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Segment Financial Data (Tables)

3 Months Ended

Mar. 31, 2020

Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance.

The Company’s Chief Operating Decision Maker evaluates segment performance based on Segment Adjusted EBITDA. Segment Adjusted EBITDA is defined as segment net income before income taxes, net interest (income) expense, depreciation and amortization plus environmental expense, Honeywell Reimbursement Agreement expense, stock compensation expense, restructuring charges and other adjustments.

	Three Months Ended
	March 31,
	2020		2019
Revenue
Total Products & Solutions revenue	$	559	$	622
Less: Intersegment revenue		84		71
External Products & Solutions revenue		475		551
External ADI Global Distribution revenue		704		665
Total revenue	$	1,179	$	1,216

	Three Months Ended
	March 31,
	2020		2019
Segment Adjusted EBITDA
Products & Solutions	$	53	$	81
ADI Global Distribution		46		46
Segment Adjusted EBITDA	$	99	$	127

Schedule of Reconciliation of Adjusted EBITDA

The table below provides a reconciliation of net income to Segment Adjusted EBITDA:

	Three Months Ended
	March 31,
	2020			2019
Net (loss) income	$	(21	)	$	48
Net interest expense ⁽¹⁾		17			16
Tax (benefit) expense		(4	)		36
Depreciation and amortization		21			16
Honeywell Reimbursement Agreement net expense (gain) ⁽²⁾		34			(14	)
Stock compensation expense ⁽³⁾		7			7
Restructuring charges		9			-
Other ⁽⁴⁾		36			18
Segment Adjusted EBITDA	$	99		$	127

(1)	For the three months ended March 31, 2020 and 2019 interest expense was $17 million and $17 million net of interest income of $- million and $1 million, respectively.

(2)	Represents recorded net expenses (gains) related to the Honeywell Reimbursement Agreement.

(3)	Stock compensation expense adjustment includes only non-cash expenses.

(4)

For the three months ended March 31, 2020, Other represents $12 million of items related to the Spin-Off, $14 million of consulting and other fees related to transformation programs, $9 million of non-operating expense adjustment which excludes net interest (income), and $1 million of acquisition-related expenses. For the three months ended March 31, 2019, Other represents $19 million of items related to the Spin-Off and ($1) million in non-operating (income) expense adjustment which excludes interest (income).