RESIDEO TECHNOLOGIES, INC. Goodwill & Intangibles Disclosure
| (in millions) | Products and Solutions | ADI Global Distribution | Total | ||||||||||||||
| Balance at January 1, 2024 | $ | 2,045 | $ | 660 | $ | 2,705 | |||||||||||
Acquisitions (1) | — | 405 | 405 | ||||||||||||||
| Impact of foreign currency translation | (30) | (8) | (38) | ||||||||||||||
| Balance as of December 31, 2024 | 2,015 | 1,057 | 3,072 | ||||||||||||||
Divestitures (1) | (26) | — | (26) | ||||||||||||||
Adjustments (1) | — | (9) | (9) | ||||||||||||||
| Impact of foreign currency translation | 47 | 16 | 63 | ||||||||||||||
| Balance as of December 31, 2025 | $ | 2,036 | $ | 1,064 | $ | 3,100 | |||||||||||
| December 31, | |||||||||||
| (in millions) | 2025 | 2024 | |||||||||
| Intangible assets subject to amortization | $ | 911 | $ | 996 | |||||||
| Indefinite-lived intangible assets | 180 | 180 | |||||||||
| Total intangible assets | $ | 1,091 | $ | 1,176 | |||||||
| December 31, 2025 | |||||||||||||||||||||||||||||
| (in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Useful Lives | Weighted Average Amortization | ||||||||||||||||||||||||
| Patents and technology | $ | 170 | $ | (63) | $ | 107 | 5 - 10 years | 8 years | |||||||||||||||||||||
| Customer relationships | 912 | (253) | 659 | 7 - 15 years | 13 years | ||||||||||||||||||||||||
| Trademarks | 79 | (20) | 59 | 5 - 10 years | 10 years | ||||||||||||||||||||||||
| Software | 256 | (170) | 86 | 3 - 7 years | 5 years | ||||||||||||||||||||||||
| Total intangible assets subject to amortization | $ | 1,417 | $ | (506) | $ | 911 | |||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| (in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Useful Lives | Weighted Average Amortization | ||||||||||||||||||||||||
| Patents and technology | $ | 170 | $ | (41) | $ | 129 | 5 - 10 years | 8 years | |||||||||||||||||||||
| Customer relationships | 901 | (177) | 724 | 7 - 15 years | 13 years | ||||||||||||||||||||||||
| Trademarks | 78 | (12) | 66 | 5 - 10 years | 10 years | ||||||||||||||||||||||||
| Software | 222 | (145) | 77 | 2 - 12 years | 5 years | ||||||||||||||||||||||||
| Total intangible assets subject to amortization | $ | 1,371 | $ | (375) | $ | 996 | |||||||||||||||||||||||
| (in millions) | Amortization Expense | ||||
| 2026 | $ | 119 | |||
| 2027 | $ | 110 | |||
| 2028 | $ | 106 | |||
| 2029 | $ | 96 | |||
| 2030 | $ | 85 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 15, 2022 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.