RESIDEO TECHNOLOGIES, INC.REZI
RESIDEO TECHNOLOGIES, INC. Segments Disclosure
Segment Financial Data
We monitor our operations through two reportable segments: Products and Solutions and ADI Global Distribution, with Corporate reported separately. We identified these segments because we have organized our business and reporting structure into Products and Solutions and ADI Global Distribution. Segment information is evaluated by our Chief Executive Officer who is also the Chief Operating Decision Maker (“CODM”). The CODM uses income from operations to evaluate the performance of the overall business, make investing decisions, and allocate resources predominantly in the annual budget and forecasting process and the monthly results review, which includes variance analysis against the forecast, the budget, and the prior year. Disaggregated assets by segment are not used to allocate resources or to assess performance of the segments and therefore, segment assets have not been disclosed. Capital expenditures for each segment are reviewed by the CODM. The accounting policies used to derive segment results are substantially the same as those used in preparing the Consolidated Financial Statements.
Products and Solutions—Our Products and Solutions segment is a leading building products manufacturer focused on residential controls and sensing solutions. Our products and solutions for comfort, energy management, safety, and security benefit from trusted, well-established branded offerings such as Braukmann, BRK, First Alert, Honeywell Home, Resideo, and others. Our offerings include temperature and humidity control, water and air solutions, smoke and carbon monoxide detection home safety products, residential and small business security products, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software. We also sell components to manufacturers of water heaters, heat pumps, and boilers.
ADI Global Distribution—Our ADI Global Distribution segment is a leading, global specialty distributor of professionally installed low-voltage products, including security and AV solutions, serving commercial and residential markets through an omnichannel go-to-market platform. ADI Global Distribution sells primarily to licensed professional installers, dealers, and integrators. We offer an expansive list of products from leading suppliers across key specialty low-voltage categories. ADI complements our third-party supplier products with a suite of exclusive brands and services offerings.
Corporate—Corporate expenses include costs related to the corporate functions such as the executive function, legal, accounting, tax, treasury, corporate development, human resources, investor relations, and information technology. Additionally, unallocated amounts for restructuring, impairment and extinguishment costs, business separation costs, and non-operating items such as Indemnification Agreement expense, interest income (expense), other income (expense), and provision for income taxes are reported within Corporate.
Segment results of operations for Products and Solutions, including significant segment expenses that are regularly reviewed by the CODM, are included in the table below:
| Years Ended December 31, | |||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||
Net revenue | $ | 2,688 | $ | 2,564 | $ | 2,672 | |||||
| Cost of goods sold | 1,557 | 1,514 | 1,640 | ||||||||
| Research and development expenses | 128 | 94 | 108 | ||||||||
| Selling, general and administrative expenses | 417 | 416 | 428 | ||||||||
| Intangible asset amortization | 26 | 23 | 23 | ||||||||
Restructuring and impairment costs | 5 | 14 | 27 | ||||||||
Segment income from operations | $ | 555 | $ | 503 | $ | 446 | |||||
Segment results of operations for ADI Global Distribution, including significant segment expenses that are regularly reviewed by the CODM, are included in the table below:
| Years Ended December 31, | |||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||
Net revenue | $ | 4,784 | $ | 4,197 | $ | 3,570 | |||||
| Cost of goods sold | 3,719 | 3,346 | 2,902 | ||||||||
| Research and development expenses | 39 | 17 | — | ||||||||
| Selling, general and administrative expenses | 712 | 566 | 407 | ||||||||
| Intangible asset amortization | 94 | 54 | 11 | ||||||||
Restructuring and impairment costs | 8 | 19 | 12 | ||||||||
Segment income from operations | $ | 212 | $ | 195 | $ | 238 | |||||
The following table provides a reconciliation of segment income from operations to consolidated income (loss) before taxes:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
Segment income from operations | |||||||||||||||||
| Products and Solutions | $ | 555 | $ | 503 | $ | 446 | |||||||||||
| ADI Global Distribution | 212 | 195 | 238 | ||||||||||||||
| Total segment income from operations | 767 | 698 | 684 | ||||||||||||||
Unallocated amounts: | |||||||||||||||||
| Selling, general and administrative expenses | 137 | 156 | 125 | ||||||||||||||
| Restructuring, impairment and extinguishment costs | 3 | 19 | 3 | ||||||||||||||
| Business separation costs | 18 | — | — | ||||||||||||||
| Indemnification Agreement expense | 972 | 211 | 178 | ||||||||||||||
| Other expense (income), net | (43) | 7 | (9) | ||||||||||||||
| Interest expense, net | 135 | 81 | 65 | ||||||||||||||
Other corporate items | 2 | 3 | 9 | ||||||||||||||
| Income (loss) before taxes | $ | (457) | $ | 221 | $ | 313 | |||||||||||
The following table provides detail on cash paid for capital expenditures, which are regularly reviewed by the CODM:
| Years Ended December 31, | |||||||||||
| 2025 | 2024 | 2023 | |||||||||
| (in millions) | |||||||||||
Capital expenditures | |||||||||||
Products and Solutions | $ | 62 | $ | 55 | $ | 77 | |||||
ADI Global Distribution | 54 | 25 | 26 | ||||||||
Total segment capital expenditures | 116 | 80 | 103 | ||||||||
Corporate activities | — | — | 2 | ||||||||
Total capital expenditures | $ | 116 | $ | 80 | $ | 105 | |||||
Capital expenditures in accounts payable for the years ended December 31, 2025, 2024, and 2023 was $25 million, $22 million, and $14 million, respectively.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.