On December 16, 2025, the Company entered into a stock purchase agreement to sell its Riello business to Ariston Group with expected gross proceeds of approximately $430 million. Riello, predominantly reported in the Company's Climate Solutions Europe segment, is a leading international manufacturer that designs, produces, and integrates a comprehensive portfolio of thermal solutions—including burners, boilers, heat pumps, cooling systems, and aftermarket services—for residential, commercial, and industrial applications, with a strong focus on energy efficiency, innovation, and a global distribution network. As a result, the assets and liabilities of Riello are presented as held for sale in the accompanying Unaudited Condensed Consolidated Balance Sheet as of March 31, 2026, and December 31, 2025, and recorded at the lower of their carrying value or fair value less estimated cost to sell. This transaction is expected to close in the first half of 2026 and is subject to customary closing conditions and regulatory approvals.


	March 31, 2026		December 31, 2025
(In millions)	Riello
Cash and cash equivalents	$	67	$	25
Accounts receivable, net	86		103
Inventories, net	106		98

Other current assets	2		2
Fixed assets, net	78		77
Intangible assets, net	20		18
Goodwill	171		175
Operating lease right-of-use assets	7		7
Other assets	84		87
Total assets held for sale	$	621	$	592

Accounts payable	$	100	$	91
Accrued liabilities	36		45
Contract liabilities	2		3

Future pension and post-retirement obligations	7		7
Future income tax obligations	10		9
Operating lease liabilities	4		4
Other long-term liabilities	11		11
Total liabilities held for sale	$	170	$	170

During 2024, the Company exited its Fire & Security segment in multiple transactions that represented a single disposal plan to separately divest multiple businesses over different reporting periods. As a result, the components of the Fire & Security segment in aggregate met the criteria to be presented as discontinued operations in the accompanying Unaudited Condensed Consolidated Statement of Operations and Unaudited Condensed Consolidated Statement of Cash Flows. Amounts reported during 2025 and 2026 relate to retained obligations from these business divestitures.


	Three Months Ended March 31,
(In millions)	2026		2025
Net sales	$	—	$	—
Costs of sales	—		—
Research and development	—		—
Selling, general and administrative	(1)		—
Other income (expense), net	—		—
Gain (loss) on divestitures and deconsolidation	—		—
Interest (expense) income, net	—		—
Earnings (loss) before income taxes	(1)		—
Income tax (expense) benefit	—		—
Tax on divestitures and deconsolidation	—		—
Discontinued operations, net of tax	$	(1)	$	—