Revenue Recognition

6 Months Ended

Jul. 02, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 3. Revenue Recognition

Disaggregated Revenue

The Company has two operating segments, Products & Solutions and ADI Global Distribution. Disaggregated revenue information for Products & Solutions is presented by product grouping while ADI Global Distribution is presented by region. Beginning January 1, 2022, the Products & Solutions 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 results of operations as of its March 31, 2022 acquisition date in the Security and Safety grouping.

Revenues by product grouping and region are as follows:

	Three Months Ended				Six Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Products & Solutions Disaggregated Revenue:
Air	$	262	$	206	$	476	$	397
Water		81		89		172		177
Energy		154		140		313		290
Security and Safety		267		163		422		340
Total Products & Solutions	$	764	$	598	$	1,383	$	1,204
ADI Global Distribution Disaggregated Revenue:
U.S. and Canada		791		731		1,543		1,398
EMEA (1)		123		140		249		274
APAC (2)		8		8		17		20
Total ADI Global Distribution		922		879		1,809		1,692
Total Net revenue	$	1,686	$	1,477	$	3,192	$	2,896

(1) EMEA represents Europe, the Middle East and Africa.

(2) APAC represents Asia and Pacific countries.

The Company recognizes the majority of its revenue from performance obligations outlined in contracts with its customers that are satisfied at a point in time. Less than 3% of the Company’s revenue is satisfied over time. As of July 2, 2022 and July 3, 2021, contract assets and liabilities were not material.