurement of our U.S. qualified defined benefit pension plan resulted in decreases of $83 million in plan assets and $78 million in liabilities for the year ended December 31, 2023. Additionally, there was a curtailment of the non-U.S. defined benefit pension plans as a result of our restructuring activities which resulted in a $2 million gain recognized within other expense, net in the Consolidated Statements of Operations for the year ended December 31, 2023.
The following table summarizes the balance sheet impact, including the benefit obligations, assets and funded status associated with the pension plans:

U.S. Plans Non-U.S. Plans
(in millions)202320222021202320222021
Change in benefit obligation:
Benefit obligation at beginning of year$281 $348 $374 $96 $141 $161 
Service cost3 7 7 4 5 7 
Interest cost13 11 10 3 2 1 
Actuarial losses (gains)23 (66)(20)8 (45)(18)
Net benefits paid(3)(18)(5)4 — — 
Settlements and curtailments(83)(1)(18)(13)— (1)
Other— — — 1 1 1 
Foreign currency translation— — — 5 (8)(10)
Benefit obligation at end of year234 281 348 108 96 141 
Change in plan assets:
Fair value of plan assets at beginning of year262 342 340 27 32 28 
Actual return on plan assets20 (62)25 1 (6)2 
Employer contributions— 1 — 2 3 3 
Net benefits paid(3)(18)(5)4 — 1 
Settlements and curtailments(83)(1)(18)(11)— (1)
Other1 — — 1 (1)— 
Foreign currency translation— — — 2 (1)(1)
Fair value of plan assets at end of year197 262 342 26 27 32 
Funded status of plans (non-current)$(37)$(19)$(6)$(82)$(69)$(109)

The amounts recognized in accrued liabilities on the Consolidated Balance Sheets were $2 million at December 31, 2023 and 2022. The amounts recognized in other liabilities on the Consolidated Balance Sheets were $117 million and $86 million at December 31, 2023 and 2022, respectively.

The benefit obligation generated a global net actuarial loss of $31 million for the year ended December 31, 2023. The main driver of this loss was experience losses of $20 million. The loss was also driven by changes in actuarial assumptions that resulted in losses of $11 million.

Actual return on plan assets for the year ended December 31, 2023 was $21 million. The gain was primarily related to the U.S. and the Netherlands, which experienced gains of $20 million and $1 million, respectively.

Amounts recognized in accumulated other comprehensive loss associated with pension plans at December 31, 2023 and 2022 are as follows:

U.S. Plans Non-U.S. Plans
(in millions)2023202220232022
Prior service cost$— $— $2 $2 
Net actuarial loss (gain)20 13 — (8)
Net amount recognized$20 $13 $2 $(6)
The estimated actuarial losses and prior service costs that will be amortized from accumulated other comprehensive loss into net periodic pension cost over the next fiscal year are immaterial.

The components of net periodic benefit (income) cost for the years ended December 31, 2023, 2022 and 2021 are as follows:

U.S. Plans Non-U.S. Plans
(in millions)202320222021202320222021
Net periodic benefit cost (income)
Service cost$3 $7 $7 $4 $5 $7 
Interest cost13 11 10 3 2 1 
Expected return on plan assets(11)(17)(16)(1)(1)(1)
Amortization of prior service credit(1)(1)(1)— — — 
Amortization of actuarial losses (gains)2 — — — (33)(3)
Settlement and curtailment losses (gains)6 — — (2)— — 
Net periodic benefit cost (income)$12 $— $— $4 $(27)$4 

The components of net periodic benefit cost (income) other than the service cost are included in other expense, net in the Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 are as follows:

U.S. Plans Non-U.S. Plans
(in millions)202320222021202320222021
Other changes in plan assets and benefits obligations recognized in other comprehensive (income) loss
Actuarial losses (gains)$14 $(66)$(20)$9 $(45)$(18)
Prior service costs arising during the year— — — — 2 — 
Excess return on plan assets(1)
— 79 (9)— 6 — 
Actuarial (losses) gains recognized during the year(8)— — — 33 3 
Other1 — 1 (1)— (1)
Total recognized in other comprehensive (income) loss 7 13 (28)8 (4)(16)
Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss$19 $13 $(28)$12 $(31)$(12)
(1)Represents actual return on plan assets in excess of the expected return.
Significant actuarial assumptions used in determining the benefit obligations and net periodic benefit cost (income) for benefit plans are presented in the following table as weighted averages.

U.S. Plans Non-U.S. Plans
202320222021202320222021
Actuarial assumptions used to determine benefit obligations as of December 31:
Discount rate5.2 %3.1 %3.0 %3.4 %1.2 %1.2 %
Interest crediting rate6.0 %6.0 %6.0 %2.5 %1.5 %1.5 %
Expected annual rate of compensation increase3.5 %3.2 %3.2 %2.6 %2.4 %2.4 %
Actuarial assumptions used to determine net periodic benefit cost (income) for the year ended December 31:
Discount rate - benefit obligation5.0 %5.2 %2.7 %3.0 %3.4 %0.7 %
Interest crediting rate6.0 %6.0 %6.0 %2.2 %2.5 %1.5 %
Expected rate of return on plan assets5.3 %5.3 %4.7 %3.4 %1.3 %2.3 %
Expected annual rate of compensation increase3.5 %3.5 %3.5 %2.7 %2.6 %2.4 %

The discount rate for the U.S. pension plans reflects the current rate at which the associated liabilities could be settled at the measurement date of December 31. To determine discount rates for the U.S. pension plans, we use a modeling process that involves matching the expected cash outflows of its benefit plans to a yield curve constructed from a portfolio of high-quality, fixed income debt instruments. We use the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark.

The expected rate of return on U.S. plan assets of 5.3% is a long-term rate based on historical plan asset returns over varying long-term periods combined with current market conditions and broad asset mix considerations. We review the expected rate of return on an annual basis and revise it as appropriate. For non-U.S. benefit plans, actuarial assumptions reflect economic and market factors relevant to each country.

The following amounts relate to pension plans with accumulated benefit obligations exceeding the fair value of plan assets at December 31, 2023 and 2022.

U.S. PlansNon-U.S. Plans
(in millions)2023202220232022
Projected benefit obligation$234 $281 $106 $96 
Accumulated benefit obligation$230 $278 $96 $86 
Fair value of plan assets$197 $262 $25 $27 

The following amounts relate to pension plans with projected benefit obligations exceeding the fair value of the plan assets at December 31, 2023 and 2022.

U.S. PlansNon-U.S. Plans
(in millions)2023202220232022
Projected benefit obligation$234 $281 $108 $96 
Accumulated benefit obligation$230 $278 $98 $87 
Fair value of plan assets$197 $262 $26 $27 
We utilized a third-party investment management firm to serve as our Outsourced Chief Investment Officer; however, we have appointed an internal investment committee that monitors adherence to the investment guidelines the firm will follow.
We employ an investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities and plan funded status. The investment portfolio contains a diversified blend of equity and fixed income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value and small and large capitalizations. Other assets such as real estate and hedge funds may be used to improve portfolio diversification. The non-U.S. investment policies are different for each country as local regulations, funding requirements, and financial and tax considerations are part of the funding and investment allocation process in each country.

A majority of the U.S. pension plan assets as of December 31, 2023 do not have published pricing and are valued using Net Asset Value (“NAV”), which approximates fair value. NAV and fair value by asset category are as follows for December 31, 2023 and 2022:

U.S. Plans NAV
(in millions)20232022
Cash and cash equivalents$3 $6 
Equity64 45 
Government bonds14 21 
Corporate bonds58 132 
Real estate / property24 29 
Other34 29 
Total assets at fair value$197 $262 

The fair values of the non-U.S. pension plan assets by asset category are as follows for December 31, 2023 and 2022:

Non-U.S. Plans
20232022
(in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Equity$7 $7 $— $— $1 $1 $— $— 
Government bonds6 — 6 — 1 — 1 — 
Insurance contracts7 — — 7 6 — — 6 
Other6 — — 6 19 — — 19 
Total assets at fair value$26 $7 $6 $13 $27 $1 $1 $25 

Refer to Note 13. Fair Value to Consolidated Financial Statements.
The following table summarizes changes in the fair value of Level 3 assets for Non-U.S. plans:

(in millions)Non-U.S. Plans
Balance at January 1, 2021$26 
Return on plan assets1 
Purchases, sales and settlements, net4 
Other(1)
Balance at December 31, 202130 
Return on plan assets(3)
Other(2)
Balance at December 31, 202225 
Return on plan assets1 
Purchases, sales and settlements, net(14)
Other1 
Balance at December 31, 2023$13 

Government bonds and Corporate bonds held as of December 31, 2023 and 2022 are valued either by using pricing models, bids provided by brokers or dealers, quoted prices of securities with similar characteristics or discounted cash flows and as such include adjustments for certain risks that may not be observable such as credit and liquidity risks. Real estate, insurance contracts, and other investments as of December 31, 2023 and 2022 and are classified as Level 3 as there are neither quoted prices nor other observable inputs for pricing. Insurance contracts are issued by insurance companies and are valued at cash surrender value, which approximates the contract fair value. Other investments consist of a collective pension foundation that is valued and allocated by the plan administrator.

We utilize the services of retirement and investment consultants to actively manage the assets of our pension plans. We have established asset allocation targets and investment guidelines based on the guidance of the consultants. Our target allocations are 37% fixed income investments, 33% global equity investments, 12% global real estate investments and 18% cash and other investments.

Our general funding policy for qualified defined benefit pension plans is to contribute amounts at least sufficient to satisfy regulatory funding standards. In 2023, we were not required to make contributions to the U.S. pension plans, however we made immaterial contributions. There is not a requirement to make any contributions to the U.S. pension plans in 2024. In 2023, contributions of $3 million were made to the non-U.S. pension plans to satisfy regulatory funding requirements. In 2024, we expect to make contributions of cash and/or marketable securities of approximately $3 million to the non-U.S. pension plans to satisfy regulatory funding standards. Contributions for both the U.S. and non-U.S. pension plans do not reflect benefits paid directly from our assets.

Benefit payments, including amounts to be paid from our assets, and reflecting expected future service, as appropriate, are expected to be paid as follows:

(in millions)U.S. PlansNon-U.S. Plans
2024$19 $3 
2025$19 $3 
2026$19 $3 
2027$19 $3 
2028$19 $4 
2029-2033$86 $26 
v3.24.0.1
Stock-Based Compensation Plans
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Plans Stock-Based Compensation Plans
The Stock Incentive Plan, which consists of the Amended and Restated 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates and the 2018 Stock Incentive Plan for Non-Employee Directors of Resideo Technologies, Inc., provides for the grant of stock options, stock appreciation rights, restricted stock units, restricted stock and other stock-based awards.

During the second quarter of 2023, the Amended and Restated 2018 Stock Incentive Plan of Resideo Technologies, Inc. and its Affiliates was further amended to increase the number of shares of our common stock available for issuance by 3.5 million shares for an aggregate of 19.5 million shares with no more than 7.5 million shares being available for grant in the form of stock options. At December 31, 2023, 12 million shares of our common stock are available to be granted under the Stock Incentive Plan.
Summary of Stock-Based Compensation Expense

Our stock-based compensation expense, net of tax was $43 million, $48 million and $36 million for the years ended December 31, 2023, 2022 and 2021.
Restricted Stock Unit Activity

Restricted stock units (“RSUs”) are issued to certain key employees and to non-employee directors. These awards entitle the holder to receive one share of our common stock for each unit upon vesting. RSUs typically become fully vested over a three-year period following the grant date. RSU awards issued to our non-employee directors have a one-year service period. We measure stock-based compensation expense at the grant date based on the estimated fair value of the award.

Performance stock units (“PSUs”) are issued to certain key employees. These awards entitle the holder to receive a specified number of our common stock, dependent on our financial metrics or market conditions, for each unit upon vesting. PSUs typically become vested at the end of a three-year period and are payable in our common stock. PSUs granted in 2023 were issued with the shares awarded per unit being based on the difference in performance between the total stockholders’ return of our common stock against that of the S&P 600 Industrials Index. PSUs granted prior to 2023 were issued with the shares awarded per unit being based on the difference in performance between the total stockholders’ return of our common stock against that of the S&P 400 Industrials Index.

The fair values estimated from the Monte Carlo simulation for PSUs issued during the years ended December 31, 2023, 2022 and 2021 were calculated using the following assumptions:

Years Ended December 31,
202320222021
Expected volatility63.37 %59.01 %47.43 %
Risk-free interest rate %4.24 %1.58 %0.20 %
Expected term (in years)2.882.892.86
Dividend yield (1)
— %— %— %
(1) We have never declared or paid any cash dividends on our common stock and we currently do not intend to pay cash dividends.
The following table summarizes activity related to the Stock Incentive Plan for employees and non-employee directors:

PSUsRSUs
(in whole dollars)Number of
Performance
Stock Units 		Weighted
Average Grant
Date Fair Value
Per Share		Number of
Restricted
Stock Units 		Weighted
Average Grant
Date Fair Value
Per Share
Non-vested as of January 1, 20231,722,380$27.23 3,410,962$20.57 
Granted553,07129.89 2,298,93618.79 
Vested(611,631)27.03 (1,615,111)18.35 
Forfeited(69,954)38.47 (238,291)21.88 
Non-vested as of December 31, 20231,593,866$35.80 3,856,496$20.16 

As of December 31, 2023, unrecognized compensation cost related to unvested awards granted to employees and non-employee directors under the Stock Incentive Plan is as follows:

(in millions)Unrecognized Compensation CostWeighted-Average Period
RSUs$48 1 year, 9 months
PSUs20 1 year, 2 months
Total unrecognized compensation cost$68 
The fair value of shares vested follows:

Years Ended December 31,
(in millions)202320222021
RSUs$29 $36 $48 
PSUs14 $4 NA
Total$43 $40 $48 

Stock Option Activity

Stock option awards entitle the holder to purchase shares of our common stock at a specific price when the options vest. Stock options typically vest over 3 years from the date of grant and expire 7 years from the grant date.

There were no stock options granted to employees during the years ended December 31, 2023 and 2022. The fair value of stock options granted during the year ended December 31, 2021 was calculated using the following assumptions in the Black-Scholes model:

Year Ended December 31,
2021
Expected stock price volatility34%
Expected term of options5 years
Expected dividend yield (1)
—%
Risk-free interest rate0.77%
(1) We have never declared or paid any cash dividends on our common stock and we currently do not intend to pay cash dividends.

The aggregate intrinsic value disclosed below represents the total intrinsic value (the difference between the fair market value of our common stock as of December 31, 2023 and the exercise price, multiplied by the number of in-the-money service-based common stock options) that would have been received by the option holders had all option holders exercised
their options on December 31, 2023. This amount is subject to change based on changes to the fair market value of our common stock.

The following table summarizes stock option activity related to the Stock Incentive Plan:

Stock Options
(in whole dollars)Number of
Stock
Options 		Weighted
Average
Exercise
Price		Weighted
Average
Contractual
Life		Aggregate
Intrinsic
Value
Stock Options outstanding as of January 1, 20231,317,649$15.25 4.0 years$6 
Granted— —  
Forfeited— —  
Expired(96,692)24.35 
Exercised— — — 
Stock Options outstanding as of December 31, 20231,220,957$14.52 3.2 years$8 
Vested and expected to vest at December 31, 20231,220,957 $14.52 3.2 years$8 
Exercisable at December 31, 20231,070,957 $12.99 2.9 years$8 
For the year ended December 31, 2023, there was an immaterial amount of total unrecognized compensation cost related to non-vested stock options granted under the Stock Incentive Plan, which is expected to be recognized over a weighted-average period of approximately 1 year. Cash received from stock options exercised during the years ended December 31, 2023 and 2022 was not material as there were no options exercised. Cash received from stock options exercised during the year ended December 31, 2021 was $9 million.
v3.24.0.1
Goodwill and Intangible Assets, net
 12 Months Ended
Dec. 31, 2023
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 follows:

(in millions)Products and SolutionsADI Global DistributionTotal
Balance at January 1, 2022$2,010 $651 $2,661 
Acquisitions94 15 109 
Divestiture — (4)(4)
Impact of foreign currency translation(32)(10)(42)
Balance at December 31, 20222,072 652 2,724 
Acquisitions7 3 10 
Divestitures (46)— (46)
Adjustments (5)— (5)
Impact of foreign currency translation 17 5 22 
Balance at December 31, 2023$2,045 $660 $2,705 
The following table summarizes the net carrying amount of intangible assets:

December 31,
(in millions)20232022
Intangible assets subject to amortization$281 $295 
Indefinite-lived intangible assets180 180 
Total intangible assets$461 $475 

Intangible assets subject to amortization consisted of the following:

December 31, 2023
(in millions)Gross
Carrying
Amount		Accumulated
Amortization 		Net
Carrying
Amount		Useful LivesWeighted Average Amortization
Patents and technology$64 $(26)$38 
7 - 10 years
10 years
Customer relationships319 (138)181 
7 - 15 years
14 years
Trademarks9 (8)1 
5 - 10 years
10 years
Software193 (132)61 
2 - 7 years
5 years
Total intangible assets$585 $(304)$281 

December 31, 2022
(in millions)Gross
Carrying
Amount		Accumulated
Amortization 		Net
Carrying
Amount		Useful LivesWeighted Average Amortization
Patents and technology$65 $(28)$37 
3 - 10 years
10 years
Customer relationships313 (117)196 
7 - 15 years
14 years
Trademarks14 (8)6 
10 years
10 years
Software175 (119)56 
2 - 7 years
6 years
Total intangible assets$567 $(272)$295 

Intangible assets are amortized on a straight-line basis or a basis consistent with the expected future cash flows over their expected useful lives. Intangible assets amortization expense was $38 million, $35 million and $30 million during the years ended December 31, 2023, 2022 and 2021, respectively.

The estimated aggregate amortization on these intangible assets for each of the next five years as of December 31, 2023, follows:

(in millions)Amortization Expense
2024$38 
2025$40 
2026$35 
2027$29 
2028$26 
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
We are party to operating leases for the majority of our manufacturing sites, offices, engineering and lab sites, stocking locations, warehouses, automobiles, and certain equipment. Certain real estate leases include variable rental payments, which adjust periodically based on inflation. Other variable amounts paid under operating leases, such as taxes and common area maintenance, are charged to selling, general and administrative expenses as incurred. Generally, lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Payments arising from operating lease activity, as well as variable and short-term lease payments not included within the operating lease liability, are included as operating activities of our Consolidated Statements of Cash Flows. Operating lease payments representing costs to ready an asset for its intended use (i.e., leasehold improvements) are represented within investing activities within our Consolidated Statements of Cash Flows.

The operating lease expense follows:

Years Ended December 31,
(in millions)202320222021
Operating lease cost:
Selling, general and administrative expenses$57 $50 $46 
Cost of goods sold20 19 17 
Total operating lease costs$77 $69 $63 

Total operating lease costs include variable lease costs of $22 million, $19 million and $17 million for the years ended December 31, 2023, 2022, and 2021, respectively.

The following table summarizes the carrying amounts of our operating leased assets and liabilities along with key inputs used to discount our lease liabilities:

December 31,
(in millions, except weighted-average data)Financial Statement Line Item20232022
Operating lease assetsOther assets$192 $191 
Operating lease liabilities - currentAccrued liabilities$39 $37 
Operating lease liabilities - non-currentOther liabilities$166 $166 
Weighted-average remaining term6.32 years6.81 years
Weighted-average incremental borrowing rate6.12 %5.78 %

The following table summarizes our future minimum lease payments under our non-cancelable leases as of December 31, 2023:

(in millions)Commitments
2024$46 
202544 
202640 
202734 
202827 
Thereafter58 
Total lease payments249 
Less: Imputed interest44 
Present value of operating lease liabilities$205 
Supplemental cash flow information related to operating leases follows:

Years Ended December 31,
(in millions)202320222021
Cash paid for operating lease liabilities$36 $33 $33 
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities (1)
$39 $97 $46 
(1) The year ended December 31, 2022 includes $25 million of operating lease assets acquired from the First Alert acquisition.

As of December 31, 2023, we have additional operating leases that have not yet commenced. Obligations under these leases are not material. Additionally, as a lessor, we lease all or a portion of certain owned properties. Rental income for the years ended December 31, 2023, 2022 and 2021 was not material.
v3.24.0.1
Long-Term Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Long-term debt is comprised of the following:
December 31,
(in millions)20232022
4.000% senior notes due 2029
$300 $300 
Variable rate A&R Term B Facility 1,119 1,131 
Gross debt1,419 1,431 
Less: current portion of long-term debt(12)(12)
Less: unamortized deferred financing costs(11)(15)
Total long-term debt$1,396 $1,404 

Aggregate required principal payments on long-term debt outstanding at December 31, 2023, follows:

(in millions)Payments
2024$12 
202512 
202612 
202712 
20281,073 
Thereafter300 
Total$1,419 

A&R Senior Credit Facilities

On February 12, 2021, we entered into an A&R Credit Agreement with JP Morgan Chase Bank N.A. as administrative agent. This agreement effectively replaced our previous senior secured credit facilities. The A&R Credit Agreement provides for an (i) initial seven-year senior secured Term B loan facility in an aggregate principal amount of $950 million, which was further amended on March 28, 2022 to include an additional aggregate principal amount of $200 million in term loans (the “A&R Term B Facility”), (ii) 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”).

We are obligated to make quarterly principal payments throughout the term of the A&R Term B Facility according to the amortization provisions in the A&R Credit Agreement.

In addition to paying interest on outstanding borrowings under the A&R Revolving Credit Facility, we are required to pay a quarterly commitment fee based on the unused portion of the A&R Revolving Credit Facility. Borrowings under the
A&R Credit Agreement can be prepaid at our option without premium or penalty. Up to $75 million may be utilized under the A&R Revolving Credit Facility for the issuance of letters of credit to us or any of our subsidiaries.

The A&R Senior Credit Facilities contain customary LIBOR replacement language, including, but not limited to, the use of rates based on SOFR, which is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement market and is administered by the Federal Reserve Bank of New York. On June 30, 2023, we modified the calculation of interest under the A&R Senior Credit Facilities from being calculated based on LIBOR to being calculated based on SOFR. Therefore, the A&R Senior Credit Facilities bears interest at a rate per annum of Term SOFR plus a credit spread adjustment of 10 basis points for the A&R Revolving Credit Facility and varying credit spread adjustments for the A&R Term B Facility, based on the tenor of each individual borrowing. No other material terms of the A&R Senior Credit Facilities were amended.

The A&R Credit Agreement contains certain financial maintenance covenants and affirmative and negative covenants customary for financings of this type. All obligations under the A&R Senior Credit Facilities are unconditionally guaranteed jointly and severally by us and substantially all of the direct and indirect wholly owned subsidiaries of ours that are organized under the laws of the U.S. (collectively, the “Guarantors”). The A&R Senior Credit Facilities are secured on a first priority basis by the equity interests of each direct subsidiary of ours, as well as the tangible and intangible personal property and material real property of ours and each of the Guarantors.

At December 31, 2023 and 2022, the weighted average interest rate for the A&R Term B Facility, excluding the effect of the interest rate swaps, was 7.72% and 6.78%, respectively and there were no borrowings and no letters of credit issued under the A&R Revolving Credit Facility. As of December 31, 2023, we were in compliance with all covenants related to the A&R Credit Agreement and Senior Notes due 2029.

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. Refer to Note 12. Derivative Financial Instruments to Consolidated Financial Statements.

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 are senior unsecured obligations of Resideo guaranteed by Resideo’s existing and future domestic subsidiaries and rank equally with all of Resideo’s senior unsecured debt and senior to all of Resideo’s subordinated debt.

We may, at our option, redeem the Senior Notes due 2029 in whole (at any time) or in part (from time to time), at varying prices based on the timing of the redemption.

The Senior Notes due 2029 limit us and our restricted subsidiaries’ ability to, among other things, incur additional secured indebtedness and issue preferred stocks; enter into certain sale and leaseback transactions; incur liens; and consolidate, merge or sell all or substantially all of their assets. These covenants are subject to a number of limitations and exceptions. Additionally, upon certain events constituting a change of control together with a ratings downgrade, the holders of the Senior Notes due 2029 have the right to require us to offer to repurchase the Senior Notes due 2029 at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, to (but not including) the date of purchase.

Senior Notes Redemptions

As a result of the redemption of the 6.125% senior unsecured notes (the “Senior Notes due 2026”) and the execution of the A&R Credit Agreement, debt extinguishment costs of $41 million were incurred and recorded in other expense, net for the year ended December 31, 2021.
v3.24.0.1
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2023
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.
In March and April 2023, we modified two of the eight Swap Agreements, each with a notional value of $70 million that matures in May 2024 as follows: (i) the original interest rate swap agreements were cancelled for no termination payment and (ii) we simultaneously entered into new pay-fixed interest rate swap agreements with a notional amount of $70 million each, effectively blending the asset positions of the original interest rate swap agreements into new interest swap agreements and extending the term of our hedged positions to February 2027. In connection with these transactions, no cash was exchanged between us and the counterparty. The new pay-fixed interest rate swap agreements qualify as a hybrid instrument 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. The amounts remaining in accumulated other comprehensive loss for the modified interest rate swap agreements as of December 31, 2023 were approximately $2 million in aggregate and are being amortized as a reduction to interest expense over the effective period of the original interest rate swap agreements, or May 2024. The financing components are accounted for at amortized cost over the life of the swap while the embedded at-market derivatives are accounted for at fair value.

On June 23, 2023, we amended the Swap Agreements to transition from a hedge of LIBOR-based cash flows to a hedge of SOFR-based cash flows. Under the amended Swap Agreements, we convert a portion of our variable interest rate obligations based on Term SOFR with a minimum rate of 0.39% per annum to a base fixed weighted average rate of 1.13% over the remaining terms. We designated the Swap Agreements as cash flow hedges of the variability in expected cash outflows for interest payments.

The Swap Agreements are adjusted to fair value on a quarterly basis. The fair value of each swap is presented within the Consolidated Balance Sheets, and we recognize any changes in the fair value as an adjustment of accumulated other comprehensive loss within equity to the extent the swap is effective. As interest expense is accrued on the debt obligation, amounts in accumulated other comprehensive loss related to the Swap Agreements are reclassified into income resulting in a net interest expense on the hedged amount of the underlying debt obligation equal to the effective yield of the fixed rate of the swap.

The following table summarizes the fair value and presentation of derivative instruments in the Consolidated Balance Sheets as well as the pre-tax gain (loss) recorded in accumulated other comprehensive loss:

Fair Value of Derivative Assets
December 31,
(in millions)Financial Statement Line Item20232022
Derivatives designated as hedging instruments
Interest rate swapsOther current assets$20 $23 
Interest rate swapsOther assets10 22 
Total derivative assets designated as hedging instruments$30 $45 
Unrealized gainAccumulated other comprehensive loss$25 $42 
Unrealized gains expected to be reclassified from accumulated other comprehensive loss in the next 12 months are estimated to be $22 million as of December 31, 2023.
The following tables summarize the effect of derivative instruments designated as cash flow hedges in other comprehensive income (loss) and the Consolidated Statements of Operations:

Years Ended December 31,
(in millions)Financial Statement Line Item20232022
Gains recorded in accumulated other comprehensive loss, beginning of year$42 $6 
Current period gain (loss) recognized in/reclassified from other comprehensive incomeInterest expense, net25 42 
(Gains) losses reclassified from accumulated other comprehensive loss to net incomeInterest expense, net(42)(6)
Gains recorded in accumulated other comprehensive loss, end of year$25 $42 
v3.24.0.1
Fair Value
 12 Months Ended
Dec. 31, 2023
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 December 31, 2023 and 2022.

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:

December 31, 2023December 31, 2022
(in millions)Carrying ValueFair ValueCarrying ValueFair Value
Debt
4.000% Senior Notes due 2029
$300 $266 $300 $242 
Variable rate A&R Term B Facility 1,119 1,122 1,131 1,125 
Total debt$1,419 $1,388 $1,431 $1,367 

As of December 31, 2023 and 2022, there were no borrowings and no letters of credit issued under the A&R Revolving Credit Facility. Refer to Note 11. Long-Term Debt to Consolidated Financial Statements.

Credit and Market Risk—Credit risk represents the loss that would be recognized at the reporting date if counterparties failed to perform as contracted. Market risk represents our exposure to changes associated with our international operations as we generate revenue and incur expenses in various currencies. We continually monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. The terms and conditions of credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. Management does not believe we are exposed to any significant concentrations of credit risk that arise from cash and cash equivalent investments, derivatives or accounts receivable.
Foreign Currency Risk Management—We conduct business on a multinational basis in a wide variety of foreign currencies. We are exposed to market risks from changes in currency exchange rates. These exposures may impact future earnings and/or operating cash flows. The exposure to market risk for changes in foreign currency exchange rates arises from transactions arising from international trade, foreign currency denominated monetary assets and liabilities, and international financing activities between subsidiaries. We rely on natural offsets to address the exposures. As of December 31, 2023 and 2022, we had no forward or option hedging contracts.

Interest Rate Risk—We have exposure to movements in interest rates associated with cash and borrowings. We may enter into various interest rate protection agreements in order to limit the impact of movements in interest rates.

The following table provides a summary of the carrying amount and fair value of our interest rate swaps:

December 31, 2023December 31, 2022
(in millions)Carrying ValueSignificant other
observable inputs
(Level 2)		Carrying ValueSignificant other
observable inputs
(Level 2)
Assets:
Interest rate swaps$30 $30 $45 $45 

There are no Level 1 or Level 3 assets or liabilities for the periods presented. The fair values of derivative financial instruments 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. Refer to Note 12. Derivative Financial Instruments to Consolidated Financial Statements.

The fair value calculated during the annual goodwill and indefinite-lived intangible asset impairment test uses the market approach in combination with the income approach for the reporting units and the relief from royalty method for the indefinite-lived intangible assets, respectively. The fair value is a Level 3 valuation based on certain unobservable inputs including estimated future cash flows and discount rates aligned with market-based assumptions, that would be utilized by market participants in valuing these assets or prices of similar assets. In addition, for long-lived assets, we performed an impairment test for certain location level assets. We utilize primarily the replacement cost method (a Level 3 valuation method) for the fair value of property, plant and equipment, and the income method to estimate the fair value of right-of-use assets, which incorporates Level 3 inputs such as internal business plans, real estate market capitalization and rental rates, and discount rates. Refer to Note 2. Summary of Significant Accounting Policies and Note 10. Leases to Consolidated Financial Statements.
The carrying amounts of cash and cash equivalents, accounts receivable, other current assets, accounts payable, accrued and other liabilities approximate fair value because of the short-term maturity of these amounts.
v3.24.0.1
Accrued Liabilities
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Accrued Liabilities Accrued Liabilities
Accrued liabilities consist of the following:
December 31,
(in millions)20232022
Obligations payable under Indemnification Agreements$140 $140 
Compensation, benefit and other employee-related110 108 
Customer rebate reserve104 98 
Restructuring
30 27 
Product warranties24 40 
Current operating lease liability39 37 
Taxes payable34 38 
Other (1)
128 152 
Total accrued liabilities$608 $640 
(1) Other includes accruals for advertising, legal and professional reserves, freight, royalties, interest, and other miscellaneous items.
The Indemnification Agreements are further described in Note 15. Commitments and Contingencies.
v3.24.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
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 for operating sites. For the years ended December 31, 2023, 2022, and 2021, environmental expenses related to these operating sites were not material. Liabilities for environmental costs were $22 million for the years ended December 31, 2023 and 2022.

Obligations Payable Under Indemnification Agreements

The Reimbursement Agreement and the Tax Matters Agreement (collectively, the “Indemnification Agreements”) are further described below.

Reimbursement Agreement

In connection with the Spin-Off, we entered into the 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, 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). 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.

Payments in respect of the liabilities arising in a given year will be made quarterly throughout such year on the basis of an estimate of the liabilities and recoveries provided by Honeywell. Following the end of any such year, Honeywell will provide us with a calculation of the amount of payments and the recoveries actually received.

Payment amounts under the Reimbursement Agreement will be deferred to the extent that a specified event of default has occurred and is continuing under certain indebtedness, including under the A&R Credit Agreement, or the payment thereof causes us not to be compliant with certain financial covenants in certain indebtedness, including the A&R Credit Agreement on a pro forma basis, including the maximum total leverage ratio (ratio of consolidated debt to consolidated EBITDA, which excludes any amounts owed to Honeywell under the Reimbursement Agreement), and the minimum interest coverage ratio.

The obligations under the Reimbursement Agreement will continue until the earlier of: (1) December 31, 2043; or (2) December 31 of the third consecutive year during which the annual reimbursement obligation (including in respect of deferred payment amounts) has been less than $25 million.

In 2021 and 2020, several amendments were executed with respect to the Reimbursement Agreement. These amendments included modifications of certain covenants in Exhibit G to conform to the amended covenants included in the Credit Agreement First Amendment, deferment of certain payments under the Reimbursement Agreement to later in the year, and amendment of Exhibit G to, among other things, permit a sale and leaseback transaction. An aggregate amount of up to $150 million would be permitted thereunder so long as the same conditions that are applicable under the Credit Agreement are satisfied. On February 12, 2021, the covenants in Exhibit G of the Reimbursement Agreement were amended and
restated in their entirety to substantially conform to the affirmative and negative covenants contained in the A&R Credit Agreement.

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 AgreementTax Matters AgreementTotal
Beginning balance, January 1, 2022$597 $128 $725 
Accruals for liabilities deemed probable and reasonably estimable (1)
157 (2)155 
Payments to Honeywell(140)(20)(160)
Balance as of December 31, 2022614 106 720 
Accruals for liabilities deemed probable and reasonably estimable (1)
178 (9)$169 
Payments to Honeywell(140)— $(140)
Balance as of December 31, 2023$652 $97 $749 
(1) Reimbursement Agreement liabilities deemed probable and reasonably estimable, however, it is possible we could pay $140 million per year (exclusive of any late payment fees up to 5% per annum) until the earlier of (1) December 31, 2043; or (2) December 31 of the third consecutive year during which the annual reimbursement obligation (including in respect of deferred payment amounts) has been less than $25 million.

The liabilities related to the Reimbursement and Tax Matter Agreements are included in the following balance sheet accounts:

Years Ended December 31,
(in millions)20232022
Accrued liabilities$140 $140 
Obligations payable under Indemnification Agreements609 580 
Total indemnification liabilities$749 $720 

For the years ended December 31, 2023, 2022 and 2021, net expenses related to the Reimbursement Agreement were $178 million, $157 million, and $146 million respectively, and are recorded in other expense, net.

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.
Trademark Agreement

We entered into a 40-year Trademark Agreement with Honeywell that authorizes our use of the Honeywell Home trademark in the operation of our business for the advertising, sale and distribution of certain licensed products. In exchange, we pay Honeywell a royalty fee of 1.5% based on net revenue related to such licensed products, which is recorded in selling, general and administrative expense in the Consolidated Statements of Operations. For the years ended December 31, 2023, 2022, and 2021, royalty fees were $18 million, $23 million, and $21 million, respectively.

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.

Certain current or former directors and officers were defendants in a consolidated derivative action, In re Resideo Technologies, Inc. Derivative Litigation (the “Consolidated Federal Derivative Action”), which was stayed pending entry of final judgment in the related securities litigation and Delaware Chancery derivative action. An additional suit was filed in the Court of Chancery of the State of Delaware in 2021 and not consolidated with the Consolidated Federal Derivative Action. On November 17, 2022, the parties executed a Confidential Term Sheet summarizing the agreed terms of a global settlement to resolve all of the pending lawsuits and derivative claims. Under the terms of the settlement, we agreed to implement or codify certain corporate governance reforms and reimburse the plaintiffs’ attorneys’ fees of up to $1.6 million. The U.S. District Court for the District of Minnesota issued an order granting final approval of the settlement, judgment was entered on January 9, 2024 and the action was dismissed with prejudice. The parties filed a joint stipulation and proposed order of dismissal for the Delaware Chancery action, which the court approved. The settlement liability is included in the other accrued liabilities in the Consolidated Balance Sheets, the expected insurance recovery of approximately $0.6 million is included in accounts receivable, net.

On September 16, 2022, Salvatore Badalamenti (“Plaintiff”) filed a putative class action lawsuit (the “Badalamenti Lawsuit”) in the U.S. District Court for the District of New Jersey against Honeywell International Inc. and the Company. Plaintiff alleges, among other things, that the Company violated certain consumer protection laws by falsely advertising the Company’s combination-listed single data-bus burglar and fire alarms system control units (the “Products”) as conforming to Underwriters Laboratories, Inc. (the “UL”) or the National Fire Protection Association (“NFPA”) standards and/or failing to disclose such nonconformance. Plaintiff further alleges that the Products are defective because they do not conform to the UL and NFPA industry standards. Plaintiff does not allege that he, or anyone else, has experienced any adverse event due to the alleged product defect or that the Products did not work. Plaintiff alleges causes of action for violation of the New Jersey Consumer Fraud Act, fraud, negligent misrepresentation, breach of express and implied warranties, violation of the Magnuson-Moss Warranty Act, unjust enrichment, and violation of the Truth-in-Consumer Contract, Warranty, and Notice Act.

Plaintiff seeks to represent a putative class of other persons in the U.S. who purchased the Products. Plaintiff, on behalf of himself and the putative class, seeks damages in an unknown amount, which he describes as the cost to repair and/or replace the Products and/or the diminution in value of the Products.

We believe we have strong defenses against the allegations and claims asserted in the Badalamenti Lawsuit and our motion to dismiss Plaintiff's complaint was fully briefed on March 3, 2023. We continue to defend the matter vigorously; however, there can be no assurance that we will be successful in such defense. In light of the early stage of the Badalamenti Lawsuit, we are unable to estimate the total costs to defend the matter or the potential liability to us in the event that we are not successful in our defense.

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 alleges 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 (the “Tredo Lawsuit”). In the Tredo Lawsuit, Tredo seeks alleged unpaid wages, restitution, interest, statutory penalties, civil penalties,
attorneys’ fees and costs in an unknown amount. The Company answered the Tredo Lawsuit in which it asserted a general denial of plaintiff’s allegations and asserted various defenses.

We are investigating the allegations and defenses. At the request of plaintiff’s counsel, the parties have agreed to postpone mediation from January 2024 to May 2024, and to stay formal discovery pending the outcome of the mediation. If the case is not resolved at mediation, we intend to defend the matter vigorously; however, there can be no assurance that we will be successful in such defense. At this stage we are unable to estimate the total costs to defend the matter or the potential liability to us in the event that we are not successful in our defense.
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 other accrued liabilities.

The following table summarizes information concerning recorded obligations for product warranties and product performance guarantees.

December 31,
(in millions)202320222021
Beginning balance$48 $23 $22 
Accruals for warranties/guarantees issued during the year24 30 22 
Adjustment of pre-existing warranties/guarantees— (2)(3)
Settlement of warranty/guarantee claims(38)(17)(18)
Reserve of acquired company at date of acquisition— 14 — 
Ending balance$34 $48 $23 

Purchase Commitments

Our unconditional purchase obligations include purchase commitments with suppliers and other obligations entered into during the normal course of business regarding the purchase of goods and services. For the years ended December 31, 2023, 2022, and 2021, purchases related to these obligations were $91 million, $41 million and $22 million, respectively.

Aggregate payments on these obligations at December 31, 2023, follows:

(in millions)Payments
2024$142 
2025113 
202685 
20272 
2028 and thereafter— 
Total$342 
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Other Expense, net
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Other Expense, net Other Expense, net
Other expenses, net consists of the following:
Years Ended December 31,
(in millions)202320222021
Reimbursement Agreement expense$178 $157 $146 
Return on pension assets9 (39)(9)
Other, net(18)21 22 
Total other expenses, net$169 $139 $159 

The Reimbursement Agreement is further described in Note 15. Commitments and Contingencies to the Consolidated Financial Statements.
v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense is based on pretax financial accounting income. Deferred income taxes are recognized for the temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes and such amounts for income tax purposes.
The following is a summary of the components of income before provision for income taxes:
Years Ended December 31,
(in millions)202320222021
U.S.$76 $124 $79 
Non-U.S.237 294 274 
Total$313 $418 $353 
The components of the provision for income taxes consisted of the following:
Years Ended December 31,
(in millions)202320222021
Current:
U.S.$80 $95 $60 
Non-U.S.51 43 45 
Total current$131 $138 $105 
Deferred:
U.S.$(6)$(13)$5 
Non-U.S.(22)10 1 
Total deferred$(28)$(3)$6 
Total provision$103 $135 $111 
The reconciliation of income tax computed at the U.S. federal statutory tax rate to the effective income tax rate is as follows:
Years Ended December 31,
202320222021
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
Impact of foreign operations(0.9)(1.6)(0.2)
U.S. state income taxes4.4 3.0 3.6 
Non-deductible indemnification costs10.9 7.7 8.4 
Executive compensation over $1 million
1.6 1.0 0.9 
Other non-deductible expenses0.3 (0.6)0.4 
U.S. taxation of foreign earnings2.8 1.0 1.4 
Tax credits(0.8)(0.5)(0.7)
Change in tax basis in foreign assets (1)
(6.5)— — 
All other items, net(0.2)1.3 (3.5)
Effective income tax rate32.7 %32.3 %31.3 %
(1) The 2023 impact represents the initial recognition of a step-up in the tax basis of intangible assets recorded under Switzerland tax reform, net of valuation allowance.
Deferred income taxes reflect the net impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. The tax effects of the temporary differences as of December 31, 2023 and 2022 are as follows:
Years Ended December 31,
(in millions)20232022
Deferred tax assets:
Pension$21 $16 
Intangibles (2)
28 — 
Other asset basis differences51 54 
Operating lease liabilities44 43 
Employee compensation and benefits23 17 
Inventory costing and related reserves11 15 
Capitalized research and development13 6 
Other accruals and reserves19 33 
Net operating and capital losses55 49 
Other11 1 
Gross deferred tax assets276 234 
Valuation allowance(75)(63)
Total deferred tax assets$201 $171 
Deferred tax liabilities:
Intangibles$(42)$(41)
Property, plant and equipment(16)(24)
Operating lease assets(41)(40)
Other(6)(7)
Total deferred tax liabilities$(105)$(112)
Net deferred tax asset$96 $59 
(2) A valuation allowance brings the net deferred tax effect of the allowed step-up of intangible assets recorded under Switzerland tax reform to the amount more likely than not to be realized.
Valuation allowance
In assessing the need for a valuation allowance, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We evaluate our ability to realize the tax benefits associated with deferred tax assets by analyzing the relative impact of all the available positive and negative evidence regarding our forecasted taxable income using both historical and projected future operating results, the reversal of existing taxable temporary differences, taxable income in prior carry-back years (if permitted) and the availability of tax planning strategies. The ultimate realization of deferred tax assets is dependent upon the generation of certain types of future taxable income during the periods in which those temporary differences become deductible. In making this assessment, we consider the scheduled reversal of deferred tax liabilities, our ability to carry back the deferred tax asset, projected future taxable income, and tax planning strategies. A valuation allowance is recorded in each jurisdiction when it is more likely than not that the deferred income tax asset will not be realized. Changes in deferred tax asset valuation allowances typically impact income tax expense.

We maintain a valuation allowance of $75 million against a portion of deferred tax assets. Valuation allowances principally relate to foreign net operating loss carryforwards. As of December 31, 2023, we have deferred tax assets relating to foreign net operating loss carryforwards of $52 million. These tax losses can be carried forward to offset the income tax liabilities on future income in these countries. Cumulative tax losses of $46 million can be carried forward indefinitely, while the remaining $9 million of tax losses must be used during tax years 2023 to 2043.

The rollforward of the valuation allowance on deferred taxes is as follows for the periods indicated:
Years Ended December 31,
(in millions)202320222021
Beginning balance$63 $63 $60 
Additions / (Subtractions)12 — 3 
Ending balance$75 $63 $63 

As of December 31, 2023, our total undistributed earnings of foreign affiliates were $2.0 billion, of which $625 million was not considered indefinitely reinvested. While these earnings would not be subject to incremental U.S. tax, if we were to actually distribute these earnings, they could be subject to additional foreign income taxes and/or withholding taxes payable in foreign jurisdictions. Thus, we provide for foreign income taxes payable upon future distributions of the earnings not considered indefinitely reinvested annually. For the year ended December 31, 2023, the tax charge related to earnings that are not considered indefinitely reinvested is not material. Determination of the unrecognized deferred foreign income tax liability related to these undistributed earnings is not practicable due to the complexities associated with this hypothetical calculation.
Uncertain tax positions

The table below sets forth the changes to our gross unrecognized tax benefit as a result of uncertain tax positions, excluding interest and penalties for the years ended December 31, 2023, 2022 and 2021. We do not anticipate that the total unrecognized tax benefits will change significantly within the next twelve months.
Years Ended December 31,
(in millions)202320222021
Unrecognized tax benefits at beginning of year$22 $16 $10 
Decreases related to positions taken on items from prior years(1)— — 
Increases related to positions taken in the current year5 6 6 
Decreases due to expiration of statutes of limitations(4)— — 
Unrecognized tax benefits at end of year$22 $22 16 
Included in the balance of unrecognized tax benefits as of December 31, 2023 and December 31, 2022, are potential benefits of $22 million and $22 million, respectively, that if recognized would affect the effective tax rate.

We report accrued interest and penalties related to unrecognized tax benefits in income tax expense. For the year ended December 31, 2023, we recognized no net expense for interest and penalties for unrecognized tax benefits and had net accumulated accrued interest and penalties of $2 million as of December 31, 2023. For the year ended December 31, 2022, we recognized a net expense for interest and penalties of $1 million relating to unrecognized tax benefits and had net accumulated accrued interest and penalties of $3 million as of December 31, 2022.

Open tax periods

We file income tax returns in the U.S. federal jurisdiction, all states, and various local and foreign jurisdictions. Our U.S. federal tax returns are no longer subject to income tax examinations for taxable years before 2020. With limited exception, state, local, and foreign income tax returns for taxable years before 2019 are no longer subject to examination.
v3.24.0.1
Earnings Per Share
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The reconciliation of the numerator and denominator used for the computation of basic and diluted earnings per share follows:

Years Ended December 31,
(in millions)202320222021
Numerator for basic and diluted earnings per share:
Net income$210 $283 $242 
Denominator for basic and diluted earnings per share:
Weighted average basic number of common shares outstanding147146144
Plus: dilutive effect of common stock equivalents1 34
Weighted average diluted number of common shares outstanding148149148
Earnings per share:
Basic$1.43 $1.94 $1.68 
Diluted$1.42 $1.90 $1.63 
Diluted earnings per share is computed based upon the weighted average number of shares of common stock outstanding for the year plus the dilutive effect of common stock equivalents using the treasury stock method and the average market price of our common stock for the period. For the years ended December 31, 2023, 2022 and 2021, average options and other rights to purchase approximately 1.5 million, 0.1 million and 0.2 million shares of our common stock, respectively, were outstanding and anti-dilutive, and therefore excluded from the computation of diluted earnings per share. In addition, an average of 1.2 million, 0.6 million and 0.6 million shares of performance-based unit awards are excluded from the computation of diluted earnings per common share for the years ended December 31, 2023, 2022 and 2021, respectively, as the contingency has not been satisfied.
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Geographic Areas - Financial Data
 12 Months Ended
Dec. 31, 2023
Segments, Geographical Areas [Abstract]  
Geographic Areas - Financial Data Geographic Areas - Financial Data
Revenue and long-lived assets by geography are as follows:

Net Revenue (1)
Long-lived Assets (2)
Years Ended December 31,December 31,
(in millions)202320222021202320222021
U.S.$4,720 $4,795 $4,181 $332 $347 $244 
Europe1,065 1,111 1,196 143 131 139 
Other International457 464 469 107 79 46 
Total$6,242 $6,370 $5,846 $582 $557 $429 
(1)Net revenue between geographic areas approximate market and is not significant. Net revenue is classified according to their country of origin. Included in U.S. net revenue are export sales of $41 million, $38 million, and $26 million for the years ended December 31, 2023, 2022, and 2021, respectively.
(2)Long-lived assets are comprised of property, plant and equipment, net and right-of-use lease assets.
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Stockholders’ Equity
 12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Stockholders’ Equity Stockholders’ Equity
On August 3, 2023, we announced that our Board of Directors authorized a share repurchase program for the repurchase of up to $150 million of our common stock over an unlimited time period (the “Share Repurchase Program”). Under the Share Repurchase Program, we may repurchase common stock from time-to-time through various methods, including in open market transactions, block trades, accelerated share repurchases, privately negotiated transactions, derivative transactions or otherwise, certain of which may be made pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in compliance with applicable state and federal securities laws. The Share Repurchase Program can be modified or terminated by our Board of Directors at any time.

The timing, as well as the number and value of common stock repurchased under the Share Repurchase Program, will be determined at our discretion and will depend on a variety of factors, including our assessment of the intrinsic value and market price of our common stock, general market and economic conditions, available liquidity, compliance with our debt and other agreements, applicable legal requirements, the nature of other investment opportunities available to us and other considerations.

During the twelve months ended December 31, 2023, we repurchased 2.6 million shares of common stock in the open market at a total cost of $41 million. As of December 31, 2023, the Company had approximately $109 million of authorized repurchases remaining under the Share Repurchase Program. Common stock repurchases are recorded at cost and presented as a deduction from stockholders’ equity.
v3.24.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2023
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
[OPEN, IF ANY]
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Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net income $ 210 $ 283 $ 242
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Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
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
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Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of Consolidation and Reporting
Basis of Consolidation and Reporting
The accompanying Consolidated Financial Statements include the accounts of the Company and our wholly-owned subsidiaries and have been prepared in accordance with U.S. GAAP. All intercompany accounts, transactions and profits arising from consolidated entities have been eliminated in consolidation.
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 purposes of comparability, certain prior period amounts have been reclassified to conform to current period classification.
Use of Estimates Use of Estimates—The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosures of contingent assets and liabilities in the Consolidated Financial Statements and accompanying notes. Estimates are used for, but not limited to, provisions for expected credit losses and inventory reserves, accounting for business combinations and dispositions, valuation of reporting units for purposes of assessing goodwill for impairment, valuation of long-lived asset groups for impairment testing, accruals for employee benefits, stock-based compensation, pension benefits, indemnification liabilities, deferred taxes, warranties and certain contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash Cash, Cash Equivalents and Restricted Cash—Cash and cash equivalents may consist of cash on hand, money market instruments, time deposits and highly liquid investments. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted as to the withdrawal or use under terms of certain contractual agreements are recorded in other current assets on the Consolidated Balance Sheets and primarily relate to collateral to support certain bank guarantees. Restricted cash for the periods presented were not material. Cash, cash equivalents and restricted cash are carried at cost, which approximates fair value.
Accounts Receivable and Allowance for Doubtful Accounts Accounts Receivable and Allowance for Doubtful Accounts—Accounts receivable are recorded at the invoiced amount, presented net of allowance for doubtful accounts and do not bear interest. We review the adequacy of the allowance for doubtful accounts on an ongoing basis, using historical collection trends and aging of receivables. Management also periodically evaluates individual customer’s financial condition, credit history and the current economic
conditions to make adjustments in the allowance when it is considered necessary. Account balances are written off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Allowance for doubtful accounts was not material as of December 31, 2023 and 2022, respectively.
Inventories Inventories—Inventories are stated at lower of cost or net realizable value and valued by the first-in-first-out method. Inventory reserves are maintained for obsolete and surplus items.
Property, Plant and Equipment Property, Plant and Equipment—Property, plant and equipment are stated at cost, less accumulated depreciation. For financial reporting purposes the straight-line method of depreciation is used over the estimated useful lives. Leasehold improvements are capitalized and amortized using the straight-line method over the shorter of their estimated useful lives or the term of the underlying lease. Depreciation is recognized in cost of sales, research and development, and selling, general and administrative expenses based on the nature and use of the underlying assets.
The following table summarizes the details of our property, plant and equipment, including useful lives:

December 31,
(in millions)20232022Useful Lives
Machinery and equipment$659 $647 
3-16 years
Buildings and improvements314 303 
10-50 years
Construction in progress85 80 NA
Land10 9 NA
Gross property, plant and equipment1,068 1,039 
Accumulated depreciation(678)(673)
Total property, plant and equipment, net$390 $366 
NA = Not applicable; assets categorized as construction in progress and land are not depreciated.
Impairment of Long-Lived Assets Impairment of Long-Lived Assets—We assess the recoverability of the carrying amount of property, plant and equipment if events or changes in circumstances indicate that the carrying amount or related group of assets may not be recoverable. If the expected undiscounted cash flows are less than the carrying amount of the asset an impairment loss is recognized.
Goodwill and Intangible Assets Goodwill and Intangible Assets—We review the carrying values of goodwill and identifiable intangibles whenever events or changes in circumstances indicate that such carrying values may not be recoverable and annually, on the first day of the fourth quarter. If the carrying value of a reporting unit exceeds its fair value, we record a goodwill impairment loss as the amount by which the carrying amount of a reporting unit exceeds its fair value, not to exceed the total amount of goodwill allocated to that reporting unit.
Restructuring Restructuring—We enter into various restructuring initiatives, optimization projects, strategic transactions, and other business activities that may include the recognition of exit or disposal costs. Exit or disposal costs are typically costs of termination benefits, such as severance and costs associated with the closure or consolidation of operating facilities. Impairment of property and equipment and other current or long-term assets as a result of a restructuring initiative is recognized as a reduction of the appropriate asset.
Derivatives Derivatives—Our interest rate swap agreements effectively modify our exposure to interest rate risk by converting floating rate debt to a fixed rate for the term of the swap agreements, reducing the impact of interest rate changes on future interest expense. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the life of the agreement without an exchange of the underlying principal amount.
Our interest rate swap agreements are designated as cash flow hedges with effectiveness of the hedges assessed at inception and quarterly thereafter. To the extent the hedging relationship is highly effective, the unrealized gains or losses on the swaps are recorded in accumulated other comprehensive loss and reclassified into earnings within interest expense, net when the payments occur. We classify our cash flows related to interest rate swap agreements as operating activities in the Consolidated Statements of Cash Flows.
The fair values of the interest rate swaps are reflected as an other asset or liability in the Consolidated Balance Sheets and the change in fair value is reported in accumulated other comprehensive loss. The fair values of the interest rate swaps are estimated as the net present value of projected cash flows based upon forward interest rates at the balance sheet date. We do not offset fair value amounts recognized in our Consolidated Balance Sheets for presentation purposes.
Warranties and Guarantees Warranties and Guarantees—Expected warranty costs for products sold are recognized based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, length of the warranty and various other considerations. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of the warranty accrual at the time an obligation becomes probable and can be reasonably estimated. We periodically adjust these provisions to reflect actual experience and other facts and circumstances that impact the status of existing claims.
Leases Leases—Included in our Consolidated Balance Sheets are certain operating leases that are reported as a component of other assets and other liabilities. The leased assets represent our right to use an underlying asset for the lease term and the lease liabilities represent our obligation to make lease payments arising from the lease. An incremental borrowing rate is used to calculate the present value of the remaining lease payments.
Each contract is reviewed at inception to determine if it contains a lease and whether the lease qualifies as an operating or financing lease. For short-term leases (leases with a term of 12 months or less), right-of-use assets or lease liabilities are not recognized in the Consolidated Balance Sheets. Operating leases are expensed on a straight-line basis over the term of the lease. In determining the lease term, we consider the probability of exercising renewal or early termination options. In addition to the monthly base rent, we are often charged separately for common area maintenance, utilities and taxes, which are considered a non-lease component. These non-lease component payments are expensed as incurred and are not included in operating lease assets or liabilities.
Right-of-use assets are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable in accordance with our long-lived asset impairment assessment policy.
Revenue Recognition Revenue Recognition—We enter into contracts that pertain to products, which are accounted for as separate performance obligations and are typically one year or less in duration. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. For product sales, typically each product sold to a customer represents a distinct performance obligation. Revenue is measured as the amount of consideration expected to be received in exchange for our products. We recognize the majority of our revenue from performance obligations outlined in contracts with our customers that are satisfied at a point in time, generally when the product has shipped from our facility and control has transferred to the customer. For certain products, it is industry practice that customers take title to products upon delivery, at which time revenue is then recognized. Allowances for cash discounts, volume rebates and other customer incentive programs, as well as gross customer returns, among others, are recorded as a reduction of sales at the time of sale based upon the estimated future outcome. Cash discounts, volume rebates and other customer incentive programs are based upon certain percentages agreed upon with various customers, which are typically earned by the customer over an annual period.
Revenue is adjusted for variable consideration, which includes customer volume rebates and prompt payment discounts. We measure variable consideration by estimating expected outcomes using analysis and inputs based upon anticipated performance, historical data, and current and forecasted information. Customer returns are recorded as a reduction to sales on an actual basis throughout the year and also include an estimate at the end of each reporting period for future customer returns related to sales recorded prior to the end of the period. We generally estimate customer returns based upon the time lag that historically occurs between the sale date and the return date, while also factoring in any new business conditions that might impact the historical analysis such as new product introduction. Measurement of variable consideration is reviewed by management periodically and revenue is adjusted accordingly. We do not have significant financing components.
Sales, use and value added taxes collected and remitted to various government authorities were not recognized as revenue and are reported on a net basis. Shipping and handling fees billed to customers are included in cost of goods sold.
Royalty Royalty—In connection with the Spin-Off, we entered into a 40-year Trademark License Agreement (the “Trademark Agreement”) with Honeywell that authorizes our use of certain licensed trademarks in the operation of Resideo’s business for the advertising, sale and distribution of certain licensed products. In exchange, we pay a royalty fee of 1.5% of net revenue of the licensed products to Honeywell, which is recorded in selling, general and administrative expense on the Consolidated Statements of Operations.
Reimbursement Agreement Reimbursement Agreement—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, which include amounts billed, with respect to certain environmental claims, remediation and, to the extent arising after the Spin-Off, hazardous exposure or toxic tort claims, in each case, including consequential damages (the liabilities) in respect of specified Honeywell properties contaminated through historical business operations prior to the Spin-Off (Honeywell Sites), including the legal and other costs of defending and resolving such liabilities, 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 amount payable in respect of such liabilities arising in any given year is subject to a cap of $140 million. Reimbursement Agreement expenses are presented within other expense, net in the Consolidated Statements of Operations and within obligations payable under Indemnification Agreements in the Consolidated Balance Sheets.
Environmental Environmental—We 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.
Tax Indemnification Agreement Tax Indemnification Agreement—The Tax Matters Agreement provides that Resideo is required to indemnify Honeywell for any taxes (and reasonable expenses) 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 (a) breaches of covenants and representations we make and agree to in connection with the Spin-Off, (b) the application of certain provisions of U.S. federal income tax law to these transactions or (c) any other action taken or omission made (other than actions expressly required or permitted by the Separation and Distribution Agreement, the Tax Matters Agreement or other ancillary agreements) after the consummation of the Spin-Off that gives rise to these taxes. As of December 31, 2023 and 2022, we had an indemnity outstanding to Honeywell for past and potential future tax payments of $97 million and $106 million, respectively.
Research and Development Research and Development—We conduct research and development activities, which consist primarily of the development of new products and solutions as well as enhancements and improvements to existing products that substantially change the product. Research and development costs primarily relate to employee compensation and consulting fees, which are charged to expense as incurred.
Defined Contribution Plans Defined Contribution Plans—We sponsor various defined contribution plans with varying terms depending on the country of employment.
Stock-Based Compensation Plans Stock-Based Compensation Plans—The principal awards issued under our stock-based compensation plans, which are described in Note 8. Stock-Based Compensation Plans, are restricted stock units. The cost for such awards is measured at the grant date based on the fair value of the award. Some awards are issued with a market condition, which are valued on the grant date utilizing a Monte Carlo simulation model. Stock options are also issued under our stock-based compensation plans and are valued on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model and the Monte Carlo simulation model require estimates of future stock price volatility, expected term, risk-free interest rate and forfeitures.
For all stock-based compensation, the fair value of the award is recognized as expense over the requisite service periods (generally the vesting period of the equity award) and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. Our time-based restricted stock awards are typically subject to graded vesting over a service period; while our performance or market based awards are typically subject to cliff vesting at the end of the service period.
Pension Pension—We disaggregate the service cost component of net benefit costs and report those costs in the same line item or items in the Consolidated Statements of Operations as other compensation costs arising from services rendered by the pertinent employees during the period. The other non-service components of net benefit costs are required to be presented separately from the service cost component and outside of income from operations.We have recorded the service cost component of pension expense in costs of goods sold and selling, general and administrative expenses based on the classification of the employees it relates to. The remaining components of net benefit costs within pension expense, primarily interest costs and expected return on plan assets, are recorded in other expense, net. We recognize net actuarial gains or losses in excess of 10% of the greater of the fair value of plan assets or the plans’ projected benefit obligation (the “corridor”) annually in the fourth quarter of each year. This adjustment is reported in other expense, net in the Consolidated Statements of Operations.
Foreign Currency Translation Foreign Currency Translation—Assets and liabilities of operations outside the U.S. with a functional currency other than U.S. dollars are translated into U.S. dollars using year-end exchange rates. Revenue, costs and expenses are translated at the average exchange rates in effect during the year. Foreign currency translation gains and losses are included as a component of accumulated other comprehensive loss.
Income Taxes Income Taxes—Significant judgment is required in evaluating tax positions. We established additional reserves for income taxes when, despite the belief that tax positions are fully supportable, there remain certain positions that do not meet the minimum recognition threshold. The approach for evaluating certain and uncertain tax positions is defined by the authoritative guidance, which determines when a tax position is more likely than not to be sustained upon examination by the applicable taxing authority. In the normal course of business, the Company and our subsidiaries are examined by various federal, state and foreign tax authorities. We regularly assess the potential outcomes of these examinations and any future examinations for the current or prior years in determining the adequacy of our provision for income taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, the current tax liability and deferred taxes in the period in which the facts that give rise to a change in estimate become known.
Accounting Pronouncements Accounting Pronouncements—We consider the applicability and impact of all recent accounting standards updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). ASUs not listed below were assessed and determined to be either not applicable or are expected to have an immaterial impact on our Consolidated Financial Statements.
Adopted Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and subsequent amendment to the initial guidance: ASU 2021-01, Reference Rate Reform (Topic 848): Scope (collectively, “Topic 848”). Topic 848 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. ASU 2022-06 defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024. This guidance may be applied prospectively to contract modifications made and hedging relationships entered into or
evaluated on or before December 31, 2024. We adopted these ASUs during the second quarter of 2023. The impact of the adoption of this standard on our financial statements and related disclosures, including accounting policies, processes, and systems, was not material. Refer to Note 11. Long-Term Debt and Note 12. Derivative Financial Instruments to Consolidated Financial Statements.

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. We are currently assessing the impact of adoption on our Consolidated Financial Statements and related disclosures.
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of Inventories
The following tables summarize the details of our inventory, net:
December 31,
(in millions)20232022
Raw materials$221 $251 
Work in process18 25 
Finished products702 699 
Total inventories, net$941 $975 
Schedule of Property, Plant and Equipment
The following table summarizes the details of our property, plant and equipment, including useful lives:

December 31,
(in millions)20232022Useful Lives
Machinery and equipment$659 $647 
3-16 years
Buildings and improvements314 303 
10-50 years
Construction in progress85 80 NA
Land10 9 NA
Gross property, plant and equipment1,068 1,039 
Accumulated depreciation(678)(673)
Total property, plant and equipment, net$390 $366 
NA = Not applicable; assets categorized as construction in progress and land are not depreciated.
v3.24.0.1
Segment Financial Data (Tables)
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Schedule of Segment Information
Years Ended December 31,
(in millions)202320222021
Net revenue
Products and Solutions$2,672 $2,783 $2,468 
ADI Global Distribution3,570 3,587 3,378 
Total net revenue$6,242 $6,370 $5,846 

Years Ended December 31,
(in millions)202320222021
Income from operations
Products and Solutions$495 $527 $541 
ADI Global Distribution270 313 268 
Corporate(218)(229)(250)
Total income from operations$547 $611 $559 
Years Ended December 31,
(in millions)202320222021
Depreciation and amortization
Products and Solutions$71 $69 $65 
ADI Global Distribution18 14 11 
Corporate9 11 12 
Total depreciation and amortization$98 $94 $88 

Years Ended December 31,
(in millions)202320222021
Capital expenditures
Products and Solutions$77 $55 $37 
ADI Global Distribution26 29 24 
Corporate2 1 2 
Total capital expenditures$105 $85 $63 
v3.24.0.1
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue By Business Line and Geographic Location
Years Ended December 31,
(in millions)202320222021
Products and Solutions
Air$862 $953 $858 
Safety and Security965 913 667 
Energy525 595 594 
Water320 322 349 
Total Products and Solutions2,672 2,783 2,468 
ADI Global Distribution
U.S. and Canada3,085 3,087 2,814 
EMEA (1)
485 474 523 
APAC (2)
— 26 41 
Total ADI Global Distribution3,570 3,587 3,378 
Total net revenue$6,242 $6,370 $5,846 
(1)EMEA represents Europe, the Middle East and Africa.
(2)APAC represents Asia and Pacific countries.
v3.24.0.1
Restructuring (Tables)
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring Expenses
The following table represents restructuring and impairment expense attributable to the segments:

Years Ended December 31,
(in millions)20232022
Products and Solutions$27 $29 
ADI Global Distribution12 2 
Corporate3 4 
Restructuring and impairment expenses$42 $35 
on the Consolidated Balance Sheets.
December 31,
(in millions)202320222021
Beginning of year$27 $9 $24 
Charges34 26 — 
Usage (1)
(31)(5)(11)
Other— (3)(4)
End of year$30 $27 $9 
v3.24.0.1
Pension Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Summary of Balance Sheet Impact, Including Benefit Obligations, Assets and Funded Status
The following table summarizes the balance sheet impact, including the benefit obligations, assets and funded status associated with the pension plans:

U.S. Plans Non-U.S. Plans
(in millions)202320222021202320222021
Change in benefit obligation:
Benefit obligation at beginning of year$281 $348 $374 $96 $141 $161 
Service cost3 7 7 4 5 7 
Interest cost13 11 10 3 2 1 
Actuarial losses (gains)23 (66)(20)8 (45)(18)
Net benefits paid(3)(18)(5)4 — — 
Settlements and curtailments(83)(1)(18)(13)— (1)
Other— — — 1 1 1 
Foreign currency translation— — — 5 (8)(10)
Benefit obligation at end of year234 281 348 108 96 141 
Change in plan assets:
Fair value of plan assets at beginning of year262 342 340 27 32 28 
Actual return on plan assets20 (62)25 1 (6)2 
Employer contributions— 1 — 2 3 3 
Net benefits paid(3)(18)(5)4 — 1 
Settlements and curtailments(83)(1)(18)(11)— (1)
Other1 — — 1 (1)— 
Foreign currency translation— — — 2 (1)(1)
Fair value of plan assets at end of year197 262 342 26 27 32 
Funded status of plans (non-current)$(37)$(19)$(6)$(82)$(69)$(109)
Summary of Accumulated Other Comprehensive (Loss) Associated with Pension Plans
Amounts recognized in accumulated other comprehensive loss associated with pension plans at December 31, 2023 and 2022 are as follows:

U.S. Plans Non-U.S. Plans
(in millions)2023202220232022
Prior service cost$— $— $2 $2 
Net actuarial loss (gain)20 13 — (8)
Net amount recognized$20 $13 $2 $(6)
Summary of Net Periodic Benefit Cost and Other Amounts Recognized in Comprehensive Income
The components of net periodic benefit (income) cost for the years ended December 31, 2023, 2022 and 2021 are as follows:

U.S. Plans Non-U.S. Plans
(in millions)202320222021202320222021
Net periodic benefit cost (income)
Service cost$3 $7 $7 $4 $5 $7 
Interest cost13 11 10 3 2 1 
Expected return on plan assets(11)(17)(16)(1)(1)(1)
Amortization of prior service credit(1)(1)(1)— — — 
Amortization of actuarial losses (gains)2 — — — (33)(3)
Settlement and curtailment losses (gains)6 — — (2)— — 
Net periodic benefit cost (income)$12 $— $— $4 $(27)$4 
Summary of Net Periodic Benefit (Income) Cost Other Than The Service Cost Included in Other Expense, Net
The components of net periodic benefit cost (income) other than the service cost are included in other expense, net in the Consolidated Statements of Operations for the years ended December 31, 2023, 2022 and 2021 are as follows:

U.S. Plans Non-U.S. Plans
(in millions)202320222021202320222021
Other changes in plan assets and benefits obligations recognized in other comprehensive (income) loss
Actuarial losses (gains)$14 $(66)$(20)$9 $(45)$(18)
Prior service costs arising during the year— — — — 2 — 
Excess return on plan assets(1)
— 79 (9)— 6 — 
Actuarial (losses) gains recognized during the year(8)— — — 33 3 
Other1 — 1 (1)— (1)
Total recognized in other comprehensive (income) loss 7 13 (28)8 (4)(16)
Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss$19 $13 $(28)$12 $(31)$(12)
(1)Represents actual return on plan assets in excess of the expected return.
Summary of Significant Actuarial Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit (Income) Cost
Significant actuarial assumptions used in determining the benefit obligations and net periodic benefit cost (income) for benefit plans are presented in the following table as weighted averages.

U.S. Plans Non-U.S. Plans
202320222021202320222021
Actuarial assumptions used to determine benefit obligations as of December 31:
Discount rate5.2 %3.1 %3.0 %3.4 %1.2 %1.2 %
Interest crediting rate6.0 %6.0 %6.0 %2.5 %1.5 %1.5 %
Expected annual rate of compensation increase3.5 %3.2 %3.2 %2.6 %2.4 %2.4 %
Actuarial assumptions used to determine net periodic benefit cost (income) for the year ended December 31:
Discount rate - benefit obligation5.0 %5.2 %2.7 %3.0 %3.4 %0.7 %
Interest crediting rate6.0 %6.0 %6.0 %2.2 %2.5 %1.5 %
Expected rate of return on plan assets5.3 %5.3 %4.7 %3.4 %1.3 %2.3 %
Expected annual rate of compensation increase3.5 %3.5 %3.5 %2.7 %2.6 %2.4 %
Summary of Amounts Relate to Pension Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
The following amounts relate to pension plans with accumulated benefit obligations exceeding the fair value of plan assets at December 31, 2023 and 2022.

U.S. PlansNon-U.S. Plans
(in millions)2023202220232022
Projected benefit obligation$234 $281 $106 $96 
Accumulated benefit obligation$230 $278 $96 $86 
Fair value of plan assets$197 $262 $25 $27 
Summary of Amounts Relate to Pension Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets
The following amounts relate to pension plans with projected benefit obligations exceeding the fair value of the plan assets at December 31, 2023 and 2022.

U.S. PlansNon-U.S. Plans
(in millions)2023202220232022
Projected benefit obligation$234 $281 $108 $96 
Accumulated benefit obligation$230 $278 $98 $87 
Fair value of plan assets$197 $262 $26 $27 
Summary of NAV and Fair Values of Both U.S. and Non-U.S. Pension Plans Assets by Asset Category
A majority of the U.S. pension plan assets as of December 31, 2023 do not have published pricing and are valued using Net Asset Value (“NAV”), which approximates fair value. NAV and fair value by asset category are as follows for December 31, 2023 and 2022:

U.S. Plans NAV
(in millions)20232022
Cash and cash equivalents$3 $6 
Equity64 45 
Government bonds14 21 
Corporate bonds58 132 
Real estate / property24 29 
Other34 29 
Total assets at fair value$197 $262 

The fair values of the non-U.S. pension plan assets by asset category are as follows for December 31, 2023 and 2022:

Non-U.S. Plans
20232022
(in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Equity$7 $7 $— $— $1 $1 $— $— 
Government bonds6 — 6 — 1 — 1 — 
Insurance contracts7 — — 7 6 — — 6 
Other6 — — 6 19 — — 19 
Total assets at fair value$26 $7 $6 $13 $27 $1 $1 $25 

Refer to Note 13. Fair Value to Consolidated Financial Statements.
Summary of Changes in Fair Value of Level 3 Assets for Non-U.S
The following table summarizes changes in the fair value of Level 3 assets for Non-U.S. plans:

(in millions)Non-U.S. Plans
Balance at January 1, 2021$26 
Return on plan assets1 
Purchases, sales and settlements, net4 
Other(1)
Balance at December 31, 202130 
Return on plan assets(3)
Other(2)
Balance at December 31, 202225 
Return on plan assets1 
Purchases, sales and settlements, net(14)
Other1 
Balance at December 31, 2023$13 
Summary of Benefit Payments
Benefit payments, including amounts to be paid from our assets, and reflecting expected future service, as appropriate, are expected to be paid as follows:

(in millions)U.S. PlansNon-U.S. Plans
2024$19 $3 
2025$19 $3 
2026$19 $3 
2027$19 $3 
2028$19 $4 
2029-2033$86 $26 
v3.24.0.1
Stock-Based Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Fair Values Estimated for PSUs
The fair values estimated from the Monte Carlo simulation for PSUs issued during the years ended December 31, 2023, 2022 and 2021 were calculated using the following assumptions:

Years Ended December 31,
202320222021
Expected volatility63.37 %59.01 %47.43 %
Risk-free interest rate %4.24 %1.58 %0.20 %
Expected term (in years)2.882.892.86
Dividend yield (1)
— %— %— %
(1) We have never declared or paid any cash dividends on our common stock and we currently do not intend to pay cash dividends.
Schedule of Stock Incentive Plan For Employees and Non-Employee Directors
The following table summarizes activity related to the Stock Incentive Plan for employees and non-employee directors:

PSUsRSUs
(in whole dollars)Number of
Performance
Stock Units 		Weighted
Average Grant
Date Fair Value
Per Share		Number of
Restricted
Stock Units 		Weighted
Average Grant
Date Fair Value
Per Share
Non-vested as of January 1, 20231,722,380$27.23 3,410,962$20.57 
Granted553,07129.89 2,298,93618.79 
Vested(611,631)27.03 (1,615,111)18.35 
Forfeited(69,954)38.47 (238,291)21.88 
Non-vested as of December 31, 20231,593,866$35.80 3,856,496$20.16 
Unrecognized Compensation Cost Related to Unvested Awards
As of December 31, 2023, unrecognized compensation cost related to unvested awards granted to employees and non-employee directors under the Stock Incentive Plan is as follows:

(in millions)Unrecognized Compensation CostWeighted-Average Period
RSUs$48 1 year, 9 months
PSUs20 1 year, 2 months
Total unrecognized compensation cost$68 
Fair Value of Shares Vested
The fair value of shares vested follows:

Years Ended December 31,
(in millions)202320222021
RSUs$29 $36 $48 
PSUs14 $4 NA
Total$43 $40 $48 
Fair Value of Stock Options in Black-Scholes Model The fair value of stock options granted during the year ended December 31, 2021 was calculated using the following assumptions in the Black-Scholes model:
Year Ended December 31,
2021
Expected stock price volatility34%
Expected term of options5 years
Expected dividend yield (1)
—%
Risk-free interest rate0.77%
(1) We have never declared or paid any cash dividends on our common stock and we currently do not intend to pay cash dividends.
Summary of Stock Option Activity Related to the Stock Incentive Plan
The following table summarizes stock option activity related to the Stock Incentive Plan:

Stock Options
(in whole dollars)Number of
Stock
Options 		Weighted
Average
Exercise
Price		Weighted
Average
Contractual
Life		Aggregate
Intrinsic
Value
Stock Options outstanding as of January 1, 20231,317,649$15.25 4.0 years$6 
Granted— —  
Forfeited— —  
Expired(96,692)24.35 
Exercised— — — 
Stock Options outstanding as of December 31, 20231,220,957$14.52 3.2 years$8 
Vested and expected to vest at December 31, 20231,220,957 $14.52 3.2 years$8 
Exercisable at December 31, 20231,070,957 $12.99 2.9 years$8 
v3.24.0.1
Goodwill and Intangible Assets, net (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
Our goodwill balance and changes in carrying value by segment follows:

(in millions)Products and SolutionsADI Global DistributionTotal
Balance at January 1, 2022$2,010 $651 $2,661 
Acquisitions94 15 109 
Divestiture — (4)(4)
Impact of foreign currency translation(32)(10)(42)
Balance at December 31, 20222,072 652 2,724 
Acquisitions7 3 10 
Divestitures (46)— (46)
Adjustments (5)— (5)
Impact of foreign currency translation 17 5 22 
Balance at December 31, 2023$2,045 $660 $2,705 
Schedule of Indefinite-Lived Intangible Assets
December 31,
(in millions)20232022
Intangible assets subject to amortization$281 $295 
Indefinite-lived intangible assets180 180 
Total intangible assets$461 $475 
Schedule of Intangible Assets With Finite Lives
December 31,
(in millions)20232022
Intangible assets subject to amortization$281 $295 
Indefinite-lived intangible assets180 180 
Total intangible assets$461 $475 
December 31, 2023
(in millions)Gross
Carrying
Amount		Accumulated
Amortization 		Net
Carrying
Amount		Useful LivesWeighted Average Amortization
Patents and technology$64 $(26)$38 
7 - 10 years
10 years
Customer relationships319 (138)181 
7 - 15 years
14 years
Trademarks9 (8)1 
5 - 10 years
10 years
Software193 (132)61 
2 - 7 years
5 years
Total intangible assets$585 $(304)$281 

December 31, 2022
(in millions)Gross
Carrying
Amount		Accumulated
Amortization 		Net
Carrying
Amount		Useful LivesWeighted Average Amortization
Patents and technology$65 $(28)$37 
3 - 10 years
10 years
Customer relationships313 (117)196 
7 - 15 years
14 years
Trademarks14 (8)6 
10 years
10 years
Software175 (119)56 
2 - 7 years
6 years
Total intangible assets$567 $(272)$295 
Estimated Aggregate Amortization On Intangible Assets
The estimated aggregate amortization on these intangible assets for each of the next five years as of December 31, 2023, follows:

(in millions)Amortization Expense
2024$38 
2025$40 
2026$35 
2027$29 
2028$26 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Schedule of Operating Lease Expense
The operating lease expense follows:

Years Ended December 31,
(in millions)202320222021
Operating lease cost:
Selling, general and administrative expenses$57 $50 $46 
Cost of goods sold20 19 17 
Total operating lease costs$77 $69 $63 
Schedule of Carrying Amounts of Operating Leased Assets and Liabilities
The following table summarizes the carrying amounts of our operating leased assets and liabilities along with key inputs used to discount our lease liabilities:

December 31,
(in millions, except weighted-average data)Financial Statement Line Item20232022
Operating lease assetsOther assets$192 $191 
Operating lease liabilities - currentAccrued liabilities$39 $37 
Operating lease liabilities - non-currentOther liabilities$166 $166 
Weighted-average remaining term6.32 years6.81 years
Weighted-average incremental borrowing rate6.12 %5.78 %
Maturities of Operating Lease Liabilities
The following table summarizes our future minimum lease payments under our non-cancelable leases as of December 31, 2023:

(in millions)Commitments
2024$46 
202544 
202640 
202734 
202827 
Thereafter58 
Total lease payments249 
Less: Imputed interest44 
Present value of operating lease liabilities$205 
Schedule of Supplemental Cash Flow Information Related to Operating Leases
Supplemental cash flow information related to operating leases follows:

Years Ended December 31,
(in millions)202320222021
Cash paid for operating lease liabilities$36 $33 $33 
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities (1)
$39 $97 $46 
(1) The year ended December 31, 2022 includes $25 million of operating lease assets acquired from the First Alert acquisition.
v3.24.0.1
Long-Term Debt (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
Long-term debt is comprised of the following:
December 31,
(in millions)20232022
4.000% senior notes due 2029
$300 $300 
Variable rate A&R Term B Facility 1,119 1,131 
Gross debt1,419 1,431 
Less: current portion of long-term debt(12)(12)
Less: unamortized deferred financing costs(11)(15)
Total long-term debt$1,396 $1,404 
Aggregate Required Principal Payments on Long-Term Debt Outstanding
Aggregate required principal payments on long-term debt outstanding at December 31, 2023, follows:

(in millions)Payments
2024$12 
202512 
202612 
202712 
20281,073 
Thereafter300 
Total$1,419 
v3.24.0.1
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2023
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 table summarizes the fair value and presentation of derivative instruments in the Consolidated Balance Sheets as well as the pre-tax gain (loss) recorded in accumulated other comprehensive loss:

Fair Value of Derivative Assets
December 31,
(in millions)Financial Statement Line Item20232022
Derivatives designated as hedging instruments
Interest rate swapsOther current assets$20 $23 
Interest rate swapsOther assets10 22 
Total derivative assets designated as hedging instruments$30 $45 
Unrealized gainAccumulated other comprehensive loss$25 $42 
Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges
The following tables summarize the effect of derivative instruments designated as cash flow hedges in other comprehensive income (loss) and the Consolidated Statements of Operations:

Years Ended December 31,
(in millions)Financial Statement Line Item20232022
Gains recorded in accumulated other comprehensive loss, beginning of year$42 $6 
Current period gain (loss) recognized in/reclassified from other comprehensive incomeInterest expense, net25 42 
(Gains) losses reclassified from accumulated other comprehensive loss to net incomeInterest expense, net(42)(6)
Gains recorded in accumulated other comprehensive loss, end of year$25 $42 
v3.24.0.1
Fair Value (Tables)
 12 Months Ended
Dec. 31, 2023
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:

December 31, 2023December 31, 2022
(in millions)Carrying ValueFair ValueCarrying ValueFair Value
Debt
4.000% Senior Notes due 2029
$300 $266 $300 $242 
Variable rate A&R Term B Facility 1,119 1,122 1,131 1,125 
Total debt$1,419 $1,388 $1,431 $1,367 
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 swaps:

December 31, 2023December 31, 2022
(in millions)Carrying ValueSignificant other
observable inputs
(Level 2)		Carrying ValueSignificant other
observable inputs
(Level 2)
Assets:
Interest rate swaps$30 $30 $45 $45 
v3.24.0.1
Accrued Liabilities (Tables)
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Schedule of Accrued Liabilities ccrued liabilities consist of the following:
December 31,
(in millions)20232022
Obligations payable under Indemnification Agreements$140 $140 
Compensation, benefit and other employee-related110 108 
Customer rebate reserve104 98 
Restructuring
30 27 
Product warranties24 40 
Current operating lease liability39 37 
Taxes payable34 38 
Other (1)
128 152 
Total accrued liabilities$608 $640 
(1) Other includes accruals for advertising, legal and professional reserves, freight, royalties, interest, and other miscellaneous items.
v3.24.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2023
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 AgreementTax Matters AgreementTotal
Beginning balance, January 1, 2022$597 $128 $725 
Accruals for liabilities deemed probable and reasonably estimable (1)
157 (2)155 
Payments to Honeywell(140)(20)(160)
Balance as of December 31, 2022614 106 720 
Accruals for liabilities deemed probable and reasonably estimable (1)
178 (9)$169 
Payments to Honeywell(140)— $(140)
Balance as of December 31, 2023$652 $97 $749 
(1) Reimbursement Agreement liabilities deemed probable and reasonably estimable, however, it is possible we could pay $140 million per year (exclusive of any late payment fees up to 5% per annum) until the earlier of (1) December 31, 2043; or (2) December 31 of the third consecutive year during which the annual reimbursement obligation (including in respect of deferred payment amounts) has been less than $25 million.
Schedule of Reimbursement Agreement Liabilities Included in Balance Sheet Accounts
The liabilities related to the Reimbursement and Tax Matter Agreements are included in the following balance sheet accounts:

Years Ended December 31,
(in millions)20232022
Accrued liabilities$140 $140 
Obligations payable under Indemnification Agreements609 580 
Total indemnification liabilities$749 $720 
Schedule of Recorded Obligations for Product Warranties and Product Performance Guarantee
December 31,
(in millions)202320222021
Beginning balance$48 $23 $22 
Accruals for warranties/guarantees issued during the year24 30 22 
Adjustment of pre-existing warranties/guarantees— (2)(3)
Settlement of warranty/guarantee claims(38)(17)(18)
Reserve of acquired company at date of acquisition— 14 — 
Ending balance$34 $48 $23 
Long-Term Purchase Commitment
Aggregate payments on these obligations at December 31, 2023, follows:

(in millions)Payments
2024$142 
2025113 
202685 
20272 
2028 and thereafter— 
Total$342 
v3.24.0.1
Other Expense, net (Tables)
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Summary of Other Expenses, net
Other expenses, net consists of the following:
Years Ended December 31,
(in millions)202320222021
Reimbursement Agreement expense$178 $157 $146 
Return on pension assets9 (39)(9)
Other, net(18)21 22 
Total other expenses, net$169 $139 $159 
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income Before Taxes
Years Ended December 31,
(in millions)202320222021
U.S.$76 $124 $79 
Non-U.S.237 294 274 
Total$313 $418 $353 
Schedule of Components of Income Tax Expense (Benefit)
The components of the provision for income taxes consisted of the following:
Years Ended December 31,
(in millions)202320222021
Current:
U.S.$80 $95 $60 
Non-U.S.51 43 45 
Total current$131 $138 $105 
Deferred:
U.S.$(6)$(13)$5 
Non-U.S.(22)10 1 
Total deferred$(28)$(3)$6 
Total provision$103 $135 $111 
Schedule of Federal Statutory Income Tax Rate Reconciliation with Effective Income Tax Rate
The reconciliation of income tax computed at the U.S. federal statutory tax rate to the effective income tax rate is as follows:
Years Ended December 31,
202320222021
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
Impact of foreign operations(0.9)(1.6)(0.2)
U.S. state income taxes4.4 3.0 3.6 
Non-deductible indemnification costs10.9 7.7 8.4 
Executive compensation over $1 million
1.6 1.0 0.9 
Other non-deductible expenses0.3 (0.6)0.4 
U.S. taxation of foreign earnings2.8 1.0 1.4 
Tax credits(0.8)(0.5)(0.7)
Change in tax basis in foreign assets (1)
(6.5)— — 
All other items, net(0.2)1.3 (3.5)
Effective income tax rate32.7 %32.3 %31.3 %
(1) The 2023 impact represents the initial recognition of a step-up in the tax basis of intangible assets recorded under Switzerland tax reform, net of valuation allowance.
Schedule of Deferred Tax Liabilities and Assets
Deferred income taxes reflect the net impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. The tax effects of the temporary differences as of December 31, 2023 and 2022 are as follows:
Years Ended December 31,
(in millions)20232022
Deferred tax assets:
Pension$21 $16 
Intangibles (2)
28 — 
Other asset basis differences51 54 
Operating lease liabilities44 43 
Employee compensation and benefits23 17 
Inventory costing and related reserves11 15 
Capitalized research and development13 6 
Other accruals and reserves19 33 
Net operating and capital losses55 49 
Other11 1 
Gross deferred tax assets276 234 
Valuation allowance(75)(63)
Total deferred tax assets$201 $171 
Deferred tax liabilities:
Intangibles$(42)$(41)
Property, plant and equipment(16)(24)
Operating lease assets(41)(40)
Other(6)(7)
Total deferred tax liabilities$(105)$(112)
Net deferred tax asset$96 $59 
(2) A valuation allowance brings the net deferred tax effect of the allowed step-up of intangible assets recorded under Switzerland tax reform to the amount more likely than not to be realized.
Summary of Valuation Allowance
The rollforward of the valuation allowance on deferred taxes is as follows for the periods indicated:
Years Ended December 31,
(in millions)202320222021
Beginning balance$63 $63 $60 
Additions / (Subtractions)12 — 3 
Ending balance$75 $63 $63 
Schedule of Unrecognized Tax Benefits Roll Forward
The table below sets forth the changes to our gross unrecognized tax benefit as a result of uncertain tax positions, excluding interest and penalties for the years ended December 31, 2023, 2022 and 2021. We do not anticipate that the total unrecognized tax benefits will change significantly within the next twelve months.
Years Ended December 31,
(in millions)202320222021
Unrecognized tax benefits at beginning of year$22 $16 $10 
Decreases related to positions taken on items from prior years(1)— — 
Increases related to positions taken in the current year5 6 6 
Decreases due to expiration of statutes of limitations(4)— — 
Unrecognized tax benefits at end of year$22 $22 16 
v3.24.0.1
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2023
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 share follows:

Years Ended December 31,
(in millions)202320222021
Numerator for basic and diluted earnings per share:
Net income$210 $283 $242 
Denominator for basic and diluted earnings per share:
Weighted average basic number of common shares outstanding147146144
Plus: dilutive effect of common stock equivalents1 34
Weighted average diluted number of common shares outstanding148149148
Earnings per share:
Basic$1.43 $1.94 $1.68 
Diluted$1.42 $1.90 $1.63 
v3.24.0.1
Geographic Areas - Financial Data (Tables)
 12 Months Ended
Dec. 31, 2023
Segments, Geographical Areas [Abstract]  
Schedule of Geographic Areas
Revenue and long-lived assets by geography are as follows:

Net Revenue (1)
Long-lived Assets (2)
Years Ended December 31,December 31,
(in millions)202320222021202320222021
U.S.$4,720 $4,795 $4,181 $332 $347 $244 
Europe1,065 1,111 1,196 143 131 139 
Other International457 464 469 107 79 46 
Total$6,242 $6,370 $5,846 $582 $557 $429 
(1)Net revenue between geographic areas approximate market and is not significant. Net revenue is classified according to their country of origin. Included in U.S. net revenue are export sales of $41 million, $38 million, and $26 million for the years ended December 31, 2023, 2022, and 2021, respectively.
(2)Long-lived assets are comprised of property, plant and equipment, net and right-of-use lease assets.
v3.24.0.1
Summary of Significant Accounting Policies - Inventories (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]    
Raw materials $ 221 $ 251
Work in process 18 25
Finished products 702 699
Inventories, net $ 941 $ 975
v3.24.0.1
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment      
Gross property, plant and equipment $ 1,068 $ 1,039  
Accumulated depreciation (678) (673)  
Total property, plant and equipment, net 390 366  
Depreciation 59 59 $ 58
Machinery and equipment      
Property, Plant and Equipment      
Gross property, plant and equipment $ 659 647  
Machinery and equipment | Minimum      
Property, Plant and Equipment      
Property, plant and equipment, useful lives (in years) 3 years    
Machinery and equipment | Maximum      
Property, Plant and Equipment      
Property, plant and equipment, useful lives (in years) 16 years    
Buildings and improvements      
Property, Plant and Equipment      
Gross property, plant and equipment $ 314 303  
Buildings and improvements | Minimum      
Property, Plant and Equipment      
Property, plant and equipment, useful lives (in years) 10 years    
Buildings and improvements | Maximum      
Property, Plant and Equipment      
Property, plant and equipment, useful lives (in years) 50 years    
Construction in progress      
Property, Plant and Equipment      
Gross property, plant and equipment $ 85 80  
Land      
Property, Plant and Equipment      
Gross property, plant and equipment $ 10 $ 9  
v3.24.0.1
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Oct. 29, 2018
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Summary Of Significant Accounting Policies [Line Items]        
Obligations payable under Indemnification Agreements   $ 609 $ 580  
Compensation expense related to employer contributions   $ 22 22 $ 19
Defined benefit plan net actuarial gains and losses in excess of fair value of plan assets or plan's projected benefit obligation percentage   10.00%    
Honeywell        
Summary Of Significant Accounting Policies [Line Items]        
Indemnity liability annual cap   $ 140    
Honeywell | Indemnification and Reimbursement Agreement        
Summary Of Significant Accounting Policies [Line Items]        
Indemnification payable percentage of payments 90.00%      
Indemnification payable percentage of net insurance receipts 90.00%      
Indemnification payable percentage of net proceeds received 90.00%      
Honeywell | Tax Matters Agreement        
Summary Of Significant Accounting Policies [Line Items]        
Obligations payable under Indemnification Agreements   $ 97 $ 106  
Trademarks | Honeywell        
Summary Of Significant Accounting Policies [Line Items]        
Trademark license agreement (in years)   40 years    
Trademarks | Honeywell | Selling, general and administrative expenses        
Summary Of Significant Accounting Policies [Line Items]        
Royalty fee percentage of net revenue   1.50%    
Maximum | Honeywell | Indemnification and Reimbursement Agreement        
Summary Of Significant Accounting Policies [Line Items]        
Indemnity liability annual cap $ 140      
v3.24.0.1
Acquisitions and Divestitures (Details) - USD ($)
$ in Millions
 12 Months Ended
Oct. 16, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Aug. 09, 2023
Jan. 23, 2023
Dec. 23, 2022
Jul. 05, 2022
Mar. 31, 2022
Feb. 14, 2022
Business Acquisition                    
Proceeds from sale of business   $ 86 $ 0 $ 0            
Sfty SA                    
Business Acquisition                    
Percentage of capital stock acquired         100.00%          
BTX Technologies, Inc.                    
Business Acquisition                    
Percentage of capital stock acquired           100.00%        
Teknique Limited                    
Business Acquisition                    
Percentage of capital stock acquired             100.00%      
Electronic Customer Distributors, Inc.                    
Business Acquisition                    
Percentage of capital stock acquired               100.00%    
First Alert                    
Business Acquisition                    
Percentage of capital stock acquired                 100.00%  
Arrow Wire and Cable, Inc. | ADI Global Distribution                    
Business Acquisition                    
Percentage of capital stock acquired                   100.00%
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Genesis Cable                    
Business Acquisition                    
Proceeds from sale of business $ 86                  
Gain on disposition of Business 18                  
Divestiture related costs $ 5                  
v3.24.0.1
Segment Financial Data - Additional Information (Details)
home in Millions
 12 Months Ended
Dec. 31, 2023
segment
home
Segment Reporting [Abstract]  
Number of operating segments (segment) | segment 2
Number of homes (in home) | home 150
v3.24.0.1
Segment Financial Data - Schedule of Segment Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenues [Abstract]      
Total net revenue $ 6,242 $ 6,370 $ 5,846
Income from operations      
Total income from operations 547 611 559
Depreciation and amortization      
Total depreciation and amortization 98 94 88
Capital expenditures      
Total capital expenditures 105 85 63
Corporate, Non-Segment      
Income from operations      
Total income from operations (218) (229) (250)
Depreciation and amortization      
Total depreciation and amortization 9 11 12
Capital expenditures      
Total capital expenditures 2 1 2
Products and Solutions      
Revenues [Abstract]      
Total net revenue 2,672 2,783 2,468
Products and Solutions | Operating Segments      
Income from operations      
Total income from operations 495 527 541
Depreciation and amortization      
Total depreciation and amortization 71 69 65
Capital expenditures      
Total capital expenditures 77 55 37
ADI Global Distribution      
Revenues [Abstract]      
Total net revenue 3,570 3,587 3,378
ADI Global Distribution | Operating Segments      
Income from operations      
Total income from operations 270 313 268
Depreciation and amortization      
Total depreciation and amortization 18 14 11
Capital expenditures      
Total capital expenditures $ 26 $ 29 $ 24
v3.24.0.1
Revenue Recognition - Additional Information (Details)
 12 Months Ended
Dec. 31, 2023
segment
Revenue from Contract with Customer [Abstract]  
Number of operating segments (segment) 2
v3.24.0.1
Revenue Recognition - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01
Dec. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period (in years) 1 year
Transferred over Time  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Percentage of revenue satisfied (percent) 2.00%
v3.24.0.1
Revenue Recognition - Revenue By Business Line and Geographic Location (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation Of Revenue      
Net revenue $ 6,242 $ 6,370 $ 5,846
Products and Solutions      
Disaggregation Of Revenue      
Net revenue 2,672 2,783 2,468
Products and Solutions | Air      
Disaggregation Of Revenue      
Net revenue 862 953 858
Products and Solutions | Safety and Security      
Disaggregation Of Revenue      
Net revenue 965 913 667
Products and Solutions | Energy      
Disaggregation Of Revenue      
Net revenue 525 595 594
Products and Solutions | Water      
Disaggregation Of Revenue      
Net revenue 320 322 349
ADI Global Distribution      
Disaggregation Of Revenue      
Net revenue 3,570 3,587 3,378
ADI Global Distribution | U.S. and Canada      
Disaggregation Of Revenue      
Net revenue 3,085 3,087 2,814
ADI Global Distribution | EMEA      
Disaggregation Of Revenue      
Net revenue 485 474 523
ADI Global Distribution | APAC      
Disaggregation Of Revenue      
Net revenue $ 0 $ 26 $ 41
v3.24.0.1
Restructuring - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring Cost And Reserve      
Restructuring and impairment expenses $ 42,000,000 $ 35,000,000 $ 0
Minimum      
Restructuring Cost And Reserve      
Restructuring initiatives execution (in months) 12 months    
Maximum      
Restructuring Cost And Reserve      
Restructuring initiatives execution (in months) 24 months    
v3.24.0.1
Restructuring - Schedule Restructuring and Impairment Expense (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring Cost And Reserve      
Restructuring and impairment expenses $ 42,000,000 $ 35,000,000 $ 0
Corporate, Non-Segment      
Restructuring Cost And Reserve      
Restructuring and impairment expenses 3,000,000 4,000,000  
Products and Solutions | Operating Segments      
Restructuring Cost And Reserve      
Restructuring and impairment expenses 27,000,000 29,000,000  
ADI Global Distribution | Operating Segments      
Restructuring Cost And Reserve      
Restructuring and impairment expenses $ 12,000,000 $ 2,000,000  
v3.24.0.1
Restructuring - Schedule of Restructuring Expenses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring Reserve      
Beginning of year $ 27 $ 9 $ 24
Charges 34 26 0
Usage (31) (5) (11)
Other 0 (3) (4)
End of year $ 30 $ 27 $ 9
v3.24.0.1
Pension Plans - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure      
Defined benefit liability, current $ 2.0    
Defined benefit liability, non-current 117.0 $ 86.0  
Actual return on plan assets $ 21.0    
Fixed Income Investments      
Defined Benefit Plan Disclosure      
Pension assets allocation targets percentage 37.00%    
Global Equity Investments      
Defined Benefit Plan Disclosure      
Pension assets allocation targets percentage 33.00%    
Global Real Estate Investments      
Defined Benefit Plan Disclosure      
Pension assets allocation targets percentage 12.00%    
Cash And Other Investments      
Defined Benefit Plan Disclosure      
Pension assets allocation targets percentage 18.00%    
U.S.      
Defined Benefit Plan Disclosure      
Actual return on plan assets $ 20.0    
NETHERLANDS      
Defined Benefit Plan Disclosure      
Actual return on plan assets 1.0    
Pension Plan      
Defined Benefit Plan Disclosure      
Settlement loss 6.0    
Decrease in plan assets 83.0    
Decrease in plan liabilities 78.0    
Net actuarial gain (loss) (31.0)    
Gain due to change in discount rate 11.0    
Pension Plan | U.S.      
Defined Benefit Plan Disclosure      
Settlement loss 6.0 0.0 $ 0.0
Net actuarial gain (loss) (23.0) 66.0 20.0
Actual return on plan assets $ 20.0 $ (62.0) $ 25.0
Expected rate of return on plan assets 5.30% 5.30% 4.70%
Pension settlement $ 0.0    
Pension Plan | Non-U.S. Plans      
Defined Benefit Plan Disclosure      
Settlement loss (2.0) $ 0.0 $ 0.0
Gain from curtailment 2.0    
Net actuarial gain (loss) (8.0) 45.0 18.0
Actual return on plan assets $ 1.0 $ (6.0) $ 2.0
Expected rate of return on plan assets 3.40% 1.30% 2.30%
Pension settlement $ 3.0    
Expected pension contribution in the next fiscal year 3.0    
Pension Plan | Experience Gains      
Defined Benefit Plan Disclosure      
Net actuarial gain (loss) $ (20.0)    
v3.24.0.1
Pension Plans - Summary of Balance Sheet Impact, Including Benefit Obligations, Assets and Funded Status (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan, Plan Assets, Allocations [Abstract]      
Actual return on plan assets $ 21    
U.S.      
Defined Benefit Plan, Plan Assets, Allocations [Abstract]      
Actual return on plan assets 20    
Pension Plan      
Change in benefit obligation:      
Actuarial losses (gains) 31    
Pension Plan | U.S.      
Change in benefit obligation:      
Benefit obligation at beginning of year 281 $ 348 $ 374
Service cost 3 7 7
Interest cost 13 11 10
Actuarial losses (gains) 23 (66) (20)
Net benefits paid (3) (18) (5)
Settlements and curtailments (83) (1) (18)
Other 0 0 0
Foreign currency translation 0 0 0
Benefit obligation at end of year 234 281 348
Defined Benefit Plan, Plan Assets, Allocations [Abstract]      
Fair value of plan assets at beginning of year 262 342 340
Actual return on plan assets 20 (62) 25
Employer contributions 0 1 0
Net benefits paid (3) (18) (5)
Settlements and curtailments (83) (1) (18)
Other 1 0 0
Foreign currency translation 0 0 0
Fair value of plan assets at end of year 197 262 342
Funded status of plans (non-current) (37) (19) (6)
Pension Plan | Non-U.S. Plans      
Change in benefit obligation:      
Benefit obligation at beginning of year 96 141 161
Service cost 4 5 7
Interest cost 3 2 1
Actuarial losses (gains) 8 (45) (18)
Net benefits paid 4 0 0
Settlements and curtailments (13) 0 (1)
Other 1 1 1
Foreign currency translation 5 (8) (10)
Benefit obligation at end of year 108 96 141
Defined Benefit Plan, Plan Assets, Allocations [Abstract]      
Fair value of plan assets at beginning of year 27 32 28
Actual return on plan assets 1 (6) 2
Employer contributions 2 3 3
Net benefits paid 4 0 1
Settlements and curtailments (11) 0 (1)
Other 1 (1) 0
Foreign currency translation 2 (1) (1)
Fair value of plan assets at end of year 26 27 32
Funded status of plans (non-current) $ (82) $ (69) $ (109)
v3.24.0.1
Pension Plans - Summary of Accumulated Other Comprehensive (Loss) Associated with Pension Plans (Details) - Pension Plan - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
U.S.    
Defined Benefit Plan Disclosure    
Prior service cost $ 0 $ 0
Net actuarial loss (gain) 20 13
Net amount recognized 20 13
Non-U.S. Plans    
Defined Benefit Plan Disclosure    
Prior service cost 2 2
Net actuarial loss (gain) 0 (8)
Net amount recognized $ 2 $ (6)
v3.24.0.1
Pension Plans - Summary of Net Periodic Benefit (Income) Cost and Other Amounts Recognized in Comprehensive Income (Details) - Pension Plan - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure      
Settlement and curtailment losses (gains) $ 6    
U.S.      
Defined Benefit Plan Disclosure      
Service cost 3 $ 7 $ 7
Interest cost 13 11 10
Expected return on plan assets (11) (17) (16)
Amortization of prior service credit (1) (1) (1)
Amortization of actuarial losses (gains) 2 0 0
Settlement and curtailment losses (gains) 6 0 0
Net periodic benefit cost (income) 12 0 0
Non-U.S. Plans      
Defined Benefit Plan Disclosure      
Service cost 4 5 7
Interest cost 3 2 1
Expected return on plan assets (1) (1) (1)
Amortization of prior service credit 0 0 0
Amortization of actuarial losses (gains) 0 (33) (3)
Settlement and curtailment losses (gains) (2) 0 0
Net periodic benefit cost (income) $ 4 $ (27) $ 4
v3.24.0.1
Pension Plans - Summary of Net Periodic Benefit (Income) Cost Other Than The Service Cost Included in Other Expense, Net (Details) - Pension Plan - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
U.S.      
Defined Benefit Plan Disclosure      
Actuarial losses (gains) $ 14 $ (66) $ (20)
Prior service costs arising during the year 0 0 0
Excess return on plan assets 0 79 (9)
Actuarial (losses) gains recognized during the year (8) 0 0
Other 1 0 1
Total recognized in other comprehensive (income) loss 7 13 (28)
Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss 19 13 (28)
Non-U.S. Plans      
Defined Benefit Plan Disclosure      
Actuarial losses (gains) 9 (45) (18)
Prior service costs arising during the year 0 2 0
Excess return on plan assets 0 6 0
Actuarial (losses) gains recognized during the year 0 33 3
Other (1) 0 (1)
Total recognized in other comprehensive (income) loss 8 (4) (16)
Total recognized in net periodic benefit cost (income) and other comprehensive (income) loss $ 12 $ (31) $ (12)
v3.24.0.1
Pension Plans - Summary of Significant Actuarial Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit (Income) Cost (Details) - Pension Plan
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
U.S.      
Actuarial assumptions used to determine benefit obligations as of December 31:      
Discount rate 5.20% 3.10% 3.00%
Interest crediting rate 6.00% 6.00% 6.00%
Expected annual rate of compensation increase 3.50% 3.20% 3.20%
Actuarial assumptions used to determine net periodic benefit cost (income) for the year ended December 31:      
Discount rate - benefit obligation 5.00% 5.20% 2.70%
Interest crediting rate 6.00% 6.00% 6.00%
Expected rate of return on plan assets 5.30% 5.30% 4.70%
Expected annual rate of compensation increase 3.50% 3.50% 3.50%
Non-U.S. Plans      
Actuarial assumptions used to determine benefit obligations as of December 31:      
Discount rate 3.40% 1.20% 1.20%
Interest crediting rate 2.50% 1.50% 1.50%
Expected annual rate of compensation increase 2.60% 2.40% 2.40%
Actuarial assumptions used to determine net periodic benefit cost (income) for the year ended December 31:      
Discount rate - benefit obligation 3.00% 3.40% 0.70%
Interest crediting rate 2.20% 2.50% 1.50%
Expected rate of return on plan assets 3.40% 1.30% 2.30%
Expected annual rate of compensation increase 2.70% 2.60% 2.40%
v3.24.0.1
Pension Plans - Summary of Amounts Relate to Pension Plans with Accumulated Benefit Obligations Exceeding Fair Value of Plan Assets (Details) - Pension Plan - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
U.S.    
Defined Benefit Plan Disclosure    
Projected benefit obligation $ 234 $ 281
Accumulated benefit obligation 230 278
Fair value of plan assets 197 262
Non-U.S. Plans    
Defined Benefit Plan Disclosure    
Projected benefit obligation 106 96
Accumulated benefit obligation 96 86
Fair value of plan assets $ 25 $ 27
v3.24.0.1
Pension Plans - Summary of Pension Plan with Projected Benefit Obligations Exceeding Fair Value of Plan Assets (Details) - Pension Plan - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
U.S.    
Defined Benefit Plan Disclosure    
Projected benefit obligation $ 234 $ 281
Accumulated benefit obligation 230 278
Fair value of plan assets 197 262
Non-U.S. Plans    
Defined Benefit Plan Disclosure    
Projected benefit obligation 108 96
Accumulated benefit obligation 98 87
Fair value of plan assets $ 26 $ 27
v3.24.0.1
Pension Plans - Summary of NAV and Fair Values of U.S. Pension Plans Assets by Asset Category (Details) - Pension Plan - U.S. - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Defined Benefit Plan Disclosure        
Total assets at fair value $ 197 $ 262 $ 342 $ 340
NAV        
Defined Benefit Plan Disclosure        
Total assets at fair value 197 262    
NAV | Cash and cash equivalents        
Defined Benefit Plan Disclosure        
Total assets at fair value 3 6    
NAV | Equity        
Defined Benefit Plan Disclosure        
Total assets at fair value 64 45    
NAV | Government bonds        
Defined Benefit Plan Disclosure        
Total assets at fair value 14 21    
NAV | Corporate bonds        
Defined Benefit Plan Disclosure        
Total assets at fair value 58 132    
NAV | Real estate / property        
Defined Benefit Plan Disclosure        
Total assets at fair value 24 29    
NAV | Other        
Defined Benefit Plan Disclosure        
Total assets at fair value $ 34 $ 29    
v3.24.0.1
Pension Plans - Summary of Fair Values of Non-U.S. Pension Plans Assets by Asset Category (Details) - Pension Plan - Non-U.S. Plans - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Defined Benefit Plan Disclosure        
Total assets at fair value $ 26 $ 27 $ 32 $ 28
Equity        
Defined Benefit Plan Disclosure        
Total assets at fair value 7 1    
Government bonds        
Defined Benefit Plan Disclosure        
Total assets at fair value 6 1    
Insurance contracts        
Defined Benefit Plan Disclosure        
Total assets at fair value 7 6    
Other        
Defined Benefit Plan Disclosure        
Total assets at fair value 6 19    
Level 1        
Defined Benefit Plan Disclosure        
Total assets at fair value 7 1    
Level 1 | Equity        
Defined Benefit Plan Disclosure        
Total assets at fair value 7 1    
Level 1 | Government bonds        
Defined Benefit Plan Disclosure        
Total assets at fair value 0 0    
Level 1 | Insurance contracts        
Defined Benefit Plan Disclosure        
Total assets at fair value 0 0    
Level 1 | Other        
Defined Benefit Plan Disclosure        
Total assets at fair value 0 0    
Level 2        
Defined Benefit Plan Disclosure        
Total assets at fair value 6 1    
Level 2 | Equity        
Defined Benefit Plan Disclosure        
Total assets at fair value 0 0    
Level 2 | Government bonds        
Defined Benefit Plan Disclosure        
Total assets at fair value 6 1    
Level 2 | Insurance contracts        
Defined Benefit Plan Disclosure        
Total assets at fair value 0 0    
Level 2 | Other        
Defined Benefit Plan Disclosure        
Total assets at fair value 0 0    
Level 3        
Defined Benefit Plan Disclosure        
Total assets at fair value 13 25 $ 30 $ 26
Level 3 | Equity        
Defined Benefit Plan Disclosure        
Total assets at fair value 0 0    
Level 3 | Government bonds        
Defined Benefit Plan Disclosure        
Total assets at fair value 0 0    
Level 3 | Insurance contracts        
Defined Benefit Plan Disclosure        
Total assets at fair value 7 6    
Level 3 | Other        
Defined Benefit Plan Disclosure        
Total assets at fair value $ 6 $ 19    
v3.24.0.1
Pension Plans - Summary of Changes in Fair Value of Level 3 Assets for Non-U.S (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Defined Benefit Plan Disclosure      
Actual return on plan assets $ 21    
Pension Plan | Non-U.S. Plans      
Defined Benefit Plan Disclosure      
Fair value of plan assets at beginning of year 27 $ 32 $ 28
Actual return on plan assets 1 (6) 2
Fair value of plan assets at end of year 26 27 32
Level 3 | Pension Plan | Non-U.S. Plans      
Defined Benefit Plan Disclosure      
Fair value of plan assets at beginning of year 25 30 26
Actual return on plan assets 1 (3) 1
Purchases, sales and settlements, net (14)   4
Other 1 (2) (1)
Fair value of plan assets at end of year $ 13 $ 25 $ 30
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] Level 3 Level 3 Level 3
v3.24.0.1
Pension Plans - Summary of Benefit Payments (Details) - Pension Plan
$ in Millions
Dec. 31, 2023
USD ($)
U.S.  
Defined Benefit Plan Disclosure  
2024 $ 19
2025 19
2026 19
2027 19
2028 19
2029-2033 86
Non-U.S. Plans  
Defined Benefit Plan Disclosure  
2024 3
2025 3
2026 3
2027 3
2028 4
2029-2033 $ 26
v3.24.0.1
Stock-Based Compensation Plans - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Jul. 01, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award        
Increase in number of shares available for issuance (in shares) 3,500,000      
Shares available for issuance (in shares) 19,500,000      
Number of shares available for grant (in shares)   12,000,000    
Stock-based compensation expense, net of tax   $ 43 $ 48 $ 36
Vesting period (in years)   3 years    
Number of stock options exercised   0 0  
Proceeds from stock options exercised       $ 9
Stock Options        
Share-based Compensation Arrangement by Share-based Payment Award        
Number of shares available for grant (in shares) 7,500,000      
Vesting period (in years)   3 years    
Remaining term of unvested awards (in years)   1 year    
Expiration period (in years)   7 years    
RSUs        
Share-based Compensation Arrangement by Share-based Payment Award        
Remaining term of unvested awards (in years)   1 year 9 months    
PSUs        
Share-based Compensation Arrangement by Share-based Payment Award        
Vesting period (in years)   3 years    
Remaining term of unvested awards (in years)   1 year 2 months    
Non-Employee Directors | RSUs        
Share-based Compensation Arrangement by Share-based Payment Award        
Vesting period (in years)   1 year    
v3.24.0.1
Stock-Based Compensation Plans - Summary of Fair Values Estimated for PSUs (Details) - PSUs
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award      
Expected volatility (as percentage) 63.37% 59.01% 47.43%
Risk-free interest rate (as percentage) 4.24% 1.58% 0.20%
Expected term of options (in years) 2 years 10 months 17 days 2 years 10 months 20 days 2 years 10 months 9 days
Dividend yield (as percentage) 0.00% 0.00% 0.00%
v3.24.0.1
Stock-Based Compensation Plans - Summarized RSU and PSU Activity Related to Stock Incentive Plan (Details)
 12 Months Ended
Dec. 31, 2023
$ / shares
shares
PSUs  
Number of Stock Units Granted  
Non-vested, beginning balance (in shares) | shares 1,722,380
Number of stock units granted (in shares) | shares 553,071
Vested (in shares) | shares (611,631)
Forfeited (in shares) | shares (69,954)
Non-vested, ending balance (in shares) | shares 1,593,866
Weighted average grant date fair value per share  
Non-vested, beginning balance (in dollars per share) | $ / shares $ 27.23
Granted (in dollars per share) | $ / shares 29.89
Vested (in dollars per share) | $ / shares 27.03
Forfeited (in dollars per share) | $ / shares 38.47
Non-vested, ending balance (in dollars per share) | $ / shares $ 35.80
RSUs  
Number of Stock Units Granted  
Non-vested, beginning balance (in shares) | shares 3,410,962
Number of stock units granted (in shares) | shares 2,298,936
Vested (in shares) | shares (1,615,111)
Forfeited (in shares) | shares (238,291)
Non-vested, ending balance (in shares) | shares 3,856,496
Weighted average grant date fair value per share  
Non-vested, beginning balance (in dollars per share) | $ / shares $ 20.57
Granted (in dollars per share) | $ / shares 18.79
Vested (in dollars per share) | $ / shares 18.35
Forfeited (in dollars per share) | $ / shares 21.88
Non-vested, ending balance (in dollars per share) | $ / shares $ 20.16
v3.24.0.1
Stock-Based Compensation Plans - Unrecognized Compensation Cost Related to Unvested Awards (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award  
Unrecognized Compensation Cost $ 68
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award  
Unrecognized Compensation Cost $ 48
Weighted-Average Period (in years) 1 year 9 months
PSUs  
Share-based Compensation Arrangement by Share-based Payment Award  
Unrecognized Compensation Cost $ 20
Weighted-Average Period (in years) 1 year 2 months
v3.24.0.1
Stock-Based Compensation Plans - Fair Value of Shares Vested (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award      
Fair value of RSUs and PSUs vested $ 43 $ 40 $ 48
RSUs      
Share-based Compensation Arrangement by Share-based Payment Award      
Fair value of RSUs and PSUs vested 29 36 $ 48
PSUs      
Share-based Compensation Arrangement by Share-based Payment Award      
Fair value of RSUs and PSUs vested $ 14 $ 4  
v3.24.0.1
Stock-Based Compensation Plans - Summary of Fair Value of Stock Options (Details) - Stock Options
 12 Months Ended
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award  
Expected stock price volatility (as percentage) 34.00%
Expected term of options (in years) 5 years
Dividend yield (as percentage) 0.00%
Risk-free interest rate (as percentage) 0.77%
v3.24.0.1
Stock-Based Compensation Plans - Summary of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Number of Stock Options    
Options outstanding, beginning balances (in shares) 1,317,649  
Granted (in shares) 0  
Forfeited (in shares) 0  
Expired (in shares) (96,692)  
Exercised (in shares) 0 0
Options outstanding, ending balances (in shares) 1,220,957 1,317,649
Vested and expected to vest (in shares) 1,220,957  
Exercisable (in shares) 1,070,957  
Weighted Average Exercise Price    
Options outstanding, beginning balance (in dollars per share) $ 15.25  
Granted (in dollars per share) 0  
Forfeited (in dollars per share) 0  
Expired (in dollars per share) 24.35  
Exercised (in dollars per share) 0  
Options outstanding, ending balance (in dollars per share) 14.52 $ 15.25
Vested and expected to vest (in dollars per share) 14.52  
Exercisable (in dollars per share) $ 12.99  
Stock Options Additional Disclosures    
Weighted Average Contractual Life (in years) 3 years 2 months 12 days 4 years
Weighted Average Contractual Life (in years), vested and expected to vest 3 years 2 months 12 days  
Weighted Average Contractual Life (in years), exercisable 2 years 10 months 24 days  
Aggregate Intrinsic Value of shares outstanding $ 8 $ 6
Aggregate Intrinsic Value, exercised 0  
Aggregate Intrinsic Value, vested and expected to vest 8  
Aggregate Intrinsic Value, exercisable $ 8  
v3.24.0.1
Goodwill and Intangible Assets, net - Schedule of Goodwill (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill    
Goodwill, beginning balance $ 2,724 $ 2,661
Acquisitions 10 109
Divestiture (46) (4)
Adjustments (5)  
Impact of foreign currency translation 22 (42)
Goodwill, ending balance 2,705 2,724
Products and Solutions    
Goodwill    
Goodwill, beginning balance 2,072 2,010
Acquisitions 7 94
Divestiture (46) 0
Adjustments (5)  
Impact of foreign currency translation 17 (32)
Goodwill, ending balance 2,045 2,072
ADI Global Distribution    
Goodwill    
Goodwill, beginning balance 652 651
Acquisitions 3 15
Divestiture 0 (4)
Adjustments 0  
Impact of foreign currency translation 5 (10)
Goodwill, ending balance $ 660 $ 652
v3.24.0.1
Goodwill and Intangible Assets, net - Summary of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Intangible assets subject to amortization $ 281 $ 295
Indefinite-lived intangible assets 180 180
Total intangible assets $ 461 $ 475
v3.24.0.1
Goodwill and Intangible Assets, net - Schedule of Other Intangible Assets With Finite Lives (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Finite Lived Intangible Assets    
Gross Carrying Amount $ 585 $ 567
Accumulated Amortization (304) (272)
Net Carrying Amount 281 295
Patents and technology    
Finite Lived Intangible Assets    
Gross Carrying Amount 64 65
Accumulated Amortization (26) (28)
Net Carrying Amount $ 38 $ 37
Weighted Average Amortization (in years) 10 years 10 years
Patents and technology | Minimum    
Finite Lived Intangible Assets    
Useful lives (in years) 7 years 3 years
Patents and technology | Maximum    
Finite Lived Intangible Assets    
Useful lives (in years) 10 years 10 years
Customer relationships    
Finite Lived Intangible Assets    
Gross Carrying Amount $ 319 $ 313
Accumulated Amortization (138) (117)
Net Carrying Amount $ 181 $ 196
Weighted Average Amortization (in years) 14 years 14 years
Customer relationships | Minimum    
Finite Lived Intangible Assets    
Useful lives (in years) 7 years 7 years
Customer relationships | Maximum    
Finite Lived Intangible Assets    
Useful lives (in years) 15 years 15 years
Trademarks    
Finite Lived Intangible Assets    
Gross Carrying Amount $ 9 $ 14
Accumulated Amortization (8) (8)
Net Carrying Amount $ 1 $ 6
Weighted Average Amortization (in years) 10 years 10 years
Trademarks | Minimum    
Finite Lived Intangible Assets    
Useful lives (in years) 5 years  
Trademarks | Maximum    
Finite Lived Intangible Assets    
Useful lives (in years) 10 years 10 years
Software    
Finite Lived Intangible Assets    
Gross Carrying Amount $ 193 $ 175
Accumulated Amortization (132) (119)
Net Carrying Amount $ 61 $ 56
Weighted Average Amortization (in years) 5 years 6 years
Software | Minimum    
Finite Lived Intangible Assets    
Useful lives (in years) 2 years 2 years
Software | Maximum    
Finite Lived Intangible Assets    
Useful lives (in years) 7 years 7 years
v3.24.0.1
Goodwill and Intangible Assets, net - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]      
Intangible asset amortization $ 38 $ 35 $ 30
v3.24.0.1
Goodwill and Intangible Assets, net - Estimated Aggregate Amortization on Intangible Assets (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2024 $ 38
2025 40
2026 35
2027 29
2028 $ 26
v3.24.0.1
Leases - Schedule of Operating Lease Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Lessee Lease Description      
Total operating lease costs $ 77 $ 69 $ 63
Selling, general and administrative expenses      
Lessee Lease Description      
Total operating lease costs 57 50 46
Cost of goods sold      
Lessee Lease Description      
Total operating lease costs $ 20 $ 19 $ 17
v3.24.0.1
Leases - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Variable lease costs $ 22 $ 19 $ 17
v3.24.0.1
Leases - Summary of Lease Recognized Related to Operating Leases (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Operating lease assets $ 192 $ 191
Operating lease liabilities - current 39 37
Operating lease liabilities - non-current $ 166 $ 166
Weighted-average remaining lease term (years) 6 years 3 months 25 days 6 years 9 months 21 days
Weighted-average incremental borrowing rate 6.12% 5.78%
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
v3.24.0.1
Leases - Maturities of Operating Lease Liabilities (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Leases [Abstract]  
2024 $ 46
2025 44
2026 40
2027 34
2028 27
Thereafter 58
Total lease payments 249
Less: Imputed interest 44
Present value of operating lease liabilities $ 205
v3.24.0.1
Leases - Supplemental Cash Flow Information Related to Operating Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Lessee Lease Description      
Cash paid for operating lease liabilities $ 36 $ 33 $ 33
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities (1) $ 39 97 $ 46
2022 Acquisitions      
Lessee Lease Description      
Non-cash activities: operating lease assets obtained in exchange for new operating lease liabilities (1)   $ 25  
v3.24.0.1
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Aug. 26, 2021
Debt Instrument      
Gross debt $ 1,419 $ 1,431  
Less: current portion of long-term debt (12) (12)  
Less: unamortized deferred financing costs (11) (15)  
Long-term debt 1,396 1,404  
4.000% senior notes due 2029      
Debt Instrument      
Gross debt $ 300 300  
Interest rate (as a percent) 4.00%   4.00%
Variable rate A&R Term B Facility      
Debt Instrument      
Gross debt $ 1,119 $ 1,131  
v3.24.0.1
Long-Term Debt - Scheduled Principal Repayments Under Senior Credit Facilities and Senior Notes (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Debt Disclosure [Abstract]    
2024 $ 12  
2025 12  
2026 12  
2027 12  
2028 1,073  
Thereafter 300  
Total $ 1,419 $ 1,431
v3.24.0.1
Long-Term Debt - Additional Information (Details) - USD ($)
 12 Months Ended
Jun. 30, 2023
Mar. 28, 2022
Feb. 12, 2021
Dec. 31, 2023
Dec. 31, 2021
Dec. 31, 2022
Aug. 26, 2021
Feb. 16, 2021
Debt Instrument                
Loss on extinguishment of debt         $ 41,000,000      
A&R Term B Facility                
Debt Instrument                
Interest rate (as a percent)       7.72%   6.78%    
A&R Credit Agreement | A&R Term B Facility                
Debt Instrument                
Credit facilities term (in years)     7 years          
Principal amount issued   $ 200,000,000 $ 950,000,000          
A&R Credit Agreement | A&R Revolving Credit Facility                
Debt Instrument                
Credit facilities term (in years)   5 years            
Principal amount issued   $ 500,000,000            
A&R Credit Agreement | A&R Revolving Credit Facility | Maximum                
Debt Instrument                
Borrowings from credit facility       $ 75,000,000        
A&R Credit Agreement | A&R Revolving Credit Facility | SOFR                
Debt Instrument                
Debt instrument, basis spread on variable rate 0.10%              
Senior Credit Facilities | A&R Revolving Credit Facility                
Debt Instrument                
Borrowings from credit facility       0   $ 0    
Senior Credit Facilities | Letter of Credit                
Debt Instrument                
Borrowings from credit facility       $ 0   $ 0    
4.000% senior notes due 2029                
Debt Instrument                
Principal amount issued             $ 300,000,000  
Interest rate (as a percent)       4.00%     4.00%  
Redemption price percentage       101.00%        
6.125% notes due 2026                
Debt Instrument                
Interest rate (as a percent)               6.125%
v3.24.0.1
Derivative Financial Instruments - Additional Information (Details)
$ in Millions
 2 Months Ended 12 Months Ended
Apr. 30, 2023
USD ($)
derivative
Dec. 31, 2023
USD ($)
Jun. 23, 2023
Mar. 31, 2023
USD ($)
Mar. 31, 2021
USD ($)
derivative
Derivative          
Unrealized gains expected to be reclassified from AOCI in next 12 months   $ 22      
Swap Agreements          
Derivative          
Number of interest rate derivatives held | derivative 8       8
Notional value $ 70     $ 70 $ 560
Number of interest rate swap agreements modified | derivative 2        
AOCI remaining due to modified interest rate swap agreements to be amortized as reduction to interest expense   $ 2      
Fixed weighted average rate (as percentage)     0.39%    
Maximum | Swap Agreements          
Derivative          
Fixed weighted average rate (as percentage)     1.13%    
v3.24.0.1
Derivative Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Apr. 01, 2023
Dec. 31, 2023
Dec. 31, 2022
Derivative      
Derivative asset designated as hedging instruments   $ 30 $ 45
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 $ 42 $ 25  
Interest rate swaps | Other current assets | Designated as Hedging Instrument      
Derivative      
Derivative asset designated as hedging instruments   20 23
Interest rate swaps | Other assets | Designated as Hedging Instrument      
Derivative      
Derivative asset designated as hedging instruments   $ 10 $ 22
v3.24.0.1
Derivative Financial Instruments - Summary of Effect of Derivative Instruments Designated As Cash Flow Hedges (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Derivatives used in Net Investment Hedge, Net of Tax    
Beginning of period $ 2,529 $ 2,252
End of period 2,749 2,529
Accumulated other comprehensive loss    
Derivatives used in Net Investment Hedge, Net of Tax    
Beginning of period 42 6
Current period gain (loss) recognized in/reclassified from other comprehensive income 25 42
(Gains) losses reclassified from accumulated other comprehensive loss to net income (42) (6)
End of period $ 25 $ 42
v3.24.0.1
Fair Value - Schedule of Carrying Values and Estimated Fair Value of Debt Instruments (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Aug. 26, 2021
Debt Instrument      
Debt, carrying value $ 1,419 $ 1,431  
Debt, fair value $ 1,388 1,367  
4.000% senior notes due 2029      
Debt Instrument      
Interest rate (as a percent) 4.00%   4.00%
Debt, carrying value $ 300 300  
Debt, fair value 266 242  
Variable rate A&R Term B Facility      
Debt Instrument      
Debt, carrying value 1,119 1,131  
Debt, fair value $ 1,122 $ 1,125  
v3.24.0.1
Fair Value - Additional Information (Details) - Senior Credit Facilities - USD ($)
Dec. 31, 2023
Dec. 31, 2022
A&R Revolving Credit Facility    
Debt Instrument    
Borrowings from credit facility $ 0 $ 0
Letter of Credit    
Debt Instrument    
Borrowings from credit facility $ 0 $ 0
v3.24.0.1
Fair Value - Summary of the Carrying Amount and Fair Value of Interest Rate Swap (Details) - Fair Value, Recurring - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings    
Carrying value, assets, interest rate swaps $ 30 $ 45
Level 2    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings    
Assets, interest rate swaps $ 30 $ 45
v3.24.0.1
Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Accrued Liabilities, Current [Abstract]        
Obligations payable under Indemnification Agreements $ 140 $ 140    
Compensation, benefit and other employee-related 110 108    
Customer rebate reserve 104 98    
Restructuring 30 27 $ 9 $ 24
Product warranties 24 40    
Current operating lease liability 39 37    
Taxes payable 34 38    
Other 128 152    
Total accrued liabilities $ 608 $ 640    
v3.24.0.1
Commitments and Contingencies - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Nov. 17, 2022
Oct. 29, 2018
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Loss Contingencies          
Environmental liabilities     $ 22.0 $ 22.0  
Reimbursement Agreement expense     178.0 157.0 $ 146.0
Claim settlement expense $ 1.6        
Settlement liabilities     0.6    
Total     $ 342.0    
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration]     Cost of goods sold    
Purchase Commitments          
Loss Contingencies          
Total     $ 91.0 41.0 22.0
Other Expense          
Loss Contingencies          
Reimbursement Agreement expense     178.0 157.0 146.0
Maximum          
Loss Contingencies          
Sale leaseback transaction, aggregate amount     150.0    
Indemnification Agreement          
Loss Contingencies          
Maximum annual reimbursement obligation amount     25.0    
Honeywell          
Loss Contingencies          
Indemnity liability annual cap     $ 140.0    
Honeywell | Trademark Agreement          
Loss Contingencies          
Trademark license agreement (in years)     40 years    
Royalty fee on net revenue     1.50%    
Royalty expense     $ 18.0 $ 23.0 $ 21.0
Honeywell | Indemnification Agreement          
Loss Contingencies          
Indemnification payable percentage of payments   90.00%      
Indemnification payable percentage of net insurance receipts   90.00%      
Indemnification payable percentage of net proceeds received   90.00%      
Honeywell | Indemnification Agreement | Maximum          
Loss Contingencies          
Indemnity liability annual cap   $ 140.0      
v3.24.0.1
Commitments and Contingencies - Summary of Reimbursement Agreement Liabilities (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Indemnification Agreement    
Accrual for Reimbursement Agreement    
Maximum annual reimbursement obligation amount $ 25  
Honeywell    
Accrual for Reimbursement Agreement    
Beginning balance 720 $ 725
Accruals for liabilities deemed probable and reasonably estimable 169 155
Payments to Honeywell (140) (160)
Ending balance 749 720
Reimbursement Agreement liabilities $ 140  
Reimbursement Agreement liabilities, late payment fee percentage 5.00%  
Honeywell | Reimbursement Agreement    
Accrual for Reimbursement Agreement    
Beginning balance $ 614 597
Accruals for liabilities deemed probable and reasonably estimable 178 157
Payments to Honeywell (140) (140)
Ending balance 652 614
Honeywell | Tax Matters Agreement    
Accrual for Reimbursement Agreement    
Beginning balance 106 128
Accruals for liabilities deemed probable and reasonably estimable (9) (2)
Payments to Honeywell 0 (20)
Ending balance $ 97 $ 106
v3.24.0.1
Commitments and Contingencies - Summary of Reimbursement Agreement Liabilities Included in Balance Sheet Accounts (Details) - Honeywell - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Loss Contingency, Classification of Accrual [Abstract]      
Total indemnification liabilities $ 749 $ 720 $ 725
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 $ 609 $ 580  
v3.24.0.1
Commitments and Contingencies - Summary of Recorded Obligations for Product Warranties and Product Performance Guarantee (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Product Warranties and Guarantees      
Beginning balance $ 48 $ 23 $ 22
Accruals for warranties/guarantees issued during the year 24 30 22
Adjustment of pre-existing warranties/guarantees 0 (2) (3)
Settlement of warranty/guarantee claims (38) (17) (18)
Reserve of acquired company at date of acquisition 0 14 0
Ending balance $ 34 $ 48 $ 23
v3.24.0.1
Commitments and Contingencies - Purchase Commitments (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2024 $ 142
2025 113
2026 85
2027 2
2028 and thereafter 0
Total $ 342
v3.24.0.1
Other Expense, net - Summary of Other Expenses, net (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other Income and Expenses [Abstract]      
Reimbursement Agreement expense $ 178 $ 157 $ 146
Return on pension assets 9 (39) (9)
Other, net (18) 21 22
Total other expenses, net $ 169 $ 139 $ 159
v3.24.0.1
Income Taxes - Schedule of Income Before Taxes (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
U.S. $ 76 $ 124 $ 79
Non-U.S. 237 294 274
Income before taxes $ 313 $ 418 $ 353
v3.24.0.1
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current:      
U.S. $ 80 $ 95 $ 60
Non-U.S. 51 43 45
Total current 131 138 105
Deferred:      
U.S. (6) (13) 5
Non-U.S. (22) 10 1
Total deferred (28) (3) 6
Total provision $ 103 $ 135 $ 111
v3.24.0.1
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation, Income Tax expense (Benefit) (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
U.S. federal statutory income tax rate 21.00% 21.00% 21.00%
Impact of foreign operations (0.90%) (1.60%) (0.20%)
U.S. state income taxes 4.40% 3.00% 3.60%
Non-deductible indemnification costs 10.90% 7.70% 8.40%
Executive compensation over $1 million 1.60% 1.00% 0.90%
Other non-deductible expenses 0.30% (0.60%) 0.40%
U.S. taxation of foreign earnings 2.80% 1.00% 1.40%
Tax credits (0.80%) (0.50%) (0.70%)
Change in tax basis in foreign assets (1) (6.50%) 0.00% 0.00%
All other items, net (0.20%) 1.30% (3.50%)
Effective income tax rate 32.70% 32.30% 31.30%
v3.24.0.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2021
Dec. 31, 2020
Income Taxes [Line Items]        
Valuation allowance $ 63 $ 75 $ 63 $ 60
Net operating loss carryforwards   52    
Undistributed earnings from foreign subsidiaries   2,000    
Undistributed earnings from foreign subsidiaries not considered indefinitely reinvested   625    
Unrecognized tax benefits 22 22 $ 16 $ 10
Accrued interest and penalties expense 3 2    
Interest and penalties expense $ 1      
Non-U.S.        
Income Taxes [Line Items]        
Operating carryforward not subject to expiration   46    
Operating carryforward subject to expiration   $ 9    
v3.24.0.1
Income Taxes - Summary of Valuation Allowance (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Valuation Allowance, Deferred Taxes      
Beginning balance $ 63 $ 63 $ 60
Additions / (Subtractions) 12 0 3
Ending balance $ 75 $ 63 $ 63
v3.24.0.1
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Unrecognized Tax Benefits      
Unrecognized tax benefits at beginning of year $ 22 $ 16 $ 10
Decreases due to expiration of statutes of limitations (1) 0 0
Increases related to positions taken in the current year 5 6 6
Decreases due to expiration of statutes of limitations (4) 0 0
Unrecognized tax benefits at end of year $ 22 $ 22 $ 16
v3.24.0.1
Income Taxes - Schedule of Deferred Tax Liabilities and Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:        
Pension $ 21 $ 16    
Intangibles 28 0    
Other asset basis differences 51 54    
Operating lease liabilities 44 43    
Employee compensation and benefits 23 17    
Inventory costing and related reserves 11 15    
Capitalized research and development 13 6    
Other accruals and reserves 19 33    
Net operating and capital losses 55 49    
Other 11 1    
Gross deferred tax assets 276 234    
Valuation allowance (75) (63) $ (63) $ (60)
Total deferred tax assets 201 171    
Deferred tax liabilities:        
Intangibles (42) (41)    
Property, plant and equipment (16) (24)    
Operating lease assets (41) (40)    
Other (6) (7)    
Total deferred tax liabilities (105) (112)    
Net deferred tax asset $ 96 $ 59    
v3.24.0.1
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Numerator for basic and diluted earnings per share:      
Net income $ 210 $ 283 $ 242
Denominator for basic and diluted earnings per share:      
Weighted average basic number of common shares outstanding (in shares) 147 146 144
Plus: dilutive effect of common stock equivalents (in shares) 1 3 4
Weighted average diluted number of common shares outstanding (in shares) 148 149 148
Earnings per share:      
Basic (in dollars per share) $ 1.43 $ 1.94 $ 1.68
Diluted (in dollars per share) $ 1.42 $ 1.90 $ 1.63
v3.24.0.1
Earnings Per Share - Additional Information (Details) - shares
shares in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Options and Other Rights      
Earnings Per Share      
Purchase of outstanding common stock were anti-dilutive (in shares) 1.5 0.1 0.2
Performance Based Unit Awards      
Earnings Per Share      
Purchase of outstanding common stock were anti-dilutive (in shares) 1.2 0.6 0.6
v3.24.0.1
Geographic Areas - Financial Data - Schedule of Geographic Areas (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenues From External Customers And Long Lived Assets      
Net revenue $ 6,242 $ 6,370 $ 5,846
Long-lived assets 582 557 429
United States      
Revenues From External Customers And Long Lived Assets      
Net revenue 4,720 4,795 4,181
Long-lived assets 332 347 244
Europe      
Revenues From External Customers And Long Lived Assets      
Net revenue 1,065 1,111 1,196
Long-lived assets 143 131 139
Other International      
Revenues From External Customers And Long Lived Assets      
Net revenue 457 464 469
Long-lived assets $ 107 $ 79 $ 46
v3.24.0.1
Geographic Areas - Financial Data - Schedule of Geographic Areas (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenues From External Customers And Long Lived Assets      
Net revenue $ 6,242 $ 6,370 $ 5,846
United States      
Revenues From External Customers And Long Lived Assets      
Net revenue 4,720 4,795 4,181
United States | Export Sales      
Revenues From External Customers And Long Lived Assets      
Net revenue $ 41 $ 38 $ 26
v3.24.0.1
Stockholders’ Equity (Details) - USD ($)
shares in Millions
 12 Months Ended
Dec. 31, 2023
Aug. 03, 2023
Class of Stock    
Common stock repurchases $ 41,000,000  
Share Repurchase Program    
Class of Stock    
Stock repurchase program, authorized amount   $ 150,000,000
Remaining authorized repurchase amount $ 109,000,000  
Common Stock    
Class of Stock    
Treasury stock, shares, acquired 2.6  
Common stock repurchases $ 41,000,000