0001524472-21-000008 | 10-K | XBRL Viewer

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Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Dec. 31, 2020	Feb. 19, 2021	Jun. 30, 2020
Entity Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	1-35229
Entity Registrant Name	Xylem Inc.
Entity Incorporation, State or Country Code	IN
Entity Tax Identification Number	45-2080495
Entity Address, Address Line One	1 International Drive
Entity Address, City or Town	Rye Brook
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10573
City Area Code	914
Local Phone Number	323-5700
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 11.6
Entity Common Stock, Shares Outstanding		180,358,493
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement for its 2021 Annual Meeting of Shareowners, to be held in May 2021, are incorporated by reference into Part II and Part III of this Report.
Entity Central Index Key	0001524472
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	XYL
Security Exchange Name	NYSE
Senior Notes Due 2023
Entity Information [Line Items]
Title of 12(b) Security	2.250% Senior Notes due 2023
Trading Symbol	XYL23
Security Exchange Name	NYSE

Consolidated Income Statements - USD ($) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Revenue	$ 4,876	$ 5,249	$ 5,207
Cost of revenue	3,046	3,203	3,181
Gross profit	1,830	2,046	2,026
Selling, general and administrative expenses	1,143	1,158	1,161
Research and development expenses	187	191	189
Restructuring and asset impairment charges	75	63	22
Goodwill, Impairment Loss	58	148	0
Operating income	367	486	654
Interest expense	77	67	82
Other non-operating (expense) income, net	(5)	(4)	13
Gain on sale of businesses	0	1	0
Income before taxes	285	416	585
Income tax expense	31	15	36
Net income	$ 254	$ 401	$ 549
Earnings per share:
Basic (in dollars per share)	$ 1.41	$ 2.23	$ 3.05
Diluted (in dollars per share)	$ 1.40	$ 2.21	$ 3.03
Basic (in shares)	180,116	179,987	179,777
Weighted average common shares outstanding — Diluted	181,099	181,196	181,132
Dividends declared per share (in usd per share)	$ 1.04	$ 0.96	$ 0.84

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 254	$ 401	$ 549
Other comprehensive loss, before tax:
Foreign currency translation adjustment	(23)	28	(85)
Net change in derivative hedge agreements:
Unrealized gain (loss)	9	(14)	(8)
Amount of (gain) loss reclassified into net income	(3)	12	4
Net change in post-retirement benefit plans:
Net loss	(78)	(83)	(37)
Prior service credit	5	0	0
Amortization of prior service credit cost	(3)	(4)	(4)
Amortization of net actuarial loss into net income	19	12	13
Settlement	0	9	1
Foreign currency translation adjustment	(19)	(3)	15
Other comprehensive loss, before tax	(93)	(43)	(101)
Income tax (benefit) expense related to other comprehensive loss	(54)	(5)	10
Other comprehensive loss, net of tax	(39)	(38)	(111)
Comprehensive income	215	363	438
Less: comprehensive (loss) gain attributable to noncontrolling interests	(1)	1	(2)
Comprehensive income	$ 216	$ 362	$ 440

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 1,875	$ 724
Receivables, less allowances for discounts, returns and credit losses of $46 and $35 in 2020 and 2019, respectively	923	1,036
Inventories	558	539
Prepaid and other current assets	167	151
Total current assets	3,523	2,450
Property, plant and equipment, net	657	658
Goodwill	2,854	2,839
Other intangible assets, net	1,093	1,174
Other non-current assets	623	589
Total assets	8,750	7,710
Current liabilities:
Accounts payable	569	597
Accrued and other current liabilities	787	628
Short-term borrowings and current maturities of long-term debt	600	276
Total current liabilities	1,956	1,501
Long-term debt, net	2,484	2,040
Accrued post-retirement benefits	519	445
Deferred income tax liabilities	242	310
Other non-current accrued liabilities	573	447
Total liabilities	5,774	4,743
Commitment and Contingencies (Note 20)
Common stock — par value $0.01 per share:
Authorized 750.0 shares, issued 194.9 and 193.9 shares in 2020 and 2019, respectively	2	2
Capital in excess of par value	2,037	1,991
Retained earnings	1,930	1,866
Treasury stock – at cost 14.5 shares and 13.7 shares in 2020 and 2019, respectively	(588)	(527)
Accumulated other comprehensive loss	(413)	(375)
Total stockholders’ equity	2,968	2,957
Non-controlling interest	8	10
Total equity	2,976	2,967
Total liabilities and stockholders’ equity	$ 8,750	$ 7,710

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowances for discounts, returns and credit losses	$ 46	$ 35
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	750.0	750.0
Common Stock, shares issued	194.9	193.9
Treasury Stock, shares	14.5	13.7

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Cash Flows [Abstract]
Net income	$ 254	$ 401	$ 549
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	117	117	117
Amortization	134	140	144
Deferred income taxes	(31)	(77)	(47)
Share-based compensation	26	29	30
Restructuring and asset impairment charges	75	63	22
Goodwill, Impairment Loss	58	148	0
Gain from sale of businesses	0	(1)	0
Other, net	46	9	9
Payments for restructuring	(36)	(30)	(21)
Contributions to post-retirement benefit plans	(27)	(19)	(41)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables	109	(23)	(103)
Changes in inventories	(5)	47	(97)
Changes in accounts payable	(39)	29	51
Changes in accrued liabilities	101	15	(6)
Changes in accrued taxes	20	(13)	0
Net changes in other assets and liabilities	22	4	(21)
Net Cash — Operating activities	824	839	586
Investing Activities
Capital expenditures	(183)	(226)	(237)
Acquisitions of businesses and assets, net of cash acquired	0	(18)	(433)
Proceeds from sale of businesses	0	0	22
Cash received from investments	200	11	11
Cash paid for investments	(200)	(7)	(11)
Proceeds from Derivative Instrument, Investing Activities	12	9	0
Other, net	2	0	5
Net Cash — Investing activities	(169)	(231)	(643)
Financing Activities
Short-term debt issued, net	359	281	335
Short-term debt repaid, net	(640)	(254)	(52)
Long-term debt issued, net	985	0	1
Long-term debt repaid, net	0	0	(120)
Repurchase of common stock	(61)	(40)	(59)
Proceeds from exercise of employee stock options	20	13	7
Dividends paid	(188)	(174)	(152)
Other, net	(2)	(3)	0
Net Cash — Financing activities	473	(177)	(40)
Effect of exchange rate changes on cash	23	(3)	(21)
Net change in cash and cash equivalents	1,151	428	(118)
Cash and cash equivalents at beginning of year	724	296	414
Cash and cash equivalents at end of year	1,875	724	296
Cash paid during the year for:
Interest	77	77	78
Income taxes (net of refunds received)	$ 41	$ 107	$ 75

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Capital in Excess of Par Value	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjustment	Treasury Stock	Non-Controlling Interest
Balance at Dec. 31, 2017	$ 2,519	$ (3)	$ 2	$ 1,912	$ 1,227	$ 14	$ (210)	$ (17)	$ (428)	$ 16
Stockholders' Equity [Roll Forward]
Net income	549				549
Other comprehensive loss, net	(111)						(109)
Dividends declared	(151)				(151)
Stock incentive plan activity	29			38					(9)
Repurchase of common stock	(50)								(50)
Balance at Dec. 31, 2018	2,782		2	1,950	1,639		(336)		(487)	14
Stockholders' Equity [Roll Forward]
Net income	401				401
Other comprehensive loss, net	(38)						(39)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(3)									(3)
Dividends declared	(174)				(174)
Stock incentive plan activity	26			41					(15)
Noncontrolling Interest, Decrease from Deconsolidation	(2)									(2)
Repurchase of common stock	(25)								(25)
Balance at Dec. 31, 2019	2,967	$ (2)	2	1,991	1,866	$ (2)	(375)		(527)	10
Stockholders' Equity [Roll Forward]
Net income	254				254
Other comprehensive loss, net	(39)						(38)			(1)
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(1)									(1)
Dividends declared	(188)				(188)
Stock incentive plan activity	35			46					(11)
Repurchase of common stock	(50)								(50)
Balance at Dec. 31, 2020	$ 2,976		$ 2	$ 2,037	$ 1,930		$ (413)		$ (588)	$ 8

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends paid per share (in usd per share)	$ 1.04	$ 0.96	$ 0.84

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Xylem Inc. (“Xylem” or the “Company”) is a leading equipment and service provider for water and wastewater applications with a broad portfolio of products and services addressing the full cycle of water, from collection, distribution and use to the return of water to the environment.

Xylem operates in three segments, Water Infrastructure, Applied Water and Measurement & Control Solutions. See Note 22, "Segment and Geographic Data" for further segment background information.

On October 31, 2011 (the "Distribution Date"), ITT Corporation (“ITT”) completed the Spin-off (the “Spin-off”) of Xylem, formerly ITT’s water equipment and services businesses. The Spin-off was completed pursuant to the Distribution Agreement, dated as of October 25, 2011 (the “Distribution Agreement”), among ITT (now ITT LLC), Exelis Inc., acquired by Harris Corporation, now L3Harris Technologies, Inc., on May 29, 2015, (“Exelis”) and Xylem. Xylem Inc. was incorporated in Indiana on May 4, 2011 in connection with the Spin-off.

Hereinafter, except as otherwise indicated or unless the context otherwise requires, “Xylem,” “we,” “us,” “our” and “the Company” refer to Xylem Inc. and its subsidiaries. References in the notes to the consolidated financial statements to “ITT” or “former parent” refers to ITT Corporation (now ITT LLC) and its consolidated subsidiaries (other than Xylem Inc.).

Basis of Presentation

The consolidated financial statements reflect our financial position and results of operations in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany transactions between our businesses have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, post-retirement obligations and assets, revenue recognition, income taxes, valuation of intangible assets, goodwill and indefinite-lived intangible impairment testing and contingent liabilities. Actual results could differ from these estimates. The global outbreak of the novel coronavirus ("COVID-19") disease in March 2020, declared a pandemic by the World Health Organization, has created significant global volatility, uncertainty and economic disruption. The COVID-19 pandemic also has caused increased uncertainty in estimates and assumptions affecting the consolidated financial statements. Actual results could differ from these estimates.

Consolidation Principles

We consolidate companies in which we have a controlling financial interest or when Xylem is considered the primary beneficiary of a variable interest entity. We account for investments under the equity method in companies over which we have the ability to exercise significant influence but do not hold a controlling financial interest, and we record our proportionate share of income or losses in the Consolidated Income Statements. Equity method investments are reviewed for impairment when events or circumstances indicate the investment may be other than temporarily impaired. This requires significant judgment, including an assessment of the investee’s financial condition, the possibility of subsequent rounds of financing, and the investee’s historical and projected results of operations. If the actual results of operations for the investee are significantly different from projections, we may incur future charges for the impairment of these investments.

Foreign Currency Translation

The national currencies of our foreign companies are generally the functional currencies. Balance sheet accounts are translated at the exchange rate in effect at the end of each period; income statement accounts are translated at the average rates of exchange prevailing during the period. Gains and losses on foreign currency translations are reflected in the cumulative translation adjustments component of stockholders’ equity. Net gains or losses from foreign currency transactions are reported currently in selling, general and administrative expenses.

Revenue Recognition

Xylem recognizes revenue in a manner that depicts the transfer of promised goods and services to customers in an amount that reflects the consideration to which it expects to be entitled for providing those goods and services. For each arrangement with a customer, we identify the contract and the associated performance obligations within the contract, determine the transaction price of that contract, allocate the transaction price to each performance obligation and recognize revenue as each performance obligation is satisfied.

The satisfaction of performance obligations in a contract is based upon when the customer obtains control over the asset. Depending on the nature of the performance obligation, control transfers either at a particular point in time, or over time which determines the recognition pattern of revenue.

For product sales, other than long-term construction-type contracts, we recognize revenue once control has passed at a point in time, which is generally when products are shipped. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer-specified objective criteria or (ii) upon formal acceptance received from the customer where the product has not been previously demonstrated to meet customer-specified objective criteria. We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers, at the point in time when control is transferred which is determined based on when the risks and rewards, possession, and title have transferred to the customer, which usually occurs at the point of delivery.

Revenue from performance obligations related to services is primarily recognized over time, as the performance obligations are satisfied. In these instances, the customer consumes the benefit of the service as Xylem performs.

Certain businesses also enter into long-term construction-type sales contracts where revenue is recognized over time. In these instances, revenue is recognized using a measure of progress that applies an input method based on costs incurred in relation to total estimated costs. We also recognize revenue for certain of these arrangements using the output method and measure progress based on shipments of product where control has transferred to the customer.

If shipping and handling activities are performed after a customer obtains control of a good, we account for the shipping and handling activities as activities to fulfill a promise to transfer a good. Shipping and handling related costs are accrued as revenue is recognized.

For all contracts with customers, we determine the transaction price in the arrangement and allocate the transaction price to each performance obligation identified in the contract. Judgment is required to determine the appropriate unit of account, and we separate out the performance obligations if they are capable of being distinct and are distinct within the context of the contract. We base our allocation of the transaction price to the performance obligations on the relative stand-alone selling prices for the goods or services contained in a particular performance obligation. The stand-alone selling prices are determined first by reference to observable prices. In the event observable prices are not available, we estimate the stand-alone selling price by maximizing observable inputs and applying an adjusted market assessment approach, expected cost plus margin approach, or a residual approach in limited situations. Revenue in these instances is recognized on individual performance obligations within the same contract as they are satisfied.

The transaction price is adjusted for our estimate of variable consideration which may include a right of return, discounts, rebates, penalties and retainage. To estimate variable consideration, we apply the expected value or the most likely amount method, based on whichever method most appropriately predicts the amount of consideration we expect to receive. The method applied is typically based on historical experience and known trends. We constrain the amounts of variable consideration that are included in the transaction price, to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or when uncertainties around the variable consideration are resolved.

We exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected from a customer, for example sales, use, value added and some excise taxes.

For all contracts with customers, payment received for our products and services may not necessarily follow the same pattern of revenue recognition to which it relates and are dictated by the terms and conditions of our contracts with customers. Payments received for product sales typically occur following delivery and the satisfaction of the performance obligations based upon the terms outlined in the contracts. Payments received for services typically occur following the services being rendered. For long-term construction-type projects, payments are typically made throughout the contract as progress is made.

In limited situations, contracts with customers include financing components where payment terms exceed one year; however, we believe that the financing effects are not significant to Xylem. In addition, we apply a practical expedient and do not adjust the promised amount of consideration in a contract for the effects of significant financing components when we expect payment terms to be one year or less from the time the goods or services are transferred until ultimate payment.

We offer standard warranties for our products to ensure that our products comply with agreed-upon specifications in our contracts. Standard warranties do not give rise to performance obligations and represent assurance-type warranties. In certain instances, product warranty terms are adjusted to account for the specific nature of the contract. In these instances, we assess the warranties to determine whether they represent service-type warranties, and should be accounted for as a separate performance obligation in the contract.

Costs to obtain a contract include incremental costs that the Company has incurred that it expects to recover. Incremental costs only include costs that the Company would not have incurred had the contract not been obtained. Costs that would have been incurred regardless of whether or not the contract was obtained are expensed as incurred, unless they are explicitly chargeable to the customer whether or not the contract is obtained.

Costs to obtain contracts are capitalized when incurred, and are then amortized in a manner that is consistent with the pattern of transfer of the related goods or services provided in the contract. The Company elects to apply the practical expedient to expense costs to obtain contracts when the associated amortization period of those costs would be one year or less.

Shipping and Handling Costs

Shipping and handling costs are recorded as a component of cost of revenue.

Share-Based Compensation

Share-based awards issued to employees include non-qualified stock options, restricted stock unit awards and performance share unit awards. Share-based awards issued to members of the Board of Directors include restricted stock unit awards. Compensation costs resulting from share-based payment transactions are recognized primarily within selling, general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis. The calculated compensation cost is adjusted based on an estimate of awards ultimately expected to vest. For performance awards, the calculated compensation cost is adjusted based on an estimate of awards ultimately expected to vest and our assessment of the probable outcome of the performance condition. The fair value of a non-qualified stock option is determined on the date of grant using a binomial lattice pricing model incorporating multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The fair value of restricted stock unit awards is determined using the closing price of our common stock on date of grant. The fair value of Return on Invested Capital ("ROIC") performance share units at 100% target is determined using the closing price of our common stock on date of grant. The fair value of Total Shareholder Return ("TSR") performance share units is calculated on the date of grant using a Monte Carlo simulation model utilizing several key assumptions, including expected Company and peer company share price volatility, correlation coefficients between peers, the risk-free rate of return, the expected dividend yield and other award design features.

Research and Development

We conduct research and development activities, which consist primarily of the development of new products, product applications, and manufacturing processes. To the extent these activities are related to developing software that is sold to our customers, we capitalize the applicable development costs. All other research and development costs are charged to expense as incurred.

Exit and Disposal Costs

We periodically initiate management-approved restructuring activities to achieve cost savings through reduced operational redundancies and to position ourselves strategically in the market in response to prevailing economic conditions and associated customer demand. Costs associated with restructuring actions can include severance, infrastructure charges to vacate facilities or consolidate operations, contract termination costs and other related charges. For involuntary separation plans, a liability is recognized when it is probable and reasonably estimable. For voluntary separation plans, a liability is recognized when the employee irrevocably accepts the voluntary termination. For one-time termination benefits, such as additional severance pay or benefit payouts and other exit costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change.

Deferred Financing Costs

Deferred financing costs represent costs incurred in conjunction with our debt financing activities and are capitalized in long-term debt and amortized over the life of the related financing arrangements. If the debt is retired early, the related unamortized deferred financing costs are recorded within the results of operations under the caption “interest expense” in the period the debt is retired.

Income Taxes

Income taxes are calculated using the asset and liability method. Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted tax rates in effect for the year in which we expect the differences will reverse.

We maintain valuation allowances when it is more likely than not that all or a portion of a deferred asset will not be realized. The valuation allowance is intended in part to provide for the uncertainty regarding the ultimate utilization of our U.S. capital loss carryforwards, U.S. foreign tax credit carryovers, and foreign net operating loss carryforwards. In determining whether a valuation allowance is warranted, we consider all positive and negative evidence and all sources of taxable income such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies to estimate if sufficient future taxable income will be generated to realize the deferred tax asset. The assessment of the adequacy of our valuation allowance is based on our estimates of taxable income by jurisdiction in which we operate and the period over which our deferred tax assets will be recoverable. In the event that actual results differ from these estimates, or we adjust these estimates in future periods for current trends or expected changes in our estimating assumptions, we may need to modify the level of valuation allowance that could materially impact our business, financial condition and results of operations.

Due to the Tax Act, we have recorded net foreign withholding taxes and state income taxes on earnings that are expected to be repatriated to the U.S. parent. We have not recorded any deferred taxes on the amounts that the Company currently does not intend to repatriate as the determination of any deferred taxes on this amount is not reasonably estimable.

Tax benefits are recognized for an uncertain tax position when, in management’s judgment, it is more likely than not that the position will be sustained upon examination by a taxing authority or upon completion of the litigation process. For a tax position that meets the more-likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. The liability associated with unrecognized tax benefits is adjusted periodically due to changing circumstances and when new information becomes available. Such adjustments are recognized in the period in which they are identified. The effective tax rate includes the net impact of changes in the liability for unrecognized tax benefits and subsequent adjustments as considered appropriate by management. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe our liability for unrecognized tax benefits is adequate. We classify interest relating to unrecognized tax benefits as a component of other non-operating (expense) income, net and tax penalties as a component of income tax expense in our Consolidated Income Statements.

Earnings Per Share

We present two calculations of earnings per share (“EPS”). “Basic” EPS equals net income divided by weighted average shares outstanding during the period. “Diluted” EPS equals net income divided by the sum of weighted average common shares outstanding during the period plus potentially dilutive shares. Potentially dilutive common shares that are anti-dilutive are excluded from diluted EPS.

Cash Equivalents

We consider all liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Receivables and Allowance for Credit Losses and Discounts

Receivables primarily comprise uncollected amounts owed to us from transactions with customers and are presented net of allowances for credit losses, returns and early payment discounts.

We determine our allowance for credit losses using a combination of factors to reduce our trade receivable balances to the net amount expected to be collected. We maintain an allowance for credit losses based on a variety of factors, including the length of time receivables were past due, macro-economic trends and conditions, significant one-time events, historical experience, and current and future expectations of economic conditions. In addition, we record an allowance for individual accounts when we become aware of specific customer circumstances, such as in

the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. If circumstances related to the specific customer change, we adjust estimates of the recoverability of receivables as appropriate. We determine our allowance for early payment discounts primarily based on historical experience with customers.

Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising our customer base and their dispersion across many different geographical regions. We evaluate the financial condition of our third-party distributors, resellers and other customers and require collateral, such as letters of credit and bank guarantees, in certain circumstances. As of December 31, 2020 and 2019 we do not believe we have any significant concentrations of credit risk.

Inventories

Inventories, which include the costs of material, labor and overhead, are stated at the lower of cost or net realizable value. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value. Our manufacturing operations recognize costs of sales using standard costs with full overhead absorption, which generally approximates actual cost.

Property, Plant and Equipment

These assets are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows:


			Estimated Life
Buildings and improvements			5 to 40 years
Machinery and equipment			2 to 10 years
Furniture and fixtures			3 to 7 years
Equipment held for lease or rental			2 to 10 years

Leasehold improvements are depreciated over the shorter of their estimated useful life or the term of the lease. Costs related to maintenance and repairs that do not prolong the assets' useful lives are expensed as incurred.

Leases

Xylem adopted ASC 842 - Leases as of January 1, 2019. We determine if an arrangement is a lease at inception. We have recorded right of use (“ROU”) assets and liabilities for lease arrangements that are reasonably certain to extend beyond 12 months. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments under the lease. ROU assets and liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The implicit rate within our leases is generally not determinable, and we use our incremental borrowing rate at the lease commencement date to determine the net present value of lease payments. The determination of the appropriate incremental borrowing rate requires judgment. We determine the appropriate incremental borrowing rate for each lease using our current borrowing rate, adjusted for various factors including geographic region, level of collateralization and term, to align with the term of the underlying lease.

Lease expense for lease payments is recognized on a straight-line basis over the lease term. Many of our leases are subject to payment adjustments to reflect annual changes in price indexes, such as the Consumer Price Index. While associated lease liabilities are not re-measured as a result of changes in the applicable price indexes, changes to required lease payments are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred.

Leases with a lease term of 12 months or less, including renewal options that are reasonably certain to be exercised, that also do not include an option to purchase the underlying asset that is reasonably certain of exercise, are not recorded on the balance sheet. Instead, lease payments for these leases are recognized as a lease cost on a straight-line basis over the lease term.

We elected the package of practical expedients, which among other things, does not require reassessment of lease classification. Additionally, we have made an accounting policy election whereby we chose not to separate non-lease components from lease components in agreements in all leases which we are the lessee.

For annual periods prior to January 1, 2019, lease payments for these leases are recognized as a lease cost on a straight-line basis over the lease term.

Goodwill and Intangible Assets

Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of acquired businesses. Intangible assets include customer relationships, proprietary technology, brands and trademarks, patents, software and other intangible assets. Intangible assets with a finite life are amortized on a straight-line basis over an estimated economic useful life which ranges from 1 to 25 years and is included in cost of revenue or selling, general and administrative expenses. Certain of our intangible assets, namely certain brands and trademarks, as well as FCC licenses, have an indefinite life and are not amortized.

Long-Lived Asset Impairment

Long-lived assets, including intangible assets with finite lives, are amortized and tested for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable. We assess the recoverability of long-lived assets based on the undiscounted future cash flow the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values.

Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for impairment annually (or more frequently if impairment indicators arise, such as changes to the reporting unit structure, significant adverse changes in the business or business climate or an adverse action or assessment by a regulator). We conduct our annual impairment testing as of the beginning of the fourth quarter. For goodwill, the estimated fair value of each reporting unit is compared to the carrying value of the net assets assigned to that reporting unit. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value of the reporting unit exceeds its estimated fair value, then an impairment charge is recognized for that excess up to the amount of recorded goodwill. We estimate the fair value of our reporting units using an income approach. We estimate the fair value of our intangible assets with indefinite lives using either the income approach or the market approach. Under the income approach, we calculate fair value based on the present value of estimated future cash flows. Under the market approach, we calculate fair value based on recent sales and selling prices of similar assets.

Product Warranties

For assurance-type warranties, we accrue for the estimated cost of product warranties at the time revenue is recognized and record it as a component of cost of revenue. Our product warranty liability reflects our best estimate of probable liability under the terms and conditions of our product warranties offered to customers. We estimate the liability based on our standard warranty terms, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that impact our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and cost per claim. We also record a warranty liability for specific matters. We assess the adequacy of our recorded warranty liabilities quarterly and adjust amounts as necessary.

For service-type warranties (i.e. non-standard warranties) costs incurred to fulfill the extended or service warranty are recognized/recorded as the costs are incurred.

Post-retirement Benefit Plans

The determination of defined benefit pension and post-retirement plan obligations and their associated costs requires the use of actuarial computations to estimate participant plan benefits to which the employees will be entitled. The significant assumptions primarily relate to discount rates, expected long-term rates of return on plan assets, rate of future compensation increases, mortality, years of service and other factors. We develop each assumption using relevant company experience in conjunction with market-related data for each individual country in which such plans exist. All actuarial assumptions are reviewed annually with third-party consultants and adjusted as necessary. For the recognition of net periodic post-retirement cost, the calculation of the expected return on plan assets is generally derived by applying the expected long-term rate of return on the market-related value of plan assets. The market-related value of plan assets is based on average asset values at the measurement date over the last five years. Actual results that differ from our assumptions are accumulated and amortized on a straight-line basis only to the extent they exceed 10% of the higher of the market-related value or the projected benefit obligation, over the average remaining service period of active participants, or for plans with all or substantially all inactive participants, over the average remaining life expectancy. The fair value of plan assets is determined based on market prices or estimated fair value at the measurement date.

We consider changes to a plan’s benefit formula that eliminate the accrual for future service but continue to allow for future salary increases (i.e. “soft freeze”) to be a curtailment.

Business Combinations

We allocate the purchase price of acquisitions to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquiree based on their estimated fair value at the acquisition date. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Changes to the acquisition date provisional fair values prior to the expiration of the measurement period, a period not to exceed 12 months from date of acquisition, are recorded as an adjustment to the associated goodwill. Acquisition-related expenses and restructuring costs, if any, are recognized separately from the business combination and are expensed as incurred.

Derivative Financial Instruments

We record all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on whether we have elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, including forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. We may enter into derivative contracts that are intended to hedge certain risks economically, even though hedge accounting does not apply or we elect not to apply hedge accounting.

During the fourth quarter of 2018, we adopted new accounting guidance that eliminates the concept of ineffectiveness for cash flow and net investment hedges. Prior to this adoption, the effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges of foreign exchange risk was recorded in other comprehensive income ("OCI") and was subsequently reclassified into either revenue or cost of revenue (hedge of sales classified into revenue and hedge of purchases classified into cost of revenue) in the period that the hedged forecasted transaction affects earnings. Any ineffective portion of the change in fair value of the derivative was recognized directly in selling, general and administrative expenses. Our policy was to de-designate cash flow hedges at the time forecasted transactions are recognized as assets or liabilities on a business unit’s balance sheet and report subsequent changes in fair value through selling, general and administrative expenses where the gain or loss due to movements in currency rates on the underlying asset or liability is revalued. If it became probable that the originally forecasted transaction would not occur, the gain or loss related to the hedge recorded within accumulated other comprehensive income ("AOCI") was immediately recognized into net income.

Prior to the adoption of the new guidance, changes in the fair value of derivatives designated and that qualify as net investment hedges of foreign exchange risk were recorded in OCI. Amounts in AOCI were reclassified into earnings at the time the hedged net investment is sold or substantially liquidated. Effectiveness of derivatives designated as net investment hedges was assessed using the forward method.

Subsequent to adopting the new hedge guidance, changes in the fair value of derivatives designated and that qualify as cash flow hedges of foreign exchange risk are recorded in OCI and are subsequently reclassified into either revenue or cost of revenue (hedge of sales classified into revenue and hedge of purchases classified into cost of revenue) in the period that the hedged forecasted transaction affects earnings. Our policy is to de-designate cash flow hedges at the time forecasted transactions are recognized as assets or liabilities on a business unit’s balance sheet and report subsequent changes in fair value through selling, general and administrative expenses where the gain or loss due to movements in currency rates on the underlying asset or liability is revalued. If it becomes probable that the originally forecasted transaction will not occur, the gain or loss related to the hedge recorded within AOCI is immediately recognized into net income.

Subsequent to adopting the new hedge guidance, effectiveness of derivatives designated as net investment hedges is assessed using the spot method. The changes in the fair value of these derivatives due to movements in spot exchange rates are recorded in OCI. Amounts in AOCI are reclassified into earnings at the time the hedged net investment is sold or substantially liquidated. Furthermore, we recognize interest income based on the interest rate differential embedded in the derivative instrument.

Commitments and Contingencies

We record accruals for commitments and loss contingencies for those which are both probable and for which the amount can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss. We review these accruals quarterly and adjust the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other current information.

Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our estimated liability is reduced to reflect the anticipated participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. These accruals are reviewed quarterly and are adjusted as assessment and remediation efforts progress or as additional technical or legal information becomes available. Actual costs to be incurred at identified sites in future periods may vary from the estimates, given inherent uncertainties in evaluating environmental exposures. Accruals for environmental liabilities are primarily included in other non-current liabilities at undiscounted amounts and exclude claims for recoveries from insurance companies or other third parties.

Concentrations of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, and accounts receivable from trade customers. We maintain cash and cash equivalents and derivative contracts with various financial institutions. These financial institutions are located in many different geographical regions, and our policy is designed to limit exposure with any one institution. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of the financial institutions. We have not sustained any material credit losses during the previous three years from instruments held at financial institutions. We may utilize forward contracts to protect against the effects of foreign currency fluctuations. Such contracts involve the risk of non-performance by the counterparty. Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising our customer base and their dispersion across many different industries and geographic regions. We perform ongoing credit evaluations of the financial condition of our third-party distributors, resellers and other customers and require collateral, such as letters of credit and bank guarantees, in certain circumstances.

Substantially all of the cash and cash equivalents, including foreign cash balances, at December 31, 2020 and 2019 were uninsured. Foreign cash balances at December 31, 2020 and 2019 were $635 million and $510 million, respectively.

Fair Value Measurements

We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We use a hierarchical structure to prioritize the inputs to valuation techniques used to measure fair value into three broad levels defined as follows:

•Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2 inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices (in non-active markets or in active markets for similar assets or liabilities), inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•Level 3 inputs are unobservable inputs for the assets or liabilities.

The fair value hierarchy is based on maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. Classification within the fair value hierarchy is based on the lowest level input that is significant to the fair value measurement.

Certain investments which measure fair value using the net asset value (“NAV”) per share practical expedient are not classified within the fair value hierarchy and are separately disclosed.

Recently Issued Accounting Pronouncements

Recently Adopted Pronouncements

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments," amending the accounting for the impairment of financial instruments, including trade receivables. Under previous guidance, credit losses were recognized when the applicable losses had a probable likelihood of occurring and this assessment was based on past events and current conditions. The amended current guidance eliminates the “probable” threshold and requires an entity to use a broader range of information, including forecast information when estimating expected credit losses. Generally, this should result in a more timely recognition of credit losses. This guidance became effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The requirements of the amended guidance should be applied using a modified retrospective approach except for debt securities, which require a prospective transition approach. We adopted this guidance as of January 1, 2020. The adoption of this guidance did not have a material impact on our financial condition and results of operations.

Recently Issued Accounting Pronouncements

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Recently Issued Accounting Pronouncements

Summary of Significant Accounting Policies

Xylem operates in three segments, Water Infrastructure, Applied Water and Measurement & Control Solutions. See Note 22, "Segment and Geographic Data" for further segment background information.

Basis of Presentation

Use of Estimates

Consolidation Principles

Foreign Currency Translation

Revenue Recognition

Shipping and Handling Costs

Shipping and handling costs are recorded as a component of cost of revenue.

Share-Based Compensation

Research and Development

Exit and Disposal Costs

Deferred Financing Costs

Income Taxes

Earnings Per Share

Cash Equivalents

We consider all liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Receivables and Allowance for Credit Losses and Discounts

Receivables primarily comprise uncollected amounts owed to us from transactions with customers and are presented net of allowances for credit losses, returns and early payment discounts.

Inventories

Property, Plant and Equipment

These assets are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows:


			Estimated Life
Buildings and improvements			5 to 40 years
Machinery and equipment			2 to 10 years
Furniture and fixtures			3 to 7 years
Equipment held for lease or rental			2 to 10 years

Leases

For annual periods prior to January 1, 2019, lease payments for these leases are recognized as a lease cost on a straight-line basis over the lease term.

Goodwill and Intangible Assets

Long-Lived Asset Impairment

Product Warranties

For service-type warranties (i.e. non-standard warranties) costs incurred to fulfill the extended or service warranty are recognized/recorded as the costs are incurred.

Post-retirement Benefit Plans

We consider changes to a plan’s benefit formula that eliminate the accrual for future service but continue to allow for future salary increases (i.e. “soft freeze”) to be a curtailment.

Business Combinations

Derivative Financial Instruments

Commitments and Contingencies

Concentrations of Credit Risk

Fair Value Measurements

•Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 3 inputs are unobservable inputs for the assets or liabilities.

Certain investments which measure fair value using the net asset value (“NAV”) per share practical expedient are not classified within the fair value hierarchy and are separately disclosed.

Recently Issued Accounting Pronouncements

Recently Adopted Pronouncements

Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Acquisitions and Divestitures

2020 Acquisitions and Divestitures

We had no material acquisition or divestiture activity during the 12 months ended December 31, 2020.

2019 Acquisitions

During the 12 months ended December 31, 2019 we spent approximately $18 million, net of cash received on acquisition activity.

2018 Acquisitions and Divestitures

Pure Technologies Ltd.

On January 31, 2018, we acquired all the issued and outstanding shares of Pure, a leader in intelligent leak detection and condition assessment solutions for water distribution networks for approximately $420 million, net of cash received. Acquisition costs of $4 million were reflected as a component of selling, general and administrative expenses in our Consolidated Income Statement for the year ended December 31, 2018.

Pure’s results of operations were consolidated with the Company effective February 1, 2018 and are reflected in the Measurement & Control Solutions segment.

The Pure purchase price allocation as of January 31, 2018 is shown in the following table:


(in millions)	Amount
Cash	$	14
Receivables	23
Inventories	4

Prepaid and other current assets	2
Property, plant and equipment	22

Intangible assets	149
Other long-term assets	1

Accounts payable	(3)
Accrued and other current liabilities	(12)

Deferred income tax liabilities	(25)

Other non-current accrued liabilities	(2)
Total identifiable net assets	173

Goodwill	261

Total consideration	$	434

The fair values of Pure's assets and liabilities were determined based on estimates and assumptions which management believes are reasonable.

Goodwill arising from the acquisition consists largely of synergies and economies of scale expected from combining the operations of Pure and Xylem. All of the goodwill was assigned to the Measurement & Control Solutions segment and is not deductible for tax purposes.

The estimate of the fair value of Pure's identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all of the expected future cash flows either through the use of the multi-period excess earnings method or the relief-from-royalty method. Some of the more significant assumptions inherent in the development of intangible asset values include: the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows, the assessment of the intangible asset’s life cycle, as well as other factors.

The following table summarizes key information underlying identifiable intangible assets related to the Pure acquisition:

Category

Life

Amount
(in millions)

Customer Relationships

17 - 18 years

Technology

3 - 10 years

Tradenames

20 years

Internally Developed Software

3 years

Total

149

The following table summarizes, on an unaudited pro forma basis, the condensed combined results of operations of the Company for the year ended December 31, 2018 assuming the acquisition of Pure was made on January 1, 2017:



(in millions)	Year Ended December 31,
		2018
Revenue		$5,212
Net income		$546

The foregoing unaudited pro forma results are for informational purposes only and are not necessarily indicative of the actual results of operations that might have occurred had the acquisition occurred on January 1, 2017, nor are they necessarily indicative of future results. The pro forma financial information includes the impact of purchase accounting and other nonrecurring items directly attributable to the acquisition, which include:

•Amortization expense of acquired intangibles

•Adjustments to the depreciation of property, plant and equipment reflecting the impact of the calculated fair value of those assets in accordance with purchase accounting

•Adjustments to interest expense to remove historical Pure interest costs and reflect Xylem's current debt profile

•The related tax impact of the above referenced adjustments

The pro forma results do not include any cost savings or operational synergies that may be generated or realized due to the acquisition of Pure.

During the 11 month period ended December 31, 2018 Pure had revenue and an operating loss of $96 million and $2 million, respectively.

Other Acquisition Activity

During the 12 months ended December 31, 2018 we spent approximately $13 million, net of cash received on other acquisition activity.

Divestiture

During the third quarter we divested our Precision Die Casting business for approximately $22 million, net of cash assumed. The sale resulted in an immaterial gain, which is reflected in gain from sale of business in our Consolidated Income Statements. The business, which was part of our Measurement & Controls Solutions segment, provided aluminum die casting products primarily to customers in the automotive sector. The business reported 2017 annual revenue of approximately $32 million.

Restructuring and Asset Impairment Charges

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Asset Impairment Charges

In response to the changes in business and economic conditions arising as a result of the COVID-19 pandemic, on June 2, 2020 management committed to a restructuring plan that includes actions across our businesses and functions globally. The plan is designed to support our long-term financial resilience and simplify our operations, strengthen our competitive positioning and better serve our customers.

Restructuring charges recognized as a result of this plan included reduction of headcount across all segments and asset impairments within our Measurement & Control Solutions segment. Immaterial restructuring charges incurred during the first quarter are included in the plan information presented below.

During 2019 and 2018, we incurred restructuring charges primarily related to an effort to reposition our European and North American businesses to optimize our cost structure and improve our operational efficiency and effectiveness. The charges included the reduction of headcount and consolidation of facilities within our Measurement & Control Solutions and Water Infrastructure segments, as well as headcount reductions within our Applied Water segment.

The following table presents the components of restructuring expense and asset impairment charges incurred during each of the previous 3 years:


	Year Ended December 31,
(in millions)	2020		2019		2018
By component:
Severance and other charges	$	36	$	51	$	19
Lease related charges	—		1		1
Asset impairment	18		—		—
Other restructuring charges	1		2		1
Reversal of restructuring accruals	(1)		(1)		(1)
Total restructuring charges	54		53		20
Asset impairment charges	21		10		2
Total restructuring and asset impairment charges	$	75	$	63	$	22

By segment:
Water Infrastructure	$	20	$	20	$	11
Applied Water	4		5		2
Measurement & Control Solutions	51		38		9

Restructuring

The following table displays a roll-forward of the restructuring accruals, presented on our Consolidated Balance Sheets within "accrued and other current liabilities" and "other non-current accrued liabilities," for the years ended December 31, 2020 and 2019:


(in millions)	2020		2019
Restructuring accruals - January 1	$	27	$	5
Restructuring charges	54		53
Cash payments	(36)		(30)
Asset impairment	(18)		—
Foreign currency and other	2		(1)
Restructuring accruals - December 31	$	29	$	27

By segment:
Water Infrastructure	$	4	$	1
Applied Water	1		—
Measurement & Control Solutions	18		19
Regional selling locations (a)	5		7
Corporate and other	1		—

(a) Regional selling locations consist primarily of selling and marketing organizations that incurred restructuring expense which was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments.

The following table presents expected restructuring spend in 2020 and thereafter:


(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Corporate		Total
Actions Commenced in 2020:
Total expected costs	$	26	$	11	$	34	$	2	$	73
Costs incurred during 2020	19		4		30		—		53
Total expected costs remaining	$	7	$	7	$	4	$	2	$	20

Actions Commenced in 2019:
Total expected costs	$	19	$	5	$	27	$	—	$	51
Costs incurred during 2019	18		5		27		—		50
Costs incurred during 2020	1		—		—		—		1
Total expected costs remaining	$	—	$	—	$	—	$	—	$	—

The Water Infrastructure, Applied Water, and Measurement & Control Solutions actions commenced in 2020 consist primarily of severance charges in each of the segments and asset impairment charges in our Measurement & Control Solutions segment. These actions are expected to continue through 2021. The Water Infrastructure, Applied Water, and Measurement & Control Solutions actions commenced in 2019 consist primarily of severance charges. The actions commenced in 2019 are complete.

During the second quarter of 2020, the discontinuance of a product line resulted in $17 million of asset impairments, primarily related to customer relationships, trademarks and fixed assets within our Measurement & Control Solutions segment.

Asset Impairment

During the third quarter of 2020, we determined that certain assets including software and proprietary technology within our Measurement & Control Solutions segment were impaired. Accordingly we recognized an impairment charge of $11 million. Refer to Note 12, "Goodwill and Other Intangible Assets," for additional information.

During the second quarter of 2020, we determined that internally developed in-process software within our Measurement & Control Solutions segment was impaired as a result of actions taken to prioritize strategic investments. Accordingly we recognized an impairment charge of $10 million. Refer to Note 12, "Goodwill and Other Intangible Assets," for additional information.

During the third quarter of 2019, we determined that certain assets within our Measurement & Control Solutions segment, including customer relationships, internally developed software, proprietary technology, and plant property & equipment, were impaired. Accordingly we recognized an impairment charge of $7 million. Refer to Note 12, "Goodwill and Other Intangible Assets," for additional information.

During the first quarter of 2019, we determined that certain assets within our Measurement & Control Solutions segment, including a customer relationship, were impaired. Accordingly we recognized an impairment charge of $3 million. Refer to Note 12, "Goodwill and Other Intangible Assets," for additional information.

Revenue

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue

Disaggregation of Revenue

The following table illustrates the sources of revenue:


	Year Ended December 31,
(in millions)	2020		2019		2018
Revenue from contracts with customers	$	4,681	$	5,002	$	4,963
Lease Revenue	195		247		244
Total	$	4,876	$	5,249	$	5,207

The following table reflects revenue from contracts with customers by application:


	Year Ended December 31,
(in millions)	2020		2019		2018
Water Infrastructure
Transport	$	1,484	$	1,533	$	1,535
Treatment	400		397		397

Applied Water
Building Services	804		848		828
Industrial Water	630		693		706

Measurement and Control Solutions
Water	689		768		692
Energy	276		337		338
Software as a Service	92		99		123
Test	306		327		344

Total	$	4,681	$	5,002	$	4,963

The following table reflects revenue from contracts with customers by geographical region:


	Year Ended December 31,
(in millions)	2020		2019		2018
Water Infrastructure
United States	$	558	$	593	$	539
Europe	751		729		758
Asia Pacific	341		358		344
Other	234		250		291

Applied Water
United States	754		816		797
Europe	356		362		386
Asia Pacific	152		164		153
Other	172		199		198

Measurement and Control Solutions
United States	856		972		913
Europe	266		257		273
Asia Pacific	109		118		144
Other	132		184		167

Total	$	4,681	$	5,002	$	4,963

Contract Balances

We receive payments from customers based on a billing schedule as established in our contracts. Contract assets relate to costs incurred to perform in advance of scheduled billings. Contract liabilities relate to payments received in advance of performance under the contracts. Changes in contract assets and liabilities are due to our performance under the contract.

The table below provides contract assets, contract liabilities, and significant changes in contract assets and liabilities:


(in millions)	Contract Assets (a)		Contract Liabilities
Balance at 1/1/2019	$	96	$	113
Additions, net	81		114
Revenue recognized from opening balance	—		(91)
Billings transferred to accounts receivable	(80)		—
Other	9		(1)
Balance at 1/1/2020	$	106	$	135
Additions, net	118		120
Revenue recognized from opening balance	—		(93)
Billings transferred to accounts receivable	(110)		—




Other	3		4
Balance at 12/31/2020	$	117	$	166

(a)Excludes receivable balances which are disclosed on the balance sheet

Performance obligations

Delivery schedules vary from customer to customer based upon their requirements. Typically, large projects require longer lead production cycles and delays can occur from time to time. As of December 31, 2020, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied for contracts with performance obligations, amount to $422 million. We expect to recognize the majority of revenue upon the completion of satisfying these performance obligations in the following 60 months. The Company elects to apply the practical expedient to exclude from this disclosure revenue related to performance obligations that are part of a contract whose original expected duration is less than one year.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Other Non-Operating Income, Net

12 Months Ended

Dec. 31, 2020

Other Income and Expenses [Abstract]

Other Non-Operating Income, Net

Other Non-Operating (Expense) Income, Net

The components of other non-operating income, net are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018
Interest income	$	7	$	5	$	4
Income from joint ventures	2		3		5
Other (expense) income – net	(14)		(12)		4
Total other non-operating (expense) income, net	$	(5)	$	(4)	$	13

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

The source of pre-tax income and the components of income tax expense are as follows:


	Year Ended December 31,
(in millions)	2020			2019			2018
Income (loss) components:
Domestic	$	(33)		$	203		$	208
Foreign	318			213			377
Total pre-tax income	$	285		$	416		$	585
Income tax expense components:
Current:
Domestic – federal	$	24		$	39		$	9
Domestic – state and local	5			13			13
Foreign	33			40			61
Total Current	62			92			83
Deferred:
Domestic – federal	$	(21)		$	7		$	17
Domestic – state and local	(8)			(1)			5
Foreign	(2)			(83)			(69)
Total Deferred	(31)			(77)			(47)
Total income tax provision	$	31		$	15		$	36
Effective income tax rate	10.9		%	3.7		%	6.1		%

Reconciliations between taxes at the U.S. federal income tax rate and taxes at our effective income tax rate on earnings before income taxes are as follows:


	Year Ended December 31,
	2020		2019		2018
Tax provision at U.S. statutory rate	21.0	%	21.0	%	21.0	%
Increase (decrease) in tax rate resulting from:

State income taxes	0.7		2.7		2.3
Uncertain tax positions	(3.9)		0.4		2.6
Valuation allowance	0.5		1.2		(47.1)
Tax exempt interest	(4.5)		(3.0)		(1.4)
Foreign tax rate differential	(0.9)		0.7		2.9
Impact of foreign earnings, net	5.3		1.6		(1.7)
Tax incentives	(7.4)		(9.6)		(6.2)
Intercompany sale of assets	—		—		35.5
Other – net	2.2		1.7		(0.3)
Rate change	(1.3)		(18.1)		—

Goodwill impairment	2.9		7.8		—
Federal R&D tax credit	(1.3)		(1.2)		(0.8)
Stock compensation	(2.4)		(1.5)		(0.7)
Effective income tax rate	10.9	%	3.7	%	6.1	%

Certain prior year amounts included within the table of rate reconciliation above have been adjusted for consistency with the current year presentation. These adjustments had no effect on the reported Consolidated Balance Sheets, Consolidated Statements of Income, Comprehensive Income, Stockholders’ Equity, or Cash Flow.

Deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and tax bases of assets and liabilities, applying enacted tax rates in effect for the year in which we expect the differences will reverse.

The following is a summary of the components of the net deferred tax assets and liabilities recognized in the Consolidated Balance Sheets:


	December 31,
(in millions)	2020		2019
Deferred tax assets:
Employee benefits	$	127	$	106
Accrued expenses	35		26
Loss and other tax credit carryforwards	270		240
Inventory	6		6

Lease Liabilities	64		57

Other	41		3
	543		438
Valuation allowance	(217)		(191)
Net deferred tax asset	$	326	$	247
Deferred tax liabilities:
Intangibles	$	138	$	160
Investment in foreign subsidiaries	5		7
Property, plant and equipment	77		78
Lease right-of-use assets	62		57
Other	30		29
Total deferred tax liabilities	$	312	$	331

Management assesses all available positive and negative evidence, including prudent and feasible tax planning strategies, and estimates if sufficient future taxable income will be generated to realize existing deferred tax assets. On the basis of this evaluation, as of December 31, 2020, a valuation allowance of $217 million has been established to reduce the deferred income tax asset related to certain U.S. and foreign net operating losses and U.S. and foreign capital loss carryforwards.

A reconciliation of the change in valuation allowance on deferred tax assets is as follows:


(in millions)	2020		2019		2018
Valuation allowance — January 1	$	191	$	234	$	350
Change in assessment (a)	1		(2)		1
Current year operations	7		2		(271)
Foreign currency and other (b)	18		(43)		154

Valuation allowance — December 31	$	217	$	191	$	234

(a) Increase in assessment in 2020 is primarily attributable to loss positions in various jurisdictions. Decrease in assessment in 2019 is primarily attributable to profitability of certain jurisdictions.

(b) Included in foreign currency and other in 2019 is a decrease in net operating losses due primarily to the liquidation of a foreign subsidiary for which a valuation allowance was maintained. Included in foreign currency and other in 2018 is an increase in net operating losses due to amended prior year tax returns for which a valuation allowance was recorded.

Deferred taxes are classified in the Consolidated Balance Sheets as follows:


	December 31,
(in millions)	2020		2019

Non-current assets	$	256	$	226

Non-current liabilities	(242)		(310)
Total net deferred tax liabilities	$	14	$	(84)

Tax attributes available to reduce future taxable income begin to expire as follows:


(in millions)	December 31, 2020		First Year of Expiration
U.S. net operating loss	$	7	December 31, 2024
State net operating loss	97		December 31, 2021
State excess interest expense	10		Indefinitely

State tax credits	1		Indefinitely
Foreign net operating loss	1,153		December 31, 2021
Foreign tax credits	4		December 31, 2030

The Company has provided a deferred tax liability of $7 million for net foreign withholding taxes and state income taxes on $500 million of earnings expected to be repatriated to the U.S. parent, as of December 31, 2020. The Company currently does not intend to repatriate approximately $1.6 billion taxed under the Tax Act. The amount of deferred tax that would be recorded if such amounts were repatriated is not reasonably estimable.

Unrecognized Tax Benefits

We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities or upon the completion of the litigation process, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(in millions)	2020		2019		2018
Unrecognized tax benefits — January 1	$	129	$	136	$	130
Current year tax positions	—		3		—
Prior year tax positions	(3)		(5)		7



Settlements	(12)		(5)		(1)
Unrecognized tax benefits — December 31	$	114	$	129	$	136

The amount of unrecognized tax benefits at December 31, 2020 which, if ultimately recognized, will reduce our effective tax rate is $114 million. We believe that it is reasonably possible that unrecognized tax benefits will be reduced by approximately $1 million within the next 12 months as a result of the expiration of certain statute of limitations.

We classify interest relating to unrecognized tax benefits as a component of other non-operating (expense) income, net and tax penalties as a component of income tax expense in our Consolidated Income Statements. The amount of accrued interest relating to unrecognized tax benefits as of December 31, 2020 and 2019 was $8 million and $8 million.

During 2019, Xylem’s Swedish subsidiary received a tax assessment for the 2013 tax year related to the tax treatment of an intercompany transfer of certain intellectual property that was made in connection with a reorganization of our European businesses. The assessment asserts an aggregate amount of approximately $80 million for tax, penalties and interest. Xylem filed an appeal with the Administrative Court of Stockholm. Management, in consultation with external legal advisors, believes it is more likely than not that Xylem will prevail on the proposed assessment and is vigorously defending our position through litigation. As of December 31, 2020, we have not recorded any unrecognized tax benefits related to this uncertain tax position.

The following table summarizes our earliest open tax years by major jurisdiction:


Jurisdiction						Earliest Open Year
Italy						2014
Luxembourg						2016
Sweden						2013
Germany						2012
United Kingdom						2014
United States						2017
Switzerland						2017

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Earnings Per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

The following is a reconciliation of the shares used in calculating basic and diluted EPS:


	Year Ended December 31,
	2020		2019		2018
Net income (in millions)	$	254	$	401	$	549
Shares (in thousands):
Weighted average common shares outstanding	180,094		179,958		179,750
Add: Participating securities (a)	22		29		27
Weighted average common shares outstanding — Basic	180,116		179,987		179,777
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	671		803		876
Dilutive effect of restricted stock units and performance share units	312		406		479
Weighted average common shares outstanding — Diluted	181,099		181,196		181,132
Basic earnings per share	$	1.41	$	2.23	$	3.05
Diluted earnings per share	$	1.40	$	2.21	$	3.03

(a)Restricted stock awards containing rights to non-forfeitable dividends that participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing EPS.

(b)Incremental shares from stock options, restricted stock units and performance share units are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock units and performance share units, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Performance share units are included in the treasury stock calculation of diluted earnings per share based upon achievement of underlying performance and market conditions at the end of the reporting period, as applicable. See Note 17, "Share-Based Compensation Plans" for further detail on the performance share units.


	Year Ended December 31,
(in thousands)	2020	2019	2018
Stock options	1,545	1,383	1,300
Restricted stock units	362	348	333
Performance share units	305	394	465

Inventories

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventories

The components of total inventories are summarized as follows:


	December 31,
(in millions)	2020		2019
Finished goods	$	221	$	212
Work in process	49		47
Raw materials	288		280
Total inventories	$	558	$	539

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

The components of total property, plant and equipment, net are as follows:


	December 31,
(in millions)	2020		2019
Land, buildings and improvements	$	369	$	339
Machinery and equipment	941		861
Equipment held for lease or rental	241		256
Furniture and fixtures	124		118
Construction work in progress	110		104
Other	29		24
Total property, plant and equipment, gross	1,814		1,702
Less accumulated depreciation	1,157		1,044
Total property, plant and equipment, net	$	657	$	658

Depreciation expense was $117 million, $117 million, and $117 million for 2020, 2019, and 2018, respectively.

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

Leasing Arrangements

We lease certain offices, manufacturing buildings, transportation equipment, machinery, computers and other equipment. Our most significant lease liabilities relate to real estate leases. These leases include renewal, termination or purchase options, and we have assessed these to determine whether it is reasonably certain for us to exercise any of the previously mentioned options. All periods relating to options that are reasonably certain to be exercised have been included in the lease term of the respective leases.

We did not identify any events or conditions during the 12 month period ended December 31, 2020 to indicate that a reassessment or re-measurement of our existing leases was required. There also were no impairment indicators identified during the 12 month period ended December 31, 2020 that required an impairment test for the Company’s ROU assets.

Our current lease liabilities of $63 million and $61 million are included in "Accrued and other current liabilities" as of December 31, 2020 and 2019, respectively. Our non-current lease liabilities of $216 million and $185 million are included in "Other non-current accrued liabilities" as of December 31, 2020 and 2019, respectively. Our ROU asset balances are included in "Other non-current assets." The net balance of our ROU assets as of December 31, 2020 and 2019 was $272 million and $241 million, respectively. These balances include an immaterial amount related to finance leases.

The components of our lease cost were as follows:


	Year Ended December 31,
(in millions)	2020		2019
Lease cost
Operating lease cost	$	77	$	76
Short-term lease cost	2		9
Variable lease cost	22		19

Total lease cost	$	101	$	104

The supplemental cash flow information related to leases are as follows:


	Year Ended December 31,
(in millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	75	$	73

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	64	$	33

Information relating to the lease term and discount rate are as follows:


	Year Ended December 31,
	2020	2019
Weighted-average remaining lease term (years)
Operating leases	7 Years	6 Years


Weighted-average discount rate
Operating leases	2.5%	2.7%

As of December 31, 2020, the maturities of operating lease liabilities were as follows:


(in millions)
2021	$	68
2022	54
2023	42
2024	32
2025	24
Thereafter	77
Total lease payments	297
Less: Imputed interest	(22)
Total (1)	$	275

(1) Excludes $27 million of legally binding minimum lease payments for leases signed but not yet commenced. Lease payments are expected to begin in 2021 when asset construction is complete.

Disclosures related to periods prior to adoption of the New Lease Standard as reported and provided in our 2018 Annual Report.

We lease certain offices, manufacturing buildings, machinery, computers and other equipment. We often pay maintenance, insurance and tax expense related to leased assets. Total rent expense for the year ended December 31, 2018 was $81 million.

Lessor arrangements

In addition to manufacturing and selling equipment, we also lease out equipment to customers in exchange for consideration. These arrangements are generally short term in nature and predominantly involve the rental of pumps and accessories within the Water Infrastructure segment. Rental arrangements generally do not provide the customer the right to purchase the equipment as Xylem’s strategy is to rent these items over their useful lives. Customers may be billed based on daily, weekly or monthly rates depending on the expected rental period. We assessed that these arrangements constitute a lease under ASC 842, and have recognized them as operating leases. In situations where arrangements contain both the sale of products and a leasing component, contract consideration is allocated based on relative standalone selling price.

Total revenue from lease arrangements was $195 million and $247 million for the 12 month period ended December 31, 2020 and 2019, respectively. Our gross assets available for rent were $241 million and $256 million

as of December 31, 2020 and 2019, respectively. The accumulated amortization related to our gross assets was $159 million and $166 million as of December 31, 2020 and 2019, respectively. Depreciation expense for these assets was $25 million and $28 million for the 12 month period ended December 31, 2020 and 2019, respectively.

Leases

Leasing Arrangements

The components of our lease cost were as follows:


	Year Ended December 31,
(in millions)	2020		2019
Lease cost
Operating lease cost	$	77	$	76
Short-term lease cost	2		9
Variable lease cost	22		19

Total lease cost	$	101	$	104

The supplemental cash flow information related to leases are as follows:


	Year Ended December 31,
(in millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	75	$	73

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	64	$	33

Information relating to the lease term and discount rate are as follows:


	Year Ended December 31,
	2020	2019
Weighted-average remaining lease term (years)
Operating leases	7 Years	6 Years


Weighted-average discount rate
Operating leases	2.5%	2.7%

As of December 31, 2020, the maturities of operating lease liabilities were as follows:


(in millions)
2021	$	68
2022	54
2023	42
2024	32
2025	24
Thereafter	77
Total lease payments	297
Less: Imputed interest	(22)
Total (1)	$	275

(1) Excludes $27 million of legally binding minimum lease payments for leases signed but not yet commenced. Lease payments are expected to begin in 2021 when asset construction is complete.

Disclosures related to periods prior to adoption of the New Lease Standard as reported and provided in our 2018 Annual Report.

Lessor arrangements

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying value of goodwill by reportable segment during the years ended December 31, 2020 and 2019 are as follows:


(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Total
Balance as of December 31, 2018	$	653	$	516	$	1,807	$	2,976
Activity in 2019
Acquired	—		—		19		19
Impairment	—		—		(148)		(148)
Foreign currency and other	(2)		(3)		(3)		(8)
Balance as of December 31, 2019	$	651	$	513	$	1,675	$	2,839
Activity in 2020

Impairment	—		—		(58)		(58)
Foreign currency and other	17		16		40		73
Balance as of December 31, 2020	$	668	$	529	$	1,657	$	2,854

As of December 31, 2020 and 2019, goodwill included accumulated impairment losses of $206 million and $148 million, respectively, within the Measurement & Control Solutions segment.

During the fourth quarter of 2020, we performed our annual impairment assessment and determined that the estimated fair values of our goodwill reporting units were in excess of each of their carrying values. However, future goodwill impairment tests could result in a charge to earnings. We will continue to evaluate goodwill on an annual basis as of the beginning of our fourth quarter and whenever events and changes in circumstances indicate there may be a potential impairment.

During the third quarter of 2020, the Company recorded a goodwill impairment charge of $58 million related to the AIA goodwill reporting unit within our Measurement & Control Solutions segment. The AIA goodwill reporting unit is comprised of our assessment services business (primarily the Pure acquisition) as well as our digital solutions business. The impairment resulted from management's updated forecast of future cash flows for the AIA businesses, which reflects significant negative volume impacts from the COVID-19 pandemic, primarily on our assessment services business. Our ongoing investment in the AIA businesses also continues to impact near term profitability. These factors drove the decrease in forecasted cash flows, and as such, the calculated fair value of the AIA goodwill reporting unit below its carrying value as of the third quarter. To determine the fair value of the AIA goodwill reporting unit, the Company used the income approach. Under the income approach, the fair value of the AIA goodwill reporting unit was based on the present value of the estimated cash flows that the goodwill reporting unit is expected to generate over its remaining life. Cash flow projections were based on management’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate was based on the weighted average cost of capital appropriate for the AIA goodwill reporting unit.

During the third quarter of 2019, the Company recorded a goodwill impairment charge of $148 million related to the AIA goodwill reporting unit. The impairment resulted from a downward revision of forecasted future cash flows. Factors that contributed to the revised forecast in the third quarter include lower than expected results as compared to prior forecasts, largely as a result of slower-than-expected conversion of pipeline opportunities to revenue. Additionally, we have continued to invest in the AIA platform ahead of the adoption curve, which has also impacted the near-term profitability of the business. These factors drove the decrease in forecasted cash flows, and as such, the calculated fair value of the AIA goodwill reporting unit below its carrying value as of the third quarter. To determine the fair value of the AIA goodwill reporting unit, the Company used the income approach.

Other Intangible Assets

Information regarding our other intangible assets is as follows:


(in millions)	December 31, 2020						December 31, 2019
	Carrying Amount		Accumulated Amortization		Net Intangibles		Carrying Amount		Accumulated Amortization		Net Intangibles
Customer and distributor relationships	$	941	$	(410)	$	531	$	945	$	(352)	$	593
Proprietary technology and patents	206		(131)		75		204		(111)		93
Trademarks	143		(63)		80		148		(52)		96
Software	500		(265)		235		428		(206)		222
Other	21		(18)		3		20		(16)		4
Indefinite-lived intangibles	169		—		169		166		—		166
Other intangibles	$	1,980	$	(887)	$	1,093	$	1,911	$	(737)	$	1,174

We determined that no impairment of the indefinite-lived intangibles existed as of the measurement date of our impairment assessment in 2020. Future impairment tests could result in a charge to earnings. We will continue to evaluate the indefinite-lived intangible assets on an annual basis as of the beginning of our fourth quarter and whenever events and changes in circumstances indicate there may be a potential impairment.

During the third quarter of 2020, the Company assessed whether the carrying amounts of the AIA reporting unit’s long-lived assets may not be recoverable based on the updated forecast of future cash flows, and therefore impaired. Our assessment resulted in an impairment charge of $11 million, primarily related to software and proprietary technology. The charge was calculated using an income approach, which is considered a Level 3 input for fair value measurement, and is reflected in “Restructuring and asset impairment charges” in our Consolidated Income Statements.

During the second quarter of 2020, we recognized impairment charges of $16 million primarily related to customer relationships and trademarks due to discontinuance of a product line within our Measurement & Control Solutions segment. We also determined that internally developed in-process software within our Measurement & Control Solutions segment was impaired as a result of actions taken to prioritize strategic investments and recognized an impairment charge of $10 million.

During the third quarter of 2019, the Company also assessed whether the carrying amounts of the AIA reporting unit’s long-lived assets may not be recoverable based on the revised forecasted cash flows, and therefore impaired. Our assessment resulted in an impairment charge of $7 million, primarily related to customer relationships, proprietary technology, software and property, plant and equipment. The charge was calculated using an income approach, which is considered a Level 3 input for fair value measurement, and is reflected in “Restructuring and asset impairment charges” in our Consolidated Income Statements.

During the first quarter of 2019, we determined that the intended use of a finite-lived customer relationship within the test application of our Measurement & Control Solutions segment had changed. Accordingly we recorded a $3 million impairment charge. The charge was also calculated using the income approach and is reflected in “Restructuring and asset impairment charges” in our Consolidated Income Statements.

Customer and distributor relationships, proprietary technology and patents, trademarks, software and other are amortized over weighted average lives of approximately 14 years, 14 years, 13 years, 5 years and 4 years, respectively.

Total amortization expense for intangible assets was $134 million, $140 million, and $144 million for 2020, 2019 and 2018, respectively.

Estimated amortization expense for each of the five succeeding years is as follows:


(in millions)
2021	$	128
2022	121
2023	115
2024	105
2025	102

Accrued and Other Current Liabilities

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Accrued and Other Current Liabilities

The components of total accrued and other current liabilities are as follows:


	December 31,
(in millions)	2020		2019
Compensation and other employee-benefits	$	258	$	199
Customer-related liabilities	186		153
Accrued taxes	103		79
Lease liabilities	63		61
Accrued warranty costs	54		36

Other accrued liabilities	123		100
Total accrued and other current liabilities	$	787	$	628

Credit Facilities and Long-Term Debt

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Credit Facilities and Long-Term Debt

Credit Facilities and Debt

Total debt outstanding is summarized as follows:


	December 31,
(in millions)	2020		2019

4.875% Senior Notes due 2021 (a)	$	600	$	600
2.250% Senior Notes due 2023 (a)	612		557
3.250% Senior Notes due 2026 (a)	500		500
1.950% Senior Notes due 2028 (b)	500		—
2.250% Senior Notes due 2031 (b)	500		—
4.375% Senior Notes due 2046 (a)	400		400
Commercial paper	—		276




Debt issuance costs and unamortized discount (c)	(28)		(17)

Total debt	3,084		2,316
Less: short-term borrowings and current maturities of long-term debt	600		276
Total long-term debt	$	2,484	$	2,040

(a)The fair value of our Senior Notes was determined using quoted prices in active markets for identical securities, which are considered Level 1 inputs. The fair value of our Senior Notes due 2021 was $620 million and $629 million as of December 31, 2020 and 2019, respectively. The fair value of our Senior Notes due 2023 was $640 million and $591 million as of December 31, 2020 and 2019, respectively. The fair value of our Senior Notes due 2026 was $563 million and $518 million as of December 31, 2020 and 2019, respectively. The fair value of our Senior Notes due 2046 was $496 million and $431 million as of December 31, 2020 and 2019, respectively.

(b)The fair value of our Senior Notes was determined using quoted prices in active markets for identical securities, which are considered Level 1 inputs. The fair value of our Senior Notes due 2028 and 2031 was $529 million and $527 million, respectively, as of December 31, 2020.

(c)The debt issuance costs and unamortized discount is recognized as a reduction in the carrying value of the Senior Notes in the Consolidated Balance Sheets and is being amortized to interest expense in our Consolidated Income Statements over the expected remaining terms of the Senior Notes.

Senior Notes

On June 26, 2020, we issued 1.950% Senior Notes of $500 million aggregate principal amount due January 2028 (the “Senior Notes due 2028”) and 2.250% Senior Notes of $500 million aggregate principal amount due January 2031 (the “Senior Notes due 2031" and, together with the Senior Notes due 2028, the “Green Bond”).

The Green Bond includes covenants that restrict our ability, and the ability of our restricted subsidiaries, to incur debt secured by liens on certain property above a threshold, to engage in certain sale and leaseback transactions involving certain property above a threshold, and to consolidate or merge, or convey or transfer all or substantially all of our assets. We may redeem the Green Bond at any time, at our option, subject to certain conditions, at specified redemption prices, plus accrued and unpaid interest to the redemption date.

If a change of control triggering event (as defined in the applicable Green Bond indenture) occurs, we will be required to make an offer to purchase the notes at a price equal to 101% of their principal amount plus accrued and unpaid interest to the date of repurchase.

Interest on the Green Bond is payable on January 30 and July 30 of each year beginning on January 30, 2021. As of December 31, 2020, we are in compliance with all covenants for the Green Bond.

On September 20, 2011, we issued 4.875% Senior Notes of $600 million aggregate principal amount due October 2021 (the "Senior Notes due 2021"). On March 11, 2016, we issued 2.250% Senior Notes of €500 million aggregate principal amount due March 2023 (the "Senior Notes due 2023"). On October 11, 2016, we issued 3.250% Senior Notes of $500 million aggregate principal amount due October 2026 (the “Senior Notes due 2026”) and 4.375% Senior Notes of $400 million aggregate principal amount due October 2046 (the “Senior Notes due 2046” and, together with the Senior Notes due 2021, the Senior Notes due 2023 and the Senior Notes due 2026, the “Senior Notes”).

The Senior Notes include covenants that restrict our ability, and the ability of our restricted subsidiaries, to incur debt secured by liens on certain property above a threshold, to engage in certain sale and leaseback transactions involving certain property above a threshold, and to consolidate or merge, or convey or transfer all or substantially all of our assets. We may redeem the Senior Notes, as applicable, in whole or in part, at any time at a redemption price equal to the principal amount of the Senior Notes to be redeemed, plus a make-whole premium. We may also redeem the Senior Notes in certain other circumstances, as set forth in the applicable Senior Notes indenture.

If a change of control triggering event (as defined in the applicable Senior Notes indenture) occurs, we will be required to make an offer to purchase the Senior Notes at a price equal to 101% of their principal amount plus accrued and unpaid interest to the date of repurchase.

Interest on the Senior Notes due 2021 is payable on April 1 and October 1 of each year. Interest on the Senior Notes due 2023 is payable on March 11 of each year. Interest on the Senior Notes due 2026 and the Senior Notes due 2046 is payable on May 1 and November 1 of each year. As of December 31, 2020, we are in compliance with all covenants for the Senior Notes.

Credit Facilities

2019 Five-Year Revolving Credit Facility

On March 5, 2019, Xylem entered into a five-year revolving credit facility (the “2019 Credit Facility”) with Citibank, N.A., as Administrative Agent, and a syndicate of lenders. The 2019 Credit Facility provides for an aggregate principal amount of up to $800 million (available in U.S. Dollars and in Euros), with increases of up to $200 million for a maximum aggregate principal amount of $1 billion at the request of Xylem and with the consent of the institutions providing such increased commitments.

Interest on all loans under the 2019 Credit Facility is payable either quarterly or at the expiration of any LIBOR or EURIBOR interest period applicable thereto. Borrowings accrue interest at a rate equal to, at Xylem's election, a base rate or an adjusted LIBOR or EURIBOR rate plus an applicable margin. The 2019 Credit Facility includes customary provisions for implementation of replacement rates for LIBOR-based and EURIBOR-based loans. The 2019 Credit Facility also includes a pricing grid that determines the applicable margin based on Xylem's credit rating, with a further adjustment depending on Xylem's annual Sustainalytics Environmental, Social and Governance ("ESG") score, determined based on the methodology in effect as of March 5, 2019. Xylem will also pay quarterly fees to each lender for such lender’s commitment to lend accruing on such commitment at a rate based on our credit rating, whether such commitment is used or unused, as well as a quarterly letter of credit fee accruing on the letter of credit exposure of such lender during the preceding quarter at a rate based on the credit rating of Xylem (as adjusted for the ESG score).

The 2019 Credit Facility requires that Xylem maintain a consolidated total debt to consolidated EBITDA ratio (or maximum leverage ratio), which will be based on the last four fiscal quarters; and in addition contains a number of customary covenants, including limitations on the incurrence of secured debt and debt of subsidiaries, liens, sale and lease-back transactions, mergers, consolidations, liquidations, dissolutions and sales of assets. The 2019 Credit Facility also contains customary events of default. Finally, Xylem has the ability to designate subsidiaries that can borrow under the 2019 Credit Facility, subject to certain requirements and conditions set forth in the 2019 Credit Facility.

On June 22, 2020, Xylem entered into Amendment No. 1 to the 2019 Credit Facility (the "Amendment") which modified the financial covenant from a test based on the maximum leverage ratio (defined as consolidated total debt to consolidated EBITDA) to a test based on the net leverage ratio (defined as consolidated total debt less

unrestricted cash and cash equivalents to consolidated EBITDA). This modification is effective through the quarter ending September 30, 2021, after which the covenant will revert back to the prior maximum leverage ratio test. The Amendment also restricts stock repurchases until March 31, 2021, except for shares of common stock in an amount not to exceed the number of shares issued after the date of the Amendment, subject to customary exceptions. As of December 31, 2020, the 2019 Credit Facility was undrawn and we are in compliance with all covenants.

Commercial Paper

U.S. Dollar Commercial Paper Program

Our U.S. Dollar commercial paper program generally serves as a means of short-term funding with a $600 million maximum issuing balance and a combined limit of $800 million inclusive of the 2019 Credit Facility. As of December 31, 2020 and 2019, none of the Company's $600 million U.S. Dollar commercial paper program was outstanding. We have the ability to continue borrowing under this program going forward in in future periods.

Euro Commercial Paper Program

On June 3, 2019, Xylem entered into a Euro commercial paper program with ING Bank N.V., as administrative

agent, and a syndicate of dealers. The Euro commercial paper program provides for a maximum issuing balance of up to €500 million (approximately $612 million) which may be denominated in a variety of currencies. The

maximum issuing balance may be increased in accordance with the Dealer Agreement. As of December 31, 2020 and 2019, $0 million and $276 million of the Company's Euro commercial paper program was outstanding, respectively. We have the ability to continue borrowing under this program going forward in future periods.

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Risk Management Objective of Using Derivatives

We are exposed to certain risks arising from both our business operations and economic conditions, and we principally manage our exposures to these risks through management of our core business activities. Certain of our foreign operations expose us to fluctuations of foreign interest rates and exchange rates that may impact revenue, expenses, cash receipts, cash payments, and the value of our stockholders' equity. We enter into derivative financial instruments to protect the value or fix the amount of certain cash flows in terms of the functional currency of the business unit with that exposure and reduce the volatility in stockholders' equity.

Cash Flow Hedges of Foreign Exchange Risk

We are exposed to fluctuations in various foreign currencies against our functional currencies. We use foreign currency derivatives, including currency forward agreements, to manage our exposure to fluctuations in the various exchange rates. Currency forward agreements involve fixing the foreign currency exchange rate for delivery of a specified amount of foreign currency on a specified date.

Certain business units with exposure to foreign currency exchange risks have designated certain currency forward agreements as cash flow hedges of forecasted intercompany inventory purchases and sales. Our principal currency exposures relate to the Euro, Swedish Krona, British Pound, Canadian Dollar, Polish Zloty, and Australian Dollar. We had foreign exchange contracts with purchase notional amounts totaling $0 million and $0 million as of December 31, 2020 and 2019, respectively. We entered into new foreign exchange contracts as of the first quarter of 2021.

Hedges of Net Investments in Foreign Operations

We are exposed to changes in foreign currencies impacting our net investments held in foreign subsidiaries.

Cross-Currency Swaps

Beginning in 2015, we entered into cross-currency swaps to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. During the second quarter of 2019 and third quarter of 2020 we entered into additional cross-currency swaps. The total notional amount of derivative instruments designated as net investment hedges was $1,249 million and $714 million as of December 31, 2020 and 2019, respectively.

Foreign Currency Denominated Debt

On March 11, 2016, we issued 2.250% Senior Notes of €500 million aggregate principal amount due March 2023. We designated the entirety of the outstanding balance, or $610 million and $554 million as of December 31, 2020 and 2019, respectively, net of unamortized discount, as a hedge of a net investment in certain foreign subsidiaries.

The table below presents the effect of our derivative financial instruments on the Consolidated Income Statements and Consolidated Statements of Comprehensive Income:


	Year Ended December 31,
(in millions)	2020		2019		2018
Derivatives in Cash Flow Hedges
Foreign Exchange Contracts
Amount of gain (loss) recognized in OCI (a)	$	9	$	(14)	$	(8)
Amount of (gain) loss reclassified from OCI into revenue (a)	(4)		7		—
Amount of loss reclassified from OCI into cost of revenue (a)	1		5		4

Derivatives in Net Investment Hedges
Cross-Currency Swaps
Amount of (loss) gain recognized in OCI (a)	$	(103)	$	22	$	22
Amount of income recognized in Interest Expense	19		16		2
Foreign Currency Denominated Debt
Amount of (loss) gain recognized in OCI (a)	$	(55)	$	13	$	27

(a)Effective portion

As of December 31, 2020, $3 million of the net gains on cash flow hedges are expected to be reclassified into earnings in the next 12 months.

As of December 31, 2020, no gains or losses on the net investment hedges are expected to be reclassified into earnings over their duration.

The ineffective portion of the change in fair value of a cash flow hedge was not material for 2020, 2019, and 2018.

The net investment hedges did not experience any ineffectiveness in 2020, 2019 and 2018.

The fair values of our derivative assets and liabilities are measured on a recurring basis using Level 2 inputs and are determined through the use of models that consider various assumptions including yield curves, time value and other measurements.

The fair values of our derivative contracts currently included in our hedging program were as follows:


	December 31,
(in millions)	2020	2019
Derivatives designated as hedging instruments
Assets


Net Investment Hedges
Other non-current assets	—	4
Liabilities


Net Investment Hedges
Other non-current liabilities	(117)	(24)

The fair value of our long-term debt, due in 2023, designated as a net investment hedge was $640 million and $591 million as of December 31, 2020 and 2019, respectively.

Postretirement Benefit Plans

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Postretirement Benefit Plans

Post-retirement Benefit Plans

Defined contribution plans – Xylem and certain of our subsidiaries maintain various defined contribution savings plans, which allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. Several of the plans require us to match a percentage of the employee contributions up to certain limits, generally between 3.0% – 7.0% of employee eligible pay. Matching obligations, the majority of which were funded in cash in connection with the plans, and other company contributions are as follows:


(in millions)	Defined Contribution
2020	$	56
2019	49
2018	39

The Xylem Stock Fund, an investment option under the defined contribution plan in which Company employees participate is considered an Employee Stock Ownership Plan. As a result, participants in the Xylem Stock Fund may receive dividends in cash or may reinvest such dividends into the Xylem Stock Fund. Company employees held approximately 267 thousand and 302 thousand shares of Xylem Inc. common stock in the Xylem Stock Fund at December 31, 2020 and 2019, respectively.

Defined benefit pension plans and other post-retirement plans – We historically have maintained qualified and non-qualified defined benefit retirement plans covering certain current and former employees, including hourly and union plans as well as salaried plans, which generally require up to 5 years of service to be vested and for which the benefits are determined based on years of credited service and either specified rates, final pay, or final average pay. The other post-retirement benefit plans are all unfunded plans in the U.S. and Canada.

During 2020 and 2019, we made several amendments to plans that had no material impact to the Company's financial statements.

Amounts recognized in the Consolidated Balance Sheets for pension and other employee-related benefit plans (collectively, "Post-retirement Plans") reflect the funded status of the post-retirement benefit plans. The following table provides a summary of the funded status of our Post-retirement Plans, the presentation of such balances and a summary of amounts recorded within accumulated other comprehensive income:


(in millions)	December 31, 2020						December 31, 2019
	Pension		Other		Total		Pension		Other		Total
Fair value of plan assets	$	691	$	—	$	691	$	605	$	—	$	605
Projected benefit obligation	(1,155)		(44)		(1,199)		(959)		(49)		(1,008)
Funded status	$	(464)	$	(44)	$	(508)	$	(354)	$	(49)	$	(403)
Amounts recognized in the balance sheet
Other non-current assets	$	27	$	—	$	27	$	58	$	—	$	58
Accrued and other current liabilities	(13)		(3)		(16)		(13)		(3)		(16)
Accrued post-retirement benefits	(478)		(41)		(519)		(399)		(46)		(445)
Net amount recognized	$	(464)	$	(44)	$	(508)	$	(354)	$	(49)	$	(403)
Accumulated other comprehensive income (loss):
Net actuarial losses	$	(409)	$	(18)	$	(427)	$	(330)	$	(19)	$	(349)
Prior service credit	(3)		9		6		(3)		7		4
Total	$	(412)	$	(9)	$	(421)	$	(333)	$	(12)	$	(345)

The unrecognized amounts recorded in accumulated other comprehensive income will be subsequently recognized as expense on a straight-line basis only to the extent they exceed 10% of the higher of the market-related value or the projected benefit obligation, over the average remaining service period of active participants, or for plans with all or substantially all inactive participants, over the average remaining life expectancy. Actuarial gains and losses incurred in future periods and not recognized as expense in those periods will be recognized as increases or decreases in other comprehensive income, net of tax.

The Company has initiated the process for a full buy-out of its largest defined benefit plan in the U.K.. In order to prepare for a buy-out, the plan's assets were converted to cash, cash equivalents or other highly liquid assets as of the third quarter 2019. In addition, the Company completed an enhanced transfer value ("ETV") exercise for the deferred vested participants of the plan. The ETV offered the participants an enhanced lump sum to transfer their full pension rights out of the plan. Lump sum payments of $21 million were paid out of the plan assets, and the Company recorded a settlement charge of $8 million during the third quarter of 2019. Prior to the settlement accounting, the plan was re-measured as of July 31, 2019, resulting in an increase in the plan's projected benefit obligation of $37 million, an increase in plan assets of $26 million and an increase to losses in accumulated other comprehensive income of $11 million. The assumptions used to re-measure the plan were developed in the same manner as at December 31, 2018. However, due to the recent change in the investment assets, the expected rate of return on assets for this plan was changed from 7.25% to 0.70%. The discount rate used in the re-measurement was 2.00%, down from 3.00% at December 31, 2018. The Company recorded incremental net periodic benefit cost of $3 million in the third quarter and $5 million in the fourth quarter as a result of the re-measurement and the investment change.

During the first quarter of 2020, the Company purchased a bulk annuity policy as a plan asset to facilitate the termination and buy-out of the plan. The bulk annuity fully insures the benefits payable to the participants of the plan until a full buy-out of the plan can be executed, which is expected to occur in 2021. As a result of the change in assets from a mix of equities and bonds to the bulk annuity, the plan's expected rate of return on assets was reduced to 1.00% at December 31, 2019. On January 27, 2020, the plan's assets of $336 million were transferred to the insurance company for the purchase of the bulk annuity contract. Included in the Company's year ended December 31, 2020 contributions is $5 million paid to meet the shortfall between the cost of the bulk annuity policy and the plan assets.

The benefit obligation, fair value of plan assets, funded status, and amounts recognized in the consolidated financial statements for our defined benefit domestic and international pension plans were:


	Domestic Plans				International Plans
	December 31,				December 31,
(in millions)	2020		2019		2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	113	$	99	$	846	$	763
Service cost	3		3		13		9
Interest cost	3		4		16		19
Benefits paid	(6)		(7)		(34)		(28)
Actuarial loss (gain)	10		15		130		104
Plan amendments, settlements and curtailments	—		—		(1)		(23)

Foreign currency translation/other	—		(1)		62		2
Benefit obligation at end of year	$	123	$	113	$	1,032	$	846
Change in plan assets:
Fair value of plan assets at beginning of year	$	105	97		$	500	$	470
Employer contributions	—		—		24		16
Actual return on plan assets	14		17		70		52
Benefits paid	(6)		(7)		(34)		(28)
Plan amendments, settlements and curtailments	—		—		(1)		(23)

Foreign currency translation/other	—		(2)		19		13
Fair value of plan assets at end of year	$	113	$	105	$	578	$	500
Unfunded status of the plans	$	(10)	$	(8)	$	(454)	$	(346)

The following table provides a roll-forward of the projected benefit obligation for the other post-retirement employee benefit plans:


(in millions)	2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	49	$	52

Service cost	—		—
Interest cost	2		2
Benefits paid	(3)		(3)
Actuarial gain/(loss)	1		(2)
Plan Amendment and other	(5)		—

Benefit obligation at the end of year	$	44	$	49

The accumulated benefit obligation (“ABO”) for all the defined benefit pension plans was $1,107 million and $919 million at December 31, 2020 and 2019, respectively.

For defined benefit pension plans in which the ABO was in excess of the fair value of the plans’ assets, the projected benefit obligation, ABO and fair value of the plans’ assets were as follows:


	December 31,
(in millions)	2020		2019
Projected benefit obligation	$	1,026	$	562
Accumulated benefit obligation	983		526
Fair value of plan assets	535		150

The components of net periodic benefit cost for our defined benefit pension plans are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018
Domestic defined benefit pension plans:
Service cost	$	3	$	3	$	3
Interest cost	3		4		4
Expected return on plan assets	(7)		(8)		(7)
Amortization of net actuarial loss	3		1		2
Net periodic benefit cost	$	2	$	—	$	2
International defined benefit pension plans:
Service cost	$	13	$	9	$	9
Interest cost	16		19		19
Expected return on plan assets	(14)		(27)		(35)

Amortization of net actuarial loss	14		9		9
Settlement	—		9		1
Net periodic benefit cost	$	29	$	19	$	3
Total net periodic benefit cost	$	31	$	19	$	5

The components of net periodic benefit cost other than the service cost component are included in the line item "Other non-operating (expense) income, net" in the Consolidated Income Statements.

Other changes in plan assets and benefit obligations recognized in other comprehensive loss, as they pertain to our defined benefit pension plans are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018
Domestic defined benefit pension plans:
Net (gain) loss	$	3	$	6	$	1

Amortization of net actuarial loss	(3)		(1)		(2)
(Gains) losses recognized in other comprehensive loss	$	—	$	5	$	(1)
International defined benefit pension plans:
Net (gain) loss	$	74	$	79	$	35
Prior service credit	—		—		3
Amortization of net actuarial loss	(14)		(9)		(9)
Settlement	—		(9)		(1)
Foreign Exchange	19		3		(15)
(Gains) losses recognized in other comprehensive loss	$	79	$	64	$	13
Total (gains) losses recognized in other comprehensive loss	$	79	$	69	$	12
Total (gains) losses recognized in comprehensive income	$	110	$	88	$	17

The components of net periodic benefit cost for other post-retirement employee benefit plans are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018

Interest cost	2		2		2
Amortization of prior service credit	(3)		(4)		(4)
Amortization of net actuarial loss	2		2		2
Net periodic benefit cost	$	1	$	—	$	—

Other changes in benefit obligations recognized in other comprehensive loss, as they pertain to other post-retirement employee benefit plans are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018
Net loss (gain)	$	1	$	(2)	$	1
Prior service credit	(5)		—		(3)
Amortization of prior service credit	3		4		4
Amortization of net actuarial loss	(2)		(2)		(2)

Losses (gains) recognized in other comprehensive loss	$	(3)	$	—	$	—
Total losses (gains) recognized in comprehensive income	$	(2)	$	—	$	—

Assumptions

The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to our pension plans.


	2020				2019				2018
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Benefit Obligation Assumptions
Discount rate	2.50	%	1.06	%	3.25	%	1.80	%	4.50	%	2.60	%
Rate of future compensation increase	NM		2.79	%	NM		2.94	%	NM		2.92	%
Net Periodic Benefit Cost Assumptions
Discount rate	3.25	%	1.80	%	4.50	%	2.60	%	3.75	%	2.43	%
Expected long-term return on plan assets	6.50	%	2.82	%	7.75	%	6.96	%	8.00	%	7.23	%
Rate of future compensation increase	NM		2.94	%	NM		2.92	%	NM		2.93	%

NM Not meaningful. The pension benefits for future service for all the U.S. pension plans are based on years of service and not impacted by future compensation increases.

Management develops each assumption using relevant company experience in conjunction with market-related data for each individual country in which plans exist. Assumptions are reviewed annually and adjusted as necessary.

The increase in the projected benefit obligations of defined benefit pension plans in 2020 was primarily due to a decrease in the discount rate in 2020 as compared to 2019. The increase in the projected benefit obligations of our qualified defined benefit pension plans in 2019 was primarily due to a decrease in the discount rate in 2019 as compared to 2018.

The expected long-term rate of return on assets reflects the expected returns for each major asset class in which the plans hold investments, the weight of each asset class in the target mix, the correlations among asset classes and their expected volatilities. The assets of the pension plans are held by a number of independent trustees, managed by several investment institutions and are accounted for separately in the Company’s pension funds.

Our expected return on plan assets is estimated by evaluating both historical returns and estimates of future returns. Specifically, we analyze the plans’ actual historical annual return on assets, net of fees, over the past 15, 20 and 25 years; we estimate future returns based on independent estimates of asset class returns; and we evaluate historical broad market returns over long-term timeframes based on our asset allocation range. For the U.S. Master Trust which has existed since 2011, historical returns were estimated using a constructed portfolio that reflects the Company’s strategic asset allocation and the historical compound geometric returns of each asset class for the longest time period available. Based on this approach, the weighted average expected long-term rate of return for all of our plan assets to be used in determining net periodic benefit costs for 2021 is estimated at 3.24%.

The table below provides the weighted average actual rate of return generated on all of our plan assets during each of the years presented as compared to the weighted average expected long-term rates of return utilized in calculating the net periodic benefit costs.


	2020		2019		2018
Expected long-term rate of return on plan assets	3.46	%	7.09	%	7.34	%
Actual rate of return (loss) on plan assets	14.06	%	12.59	%	(3.85)	%

Investment Policy

The investment strategy for managing worldwide post-retirement benefit plan assets is to seek an optimal rate of return relative to an appropriate level of risk for each plan. Investment strategies vary by plan, depending on the specific characteristics of the plan, such as plan size and design, funded status, liability profile and legal requirements. In general, the plans are managed closely to their strategic allocations.

During 2019, the Company updated its investment policy for the Xylem U.K. Pension Plan (the "U.K. Plan"), its largest defined benefit plan in the U.K., to prepare for a full buy-out as discussed above.

The following table provides the actual asset allocations of plan assets as of December 31, 2020 and 2019, and the related asset target allocation ranges by asset category:


	2020		2019		Target Allocation Ranges
Equity securities	20.8	%	18.6	%	15-60%
Fixed income	22.9	%	31.7	%	10-50%
Hedge funds	0.1	%	2.0	%	0-25%
Private equity	—	%	—	%	0-20%
Cash, insurance contracts and other	56.2	%	47.7	%	0-60%

Fair Value of Plan Assets

In measuring plan assets at fair value, the fair value hierarchy is applied which categorizes and prioritizes the inputs used to estimate fair value into three levels. See Note 1 "Summary of Significant Accounting Policies" for further detail on fair value hierarchy.

In certain instances, fair value is estimated using quoted market prices obtained from external pricing services. In obtaining such data from the pricing service, we have evaluated the methodologies used to develop the estimate of fair value in order to assess whether such valuations are representative of fair value, including NAV.

The following is a description of the valuation methodologies and inputs used to measure fair value for major categories of investments.

•Equity securities — Equities (including common and preferred shares, domestic listed and foreign listed and closed end mutual funds) are generally valued at the closing price reported on the major market on which the individual securities are traded at the measurement date. Equity securities and mutual funds held by the Company that are publicly traded in active markets are classified within Level 1 of the fair value hierarchy. Those equities that are held in proprietary funds pooled with other investor accounts and collective trust funds measured at fair value using the NAV per share practical expedient are not classified in the fair value hierarchy.

•Fixed income — Government securities are generally valued using quoted prices of securities with similar characteristics. Corporate bonds are generally valued by using pricing models, quoted prices of securities with similar characteristics or broker quotes and are classified in Level 2. Fixed income securities held in proprietary funds pooled with other investor accounts and collective trust funds measured at fair value using the NAV per share practical expedient are not classified in the fair value hierarchy. Hedging instruments are collateralized daily with either cash or government bonds, have daily liquidity and pricing based on observable inputs from over-the-counter markets, and are classified as Level 2.

•Hedge funds — Hedge funds are pooled funds that employ a range of investment strategies including equity and fixed income, credit driven, macro and multi-oriented strategies. The valuation of limited partnership interests in hedge funds may require significant management judgment. Generally, hedge funds are valued using the NAV reported by the asset manager, and are adjusted when it is determined that NAV is not representative of fair value. In making such an assessment, a variety of factors is reviewed, including, but not

limited to, the timeliness of NAV as reported by the asset manager and changes in general economic and market conditions subsequent to the last NAV reported by the asset manager. All of the hedge funds held have lockups and/or gates. Hedge funds have unfunded commitments of $0 million and $0 million at December 31, 2020 and 2019, respectively.

•Insurance contracts and other — Primarily comprised of insurance contracts held by foreign plans. Insurance contracts are valued on an insurer pricing basis calculated at purchase price adjusted for changes in discount rates and other actuarial assumptions or contract value, which approximates fair value. Insurance contracts are generally classified as Level 3.

•Cash — Cash and cash equivalents are held in accounts with brokers or custodians for liquidity and investment collateral and are classified as Level 1.

The following table provides the fair value of plan assets held by our pension benefit plans by asset class:


	2020										2019
(in millions)	Level 1		Level 2		Level 3		NAV Practical Expedient		Total		Level 1		Level 2		Level 3		NAV Practical Expedient		Total
Equity securities
Global stock funds/securities	$	38	$	66	$	—	$	14	$	118	$	90	$	—	$	—	$	13	$	103


Diversified growth and income funds	—		—		—		26		26		—		—		—		9		9
Fixed income
Corporate bonds	1		97		—		7		105		86		—		—		5		91
Government bonds	—		19		—		28		47		35		—		—		27		62
Hedging instruments	—		6		—		—		6		4		35		—		—		39

Hedge funds	—		—		—		1		1		—		—		—		12		12

Insurance contracts and other			—		384		—		384				—		13		3		16
Cash & cash equivalents	4		—		—		—		4		273		—		—		—		273
Total plan assets subject to leveling	$	43	$	188	$	384	$	76	$	691	$	488	$	35	$	13	$	69	$	605

The following table presents a reconciliation of the beginning and ending balances of fair value measurement within our pension plans using significant unobservable inputs (Level 3):


(in millions)	Insurance Contracts and Other
Balance, December 31, 2018	$	12
Purchases, sales, settlements, net	1
Currency impact	—
Balance, December 31, 2019	$	13
Purchases, sales, settlements, net	314
Actual return on plan assets	44
Currency impact	13
Balance, December 31, 2020	$	384

Contributions and Estimated Future Benefit Payments

Funding requirements under governmental regulations are a significant consideration in making contributions to our post-retirement plans. We made contributions of $27 million and $19 million to our pension and post-retirement defined benefit plans during 2020 and 2019, respectively. We currently anticipate making contributions to our pension and post-retirement defined benefit plans in the range of $19 million to $27 million during 2021, of which approximately $6 million is expected to be made in the first quarter.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:


(in millions)	Pension		Other Benefits
2021	$	38	$	3
2022	39		3
2023	40		3
2024	40		3
2025	42		3
Years 2026 - 2030	220		12

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

Share-Based Compensation Plans

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Share-Based Compensation Plans

Our share-based compensation program is a broad-based program designed to attract and retain employees while also aligning employees’ interests with the interests of our shareholders. In addition, members of our Board of Directors participate in our share-based compensation program in connection with their service on our board. Share-based awards issued to employees include non-qualified stock options, restricted stock unit awards and performance share unit awards. Under the 2011 Omnibus Incentive Plan, the number of shares initially available for awards was 18 million. As of December 31, 2020, there were approximately 5 million shares of common stock available for future grants.

Total share-based compensation costs recognized for 2020, 2019 and 2018 were $26 million, $29 million, and $30 million, respectively. The unamortized compensation expense at December 31, 2020 related to our stock options, restricted share units and performance share units was $7 million, $21 million and $6 million, respectively, and is expected to be recognized over a weighted average period of 1.9, 1.8 and 1.8 years, respectively.

The amount of cash received from the exercise of stock options was $20 million for 2020 with a tax benefit of $13 million realized associated with stock option exercises and vesting of restricted stock units. We classify as an operating activity the cash flows attributable to excess tax benefits arising from stock option exercises and restricted stock unit vestings.

Stock Option Grants

Options are awarded with a contractual term of 10 years and generally vest over a 3-year period and are exercisable within the contractual term, except in certain instances of death, retirement or disability. The exercise price per share is the fair market value of the underlying common stock on the date each option is granted. At December 31, 2020, there were options to purchase an aggregate of 2.0 million shares of common stock. The following is a summary of the changes in outstanding stock options for 2020:


	Share units (in thousands)	Weighted Average Exercise Price / Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2020	2,040	$	48.56	6.3
Granted	571	74.60
Exercised	(521)	39.42
Forfeited and expired	(129)	77.52
Outstanding at December 31, 2020	1,961	$	56.66	6.4	$	89
Options exercisable at December 31, 2020	1,227	$	46.29	4.9	$	68
Vested and non-vested expected to vest as of December 31, 2020	1,896	$	56.08	6.3	$	87

The amount of non-vested options outstanding was 0.7 million, 0.6 million and 0.7 million at a weighted average grant date share price of $74.00, $69.30 and $58.00 as of December 31, 2020, 2019 and 2018, respectively. The total intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) during 2020, 2019 and 2018 was $20 million, $15 million and $9 million, respectively.

The fair value of each option grant was estimated on the date of grant using the binomial lattice pricing model which incorporates multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The following are weighted-average assumptions used for 2020, 2019, and 2018:


	2020			2019			2018
Dividend yield	1.42		%	1.30		%	1.12		%
Volatility	24.16		%	24.10		%	23.41		%
Risk-free interest rate	0.83		%	2.55		%	2.76		%
Expected term (in years)	5.8			5.4			5.1
Weighted-average fair value per option	$	14.84		$	17.04		$	17.80

Expected volatility is calculated based on an analysis of historic volatility measures for Xylem. We use historical data to estimate option exercise and employee termination behavior within the valuation model. Employee groups and option characteristics are considered separately for valuation purposes. The expected term represents an estimate of the period of time options are expected to remain outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of option grant.

Restricted Stock Unit Grants

Restricted stock units granted to employees vest over a three-year period. Prior to the time a restricted share becomes fully vested, the awardees cannot transfer, pledge, hypothecate or encumber such shares. Prior to the time a restricted share is fully vested, the awardees do not have certain rights of a stockholder, such as the right to vote and receive dividends; however, dividends accrue during the vesting period and are paid upon vesting. If an employee leaves prior to vesting, whether through resignation or termination for cause, the restricted stock unit and related accrued dividends are forfeited. If an employee retires, a pro-rata portion of the restricted stock unit may vest in accordance with the terms of the grant agreements. Restricted stock units granted to Board members become fully vested upon the day prior to the next annual meeting. The fair value of the restricted stock unit awards is determined using the closing price of our common stock on date of grant.

The following is a summary of the changes in outstanding restricted stock units for 2020:


	Share Units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2020	512	$	68.95
Granted	340	75.58
Vested	(252)	63.91
Forfeited	(63)	76.23
Outstanding at December 31, 2020	537	$	74.62

Performance Share Units

Performance share units granted under the long-term incentive plan vest based upon performance by the Company over a 3-year period against targets approved by the Leadership Development & Compensation Committee of the Company's Board of Directors prior to the grant date. For the performance periods, the performance share units were granted at a target of 100% with actual payout contingent upon the achievement of a pre-set, 3-year adjusted ROIC and cumulative adjusted net income performance target for ROIC performance share units and a relative TSR performance for TSR performance share units. The calculated compensation cost for ROIC performance share units is adjusted based on an estimate of awards ultimately expected to vest and our assessment of the probable outcome of the performance condition.

ROIC Performance Share Unit Grants

The fair value of the ROIC performance share unit awards is determined using the closing price of our common stock on date of grant.

The following is a summary of the changes in outstanding ROIC performance share units for 2020:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2020	225	$	64.51
Granted	82	78.90
Adjustment for Performance Condition Achieved (a)	—	—
Vested	(89)	49.15
Forfeited	(36)	76.67
Outstanding at December 31, 2020	182	$	76.12

(a) Represents an increase in the number of original ROIC performance share units awarded based on the final performance criteria achievement at the end of the performance period of such awards.

TSR Performance Share Unit Grants

The following is a summary of the changes in outstanding TSR performance share units for 2020:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2020	225	$	75.80
Granted	82	102.05
Adjustment for Performance Condition Achieved (a)	35	47.81
Vested	(124)	47.81
Forfeited	(36)	92.03
Outstanding at December 31, 2020	182	$	96.98

(a) Represents an increase in the number of original TSR performance share units awarded based on the final market condition achievement at the end of the performance period of such awards.

The fair value of TSR performance share units were calculated on the date of grant using a Monte Carlo simulation model utilizing several key assumptions, including expected Company and peer company share price volatility, correlation coefficients between peers, the risk-free rate of return, the expected dividend yield and other award design features. The following are weighted-average key assumptions for 2020 grants.




Volatility	22.6	%
Risk-free interest rate	1.08	%

Capital Stock

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Capital Stock

The Company has the authority to issue an aggregate of 750 million shares of common stock having a par value of $0.01 per share. The stockholders of Xylem common stock are entitled to receive dividends as declared by the Xylem Board of Directors. Dividends declared were $1.04, $0.96 and $0.84 during 2020, 2019 and 2018, respectively.

The changes in shares of common stock outstanding for the three years ended December 31 are as follows:


(share units in thousands)	2020	2019	2018
Beginning Balance, January 1	180,140	179,724	179,862
Stock incentive plan net activity	986	952	672
Repurchase of common stock	(772)	(536)	(810)
Ending Balance, December 31	180,354	180,140	179,724

For the years ended December 31, 2020 and December 31, 2019 the Company repurchased 0.8 million shares of common stock for $61 million and repurchased 0.5 million shares of common stock for $40 million, respectively. Repurchases include both share repurchase programs approved by the Board of Directors and repurchases in relation to settlement of employee income tax withholding obligations due as a result of the vesting of restricted stock units. The detail of repurchases by each program are as follows:

On August 24, 2015, our Board of Directors authorized the repurchase of up to $500 million in shares with no expiration date. The program's objective is to deploy our capital in a manner that benefits our shareholders and maintains our focus on growth. For the year ended December 31, 2020 we repurchased 0.7 million shares for $50 million. For the year ended December 31, 2019 we repurchased 0.3 million shares for $25 million. There are up to $288 million in shares that may still be purchased under this plan as of December 31, 2020.

Aside from the aforementioned repurchase programs, we repurchased 0.1 million and 0.2 million shares for $11 million and $15 million during 2020 and 2019, respectively, in relation to settlement of employee income tax withholding obligations due as a result of the vesting of restricted stock units. These repurchases are included in the stock incentive plan net activity in the above table.

Accumulated Other Comprehensive Loss

12 Months Ended

Dec. 31, 2020

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Loss

The following table provides the components of accumulated other comprehensive loss for 2020, 2019 and 2018:


(in millions)	Foreign Currency Translation		Post-retirement Benefit Plans		Derivative Instruments		Total

















Balance at January 1, 2018	$	(15)	$	(198)	$	3	$	(210)
Cumulative effect of change in accounting principle	(11)		(6)				(17)
Foreign currency translation adjustment	(83)						(83)
Income tax impact on foreign currency translation adjustment	(12)						(12)
Changes in post-retirement benefit plans			(36)				(36)
Foreign currency translation adjustment for post-retirement benefit plans			15				15
Income tax expense on changes in post-retirement benefit plans			5				5
Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net			9				9





Income tax impact on amortization of post-retirement benefit plan items			(3)				(3)
Unrealized loss on derivative hedge agreements					(8)		(8)





Reclassification of unrealized (gain) loss on foreign exchange agreements into cost of revenue					4		4
Balance at December 31, 2018	$	(121)	$	(214)	$	(1)	$	(336)
Foreign currency translation adjustment	27						27
Income tax impact on foreign currency translation adjustment	(9)		—				(9)
Changes in post-retirement benefit plans			(83)				(83)
Settlement charge released into other non-operating income (expense), net			9				9
Foreign currency translation adjustment for post-retirement benefit plans			(3)				(3)
Income tax expense on changes in post-retirement benefit plans, including settlement			16				16

Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net			8				8





Income tax impact on amortization of post-retirement benefit plan items			(2)				(2)
Unrealized loss on derivative hedge agreements					(14)		(14)

Reclassification of unrealized loss on foreign exchange agreements into revenue					7		7
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue					5		5
Balance at December 31, 2019	$	(103)	$	(269)	$	(3)	$	(375)

Foreign currency translation adjustment	(22)						(22)
Income tax impact on foreign currency translation adjustment	39						39
Changes in post-retirement benefit plans			(73)				(73)


(in millions)	Foreign Currency Translation		Post-retirement Benefit Plans		Derivative Instruments		Total
Foreign currency translation adjustment for post-retirement benefit plans			(19)				(19)
Income tax expense on changes in post-retirement benefit plans			18				18
Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net			16				16
Income tax impact on amortization of post-retirement benefit plan items			(3)				(3)
Unrealized gain on derivative hedge agreements					9		9
Reclassification of unrealized gain on foreign exchange agreements into revenue					(4)		(4)
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue					1		1
Balance at December 31, 2020	$	(86)	$	(330)	$	3	$	(413)

Commitments and Contingencies

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Legal Proceedings

From time to time, we are involved in legal and regulatory proceedings that are incidental to the operation of our businesses (or the business operations of previously-owned entities). These proceedings may seek remedies relating to matters including environmental, tax, intellectual property, acquisitions or divestitures, product liability, property damage, personal injury, privacy, employment, labor and pension, government contract issues and commercial or contractual disputes.

From time to time, claims may be asserted against Xylem alleging injury caused by any of our products resulting from asbestos exposure. We believe there are numerous legal defenses available for such claims and would defend ourselves vigorously. Pursuant to the Distribution Agreement among ITT Corporation (now ITT LLC), Exelis (acquired by Harris Corporation, now L3Harris Technologies, Inc.) and Xylem, ITT Corporation (now ITT LLC) has an obligation to indemnify, defend and hold Xylem harmless for asbestos product liability matters, including settlements, judgments, and legal defense costs associated with all pending and future claims that may arise from past sales of ITT’s legacy products. We believe ITT Corporation (now ITT LLC) remains a substantial entity with sufficient financial resources to honor its obligations to us.

See Note 7 "Income Taxes" of our consolidated financial statements for a description of a pending tax litigation matter.

Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including our assessment of the merits of the particular claims, we do not believe it is reasonably possible that any asserted or unasserted legal claims or proceedings, individually or in aggregate, will have a material adverse effect on our results of operations, or financial condition.

We have estimated and accrued $6 million and $5 million as of December 31, 2020 and 2019, respectively, for these general legal matters.

Indemnifications

As part of our 2011 spin-off from our former parent, ITT Corporation (now ITT LLC), Exelis Inc. (acquired by Harris Corporation, now L3Harris Technologies, Inc.) and Xylem will indemnify, defend and hold harmless each of the other parties with respect to such parties’ assumed or retained liabilities under the Distribution Agreement and breaches of the Distribution Agreement or related spin agreements. ITT LLC's indemnification obligations include asserted and unasserted asbestos and silica liability claims that relate to the presence or alleged presence of asbestos or silica in products manufactured, repaired or sold prior to October 31, 2011, the Distribution Date, subject to limited exceptions with respect to certain employee claims, or in the structure or material of any building or facility, subject to exceptions with respect to employee claims relating to Xylem buildings or facilities. The indemnification

associated with pending and future asbestos claims does not expire. Xylem has not recorded a liability for material matters for which we expect to be indemnified by the former parent or Exelis Inc. through the Distribution Agreement and we are not aware of any claims or other circumstances that would give rise to material payments from us under such indemnifications.

Guarantees

We obtain certain stand-by letters of credit, bank guarantees, surety bonds and insurance letters of credit from third-party financial institutions in the ordinary course of business when required under contracts or to satisfy insurance related requirements. As of December 31, 2020 and December 31, 2019, the amount of surety bonds, bank guarantees, insurance letters of credit and stand-by letters of credit was $378 million and $340 million, respectively.

Environmental

In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and remediation of sites in various countries. These sites are in various stages of investigation and/or remediation and in many of these proceedings our liability is considered de minimis. We have received notification from the U.S. Environmental Protection Agency, and from similar state and foreign environmental agencies, that a number of sites formerly or currently owned and/or operated by Xylem or for which we are responsible under the Distribution Agreement, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances where we have been identified as a potentially responsible party under federal and state environmental laws and regulations.

Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our accrued liabilities for these environmental matters represent our best estimates related to the investigation and remediation of environmental media such as water, soil, soil vapor, air and structures, as well as related legal fees. These estimates, and related accruals, are reviewed quarterly and updated for progress of investigation and remediation efforts and changes in facts and legal circumstances. Liabilities for these environmental expenditures are recorded on an undiscounted basis. We have estimated and accrued $3 million as of December 31, 2020 and 2019 for environmental matters.

It is difficult to estimate the final costs of investigation and remediation due to various factors, including incomplete information regarding particular sites and other potentially responsible parties, uncertainty regarding the extent of investigation or remediation and our share, if any, of liability for such conditions, the selection of alternative remedial approaches, and changes in environmental standards and regulatory requirements. We believe the total amount accrued is reasonable based on existing facts and circumstances.

Warranties

We warrant numerous products, the terms of which vary widely. In general, we warrant products against defect and specific non-performance. Warranty expense was $57 million, $25 million, and $20 million for 2020, 2019 and 2018, respectively. The table below provides changes in the combined current and non-current product warranty accruals over each period.


(in millions)	2020		2019		2018
Warranty accrual – January 1	$	41	$	60	$	82
Net charges for product warranties in the period	57		25		20
Settlement of warranty claims	(34)		(42)		(42)

Foreign currency and other	1		(2)		—
Warranty accrual – December 31	$	65	$	41	$	60

Related Party Transactions

12 Months Ended

Dec. 31, 2020

Related Party Transactions

Sales to and purchases from unconsolidated entities for 2020, 2019 and 2018 are as follows:


(in millions)	2020		2019		2018
Sales to unconsolidated affiliates	$	10	$	10	$	10
Purchases from unconsolidated affiliates	16		22		22

Segment and Geographic Data

12 Months Ended

Dec. 31, 2020

Segment Reporting Information [Line Items]

Segment and Geographic Data

Our business has three reportable segments: Water Infrastructure, Applied Water and Measurement & Control Solutions. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. The Water Infrastructure segment focuses on the transportation and treatment of water, offering a range of products including water, wastewater and storm water pumps, treatment equipment, and controls and systems. The Applied Water segment serves many of the primary uses of water and focuses on the residential, commercial and industrial markets. The Applied Water segment's major products include pumps, valves, heat exchangers, controls and dispensing equipment. The Measurement & Control Solutions segment focuses on developing advanced technology solutions that enable intelligent use and conservation of critical water and energy resources as well as analytical instrumentation used in the testing of water. The Measurement & Control Solutions segment's major products include smart metering, networked communications, measurement and control technologies, critical infrastructure technologies, software and services including cloud-based analytics, remote monitoring and data management, leak detection and pressure monitoring solutions and testing equipment.

Additionally, we have Regional selling locations, which consist primarily of selling and marketing organizations and related support services, that offer products and services across our reportable segments. Corporate and other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as environmental matters, that are managed at a corporate level and are not included in the business segments in evaluating performance or allocating resources.

The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1, "Summary of Significant Accounting Policies"). The following tables contain financial information for each reportable segment:


	Year Ended December 31,
(in millions)	2020		2019		2018
Revenue:
Water Infrastructure	$	2,079	$	2,177	$	2,176
Applied Water	1,434		1,541		1,534
Measurement & Control Solutions	1,363		1,531		1,497
Total	$	4,876	$	5,249	$	5,207
Operating income:
Water Infrastructure	$	318	$	365	$	359
Applied Water	205		241		236
Measurement & Control Solutions	(106)		(67)		118
Corporate and other	(50)		(53)		(59)
Total operating income	367		486		654
Interest expense	77		67		82
Other non-operating (expense) income, net	(5)		(4)		13
Gain on sale of businesses	—		1		—
Income before taxes	$	285	$	416	$	585
Depreciation and amortization:
Water Infrastructure	$	57	$	61	$	66
Applied Water	24		24		22
Measurement & Control Solutions	142		144		144
Regional selling locations (a)	20		18		20
Corporate and other	8		10		9
Total	$	251	$	257	$	261
Capital expenditures:
Water Infrastructure	$	48	$	79	$	84
Applied Water	18		19		28
Measurement & Control Solutions	90		100		101
Regional selling locations (b)	22		19		16
Corporate and other	5		9		8
Total	$	183	$	226	$	237

(a) Depreciation and amortization expense incurred by the Regional selling locations was included in an overall allocation of Regional selling location costs to the segments; however, a certain portion of that expense was not specifically identified to a segment. That expense is captured in this Regional selling location line.

(b) Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.

The following table illustrates revenue by product category, net of intercompany revenue:


	Year Ended December 31,
(in millions)	2020		2019		2018
Pumps, accessories, parts and service	$	3,120	$	3,324	$	3,322


Other (a)	1,756		1,925		1,885
Total	$	4,876	$	5,249	$	5,207

(a)Other includes treatment equipment, analytical instrumentation, heat exchangers, valves, controls and smart meters.

The following table contains the total assets for each reportable segment as of December 31, 2020, 2019 and 2018:


	Total Assets
(in millions)	2020		2019		2018
Water Infrastructure	$	1,255	$	1,268	$	1,233
Applied Water	1,005		1,016		1,051
Measurement & Control Solutions	3,345		3,497		3,576
Regional selling locations (a)	1,413		1,375		1,181
Corporate and other (b)	1,732		554		181
Total	$	8,750	$	7,710	$	7,222

(a)The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments.

(b)Corporate and other consists of items pertaining to our corporate headquarters function, which principally consist of cash and pension assets.

Geographical Information

Revenue is attributed to countries based upon the location of the customer. Property, Plant & Equipment is attributed to countries based upon the location of the assets:


	Revenue
	Year Ended December 31,
(in millions)	2020		2019		2018
United States	$	2,297	$	2,554	$	2,424
Europe	1,407		1,380		1,449
Asia Pacific	618		659		660
Other	554		656		674
Total	$	4,876	$	5,249	$	5,207


	Property, Plant & Equipment
	December 31,
(in millions)	2020		2019		2018
United States	$	253	$	274	$	281
Europe	277		249		250
Asia Pacific	64		67		66
Other	63		68		59
Total	$	657	$	658	$	656

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (a)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 32
-Subparagraph (f)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

The table below provides changes in the allowance for credit losses over each period:


(in millions)	2020		2019		2018
Balance at beginning of year	$	25	$	25	$	25
Additions charged to expense	25		3		5
Deductions/other	(12)		(3)		(5)
Balance at end of year	$	38	$	25	$	25

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

Our quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except

for the fourth quarter which ends on December 31.


	2020 Quarter Ended
(in millions, except per share amounts)	Dec. 31		Sept. 30 (a)		June 30		Mar. 31
Revenue	$	1,373	$	1,220	$	1,160	$	1,123
Gross profit	526		461		434		409
Operating income	179		73		54		61
Net income	$	148	$	37	$	31	$	38
Earnings per share:
Basic	$	0.82	$	0.20	$	0.17	$	0.21
Diluted	$	0.82	$	0.20	$	0.17	$	0.21


	2019 Quarter Ended
(in millions, except per share amounts)	Dec. 31		Sept. 30 (b)		June 30		Mar. 31
Revenue	$	1,371	$	1,296	$	1,345	$	1,237
Gross profit	537		509		526		474
Operating income	195		11		171		109
Net income	$	118	$	65	$	139	$	79
Earnings per share:
Basic	$	0.66	$	0.36	$	0.77	$	0.44
Diluted	$	0.65	$	0.36	$	0.77	$	0.43

(a)The amounts shown for the quarter ended September 30, 2020 include a goodwill impairment charge of $58 million related to the AIA goodwill reporting unit. Refer to Note 12 to the consolidated financial statements for further information regarding goodwill.

(b)The amounts shown for the quarter ended September 30, 2019 include a goodwill impairment charge of $148 million related to the AIA goodwill reporting unit. Refer to Note 12 to the consolidated financial statements for further information regarding goodwill.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

Use of Estimates

Consolidation Principles

Foreign Currency Translation

Revenue Recognition

Shipping and Handling Costs

Shipping and handling costs are recorded as a component of cost of revenue.

Share-Based Compensation

Research and Development

Exit and Disposal Costs

Deferred Financing Costs

Income Taxes

Earnings Per Share

Cash Equivalents

We consider all liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Receivables and Allowance for Doubtful Accounts and Discounts

Receivables and Allowance for Credit Losses and Discounts

Receivables primarily comprise uncollected amounts owed to us from transactions with customers and are presented net of allowances for credit losses, returns and early payment discounts.

Inventories

Property, Plant and Equipment

These assets are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows:


			Estimated Life
Buildings and improvements			5 to 40 years
Machinery and equipment			2 to 10 years
Furniture and fixtures			3 to 7 years
Equipment held for lease or rental			2 to 10 years

Leases

For annual periods prior to January 1, 2019, lease payments for these leases are recognized as a lease cost on a straight-line basis over the lease term.

Goodwill and Intangible Assets

Long-Lived Asset Impairment

Product Warranties

For service-type warranties (i.e. non-standard warranties) costs incurred to fulfill the extended or service warranty are recognized/recorded as the costs are incurred.

Postretirement Benefit Plans

Post-retirement Benefit Plans

We consider changes to a plan’s benefit formula that eliminate the accrual for future service but continue to allow for future salary increases (i.e. “soft freeze”) to be a curtailment.

Business Combinations

Derivative Financial Instruments

Commitments and Contingencies

Concentrations of Credit Risk

Fair Value Measurements

•Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 3 inputs are unobservable inputs for the assets or liabilities.

Certain investments which measure fair value using the net asset value (“NAV”) per share practical expedient are not classified within the fair value hierarchy and are separately disclosed.

Pronouncements Not Yet Adopted

Recently Adopted Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Property, Plant and Equipment

These assets are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows:


			Estimated Life
Buildings and improvements			5 to 40 years
Machinery and equipment			2 to 10 years
Furniture and fixtures			3 to 7 years
Equipment held for lease or rental			2 to 10 years

The components of total property, plant and equipment, net are as follows:


	December 31,
(in millions)	2020		2019
Land, buildings and improvements	$	369	$	339
Machinery and equipment	941		861
Equipment held for lease or rental	241		256
Furniture and fixtures	124		118
Construction work in progress	110		104
Other	29		24
Total property, plant and equipment, gross	1,814		1,702
Less accumulated depreciation	1,157		1,044
Total property, plant and equipment, net	$	657	$	658

Acquisitions and Divestitures (Tables)

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

Purchase Price Allocation

The Pure purchase price allocation as of January 31, 2018 is shown in the following table:


(in millions)	Amount
Cash	$	14
Receivables	23
Inventories	4

Prepaid and other current assets	2
Property, plant and equipment	22

Intangible assets	149
Other long-term assets	1

Accounts payable	(3)
Accrued and other current liabilities	(12)

Deferred income tax liabilities	(25)

Other non-current accrued liabilities	(2)
Total identifiable net assets	173

Goodwill	261

Total consideration	$	434

Summary of Intangible Assets Acquired

The following table summarizes key information underlying identifiable intangible assets related to the Pure acquisition:

Category

Life

Amount
(in millions)

Customer Relationships

17 - 18 years

Technology

3 - 10 years

Tradenames

20 years

Internally Developed Software

3 years

Total

149

Pro Forma Information



(in millions)	Year Ended December 31,
		2018
Revenue		$5,212
Net income		$546

Restructuring and Asset Impairment Charges (Tables)

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Components of restructuring and asset impairment charges

components of restructuring expense and asset impairment charges incurred during each of the previous 3 years:


	Year Ended December 31,
(in millions)	2020		2019		2018
By component:
Severance and other charges	$	36	$	51	$	19
Lease related charges	—		1		1
Asset impairment	18		—		—
Other restructuring charges	1		2		1
Reversal of restructuring accruals	(1)		(1)		(1)
Total restructuring charges	54		53		20
Asset impairment charges	21		10		2
Total restructuring and asset impairment charges	$	75	$	63	$	22

By segment:
Water Infrastructure	$	20	$	20	$	11
Applied Water	4		5		2
Measurement & Control Solutions	51		38		9

Restructuring accruals


(in millions)	2020		2019
Restructuring accruals - January 1	$	27	$	5
Restructuring charges	54		53
Cash payments	(36)		(30)
Asset impairment	(18)		—
Foreign currency and other	2		(1)
Restructuring accruals - December 31	$	29	$	27

By segment:
Water Infrastructure	$	4	$	1
Applied Water	1		—
Measurement & Control Solutions	18		19
Regional selling locations (a)	5		7
Corporate and other	1		—

The following table presents expected restructuring spend in 2020 and thereafter:


(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Corporate		Total
Actions Commenced in 2020:
Total expected costs	$	26	$	11	$	34	$	2	$	73
Costs incurred during 2020	19		4		30		—		53
Total expected costs remaining	$	7	$	7	$	4	$	2	$	20

Actions Commenced in 2019:
Total expected costs	$	19	$	5	$	27	$	—	$	51
Costs incurred during 2019	18		5		27		—		50
Costs incurred during 2020	1		—		—		—		1
Total expected costs remaining	$	—	$	—	$	—	$	—	$	—

Revenue (Tables)

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table illustrates the sources of revenue:


	Year Ended December 31,
(in millions)	2020		2019		2018
Revenue from contracts with customers	$	4,681	$	5,002	$	4,963
Lease Revenue	195		247		244
Total	$	4,876	$	5,249	$	5,207

The following table reflects revenue from contracts with customers by application:


	Year Ended December 31,
(in millions)	2020		2019		2018
Water Infrastructure
Transport	$	1,484	$	1,533	$	1,535
Treatment	400		397		397

Applied Water
Building Services	804		848		828
Industrial Water	630		693		706

Measurement and Control Solutions
Water	689		768		692
Energy	276		337		338
Software as a Service	92		99		123
Test	306		327		344

Total	$	4,681	$	5,002	$	4,963

The following table reflects revenue from contracts with customers by geographical region:


	Year Ended December 31,
(in millions)	2020		2019		2018
Water Infrastructure
United States	$	558	$	593	$	539
Europe	751		729		758
Asia Pacific	341		358		344
Other	234		250		291

Applied Water
United States	754		816		797
Europe	356		362		386
Asia Pacific	152		164		153
Other	172		199		198

Measurement and Control Solutions
United States	856		972		913
Europe	266		257		273
Asia Pacific	109		118		144
Other	132		184		167

Total	$	4,681	$	5,002	$	4,963

Contract with Customer, Asset and Liability

The table below provides contract assets, contract liabilities, and significant changes in contract assets and liabilities:


(in millions)	Contract Assets (a)		Contract Liabilities
Balance at 1/1/2019	$	96	$	113
Additions, net	81		114
Revenue recognized from opening balance	—		(91)
Billings transferred to accounts receivable	(80)		—
Other	9		(1)
Balance at 1/1/2020	$	106	$	135
Additions, net	118		120
Revenue recognized from opening balance	—		(93)
Billings transferred to accounts receivable	(110)		—




Other	3		4
Balance at 12/31/2020	$	117	$	166

(a)Excludes receivable balances which are disclosed on the balance sheet

Other Non-Operating Income, Net (Tables)

12 Months Ended

Dec. 31, 2020

Other Income and Expenses [Abstract]

Components of Other Non-Operating Income, Net

The components of other non-operating income, net are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018
Interest income	$	7	$	5	$	4
Income from joint ventures	2		3		5
Other (expense) income – net	(14)		(12)		4
Total other non-operating (expense) income, net	$	(5)	$	(4)	$	13

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Source of pre-tax income and components of income tax expense

The source of pre-tax income and the components of income tax expense are as follows:


	Year Ended December 31,
(in millions)	2020			2019			2018
Income (loss) components:
Domestic	$	(33)		$	203		$	208
Foreign	318			213			377
Total pre-tax income	$	285		$	416		$	585
Income tax expense components:
Current:
Domestic – federal	$	24		$	39		$	9
Domestic – state and local	5			13			13
Foreign	33			40			61
Total Current	62			92			83
Deferred:
Domestic – federal	$	(21)		$	7		$	17
Domestic – state and local	(8)			(1)			5
Foreign	(2)			(83)			(69)
Total Deferred	(31)			(77)			(47)
Total income tax provision	$	31		$	15		$	36
Effective income tax rate	10.9		%	3.7		%	6.1		%

Schedule of effective income tax rate reconciliation

Reconciliations between taxes at the U.S. federal income tax rate and taxes at our effective income tax rate on earnings before income taxes are as follows:


	Year Ended December 31,
	2020		2019		2018
Tax provision at U.S. statutory rate	21.0	%	21.0	%	21.0	%
Increase (decrease) in tax rate resulting from:

State income taxes	0.7		2.7		2.3
Uncertain tax positions	(3.9)		0.4		2.6
Valuation allowance	0.5		1.2		(47.1)
Tax exempt interest	(4.5)		(3.0)		(1.4)
Foreign tax rate differential	(0.9)		0.7		2.9
Impact of foreign earnings, net	5.3		1.6		(1.7)
Tax incentives	(7.4)		(9.6)		(6.2)
Intercompany sale of assets	—		—		35.5
Other – net	2.2		1.7		(0.3)
Rate change	(1.3)		(18.1)		—

Goodwill impairment	2.9		7.8		—
Federal R&D tax credit	(1.3)		(1.2)		(0.8)
Stock compensation	(2.4)		(1.5)		(0.7)
Effective income tax rate	10.9	%	3.7	%	6.1	%

Components of net deferred tax assets and liabilities

The following is a summary of the components of the net deferred tax assets and liabilities recognized in the Consolidated Balance Sheets:


	December 31,
(in millions)	2020		2019
Deferred tax assets:
Employee benefits	$	127	$	106
Accrued expenses	35		26
Loss and other tax credit carryforwards	270		240
Inventory	6		6

Lease Liabilities	64		57

Other	41		3
	543		438
Valuation allowance	(217)		(191)
Net deferred tax asset	$	326	$	247
Deferred tax liabilities:
Intangibles	$	138	$	160
Investment in foreign subsidiaries	5		7
Property, plant and equipment	77		78
Lease right-of-use assets	62		57
Other	30		29
Total deferred tax liabilities	$	312	$	331

Reconciliation of Deferred Tax Asset Valuation Allowance

A reconciliation of the change in valuation allowance on deferred tax assets is as follows:


(in millions)	2020		2019		2018
Valuation allowance — January 1	$	191	$	234	$	350
Change in assessment (a)	1		(2)		1
Current year operations	7		2		(271)
Foreign currency and other (b)	18		(43)		154

Valuation allowance — December 31	$	217	$	191	$	234

Deferred taxes classification

Deferred taxes are classified in the Consolidated Balance Sheets as follows:


	December 31,
(in millions)	2020		2019

Non-current assets	$	256	$	226

Non-current liabilities	(242)		(310)
Total net deferred tax liabilities	$	14	$	(84)

Tax attributes available to reduce future taxable income

Tax attributes available to reduce future taxable income begin to expire as follows:


(in millions)	December 31, 2020		First Year of Expiration
U.S. net operating loss	$	7	December 31, 2024
State net operating loss	97		December 31, 2021
State excess interest expense	10		Indefinitely

State tax credits	1		Indefinitely
Foreign net operating loss	1,153		December 31, 2021
Foreign tax credits	4		December 31, 2030

Reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(in millions)	2020		2019		2018
Unrecognized tax benefits — January 1	$	129	$	136	$	130
Current year tax positions	—		3		—
Prior year tax positions	(3)		(5)		7



Settlements	(12)		(5)		(1)
Unrecognized tax benefits — December 31	$	114	$	129	$	136

Earliest open tax years by major jurisdiction

The following table summarizes our earliest open tax years by major jurisdiction:


Jurisdiction						Earliest Open Year
Italy						2014
Luxembourg						2016
Sweden						2013
Germany						2012
United Kingdom						2014
United States						2017
Switzerland						2017

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Basic and diluted net earnings per share

The following is a reconciliation of the shares used in calculating basic and diluted EPS:


	Year Ended December 31,
	2020		2019		2018
Net income (in millions)	$	254	$	401	$	549
Shares (in thousands):
Weighted average common shares outstanding	180,094		179,958		179,750
Add: Participating securities (a)	22		29		27
Weighted average common shares outstanding — Basic	180,116		179,987		179,777
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	671		803		876
Dilutive effect of restricted stock units and performance share units	312		406		479
Weighted average common shares outstanding — Diluted	181,099		181,196		181,132
Basic earnings per share	$	1.41	$	2.23	$	3.05
Diluted earnings per share	$	1.40	$	2.21	$	3.03

Incremental shares from stock options and restricted stock


	Year Ended December 31,
(in thousands)	2020	2019	2018
Stock options	1,545	1,383	1,300
Restricted stock units	362	348	333
Performance share units	305	394	465

Inventories (Tables)

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventories

The components of total inventories are summarized as follows:


	December 31,
(in millions)	2020		2019
Finished goods	$	221	$	212
Work in process	49		47
Raw materials	288		280
Total inventories	$	558	$	539

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

These assets are recorded at historical cost and are depreciated using the straight-line method of depreciation over the estimated useful lives as follows:


			Estimated Life
Buildings and improvements			5 to 40 years
Machinery and equipment			2 to 10 years
Furniture and fixtures			3 to 7 years
Equipment held for lease or rental			2 to 10 years

The components of total property, plant and equipment, net are as follows:


	December 31,
(in millions)	2020		2019
Land, buildings and improvements	$	369	$	339
Machinery and equipment	941		861
Equipment held for lease or rental	241		256
Furniture and fixtures	124		118
Construction work in progress	110		104
Other	29		24
Total property, plant and equipment, gross	1,814		1,702
Less accumulated depreciation	1,157		1,044
Total property, plant and equipment, net	$	657	$	658

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Lease, Cost

The components of our lease cost were as follows:


	Year Ended December 31,
(in millions)	2020		2019
Lease cost
Operating lease cost	$	77	$	76
Short-term lease cost	2		9
Variable lease cost	22		19

Total lease cost	$	101	$	104

Assets and Liabilities, Leases

The supplemental cash flow information related to leases are as follows:


	Year Ended December 31,
(in millions)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	75	$	73

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	64	$	33

Information relating to the lease term and discount rate are as follows:


	Year Ended December 31,
	2020	2019
Weighted-average remaining lease term (years)
Operating leases	7 Years	6 Years


Weighted-average discount rate
Operating leases	2.5%	2.7%

Lessee, Operating Lease, Liability, Maturity

As of December 31, 2020, the maturities of operating lease liabilities were as follows:


(in millions)
2021	$	68
2022	54
2023	42
2024	32
2025	24
Thereafter	77
Total lease payments	297
Less: Imputed interest	(22)
Total (1)	$	275

(1) Excludes $27 million of legally binding minimum lease payments for leases signed but not yet commenced. Lease payments are expected to begin in 2021 when asset construction is complete.

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying value of goodwill by operating segment

Changes in the carrying value of goodwill by reportable segment during the years ended December 31, 2020 and 2019 are as follows:


(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Total
Balance as of December 31, 2018	$	653	$	516	$	1,807	$	2,976
Activity in 2019
Acquired	—		—		19		19
Impairment	—		—		(148)		(148)
Foreign currency and other	(2)		(3)		(3)		(8)
Balance as of December 31, 2019	$	651	$	513	$	1,675	$	2,839
Activity in 2020

Impairment	—		—		(58)		(58)
Foreign currency and other	17		16		40		73
Balance as of December 31, 2020	$	668	$	529	$	1,657	$	2,854

Other Intangible Assets

Information regarding our other intangible assets is as follows:


(in millions)	December 31, 2020						December 31, 2019
	Carrying Amount		Accumulated Amortization		Net Intangibles		Carrying Amount		Accumulated Amortization		Net Intangibles
Customer and distributor relationships	$	941	$	(410)	$	531	$	945	$	(352)	$	593
Proprietary technology and patents	206		(131)		75		204		(111)		93
Trademarks	143		(63)		80		148		(52)		96
Software	500		(265)		235		428		(206)		222
Other	21		(18)		3		20		(16)		4
Indefinite-lived intangibles	169		—		169		166		—		166
Other intangibles	$	1,980	$	(887)	$	1,093	$	1,911	$	(737)	$	1,174

Estimated Amortization Expense

Estimated amortization expense for each of the five succeeding years is as follows:


(in millions)
2021	$	128
2022	121
2023	115
2024	105
2025	102

Accrued and Other Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Accrued and Other Current Liabilities


	December 31,
(in millions)	2020		2019
Compensation and other employee-benefits	$	258	$	199
Customer-related liabilities	186		153
Accrued taxes	103		79
Lease liabilities	63		61
Accrued warranty costs	54		36

Other accrued liabilities	123		100
Total accrued and other current liabilities	$	787	$	628

Credit Facilities and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Schedule of Credit Facilities and Long-Term Debt

Total debt outstanding is summarized as follows:


	December 31,
(in millions)	2020		2019

4.875% Senior Notes due 2021 (a)	$	600	$	600
2.250% Senior Notes due 2023 (a)	612		557
3.250% Senior Notes due 2026 (a)	500		500
1.950% Senior Notes due 2028 (b)	500		—
2.250% Senior Notes due 2031 (b)	500		—
4.375% Senior Notes due 2046 (a)	400		400
Commercial paper	—		276




Debt issuance costs and unamortized discount (c)	(28)		(17)

Total debt	3,084		2,316
Less: short-term borrowings and current maturities of long-term debt	600		276
Total long-term debt	$	2,484	$	2,040

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Effect of derivative financial instruments

The table below presents the effect of our derivative financial instruments on the Consolidated Income Statements and Consolidated Statements of Comprehensive Income:


	Year Ended December 31,
(in millions)	2020		2019		2018
Derivatives in Cash Flow Hedges
Foreign Exchange Contracts
Amount of gain (loss) recognized in OCI (a)	$	9	$	(14)	$	(8)
Amount of (gain) loss reclassified from OCI into revenue (a)	(4)		7		—
Amount of loss reclassified from OCI into cost of revenue (a)	1		5		4

Derivatives in Net Investment Hedges
Cross-Currency Swaps
Amount of (loss) gain recognized in OCI (a)	$	(103)	$	22	$	22
Amount of income recognized in Interest Expense	19		16		2
Foreign Currency Denominated Debt
Amount of (loss) gain recognized in OCI (a)	$	(55)	$	13	$	27

(a)Effective portion

Schedule of Foreign Exchange Contracts, Statement of Financial Position

The fair values of our derivative contracts currently included in our hedging program were as follows:


	December 31,
(in millions)	2020	2019
Derivatives designated as hedging instruments
Assets


Net Investment Hedges
Other non-current assets	—	4
Liabilities


Net Investment Hedges
Other non-current liabilities	(117)	(24)

The fair value of our long-term debt, due in 2023, designated as a net investment hedge was $640 million and $591 million as of December 31, 2020 and 2019, respectively.

Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Defined benefit contributions by employer

Matching obligations, the majority of which were funded in cash in connection with the plans, and other company contributions are as follows:


(in millions)	Defined Contribution
2020	$	56
2019	49
2018	39

Summary of amounts recorded within accumulated other comprehensive income

The following table provides a summary of the funded status of our Post-retirement Plans, the presentation of such balances and a summary of amounts recorded within accumulated other comprehensive income:


(in millions)	December 31, 2020						December 31, 2019
	Pension		Other		Total		Pension		Other		Total
Fair value of plan assets	$	691	$	—	$	691	$	605	$	—	$	605
Projected benefit obligation	(1,155)		(44)		(1,199)		(959)		(49)		(1,008)
Funded status	$	(464)	$	(44)	$	(508)	$	(354)	$	(49)	$	(403)
Amounts recognized in the balance sheet
Other non-current assets	$	27	$	—	$	27	$	58	$	—	$	58
Accrued and other current liabilities	(13)		(3)		(16)		(13)		(3)		(16)
Accrued post-retirement benefits	(478)		(41)		(519)		(399)		(46)		(445)
Net amount recognized	$	(464)	$	(44)	$	(508)	$	(354)	$	(49)	$	(403)
Accumulated other comprehensive income (loss):
Net actuarial losses	$	(409)	$	(18)	$	(427)	$	(330)	$	(19)	$	(349)
Prior service credit	(3)		9		6		(3)		7		4
Total	$	(412)	$	(9)	$	(421)	$	(333)	$	(12)	$	(345)

Schedule of Net Benefit Costs

The components of net periodic benefit cost for our defined benefit pension plans are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018
Domestic defined benefit pension plans:
Service cost	$	3	$	3	$	3
Interest cost	3		4		4
Expected return on plan assets	(7)		(8)		(7)
Amortization of net actuarial loss	3		1		2
Net periodic benefit cost	$	2	$	—	$	2
International defined benefit pension plans:
Service cost	$	13	$	9	$	9
Interest cost	16		19		19
Expected return on plan assets	(14)		(27)		(35)

Amortization of net actuarial loss	14		9		9
Settlement	—		9		1
Net periodic benefit cost	$	29	$	19	$	3
Total net periodic benefit cost	$	31	$	19	$	5

The components of net periodic benefit cost for other post-retirement employee benefit plans are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018

Interest cost	2		2		2
Amortization of prior service credit	(3)		(4)		(4)
Amortization of net actuarial loss	2		2		2
Net periodic benefit cost	$	1	$	—	$	—

Schedule of Changes in Accumulated Postemployment Benefit Obligations

Other changes in benefit obligations recognized in other comprehensive loss, as they pertain to other post-retirement employee benefit plans are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018
Net loss (gain)	$	1	$	(2)	$	1
Prior service credit	(5)		—		(3)
Amortization of prior service credit	3		4		4
Amortization of net actuarial loss	(2)		(2)		(2)

Losses (gains) recognized in other comprehensive loss	$	(3)	$	—	$	—
Total losses (gains) recognized in comprehensive income	$	(2)	$	—	$	—

Summary of the funded status of postretirement plans


	Domestic Plans				International Plans
	December 31,				December 31,
(in millions)	2020		2019		2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	113	$	99	$	846	$	763
Service cost	3		3		13		9
Interest cost	3		4		16		19
Benefits paid	(6)		(7)		(34)		(28)
Actuarial loss (gain)	10		15		130		104
Plan amendments, settlements and curtailments	—		—		(1)		(23)

Foreign currency translation/other	—		(1)		62		2
Benefit obligation at end of year	$	123	$	113	$	1,032	$	846
Change in plan assets:
Fair value of plan assets at beginning of year	$	105	97		$	500	$	470
Employer contributions	—		—		24		16
Actual return on plan assets	14		17		70		52
Benefits paid	(6)		(7)		(34)		(28)
Plan amendments, settlements and curtailments	—		—		(1)		(23)

Foreign currency translation/other	—		(2)		19		13
Fair value of plan assets at end of year	$	113	$	105	$	578	$	500
Unfunded status of the plans	$	(10)	$	(8)	$	(454)	$	(346)

Projected benefit obligations

The following table provides a roll-forward of the projected benefit obligation for the other post-retirement employee benefit plans:


(in millions)	2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	49	$	52

Service cost	—		—
Interest cost	2		2
Benefits paid	(3)		(3)
Actuarial gain/(loss)	1		(2)
Plan Amendment and other	(5)		—

Benefit obligation at the end of year	$	44	$	49

Accumulated benefit obligation and fair value of the plans' assets

For defined benefit pension plans in which the ABO was in excess of the fair value of the plans’ assets, the projected benefit obligation, ABO and fair value of the plans’ assets were as follows:


	December 31,
(in millions)	2020		2019
Projected benefit obligation	$	1,026	$	562
Accumulated benefit obligation	983		526
Fair value of plan assets	535		150

Components of net periodic benefit cost and other amounts recognized in other comprehensive income

Other changes in plan assets and benefit obligations recognized in other comprehensive loss, as they pertain to our defined benefit pension plans are as follows:


	Year Ended December 31,
(in millions)	2020		2019		2018
Domestic defined benefit pension plans:
Net (gain) loss	$	3	$	6	$	1

Amortization of net actuarial loss	(3)		(1)		(2)
(Gains) losses recognized in other comprehensive loss	$	—	$	5	$	(1)
International defined benefit pension plans:
Net (gain) loss	$	74	$	79	$	35
Prior service credit	—		—		3
Amortization of net actuarial loss	(14)		(9)		(9)
Settlement	—		(9)		(1)
Foreign Exchange	19		3		(15)
(Gains) losses recognized in other comprehensive loss	$	79	$	64	$	13
Total (gains) losses recognized in other comprehensive loss	$	79	$	69	$	12
Total (gains) losses recognized in comprehensive income	$	110	$	88	$	17

Weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost

The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic benefit cost, as they pertain to our pension plans.


	2020				2019				2018
	U.S.		Int’l		U.S.		Int’l		U.S.		Int’l
Benefit Obligation Assumptions
Discount rate	2.50	%	1.06	%	3.25	%	1.80	%	4.50	%	2.60	%
Rate of future compensation increase	NM		2.79	%	NM		2.94	%	NM		2.92	%
Net Periodic Benefit Cost Assumptions
Discount rate	3.25	%	1.80	%	4.50	%	2.60	%	3.75	%	2.43	%
Expected long-term return on plan assets	6.50	%	2.82	%	7.75	%	6.96	%	8.00	%	7.23	%
Rate of future compensation increase	NM		2.94	%	NM		2.92	%	NM		2.93	%

NM Not meaningful. The pension benefits for future service for all the U.S. pension plans are based on years of service and not impacted by future compensation increases.

Actual plan returns


	2020		2019		2018
Expected long-term rate of return on plan assets	3.46	%	7.09	%	7.34	%
Actual rate of return (loss) on plan assets	14.06	%	12.59	%	(3.85)	%

Allocation of plan assets

The following table provides the actual asset allocations of plan assets as of December 31, 2020 and 2019, and the related asset target allocation ranges by asset category:


	2020		2019		Target Allocation Ranges
Equity securities	20.8	%	18.6	%	15-60%
Fixed income	22.9	%	31.7	%	10-50%
Hedge funds	0.1	%	2.0	%	0-25%
Private equity	—	%	—	%	0-20%
Cash, insurance contracts and other	56.2	%	47.7	%	0-60%

The following table provides the fair value of plan assets held by our pension benefit plans by asset class:


	2020										2019
(in millions)	Level 1		Level 2		Level 3		NAV Practical Expedient		Total		Level 1		Level 2		Level 3		NAV Practical Expedient		Total
Equity securities
Global stock funds/securities	$	38	$	66	$	—	$	14	$	118	$	90	$	—	$	—	$	13	$	103


Diversified growth and income funds	—		—		—		26		26		—		—		—		9		9
Fixed income
Corporate bonds	1		97		—		7		105		86		—		—		5		91
Government bonds	—		19		—		28		47		35		—		—		27		62
Hedging instruments	—		6		—		—		6		4		35		—		—		39

Hedge funds	—		—		—		1		1		—		—		—		12		12

Insurance contracts and other			—		384		—		384				—		13		3		16
Cash & cash equivalents	4		—		—		—		4		273		—		—		—		273
Total plan assets subject to leveling	$	43	$	188	$	384	$	76	$	691	$	488	$	35	$	13	$	69	$	605

Reconciliation of the beginning and ending balances of fair value measurements with pension plans using significant unobservable inputs (level 3)

The following table presents a reconciliation of the beginning and ending balances of fair value measurement within our pension plans using significant unobservable inputs (Level 3):


(in millions)	Insurance Contracts and Other
Balance, December 31, 2018	$	12
Purchases, sales, settlements, net	1
Currency impact	—
Balance, December 31, 2019	$	13
Purchases, sales, settlements, net	314
Actual return on plan assets	44
Currency impact	13
Balance, December 31, 2020	$	384

Expected benefit payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid as follows:


(in millions)	Pension		Other Benefits
2021	$	38	$	3
2022	39		3
2023	40		3
2024	40		3
2025	42		3
Years 2026 - 2030	220		12

Share-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Summary of the changes in outstanding stock options

The following is a summary of the changes in outstanding stock options for 2020:


	Share units (in thousands)	Weighted Average Exercise Price / Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2020	2,040	$	48.56	6.3
Granted	571	74.60
Exercised	(521)	39.42
Forfeited and expired	(129)	77.52
Outstanding at December 31, 2020	1,961	$	56.66	6.4	$	89
Options exercisable at December 31, 2020	1,227	$	46.29	4.9	$	68
Vested and non-vested expected to vest as of December 31, 2020	1,896	$	56.08	6.3	$	87

Weighted-average assumptions

The following are weighted-average assumptions used for 2020, 2019, and 2018:


	2020			2019			2018
Dividend yield	1.42		%	1.30		%	1.12		%
Volatility	24.16		%	24.10		%	23.41		%
Risk-free interest rate	0.83		%	2.55		%	2.76		%
Expected term (in years)	5.8			5.4			5.1
Weighted-average fair value per option	$	14.84		$	17.04		$	17.80

Summary of restricted stock activity

restricted stock units for 2020:


	Share Units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2020	512	$	68.95
Granted	340	75.58
Vested	(252)	63.91
Forfeited	(63)	76.23
Outstanding at December 31, 2020	537	$	74.62

Schedule of Share-based Compensation, Performance-Based Units Award Activity

ROIC performance share units for 2020:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2020	225	$	64.51
Granted	82	78.90
Adjustment for Performance Condition Achieved (a)	—	—
Vested	(89)	49.15
Forfeited	(36)	76.67
Outstanding at December 31, 2020	182	$	76.12

(a) Represents an increase in the number of original ROIC performance share units awarded based on the final performance criteria achievement at the end of the performance period of such awards.

TSR Performance Share Unit Grants

The following is a summary of the changes in outstanding TSR performance share units for 2020:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2020	225	$	75.80
Granted	82	102.05
Adjustment for Performance Condition Achieved (a)	35	47.81
Vested	(124)	47.81
Forfeited	(36)	92.03
Outstanding at December 31, 2020	182	$	96.98

Fair value assumptions for performance-based awards

The following are weighted-average key assumptions for 2020 grants.




Volatility	22.6	%
Risk-free interest rate	1.08	%

Capital Stock (Tables)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Schedule of Common Stock Outstanding Roll Forward

The changes in shares of common stock outstanding for the three years ended December 31 are as follows:


(share units in thousands)	2020	2019	2018
Beginning Balance, January 1	180,140	179,724	179,862
Stock incentive plan net activity	986	952	672
Repurchase of common stock	(772)	(536)	(810)
Ending Balance, December 31	180,354	180,140	179,724

Accumulated Other Comprehensive Loss (Tables)

12 Months Ended

Dec. 31, 2020

Accumulated Other Comprehensive Income [Abstract]

Components of Accumulated Other Comprehensive Loss

The following table provides the components of accumulated other comprehensive loss for 2020, 2019 and 2018:


(in millions)	Foreign Currency Translation		Post-retirement Benefit Plans		Derivative Instruments		Total

















Balance at January 1, 2018	$	(15)	$	(198)	$	3	$	(210)
Cumulative effect of change in accounting principle	(11)		(6)				(17)
Foreign currency translation adjustment	(83)						(83)
Income tax impact on foreign currency translation adjustment	(12)						(12)
Changes in post-retirement benefit plans			(36)				(36)
Foreign currency translation adjustment for post-retirement benefit plans			15				15
Income tax expense on changes in post-retirement benefit plans			5				5
Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net			9				9





Income tax impact on amortization of post-retirement benefit plan items			(3)				(3)
Unrealized loss on derivative hedge agreements					(8)		(8)





Reclassification of unrealized (gain) loss on foreign exchange agreements into cost of revenue					4		4
Balance at December 31, 2018	$	(121)	$	(214)	$	(1)	$	(336)
Foreign currency translation adjustment	27						27
Income tax impact on foreign currency translation adjustment	(9)		—				(9)
Changes in post-retirement benefit plans			(83)				(83)
Settlement charge released into other non-operating income (expense), net			9				9
Foreign currency translation adjustment for post-retirement benefit plans			(3)				(3)
Income tax expense on changes in post-retirement benefit plans, including settlement			16				16

Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net			8				8





Income tax impact on amortization of post-retirement benefit plan items			(2)				(2)
Unrealized loss on derivative hedge agreements					(14)		(14)

Reclassification of unrealized loss on foreign exchange agreements into revenue					7		7
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue					5		5
Balance at December 31, 2019	$	(103)	$	(269)	$	(3)	$	(375)

Foreign currency translation adjustment	(22)						(22)
Income tax impact on foreign currency translation adjustment	39						39
Changes in post-retirement benefit plans			(73)				(73)


(in millions)	Foreign Currency Translation		Post-retirement Benefit Plans		Derivative Instruments		Total
Foreign currency translation adjustment for post-retirement benefit plans			(19)				(19)
Income tax expense on changes in post-retirement benefit plans			18				18
Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net			16				16
Income tax impact on amortization of post-retirement benefit plan items			(3)				(3)
Unrealized gain on derivative hedge agreements					9		9
Reclassification of unrealized gain on foreign exchange agreements into revenue					(4)		(4)
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue					1		1
Balance at December 31, 2020	$	(86)	$	(330)	$	3	$	(413)

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

Changes in product warranty accrual

The table below provides changes in the combined current and non-current product warranty accruals over each period.


(in millions)	2020		2019		2018
Warranty accrual – January 1	$	41	$	60	$	82
Net charges for product warranties in the period	57		25		20
Settlement of warranty claims	(34)		(42)		(42)

Foreign currency and other	1		(2)		—
Warranty accrual – December 31	$	65	$	41	$	60

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Related Party Transactions

Sales to and purchases from unconsolidated entities for 2020, 2019 and 2018 are as follows:


(in millions)	2020		2019		2018
Sales to unconsolidated affiliates	$	10	$	10	$	10
Purchases from unconsolidated affiliates	16		22		22

Segment and Geographic Data (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Financial information for each reportable segment


	Year Ended December 31,
(in millions)	2020		2019		2018
Revenue:
Water Infrastructure	$	2,079	$	2,177	$	2,176
Applied Water	1,434		1,541		1,534
Measurement & Control Solutions	1,363		1,531		1,497
Total	$	4,876	$	5,249	$	5,207
Operating income:
Water Infrastructure	$	318	$	365	$	359
Applied Water	205		241		236
Measurement & Control Solutions	(106)		(67)		118
Corporate and other	(50)		(53)		(59)
Total operating income	367		486		654
Interest expense	77		67		82
Other non-operating (expense) income, net	(5)		(4)		13
Gain on sale of businesses	—		1		—
Income before taxes	$	285	$	416	$	585
Depreciation and amortization:
Water Infrastructure	$	57	$	61	$	66
Applied Water	24		24		22
Measurement & Control Solutions	142		144		144
Regional selling locations (a)	20		18		20
Corporate and other	8		10		9
Total	$	251	$	257	$	261
Capital expenditures:
Water Infrastructure	$	48	$	79	$	84
Applied Water	18		19		28
Measurement & Control Solutions	90		100		101
Regional selling locations (b)	22		19		16
Corporate and other	5		9		8
Total	$	183	$	226	$	237

(b) Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.

Revenue by product category

The following table illustrates revenue by product category, net of intercompany revenue:


	Year Ended December 31,
(in millions)	2020		2019		2018
Pumps, accessories, parts and service	$	3,120	$	3,324	$	3,322


Other (a)	1,756		1,925		1,885
Total	$	4,876	$	5,249	$	5,207

(a)Other includes treatment equipment, analytical instrumentation, heat exchangers, valves, controls and smart meters.

Total assets for each reportable segment

The following table contains the total assets for each reportable segment as of December 31, 2020, 2019 and 2018:


	Total Assets
(in millions)	2020		2019		2018
Water Infrastructure	$	1,255	$	1,268	$	1,233
Applied Water	1,005		1,016		1,051
Measurement & Control Solutions	3,345		3,497		3,576
Regional selling locations (a)	1,413		1,375		1,181
Corporate and other (b)	1,732		554		181
Total	$	8,750	$	7,710	$	7,222

(a)The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments.

(b)Corporate and other consists of items pertaining to our corporate headquarters function, which principally consist of cash and pension assets.

Revenues and Property, Plant and Equipment by geographic location

Revenue is attributed to countries based upon the location of the customer. Property, Plant & Equipment is attributed to countries based upon the location of the assets:


	Revenue
	Year Ended December 31,
(in millions)	2020		2019		2018
United States	$	2,297	$	2,554	$	2,424
Europe	1,407		1,380		1,449
Asia Pacific	618		659		660
Other	554		656		674
Total	$	4,876	$	5,249	$	5,207


	Property, Plant & Equipment
	December 31,
(in millions)	2020		2019		2018
United States	$	253	$	274	$	281
Europe	277		249		250
Asia Pacific	64		67		66
Other	63		68		59
Total	$	657	$	658	$	656

Valuation and Qualifying Accounts (Tables)

12 Months Ended

Dec. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule of Valuation and Qualifying Accounts

The table below provides changes in the allowance for credit losses over each period:


(in millions)	2020		2019		2018
Balance at beginning of year	$	25	$	25	$	25
Additions charged to expense	25		3		5
Deductions/other	(12)		(3)		(5)
Balance at end of year	$	38	$	25	$	25

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

Our quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except

for the fourth quarter which ends on December 31.


	2020 Quarter Ended
(in millions, except per share amounts)	Dec. 31		Sept. 30 (a)		June 30		Mar. 31
Revenue	$	1,373	$	1,220	$	1,160	$	1,123
Gross profit	526		461		434		409
Operating income	179		73		54		61
Net income	$	148	$	37	$	31	$	38
Earnings per share:
Basic	$	0.82	$	0.20	$	0.17	$	0.21
Diluted	$	0.82	$	0.20	$	0.17	$	0.21


	2019 Quarter Ended
(in millions, except per share amounts)	Dec. 31		Sept. 30 (b)		June 30		Mar. 31
Revenue	$	1,371	$	1,296	$	1,345	$	1,237
Gross profit	537		509		526		474
Operating income	195		11		171		109
Net income	$	118	$	65	$	139	$	79
Earnings per share:
Basic	$	0.66	$	0.36	$	0.77	$	0.44
Diluted	$	0.65	$	0.36	$	0.77	$	0.43

Summary of Significant Accounting Policies (Property, Plant and Equipment, Useful Lives) (Details)	12 Months Ended
	Dec. 31, 2020
Building and improvements \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful lives	5 years
Building and improvements \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful lives	40 years
Machinery and equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful lives	2 years
Machinery and equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful lives	10 years
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful lives	3 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful lives	7 years
Equipment held for lease or rental \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful lives	2 years
Equipment held for lease or rental \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment estimated useful lives	10 years

Summary of Significant Accounting Policies (Details Textual) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) Segment	Dec. 31, 2019 USD ($)
Operating segments \| Segment	3
Requisite service period	3 years
Minimum
Intangible assets estimated economic useful lives	1 year
Maximum
Intangible assets estimated economic useful lives	25 years
Foreign Currency
Cash \| $	$ 635	$ 510

Acquisitions and Divestitures (Details Textual) - USD ($) $ in Millions		3 Months Ended	12 Months Ended
	Jan. 31, 2018	Sep. 30, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Cash payment to acquire business, net of cash acquired			$ 0	$ 18	$ 433
Proceeds from divestiture of businesses			0	$ 0	$ 22
Precision Die Casting
Business Acquisition [Line Items]
Revenue						$ 32
Pure
Business Acquisition [Line Items]
Cash payment to acquire business, net of cash acquired	$ 420
Acquisition costs	$ 4
Revenue			96
Net income			2
Revenue			5,212
Other Acquisitions
Business Acquisition [Line Items]
Cash payment to acquire business, net of cash acquired			$ 13
Disposals \| Precision Die Casting
Business Acquisition [Line Items]
Proceeds from divestiture of businesses		$ 22

Acquisitions and Divestitures (Summary of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Jan. 31, 2018
Business Acquisition [Line Items]
Goodwill	$ 2,854	$ 2,839	$ 2,976
Pure
Business Acquisition [Line Items]
Cash				$ 14
Receivables				23
Inventories				4
Prepaid and other current assets				2
Property, plant and equipment				22
Intangible assets				149
Other long-term assets				1
Accounts payable				(3)
Accrued and other current liabilities				(12)
Deferred income tax liabilities				(25)
Other non-current accrued liabilities				(2)
Total identifiable net assets				173
Goodwill				261
Total consideration				$ 434

Acquisitions and Divestitures (Summary of Intangible Assets Acquired) (Details) - Pure $ in Millions	Jan. 31, 2018 USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 149
Customer Relationships
Business Acquisition [Line Items]
Intangible assets	84
Technology
Business Acquisition [Line Items]
Intangible assets	38
Tradenames
Business Acquisition [Line Items]
Intangible assets	21
Software Development
Business Acquisition [Line Items]
Intangible assets	$ 6
Minimum \| Customer Relationships
Business Acquisition [Line Items]
Life	17 years
Minimum \| Technology
Business Acquisition [Line Items]
Life	3 years
Maximum \| Customer Relationships
Business Acquisition [Line Items]
Life	18 years
Maximum \| Technology
Business Acquisition [Line Items]
Life	10 years

Acquisitions and Divestitures (Summary of Pro Forma Information) (Details) - Pure $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)
Business Acquisition [Line Items]
Revenue	$ 5,212
Net income	$ 546

Restructuring and Asset Impairment Charges (Components of Restructuring Charges and Segment Allocation) (Details) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]
Severance and other charges					$ 36	$ 51	$ 19
Lease related charges					0	1	1
Asset impairment					18	0	0
Other restructuring charges					1	2	1
Reversal of restructuring accruals					(1)	(1)	(1)
Total restructuring charges					54	53	20
Asset impairment charges					21	10	2
Total restructuring and asset impairment charges					75	63	22
Water Infrastructure
Restructuring Cost and Reserve [Line Items]
Restructuring and asset impairment charges					20	20	11
Applied Water
Restructuring Cost and Reserve [Line Items]
Restructuring and asset impairment charges					4	5	2
Measurement & Control Solutions
Restructuring Cost and Reserve [Line Items]
Asset impairment charges	$ 11	$ 10	$ 7	$ 3
Restructuring and asset impairment charges					$ 51	$ 38	$ 9

Restructuring and Asset Impairment Charges (Restructuring Reserve Rollforward) (Details) - USD ($)
$ in Millions

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Restructuring Reserve [Roll Forward]

Restructuring accruals

$ 27

$ 5

Severance and other

$ 20

Cash payments

(36)

(30)

(21)

Asset impairment

(18)

Foreign currency and other

(1)

Restructuring accruals

$ 5

Water Infrastructure

Restructuring Reserve [Roll Forward]

Restructuring accruals

Applied Water

Restructuring Reserve [Roll Forward]

Restructuring accruals

Measurement & Control Solutions

Restructuring Reserve [Roll Forward]

Restructuring accruals

Regional Selling Locations

Restructuring Reserve [Roll Forward]

Restructuring accruals

^[1]

Restructuring accruals

^[1]

Corporate and other

Restructuring Reserve [Roll Forward]

Restructuring accruals

$ 1

$ 0

[1]	Regional selling locations consist primarily of selling and marketing organizations that incurred restructuring expense which was allocated to the segments. The liabilities associated with restructuring expense were not allocated to the segments.

Restructuring and Asset Impairment Charges - Narrative (Details) - USD ($) $ in Millions	3 Months Ended				12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]
Asset impairment charges					$ 21	$ 10	$ 2
Asset impairment					18	0	$ 0
Measurement & Control Solutions
Restructuring Cost and Reserve [Line Items]
Asset impairment charges	$ 11	$ 10	$ 7	$ 3
2016 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs					51
Incurred restructuring costs					$ 1	$ 50
2020 Restructuring Plan \| Measurement & Control Solutions
Restructuring Cost and Reserve [Line Items]
Asset impairment		$ 17

Restructuring and Asset Impairment Charges - Estimated Restructuring Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
2017 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	$ 73
Incurred restructuring costs	53
Expected costs remaining	20
2016 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	51
Incurred restructuring costs	1	$ 50
Expected costs remaining	0
Corporate \| 2017 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	2
Incurred restructuring costs	0
Expected costs remaining	2
Corporate \| 2016 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	0
Incurred restructuring costs	0	0
Expected costs remaining	0
Operating Segments \| Water Infrastructure \| 2017 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	26
Incurred restructuring costs	19
Expected costs remaining	7
Operating Segments \| Water Infrastructure \| 2016 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	19
Incurred restructuring costs	1	18
Expected costs remaining	0
Operating Segments \| Applied Water \| 2017 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	11
Incurred restructuring costs	4
Expected costs remaining	7
Operating Segments \| Applied Water \| 2016 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	5
Incurred restructuring costs	0	5
Expected costs remaining	0
Operating Segments \| Measurement & Control Solutions \| 2017 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	34
Incurred restructuring costs	30
Expected costs remaining	4
Operating Segments \| Measurement & Control Solutions \| 2016 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Expected restructuring costs	27
Incurred restructuring costs	0	$ 27
Expected costs remaining	$ 0

Revenue (Details) - USD ($) $ in Millions	12 Months Ended
Revenue (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Change in Contract with Customer, Asset [Abstract]
Beginning balance	$ 106	$ 96
Additions, net	118	81
Billings transferred to accounts receivable	(110)	80
Other	3	9
Ending balance	117	106
Change in Contract with Customer, Liability [Abstract]
Beginning balance	135	113
Additions, net	120	114
Revenue recognized from opening balance	(93)	(91)
Other	4	(1)
Ending balance	$ 166	$ 135

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 4,681	$ 5,002	$ 4,963
Other									195	247	244
Total	$ 1,373	$ 1,220	$ 1,160	$ 1,123	$ 1,371	$ 1,296	$ 1,345	$ 1,237	4,876	5,249	5,207
United States
Disaggregation of Revenue [Line Items]
Total									2,297	2,554	2,424
Europe
Disaggregation of Revenue [Line Items]
Total									1,407	1,380	1,449
Water Infrastructure
Disaggregation of Revenue [Line Items]
Total									2,079	2,177	2,176
Water Infrastructure \| United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									558	593	539
Water Infrastructure \| Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									751	729	758
Water Infrastructure \| Emerging Markets & Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									341	358	344
Water Infrastructure \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									234	250	291
Water Infrastructure \| Transport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									1,484	1,533	1,535
Water Infrastructure \| Treatment
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									400	397	397
Applied Water
Disaggregation of Revenue [Line Items]
Total									1,434	1,541	1,534
Applied Water \| United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									754	816	797
Applied Water \| Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									356	362	386
Applied Water \| Emerging Markets & Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									152	164	153
Applied Water \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									172	199	198
Applied Water \| Commercial Building Services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									804	848	828
Applied Water \| Industrial Water
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									630	693	706
Measurement & Control Solutions \| United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									856	972	913
Measurement & Control Solutions \| Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									266	257	273
Measurement & Control Solutions \| Emerging Markets & Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									109	118	144
Measurement & Control Solutions \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									132	184	167
Measurement & Control Solutions \| Water
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									689	768	692
Measurement & Control Solutions \| Electric
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									276	337	338
Measurement & Control Solutions \| Software and Services/Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									92	99	123
Measurement & Control Solutions \| Test
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers									$ 306	$ 327	$ 344

Revenue (Narrative) (Details) $ in Millions	Dec. 31, 2020 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 422
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of recognition	60 months

Other Non-Operating Income, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Income and Expenses [Abstract]
Interest income	$ 7	$ 5	$ 4
Income from joint ventures	2	3	5
Other income (expense) - net	(14)	(12)	4
Total other non-operating (expense) income, net	$ (5)	$ (4)	$ 13

Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income (loss) components:
Domestic	$ (33)	$ 203	$ 208
Foreign	318	213	377
Income before taxes	285	416	585
Current:
Domestic – federal	24	39	9
Domestic – state and local	5	13	13
Foreign	33	40	61
Total Current	62	92	83
Deferred:
Domestic – federal	(21)	7	17
Domestic – state and local	(8)	(1)	5
Foreign	(2)	(83)	(69)
Total Deferred	(31)	(77)	(47)
Total income tax provision	$ 31	$ 15	$ 36
Effective income tax rate	10.90%	3.70%	6.10%

Income Taxes (Income Tax Rate Reconciliation) (Details)	12 Months Ended
Income Taxes (Income Tax Rate Reconciliation) (Details)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Tax provision at U.S. statutory rate	21.00%	21.00%	21.00%
State income taxes	0.70%	2.70%	2.30%
Uncertain tax positions	(3.90%)	0.40%	2.60%
Valuation allowance	0.50%	1.20%	(47.10%)
Tax exempt interest	(4.50%)	(3.00%)	(1.40%)
Foreign tax rate differential	(0.90%)	0.70%	2.90%
Impact of foreign earnings, net	5.30%	1.60%	(1.70%)
Tax incentives	(7.40%)	(9.60%)	(6.20%)
Intercompany sale of assets	0.00%	0.00%	35.50%
Other – net	2.20%	1.70%	(0.30%)
Rate change	(1.30%)	(18.10%)	0.00%
Goodwill impairment	2.90%	7.80%	0.00%
Federal R&D tax credit	(1.30%)	(1.20%)	(0.80%)
Stock compensation	(2.40%)	(1.50%)	(0.70%)
Effective income tax rate	10.90%	3.70%	6.10%

Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Deferred tax assets:
Employee benefits	$ 127	$ 106
Accrued expenses	35	26
Loss and other tax credit carryforwards	270	240
Inventory	6	6
Lease Liabilities	64	57
Other	41	3
Total deferred tax assets	543	438
Valuation allowance	(217)	(191)
Net deferred tax asset	326	247
Deferred tax liabilities:
Intangibles	138	160
Investment in foreign subsidiaries	5	7
Property, plant and equipment	77	78
Lease right-of-use assets	62	57
Other	30	29
Total deferred tax liabilities	$ 312	$ 331

Income Taxes (Reconciliation of Valuation Allowance of Deferred Tax Assets) (Details) - Valuation Allowance of Deferred Tax Assets - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of year	$ 191	$ 234	$ 350
Change in assessment (a)	1	(2)	1
Current year operations	7	2	(271)
Foreign currency and other	18	(43)	154
Balance at end of year	$ 217	$ 191	$ 234

Income Taxes (Classification of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Non-current assets	$ 256	$ 226
Non-current liabilities	(242)	(310)
Deferred Tax Assets, Net	$ 14
Total net deferred tax liabilities		$ 84

Income Taxes (Summary of Operating Losses and Tax Credits) (Details) $ in Millions	Dec. 31, 2020 USD ($)
United States
Operating Loss Carryforwards [Line Items]
Net operating loss	$ 7
State
Operating Loss Carryforwards [Line Items]
Net operating loss	97
Tax credits	1
Foreign
Operating Loss Carryforwards [Line Items]
Net operating loss	1,153
Tax credits	4
Excess Interest Expense \| State
Operating Loss Carryforwards [Line Items]
Tax credits	$ 10

Income Taxes (Summary of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits — January 1	$ 129	$ 136	$ 130
Current year tax positions	0	3	0
Prior year tax positions			7
Prior year tax positions	(3)	(5)
Settlements	(12)	(5)	(1)
Unrecognized tax benefits — December 31	$ 114	$ 129	$ 136

Income Taxes (Details Textual) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Contingency [Line Items]
Valuation allowance		$ 217	$ 191
Reinvestments in foreign operations		1,600
Total income tax provision		$ 31	$ 15	$ 36
Effective income tax rate		10.90%	3.70%	6.10%
Unrecognized tax benefits		$ 114	$ 129	$ 136	$ 130
Interest accrued for unrecognized tax benefits		8	$ 8
Foreign
Income Tax Contingency [Line Items]
Deferred tax liability		7
State
Income Tax Contingency [Line Items]
Deferred tax liability		$ 500
Forecast
Income Tax Contingency [Line Items]
Unrecognized tax benefits, reduction due to lapse of statute of limitations	$ 1

Earnings Per Share (Calculation of EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Basic and diluted net earnings per share:
Net income (in usd)	$ 148	$ 37	$ 31	$ 38	$ 118	$ 65	$ 139	$ 79	$ 254	$ 401	$ 549
Net income									$ 254	$ 401	$ 549
Shares
Weighted average common shares outstanding									180,094	179,958	179,750
Add: Participating securities									22	29	27
Weighted average common shares outstanding — Basic									180,116	179,987	179,777
Plus incremental shares from assumed conversions:
Weighted average common shares outstanding — Diluted									181,099	181,196	181,132
Basic earnings per share (in usd per share)	$ 0.82	$ 0.20	$ 0.17	$ 0.21	$ 0.66	$ 0.36	$ 0.77	$ 0.44	$ 1.41	$ 2.23	$ 3.05
Diluted earnings per share (in usd per share)	$ 0.82	$ 0.20	$ 0.17	$ 0.21	$ 0.65	$ 0.36	$ 0.77	$ 0.43	$ 1.40	$ 2.21	$ 3.03
Stock Options
Plus incremental shares from assumed conversions:
Dilutive effect of common shares									671	803	876
Restricted Stock
Plus incremental shares from assumed conversions:
Dilutive effect of common shares									312	406	479

Earnings Per Share (Summary of Antidilutive Securities) (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Stock Options
Incremental shares from stock options and restricted stock:
Antidilutive securities	1,545	1,383	1,300
Restricted Stock
Incremental shares from stock options and restricted stock:
Antidilutive securities	362	348	333
Performance Based Shares
Incremental shares from stock options and restricted stock:
Antidilutive securities	305	394	465

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Inventories
Finished goods	$ 221	$ 212
Work in process	49	47
Raw materials	288	280
Total inventories	$ 558	$ 539

Property, Plant and Equipment (Components of Property, Plant and Equipment) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment
Property, plant and equipment, gross	$ 1,814	$ 1,702
Less accumulated depreciation	1,157	1,044
Total property, plant and equipment, net	657	658
Land, buildings and improvements
Property, Plant and Equipment
Property, plant and equipment, gross	369	339
Machinery and equipment
Property, Plant and Equipment
Property, plant and equipment, gross	941	861
Equipment held for lease or rental
Property, Plant and Equipment
Property, plant and equipment, gross	241	256
Furniture and fixtures
Property, Plant and Equipment
Property, plant and equipment, gross	124	118
Construction work in progress
Property, Plant and Equipment
Property, plant and equipment, gross	110	104
Other
Property, Plant and Equipment
Property, plant and equipment, gross	$ 29	$ 24

Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 117	$ 117	$ 117

Leases (Textuals) (Details) - USD ($) $ in Millions	12 Months Ended
Leases (Textuals) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Lessor, Lease, Description [Line Items]
Operating liability, current	$ 63	$ 61
Operating liability, noncurrent	216	185
Right-of-use assets	272	241
Revenue from lease arrangements	195	247
Assets subject to rental	241	256
Assets subject to rental, accumulated amortization	159	166
Operating Leases, Rent Expense			$ 81
Depreciation	$ 117	$ 117	$ 117
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccruedLiabilitiesCurrent	us-gaap:AccruedLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherAccruedLiabilitiesNoncurrent	us-gaap:OtherAccruedLiabilitiesNoncurrent
Leased Assets
Lessor, Lease, Description [Line Items]
Depreciation	$ 25	$ 28

Leases (Lease Costs) (Details) - USD ($) $ in Millions	12 Months Ended
Leases (Lease Costs) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating lease cost	$ 77	$ 76
Short-term lease cost	2	9
Variable lease cost	22	19
Total lease cost	$ 101	$ 104

Leases (Supplemental Lease Information) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating cash flows from operating leases	$ 75	$ 73
Operating leases	$ 64	$ 33
Operating leases	7 years	6 years
Operating leases	2.50%	2.70%

Leases (Lease Maturities) (Details) $ in Millions	12 Months Ended
Leases (Lease Maturities) (Details) $ in Millions	Dec. 31, 2020 USD ($)
Operating Leases
2020	$ 68
2021	54
2022	42
2023	32
2024	24
Thereafter	77
Total lease payments	297
Less: Imputed interest	(22)
Total	275
Lease payments not yet commenced	$ 27

Goodwill and Other Intangible Assets (Rollforward of Goodwill) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Changes in the carrying value of goodwill by operating segment
Beginning Balance			$ 2,839	$ 2,976
Goodwill acquired				19
Goodwill, Impairment Loss	$ (58)	$ (148)	(58)	(148)	$ 0
Foreign currency and other			73	(8)
Ending Balance			2,854	2,839	2,976
Water Infrastructure
Changes in the carrying value of goodwill by operating segment
Beginning Balance			651	653
Goodwill acquired				0
Goodwill, Impairment Loss			0	0
Foreign currency and other			17	(2)
Ending Balance			668	651	653
Applied Water
Changes in the carrying value of goodwill by operating segment
Beginning Balance			513	516
Goodwill acquired				0
Goodwill, Impairment Loss			0	0
Foreign currency and other			16	(3)
Ending Balance			529	513	516
Measurement & Control Solutions
Changes in the carrying value of goodwill by operating segment
Beginning Balance			1,675	1,807
Goodwill acquired				19
Goodwill, Impairment Loss	$ (58)		(58)	(148)
Foreign currency and other			40	(3)
Ending Balance			$ 1,657	$ 1,675	$ 1,807

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended				9 Months Ended	12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Other Intangible Assets (Textual) [Abstract]
Goodwill, Impairment Loss	$ 58		$ 148			$ 58	$ 148	$ 0
Amortization expense related to finite-lived intangible assets						134	140	$ 144
Accumulated impairment loss						$ 206	148
Customer and Distributor Relationships
Goodwill and Other Intangible Assets (Textual) [Abstract]
Finite-Lived Intangible Asset, Useful Life						14 years
Internally Developed Network Software
Goodwill and Other Intangible Assets (Textual) [Abstract]
Finite-Lived Intangible Asset, Useful Life						5 years
Proprietary Technology
Goodwill and Other Intangible Assets (Textual) [Abstract]
Finite-Lived Intangible Asset, Useful Life						14 years
Trademarks
Goodwill and Other Intangible Assets (Textual) [Abstract]
Finite-Lived Intangible Asset, Useful Life						13 years
Other
Goodwill and Other Intangible Assets (Textual) [Abstract]
Finite-Lived Intangible Asset, Useful Life						4 years
Water Infrastructure
Goodwill and Other Intangible Assets (Textual) [Abstract]
Goodwill, Impairment Loss						$ 0	0
Measurement & Control Solutions
Goodwill and Other Intangible Assets (Textual) [Abstract]
Goodwill, Impairment Loss	58					$ 58	$ 148
Impairment of Intangible Assets, Finite-lived	$ 11	$ 16			$ 7
Measurement & Control Solutions \| Customer and Distributor Relationships
Goodwill and Other Intangible Assets (Textual) [Abstract]
Impairment of Intangible Assets, Finite-lived				$ 3
Measurement & Control Solutions \| Internally Developed Network Software
Goodwill and Other Intangible Assets (Textual) [Abstract]
Impairment of Intangible Assets, Finite-lived		$ 10

Goodwill and Other Intangible Assets (Summary of Other Intangible Assets) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Other Intangible Assets
Accumulated Amortization	$ (887)	$ (737)
Indefinite-lived intangibles	169	166
Intangible Assets Gross, Carrying Amount	1,980	1,911
Intangible Assets, Net Intangibles	1,093	1,174
Customer and Distributor Relationships
Goodwill and Other Intangible Assets
Carrying Amount	941	945
Accumulated Amortization	(410)	(352)
Net Intangibles	$ 531	593
Finite-Lived Intangible Asset, Useful Life	14 years
Proprietary Technology
Goodwill and Other Intangible Assets
Carrying Amount	$ 206	204
Accumulated Amortization	(131)	(111)
Net Intangibles	$ 75	93
Finite-Lived Intangible Asset, Useful Life	14 years
Trademarks
Goodwill and Other Intangible Assets
Carrying Amount	$ 143	148
Accumulated Amortization	(63)	(52)
Net Intangibles	$ 80	96
Finite-Lived Intangible Asset, Useful Life	13 years
Internally Developed Network Software
Goodwill and Other Intangible Assets
Carrying Amount	$ 500	428
Accumulated Amortization	(265)	(206)
Net Intangibles	$ 235	222
Finite-Lived Intangible Asset, Useful Life	5 years
Other
Goodwill and Other Intangible Assets
Carrying Amount	$ 21	20
Accumulated Amortization	(18)	(16)
Net Intangibles	$ 3	$ 4
Finite-Lived Intangible Asset, Useful Life	4 years

Goodwill and Other Intangible Assets (Estimated Amortization Expense) (Details) $ in Millions	Dec. 31, 2020 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 128
2020	121
2021	115
2022	105
2023	$ 102

Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Accrued and Other Current Liabilities
Compensation and other employee-benefits	$ 258	$ 199
Customer-related liabilities	186	153
Accrued taxes	103	79
Lease liabilities	63	61
Accrued warranty costs	54	36
Other accrued liabilities	123	100
Total accrued and other current liabilities	$ 787	$ 628

Credit Facilities and Long-Term Debt (Summary of Debt Outstanding) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Jun. 26, 2020	Dec. 31, 2019	Oct. 11, 2016	Sep. 20, 2011
Credit Facilities and Long-Term Debt :
Debt issuance costs and unamortized discount	$ (28)		$ (17)
Total debt	3,084		2,316
Less: short-term borrowings and current maturities of long-term debt	600		276
Long-term debt, net	$ 2,484		2,040
4.875% Senior Notes Due 2021
Credit Facilities and Long-Term Debt :
Interest rate	4.875%				4.875%
Outstanding balances	$ 600		600
2.250% Senior Notes Due 2023
Credit Facilities and Long-Term Debt :
Interest rate	2.25%
Outstanding balances	$ 612		557
Debt fair value	$ 640		591
3.250% Senior Notes Due 2026
Credit Facilities and Long-Term Debt :
Interest rate	3.25%			3.25%
Outstanding balances	$ 500		500
Debt fair value	$ 563		518
Senior Notes Due Twenty Twenty Eight
Credit Facilities and Long-Term Debt :
Interest rate	1.95%	1.95%
Outstanding balances	$ 500		0
Senior Notes Due Twenty Thirty One
Credit Facilities and Long-Term Debt :
Interest rate	2.25%	2.25%
Outstanding balances	$ 500		0
4.375% Senior Notes Due 2046
Credit Facilities and Long-Term Debt :
Interest rate	4.375%			4.375%
Outstanding balances	$ 400		400
Debt fair value	496		431
Commercial paper
Credit Facilities and Long-Term Debt :
Outstanding balances	0		276
Level 1 \| 4.875% Senior Notes Due 2021
Credit Facilities and Long-Term Debt :
Debt fair value	620		$ 629
Level 1 \| Senior Notes Due Twenty Twenty Eight
Credit Facilities and Long-Term Debt :
Debt fair value	529
Level 1 \| Senior Notes Due Twenty Thirty One
Credit Facilities and Long-Term Debt :
Debt fair value	$ 527

Credit Facilities and Long-Term Debt (Details Textual)	Mar. 05, 2019 USD ($)	Sep. 20, 2011 USD ($)	Dec. 31, 2020 USD ($)	Jun. 26, 2020 USD ($)	Dec. 31, 2019 USD ($)	Jun. 03, 2019 USD ($)	Jun. 03, 2019 EUR (€)	Oct. 11, 2016 USD ($)	Mar. 11, 2016 EUR (€)
Debt Instrument
Senior notes issued				$ 500,000,000
Senior Notes
Debt Instrument
Redemption price percentage		101.00%
Commercial paper
Debt Instrument
Outstanding balances			$ 0		$ 276,000,000
3.250% Senior Notes Due 2026
Debt Instrument
Fair value of senior notes due			$ 563,000,000		518,000,000
Interest on notes due			3.25%					3.25%
Senior notes issued								$ 500,000,000
Outstanding balances			$ 500,000,000		500,000,000
4.875% Senior Notes Due 2021
Debt Instrument
Interest on notes due		4.875%	4.875%
Senior notes issued		$ 600,000,000
Outstanding balances			$ 600,000,000		600,000,000
2.250% Senior Notes Due 2023
Debt Instrument
Fair value of senior notes due			$ 640,000,000		591,000,000
Interest on notes due			2.25%
Outstanding balances			$ 612,000,000		557,000,000
2.250% Senior Notes Due 2023 \| Senior Notes
Debt Instrument
Interest on notes due									2.25%
Senior notes issued \| €									€ 500,000,000
4.375% Senior Notes Due 2046
Debt Instrument
Fair value of senior notes due			$ 496,000,000		431,000,000
Interest on notes due			4.375%					4.375%
Senior notes issued								$ 400,000,000
Outstanding balances			$ 400,000,000		400,000,000
Five Year Revolving Credit Facility 2019 [Member] \| Revolving Credit Facility
Debt Instrument
Increase in borrowing capacity	$ 200,000,000
Maximum increase in borrowing capacity	$ 1,000,000,000
Term of debt	5 years
Debt instrument aggregate principal amount	$ 800,000,000
US Dollar Commercial Paper Program [Member]
Debt Instrument
Senior notes issued			600,000,000
Euro Commercial Paper Program [Member]
Debt Instrument
Senior notes issued						$ 612,000,000	€ 500,000,000
Commercial paper			$ 0			$ 276,000,000
Senior Notes Due Twenty Twenty Eight
Debt Instrument
Interest on notes due			1.95%	1.95%
Outstanding balances			$ 500,000,000		0
Senior Notes Due Twenty Thirty One
Debt Instrument
Interest on notes due			2.25%	2.25%
Outstanding balances			$ 500,000,000		0
Level 2 \| 4.875% Senior Notes Due 2021
Debt Instrument
Fair value of senior notes due			620,000,000		$ 629,000,000
Level 2 \| Senior Notes Due Twenty Twenty Eight
Debt Instrument
Fair value of senior notes due			529,000,000
Level 2 \| Senior Notes Due Twenty Thirty One
Debt Instrument
Fair value of senior notes due			$ 527,000,000

Derivative Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Amount of (gain) loss reclassified from OCI into revenue	$ (1,373)	$ (1,220)	$ (1,160)	$ (1,123)	$ (1,371)	$ (1,296)	$ (1,345)	$ (1,237)	$ (4,876)	$ (5,249)	$ (5,207)
Other Comprehensive Income (Loss) \| Foreign Exchange Contract
Derivative [Line Items]
Amount of gain (loss) recognized in OCI									9	(14)	(8)
Other Comprehensive Income (Loss) \| Cross Currency Swaps
Derivative [Line Items]
Amount of gain (loss) recognized in OCI									(103)	22	22
Other Comprehensive Income (Loss) \| Foreign Currency Denominated Debt
Derivative [Line Items]
Amount of gain (loss) recognized in OCI									(55)	13	27
Reclassification out of Accumulated Other Comprehensive Income [Member] \| Foreign Exchange Contract
Derivative [Line Items]
Amount of (gain) loss reclassified from OCI into revenue									(4)	7	0
Amount of (gain) loss reclassified from OCI into cost of revenue									1	5	4
Interest Expense \| Cross Currency Swaps
Derivative [Line Items]
Amount of gain (loss) recognized in OCI									$ 19	$ 16	$ 2

Derivative Financial Instruments (Details Textual)	Dec. 31, 2020 USD ($)	Jun. 26, 2020 USD ($)	Dec. 31, 2019 USD ($)	Mar. 11, 2016 EUR (€)
Derivative [Line Items]
Net unrealized gains on cash flow hedges	$ 3,000,000
Face amount		$ 500,000,000
Foreign Exchange Contract
Derivative [Line Items]
Notional amount	0		$ 0
Cross Currency Swap
Derivative [Line Items]
Notional amount	$ 1,249,000,000		714,000,000
Senior Notes Due 2023
Derivative [Line Items]
Interest rate	2.25%
Debt fair value	$ 640,000,000		591,000,000
Senior Notes Due 2023 \| Senior Notes
Derivative [Line Items]
Interest rate				2.25%
Face amount \| €				€ 500,000,000
Designated as Hedging Instrument \| Long-term Debt
Derivative [Line Items]
Derivative, fair value	$ 610,000,000		$ 554,000,000

Derivative Financial Instruments - Fair Value of Foreign Exchange Contracts (Details) - Designated as Hedging Instrument - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Other Noncurrent Assets [Member]
Derivatives, Fair Value [Line Items]
Assets	$ 0	$ 4
Other non-current liabilities
Derivatives, Fair Value [Line Items]
Liabilities	$ (117)	$ (24)

Postretirement Benefit Plans (Summary of Contributions by Year) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Defined Contribution	$ 56	$ 49	$ 39

Postretirement Benefit Plans (Summary of Plan Assets, Benefit Obligation and Funded Status) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 691	$ 605
Projected benefit obligation	(1,199)	(1,008)
Unfunded status of the plans	(508)	(403)
Amounts recognized in the balance sheet
Other non-current assets	27	58
Accrued and other current liabilities	(16)	(16)
Accrued post-retirement benefits	(519)	(445)
Net amount recognized	(508)	(403)
Accumulated other comprehensive income:
Net actuarial losses	(427)	(349)
Prior service credit	6	4
Total	(421)	(345)
Pension
Defined Benefit Plan Disclosure
Fair value of plan assets	691	605
Projected benefit obligation	(1,155)	(959)
Unfunded status of the plans	(464)	(354)
Amounts recognized in the balance sheet
Other non-current assets	27	58
Accrued and other current liabilities	(13)	(13)
Accrued post-retirement benefits	(478)	(399)
Net amount recognized	(464)	(354)
Accumulated other comprehensive income:
Net actuarial losses	(409)	(330)
Prior service credit	(3)	(3)
Total	(412)	(333)
Other Benefits
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Projected benefit obligation	(44)	(49)	$ (52)
Unfunded status of the plans	(44)	(49)
Amounts recognized in the balance sheet
Other non-current assets	0	0
Accrued and other current liabilities	(3)	(3)
Accrued post-retirement benefits	(41)	(46)
Net amount recognized	(44)	(49)
Accumulated other comprehensive income:
Net actuarial losses	(18)	(19)
Prior service credit	9	7
Total	(9)	(12)
Global stock funds/securities
Defined Benefit Plan Disclosure
Fair value of plan assets	118	103
Diversified growth and income funds
Defined Benefit Plan Disclosure
Fair value of plan assets	26	9
Corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	105	91
Government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	47	62
Hedging instruments
Defined Benefit Plan Disclosure
Fair value of plan assets	6	39
Hedge funds
Defined Benefit Plan Disclosure
Fair value of plan assets	1	12
Insurance contracts and other
Defined Benefit Plan Disclosure
Fair value of plan assets	384	16
Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	43	488
Level 1 \| Global stock funds/securities
Defined Benefit Plan Disclosure
Fair value of plan assets	38	90
Level 1 \| Corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	1	86
Level 1 \| Government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	35
Level 1 \| Hedging instruments
Defined Benefit Plan Disclosure
Fair value of plan assets	0	4
Level 1 \| Insurance contracts and other
Defined Benefit Plan Disclosure
Fair value of plan assets
Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	188	35
Level 2 \| Global stock funds/securities
Defined Benefit Plan Disclosure
Fair value of plan assets	66	0
Level 2 \| Corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	97	0
Level 2 \| Government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	19	0
Level 2 \| Hedging instruments
Defined Benefit Plan Disclosure
Fair value of plan assets	6	35
Level 2 \| Insurance contracts and other
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	384	13
Level 3 \| Global stock funds/securities
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Level 3 \| Corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Level 3 \| Government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Level 3 \| Insurance contracts and other
Defined Benefit Plan Disclosure
Fair value of plan assets	384	13
NAV Practical Expedient
Defined Benefit Plan Disclosure
Fair value of plan assets	76	69
NAV Practical Expedient \| Global stock funds/securities
Defined Benefit Plan Disclosure
Fair value of plan assets	14	13
NAV Practical Expedient \| Diversified growth and income funds
Defined Benefit Plan Disclosure
Fair value of plan assets	26	9
NAV Practical Expedient \| Corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	7	5
NAV Practical Expedient \| Government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	28	27
NAV Practical Expedient \| Hedge funds
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 1	12
NAV Practical Expedient \| Insurance contracts and other
Defined Benefit Plan Disclosure
Fair value of plan assets		$ 3

Postretirement Benefit Plans (Summary of Amounts Recognized in Financial Statements) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Change in benefit obligation:
Benefit obligation at beginning of year	$ 1,008
Benefit obligation at end of year	1,199	$ 1,008
Change in plan assets:
Beginning Balance	605
Ending Balance	691	605
Unfunded status of the plans	(508)	(403)
United States
Change in benefit obligation:
Benefit obligation at beginning of year	113	99
Service cost	3	3	$ 3
Interest cost	3	4	4
Benefits paid	(6)	(7)
Actuarial loss (gain)	10	15
Plan amendments, settlements and curtailments	0	0
Foreign currency translation/other	0	(1)
Benefit obligation at end of year	123	113	99
Change in plan assets:
Beginning Balance	105	97
Employer contributions	0	0
Actual return on plan assets	14	17
Benefits paid	(6)	(7)
Plan amendments, settlements and curtailments	0	0
Foreign currency translation/other	0	(2)
Ending Balance	113	105	97
Unfunded status of the plans	(10)	(8)
International defined benefit pension plans
Change in benefit obligation:
Benefit obligation at beginning of year	846	763
Service cost	13	9	9
Interest cost	16	19	19
Benefits paid	(34)	(28)
Actuarial loss (gain)	130	104
Plan amendments, settlements and curtailments	(1)	(23)
Foreign currency translation/other	62	2
Benefit obligation at end of year	1,032	846	763
Change in plan assets:
Beginning Balance	500	470
Employer contributions	24	16
Actual return on plan assets	70	52
Benefits paid	(34)	(28)
Plan amendments, settlements and curtailments	(1)	(23)
Foreign currency translation/other	19	13
Ending Balance	578	500	$ 470
Unfunded status of the plans	$ (454)	$ (346)

Postretirement Benefit Plans (Rollforward of Obligation) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Change in benefit obligation:
Benefit obligation at beginning of year	$ 1,008
Benefit obligation at end of year	1,199	$ 1,008
Other postretirement benefit plans
Change in benefit obligation:
Benefit obligation at beginning of year	49	52
Service cost	0
Interest cost	2	2	$ 2
Benefits paid	(3)	(3)
Actuarial gain/(loss)	1	(2)
Plan Amendment and other	(5)	0
Benefit obligation at end of year	$ 44	$ 49	$ 52

Postretirement Benefit Plans (Summary of Status of Plans) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Projected benefit obligation	$ 1,026	$ 562
Accumulated benefit obligation	983	526
Fair value of plan assets	$ 535	$ 150

Postretirement Benefit Plans (Components of Pension Plans) (Details) - USD ($) $ in Millions		12 Months Ended
	Jul. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss		$ 78	$ 83	$ 37
Prior service cost		5	0	0
Settlement		0	(9)	(1)
Total recognized in comprehensive income		(2)	0	0
Defined benefit pension plans
Net periodic benefit cost:
Net periodic benefit cost		31	19	5
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Change recognized in other comprehensive income		79	69	12
Total recognized in comprehensive income		110	88	17
United States
Net periodic benefit cost:
Service cost		3	3	3
Interest cost		3	4	4
Expected return on plan assets		(7)	(8)	(7)
Amortization of net actuarial loss		3	1	2
Net periodic benefit cost		2	0	2
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss		3	6	1
Amortization of net actuarial loss		(3)	(1)	(2)
Change recognized in other comprehensive income		0	5	(1)
International defined benefit pension plans
Net periodic benefit cost:
Service cost		13	9	9
Interest cost		16	19	19
Expected return on plan assets		(14)	(27)	(35)
Amortization of net actuarial loss		14	9	9
Settlement		0	9	1
Net periodic benefit cost		29	19	3
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss		74	79	35
Prior service cost		0	0	(3)
Amortization of net actuarial loss		(14)	(9)	(9)
Settlement		0	(9)	(1)
Foreign Exchange		19	3	(15)
Change recognized in other comprehensive income		$ 79	$ 64	$ 13
International defined benefit pension plans \| Defined benefit pension plans
Other changes in plan assets and benefit obligations recognized in other comprehensive income
Net loss	$ (11)

Postretirement Benefit Plans (Amounts Recognized in OCI) (Details) - Other Benefits - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure
Service cost	$ 0
Interest cost	2	$ 2	$ 2
Defined Benefit Plan, Amortization of Prior Service Cost (Credit)	3	4	4
Amortization of net actuarial loss	2	2	2
Net periodic benefit cost	$ 1	$ 0	$ 0

Postretirement Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure
Net loss	$ 78	$ 83	$ 37
Total recognized in comprehensive income	(2)	0	0
Other Benefits
Defined Benefit Plan Disclosure
Net loss	1	(2)	1
Defined Benefit Plan, Prior Service Credit	(5)	0	(3)
Amortization of prior service credit	3	4	4
Amortization of net actuarial loss	(2)	(2)	(2)
Change recognized in other comprehensive loss	$ (3)	$ 0	$ 0

Postretirement Benefit Plans (Discount Rates) (Details)	3 Months Ended	12 Months Ended
Postretirement Benefit Plans (Discount Rates) (Details)	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Net Periodic Benefit Cost Assumptions
Discount rate				2.00%	3.00%
Expected long-term rate of return on plan assets	1.00%	3.46%	7.09%	7.34%
United States
Benefit Obligation Assumptions
Discount rate		2.50%	3.25%	4.50%
Net Periodic Benefit Cost Assumptions
Discount rate		3.25%	4.50%	3.75%
Expected long-term rate of return on plan assets		6.50%	7.75%	8.00%
International
Benefit Obligation Assumptions
Discount rate		1.06%	1.80%	2.60%
Rate of future compensation increase		2.79%	2.94%	2.92%
Net Periodic Benefit Cost Assumptions
Discount rate		1.80%	2.60%	2.43%
Expected long-term rate of return on plan assets		2.82%	6.96%	7.23%
Rate of future compensation increase		2.94%	2.92%	2.93%

Postretirement Benefit Plans (Valuation Assumptions) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Expected long-term rate of return on plan assets	1.00%	3.46%	7.09%	7.34%
Actual rate of return (loss) on plan assets		14.06%	12.59%	(3.85%)

Postretirement Benefit Plans (Target Allocations) (Details)	Dec. 31, 2020	Dec. 31, 2019
Equity securities
Defined Benefit Plan Disclosure
Actual allocation of plan assets	20.80%	18.60%
Fixed income
Defined Benefit Plan Disclosure
Actual allocation of plan assets	22.90%	31.70%
Hedge funds
Defined Benefit Plan Disclosure
Actual allocation of plan assets	0.10%	2.00%
Private equity
Defined Benefit Plan Disclosure
Actual allocation of plan assets	0.00%	0.00%
Cash and other
Defined Benefit Plan Disclosure
Actual allocation of plan assets	56.20%	47.70%
Minimum \| Equity securities
Defined Benefit Plan Disclosure
Target allocation percentages	15.00%
Minimum \| Fixed income
Defined Benefit Plan Disclosure
Target allocation percentages	10.00%
Minimum \| Hedge funds
Defined Benefit Plan Disclosure
Target allocation percentages	0.00%
Minimum \| Private equity
Defined Benefit Plan Disclosure
Target allocation percentages	0.00%
Minimum \| Cash and other
Defined Benefit Plan Disclosure
Target allocation percentages	0.00%
Maximum \| Equity securities
Defined Benefit Plan Disclosure
Target allocation percentages	60.00%
Maximum \| Fixed income
Defined Benefit Plan Disclosure
Target allocation percentages	50.00%
Maximum \| Hedge funds
Defined Benefit Plan Disclosure
Target allocation percentages	25.00%
Maximum \| Private equity
Defined Benefit Plan Disclosure
Target allocation percentages	20.00%
Maximum \| Cash and other
Defined Benefit Plan Disclosure
Target allocation percentages	60.00%

Postretirement Benefit Plans (Fair Value of Plan Assets) (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 691	$ 605
Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	43	488
Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	188	35
Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	384	13
NAV Practical Expedient
Defined Benefit Plan Disclosure
Fair value of plan assets	76	69
Global stock funds/securities
Defined Benefit Plan Disclosure
Fair value of plan assets	118	103
Global stock funds/securities \| Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	38	90
Global stock funds/securities \| Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	66	0
Global stock funds/securities \| Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Global stock funds/securities \| NAV Practical Expedient
Defined Benefit Plan Disclosure
Fair value of plan assets	14	13
Diversified growth and income funds
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 26	$ 9
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List]	us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember	us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember
Diversified growth and income funds \| NAV Practical Expedient
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 26	$ 9
Corporate bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	105	91
Corporate bonds \| Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	1	86
Corporate bonds \| Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	97	0
Corporate bonds \| Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Corporate bonds \| NAV Practical Expedient
Defined Benefit Plan Disclosure
Fair value of plan assets	7	5
Government bonds
Defined Benefit Plan Disclosure
Fair value of plan assets	47	62
Government bonds \| Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	0	35
Government bonds \| Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	19	0
Government bonds \| Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Government bonds \| NAV Practical Expedient
Defined Benefit Plan Disclosure
Fair value of plan assets	28	27
Hedging instruments
Defined Benefit Plan Disclosure
Fair value of plan assets	6	39
Hedging instruments \| Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	0	4
Hedging instruments \| Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	6	35
Hedge funds
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 1	$ 12
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List]	us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember	us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember
Hedge funds \| NAV Practical Expedient
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 1	$ 12
Insurance contracts and other
Defined Benefit Plan Disclosure
Fair value of plan assets	384	16
Insurance contracts and other \| Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets
Insurance contracts and other \| Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Insurance contracts and other \| Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	384	13
Insurance contracts and other \| NAV Practical Expedient
Defined Benefit Plan Disclosure
Fair value of plan assets		3
Cash and cash equivalents
Defined Benefit Plan Disclosure
Fair value of plan assets	4	273
Cash and cash equivalents \| Level 1
Defined Benefit Plan Disclosure
Fair value of plan assets	4	273
Cash and cash equivalents \| Level 2
Defined Benefit Plan Disclosure
Fair value of plan assets	0	0
Cash and cash equivalents \| Level 3
Defined Benefit Plan Disclosure
Fair value of plan assets	$ 0	$ 0

Postretirement Benefit Plans (Rollforward of Fair Value Measurements) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Beginning Balance	$ 605
Ending Balance	691	$ 605
Level 3
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Beginning Balance	13
Ending Balance	384	13
Hedge funds
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Beginning Balance	12
Ending Balance	1	12
Other \| Level 3
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Beginning Balance	13	12
Purchases, sales, settlements	314	1
Actual return on plan assets	44
Impact on currency	13	0
Ending Balance	$ 384	$ 13

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

Postretirement Benefit Plans (Future Benefit Payments) (Details) $ in Millions	Dec. 31, 2020 USD ($)
Pension
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
2018	$ 38
2019	39
2020	40
2021	40
2022	42
Years 2022-2026	220
Other Benefits
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
2018	3
2019	3
2020	3
2021	3
2022	3
Years 2022-2026	$ 12

Postretirement Benefit Plans (Details Textual) - USD ($) shares in Thousands			3 Months Ended				12 Months Ended
	Jan. 27, 2020	Jul. 31, 2019	Mar. 31, 2020	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Number of years eligible employees can receive transition credits							5 years
Number of shares held by employees in Employee Stock Ownership Plan							267	302
Charge resulting from curtailment or settlement recorded							$ 0	$ 9,000,000	$ 1,000,000
Prior service credit							(6,000,000)	(4,000,000)
Accumulated benefit obligation							$ 1,107,000,000	919,000,000
Expected long-term return on plan assets							3.24%
Estimated pension plan contributions during the next fiscal quarter							$ 6,000,000
Payments for settlements							5,000,000
Net loss							$ (78,000,000)	$ (83,000,000)	$ (37,000,000)
Expected long-term rate of return on plan assets			1.00%				3.46%	7.09%	7.34%
Fair value of plan assets							$ 691,000,000	$ 605,000,000
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan	$ 336,000,000
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Change Due to Subsequent Interim Measurement, Weighted-Average Expected Long-term Rate of Return on Plan Assets									0.70%	7.25%
Discount rate									2.00%	3.00%
Defined Benefit Plan, Incremental Net Periodic Benefit Cost (Expense)					$ 5,000,000	$ 3,000,000
Pension
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Prior service credit							3,000,000	3,000,000
Employer Contribution to defined benefit Plan							27,000,000
Fair value of plan assets							691,000,000	605,000,000
Other Benefits
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Prior service credit							(9,000,000)	(7,000,000)
Net actuarial losses, before tax							(2,000,000)	(2,000,000)	$ (2,000,000)
Prior service credit, before tax							(3,000,000)	(4,000,000)	(4,000,000)
Employer Contribution to defined benefit Plan								19,000,000
Net loss							(1,000,000)	2,000,000	(1,000,000)
Fair value of plan assets							$ 0	0
Minimum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Employer matching contribution							3.00%
Estimated pension plan contributions during next fiscal year							$ 19,000,000
Maximum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Employer matching contribution							7.00%
Estimated pension plan contributions during next fiscal year							$ 27,000,000
Cash and cash equivalents
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Fair value of plan assets							4,000,000	273,000,000
Hedge funds
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Unfunded commitments							0	0
Fair value of plan assets							1,000,000	12,000,000
International defined benefit pension plans
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Charge resulting from curtailment or settlement recorded							0	9,000,000	1,000,000
Net actuarial losses, before tax							(14,000,000)	(9,000,000)	(9,000,000)
Employer Contribution to defined benefit Plan							24,000,000	16,000,000
Net loss							$ (74,000,000)	$ (79,000,000)	$ (35,000,000)
Expected long-term rate of return on plan assets							2.82%	6.96%	7.23%
Discount rate					2.60%		1.06%	1.80%	2.60%
Fair value of plan assets					$ 470,000,000		$ 578,000,000	$ 500,000,000	$ 470,000,000
Discount rate							1.80%	2.60%	2.43%
International defined benefit pension plans \| Pension
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Payments for settlements				$ 21,000,000
Settlement charge released into other non-operating income (expense), net				$ 8,000,000
Decrease from settlement		$ 37,000,000
Remeasurement due to settlement		26,000,000
Net loss		$ 11,000,000

Share-Based Compensation Plans (Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Stock Options Outstanding, Beginning	2,040
Stock options, Granted	571
Stock options, Exercised	(521)
Stock options, Forfeited	(129)
Stock Options Outstanding, Ending	1,961	2,040
Options exercisable, Shares	1,227
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Outstanding, Beginning	$ 48.56
Weighted Average Exercise Price / Share, Granted	74.60
Weighted Average Exercise Price / Share, Exercised	39.42
Weighted Average Exercise Price / Share, Forfeited	77.52
Weighted Average Exercise Price, Outstanding, Ending	56.66	$ 48.56
Options exercisable, Weighted Average Exercise Price	$ 46.29
Weighted Average Remaining Contractual Term, Outstanding	6 years 4 months 24 days	6 years 3 months 18 days
Aggregate intrinsic value of outstanding stock options	$ 89
Weighed average remaining contractual term, Options exercisable	4 years 10 months 24 days
Aggregate intrinsic value of exercisable stock options	$ 68
Vested and non-vested expected to vest as of December 31, 2020	1,896
Vested and non-vested expected to vest as of December 31, 2020	$ 56.08
Vested and non-vested expected to vest as of December 31, 2020	6 years 3 months 18 days
Aggregate intrinsic value, vested and expected to vest	$ 87

Share-Based Compensation Plans (Fair Value Assumptions) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement [Abstract]
Dividend yield	1.42%	1.30%	1.12%
Volatility	24.16%	24.10%	23.41%
Risk-free interest rate	0.83%	2.55%	2.76%
Expected term (in years)	5 years 9 months 18 days	5 years 4 months 24 days	5 years 1 month 6 days
Weighted-average fair value / share	$ 14.84	$ 17.04	$ 17.80

Share-Based Compensation Plans (Restricted Stock Unit Activity) (Details) - Restricted Stock shares in Thousands	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Summary of restricted stock activity
Outstanding Shares, Beginning \| shares	512
Restricted Stock, Granted \| shares	340
Vested \| shares	(252)
Forfeited \| shares	(63)
Outstanding Shares, Ending \| shares	537
Weighted Average Grant Date Fair Value / Share
Weighted Average Grant Date Fair Value, Outstanding at January 1, 2016 \| $ / shares	$ 68.95
Weighted Average Grant Date Fair Value, Granted \| $ / shares	75.58
Weighted Average Grant Date Fair Value, Vested \| $ / shares	63.91
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares	76.23
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2016 \| $ / shares	$ 74.62

Share-Based Compensation Plans (Performance Share Activity) (Details) - Performance Based Shares shares in Thousands	12 Months Ended
	Dec. 31, 2020 $ / shares shares
Summary of Performance-based shares activity
Vested \| shares	(89)
Weighted Average Grant Date Fair Value / Share
Weighted Average Grant Date Fair Value, Vested \| $ / shares	$ 49.15
ROIC Performance Share Unit Grants
Summary of Performance-based shares activity
Outstanding Shares, Beginning \| shares	225
Granted \| shares	82
Forfeited \| shares	(36)
Outstanding Shares, Ending \| shares	182
Weighted Average Grant Date Fair Value / Share
Weighted Average Grant Date Fair Value, Outstanding at January 1, 2016 \| $ / shares	$ 64.51
Weighted Average Grant Date Fair Value, Granted \| $ / shares	78.90
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares	76.67
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2016 \| $ / shares	$ 76.12
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Adjustments In Period \| shares	0
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Adjustments In Period, Weighted Average Grant Date Fair Value \| $ / shares	$ 0
TSR Performance Share Unit Grants
Summary of Performance-based shares activity
Outstanding Shares, Beginning \| shares	225
Granted \| shares	82
Vested \| shares	(124)
Forfeited \| shares	(36)
Outstanding Shares, Ending \| shares	182
Weighted Average Grant Date Fair Value / Share
Weighted Average Grant Date Fair Value, Outstanding at January 1, 2016 \| $ / shares	$ 75.80
Weighted Average Grant Date Fair Value, Granted \| $ / shares	102.05
Weighted Average Grant Date Fair Value, Vested \| $ / shares	47.81
Weighted Average Grant Date Fair Value, Forfeited \| $ / shares	92.03
Weighted Average Grant Date Fair Value, Outstanding at December 31, 2016 \| $ / shares	$ 96.98
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Adjustments In Period \| shares	35
Share-based Compensation Arrangement By Share-based Payment Award, Equity Instruments Other Than Options, Adjustments In Period, Weighted Average Grant Date Fair Value \| $ / shares	$ 47.81

Share-Based Compensation Plans (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Oct. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 26	$ 29	$ 30
Proceeds from exercise of employee stock options	20	$ 13	$ 7
Tax benefit from the exercise of stock options	$ 13
Shares awarded	571
Shares outstanding	1,961	2,040
Non-vested options outstanding	700	600	700
Weighted average grant date fair value	$ 74.00	$ 69.30	$ 58.00
Aggregate intrinsic value of outstanding stock options	$ 89
Aggregate intrinsic value of exercisable stock options	68
Total intrinsic value of options exercised	20	$ 15	$ 9
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized compensation expense	$ 7
Weighted average period	1 year 10 months 24 days
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized compensation expense	$ 21
Weighted average period	1 year 9 months 18 days
Shares awarded	340
Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized compensation expense	$ 6
Weighted average period	1 year 9 months 18 days
Requisite service periods	3 years
Target payout percentage	100.00%
2011 Omnibus Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares initially available for awards				18,000
Shares available for future grant	5,000

Share-Based Compensation Plans (TSR Fair Value Assumptions) (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	0.83%	2.55%	2.76%
Dividend yield	1.42%	1.30%	1.12%
TSR Performance Share Unit Grants \| Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	22.60%
Risk-free interest rate	1.08%

Capital Stock (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Aug. 24, 2015
Class of Stock [Line Items]
Common Stock, shares authorized	750,000	750,000
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Dividends declared per share (in usd per share)	$ 1.04	$ 0.96	$ 0.84
Shares repurchased	772	536	810
Shares repurchased, value	$ 61	$ 40
2015 Stock Repurchase Program
Class of Stock [Line Items]
Authorized amount				$ 500
Shares repurchased	700	300
Shares repurchased, value	$ 50	$ 25
Remaining authorized repurchase amount	$ 288
Settlement of Employee Tax Withholding Obligations
Class of Stock [Line Items]
Shares repurchased	100	200
Shares repurchased, value	$ 11	$ 15

Capital Stock (Changes in Common Stock Outstanding) (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Changes in Common Stock Outstanding [Roll Forward]
Beginning Balance, January 1	180,140	179,724	179,862
Stock incentive plan net activity	986	952	672
Repurchase of common stock	(772)	(536)	(810)
Ending Balance, December 31	180,354	180,140	179,724

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	$ (375)
Foreign currency translation adjustment	(23)	$ 28	$ (85)
Amortization of prior service credit cost	(3)	(4)	(4)
Income tax expense on changes in post-retirement benefit plans	(19)	(3)	15
Unrealized gain (loss)	9	(14)	(8)
Reclassification of unrealized gain on derivative hedge agreements into revenue	(3)	12	4
Ending Balance	(413)	(375)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(375)	(336)	(210)
Foreign currency translation adjustment	(22)	27	(83)
Income tax impact on foreign currency translation adjustment	39	9	(12)
Amortization of prior service credit cost	(73)	(83)	(36)
Settlement charge released into other non-operating income (expense), net		9
Income tax expense on changes in postretirement benefit plans			15
Income tax expense on changes in post-retirement benefit plans	(19)	(3)	5
Income tax expense on changes in post-retirement benefit plans	18	16
Income tax impact on amortization of postretirement benefit plan items	(3)	(2)	(3)
Unrealized gain (loss)			(8)
Ending Balance	(413)	(375)	(336)
Accumulated Other Comprehensive Income (Loss) \| Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			(17)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(103)	(121)	(15)
Foreign currency translation adjustment	(22)	27	(83)
Income tax impact on foreign currency translation adjustment	39	9	(12)
Ending Balance	(86)	(103)	(121)
Foreign Currency Translation \| Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			(11)
Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(269)	(214)	(198)
Amortization of prior service credit cost	(73)	(83)	(36)
Settlement charge released into other non-operating income (expense), net		9
Income tax expense on changes in postretirement benefit plans			15
Income tax expense on changes in post-retirement benefit plans	(19)	(3)	5
Income tax expense on changes in post-retirement benefit plans	18	16
Income tax impact on amortization of postretirement benefit plan items	(3)	(2)	(3)
Ending Balance	(330)	(269)	(214)
Postretirement Benefit Plans \| Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			(6)
Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance	(3)	(1)	3
Unrealized gain (loss)	9	(14)	(8)
Ending Balance	3	(3)	(1)
Nonoperating Income (Expense) \| Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Income tax impact on amortization of postretirement benefit plan items	16	8	9
Nonoperating Income (Expense) \| Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Income tax impact on amortization of postretirement benefit plan items	16	8	9
Cost of Revenue \| Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Unrealized gain (loss)			4
Reclassification of unrealized gain on derivative hedge agreements into revenue	1	5
Cost of Revenue \| Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Unrealized gain (loss)			$ 4
Reclassification of unrealized gain on derivative hedge agreements into revenue	1	5
Revenue \| Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain on derivative hedge agreements into revenue	(4)	7
Revenue \| Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain on derivative hedge agreements into revenue	$ (4)	7
Cross Currency Swaps \| Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain on derivative hedge agreements into revenue

Commitments and Contingencies (Rent Expense) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 81

Commitments and Contingencies (Rollforward of Warranties) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Warranties
Warranty accrual – January 1	$ 41	$ 60	$ 82
Net charges for product warranties in the period	57	25	20
Settlement of warranty claims	(34)	(42)	(42)
Foreign currency and other	1	(2)	0
Warranty accrual – December 31	$ 65	$ 41	$ 60

Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Loss contingency accrued	$ 6	$ 5
Guarantee amounts	378	340
Estimated environmental matters	3	3
Warranty expense	$ 57	$ 25	$ 20

Related Party Transactions (Details) - Affiliated Entity - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Sales to unconsolidated affiliates	$ 10	$ 10	$ 10
Purchases from unconsolidated affiliates	$ 16	$ 22	$ 22

Segment and Geographic Data (Summary of Operating Results by Segment) (Details) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) Segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments \| Segment									3
Financial information for each reportable segment
Revenue	$ 1,373	$ 1,220	$ 1,160	$ 1,123	$ 1,371	$ 1,296	$ 1,345	$ 1,237	$ 4,876	$ 5,249	$ 5,207
Operating income	$ 179	$ 73	$ 54	$ 61	$ 195	$ 11	$ 171	$ 109	367	486	654
Other non-operating (expense) income, net									(5)	(4)	13
Gain on sale of businesses									0	1	0
Interest Expense									77	67	82
Income before taxes									285	416	585
Depreciation and amortization									251	257	261
Capital expenditures									183	226	237
Water Infrastructure
Financial information for each reportable segment
Revenue									2,079	2,177	2,176
Operating income									318	365	359
Depreciation and amortization									57	61	66
Capital expenditures									48	79	84
Applied Water
Financial information for each reportable segment
Revenue									1,434	1,541	1,534
Operating income									205	241	236
Depreciation and amortization									24	24	22
Capital expenditures									18	19	28
Measurement & Control Solutions
Financial information for each reportable segment
Revenue									1,363	1,531	1,497
Operating income									(106)	(67)	118
Depreciation and amortization									142	144	144
Capital expenditures									90	100	101
Regional Selling Locations
Financial information for each reportable segment
Depreciation and amortization									20	18	20
Capital expenditures									22	19	16
Corporate and other
Financial information for each reportable segment
Operating income									(50)	(53)	(59)
Depreciation and amortization									8	10	9
Capital expenditures									$ 5	$ 9	$ 8

Segment and Geographic Data (Revenue by Segment) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue from External Customer [Line Items]
Revenue	$ 1,373	$ 1,220	$ 1,160	$ 1,123	$ 1,371	$ 1,296	$ 1,345	$ 1,237	$ 4,876	$ 5,249	$ 5,207
Pumps, accessories, parts and service
Revenue from External Customer [Line Items]
Revenue									3,120	3,324	3,322
Other
Revenue from External Customer [Line Items]
Revenue									$ 1,756	$ 1,925	$ 1,885

- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

+ References

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+ Details

Segment and Geographic Data (Assets by Segment (Details) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Total assets for each reportable segment
Total assets	$ 8,750	$ 7,710	$ 7,222
Water Infrastructure
Total assets for each reportable segment
Total assets	1,255	1,268	1,233
Applied Water
Total assets for each reportable segment
Total assets	1,005	1,016	1,051
Measurement & Control Solutions
Total assets for each reportable segment
Total assets	3,345	3,497	3,576
Regional Selling Locations
Total assets for each reportable segment
Total assets	1,413	1,375	1,181
Corporate and other
Total assets for each reportable segment
Total assets	$ 1,732	$ 554	$ 181

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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Segment and Geographic Data (Summary of Revenue and Property, Plant and Equipment by Geographical Location) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 1,373	$ 1,220	$ 1,160	$ 1,123	$ 1,371	$ 1,296	$ 1,345	$ 1,237	$ 4,876	$ 5,249	$ 5,207
Property, plant and equipment	657				658				657	658	656
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									2,297	2,554	2,424
Property, plant and equipment	253				274				253	274	281
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									1,407	1,380	1,449
Property, plant and equipment	277				249				277	249	250
Asia Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									618	659	660
Property, plant and equipment	64				67				64	67	66
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue									554	656	674
Property, plant and equipment	$ 63				$ 68				$ 63	$ 68	$ 59

- Definition

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Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of year	$ 25	$ 25	$ 25
Additions charged to expense	25	3	5
Deductions/other	(12)	(3)	(5)
Balance at end of year	$ 38	$ 25	$ 25

Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Revenue	$ 1,373	$ 1,220	$ 1,160	$ 1,123	$ 1,371	$ 1,296	$ 1,345	$ 1,237	$ 4,876	$ 5,249	$ 5,207
Gross Profit	526	461	434	409	537	509	526	474	1,830	2,046	2,026
Operating income	179	73	54	61	195	11	171	109	367	486	654
Net income	$ 148	$ 37	$ 31	$ 38	$ 118	$ 65	$ 139	$ 79	$ 254	$ 401	$ 549
Basic (in dollars per share)	$ 0.82	$ 0.20	$ 0.17	$ 0.21	$ 0.66	$ 0.36	$ 0.77	$ 0.44	$ 1.41	$ 2.23	$ 3.05
Diluted (in dollars per share)	$ 0.82	$ 0.20	$ 0.17	$ 0.21	$ 0.65	$ 0.36	$ 0.77	$ 0.43	$ 1.40	$ 2.21	$ 3.03
Goodwill, Impairment Loss		$ 58				$ 148			$ 58	$ 148	$ 0

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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