0001524472-22-000034 | 10-Q | XBRL Viewer

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Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2022	Jul. 29, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
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	301 Water Street SE
Entity Address, City or Town	Washington
Entity Address, State or Province	DC
Entity Address, Postal Zip Code	20003
City Area Code	(202)
Local Phone Number	869-9150
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
Entity Common Stock, Shares Outstanding		180,181,765
Entity Shell Company	false
Entity Central Index Key	0001524472
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Common Stock
Document 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, 2.250%
Document Information [Line Items]
Title of 12(b) Security	2.250% Senior Notes due 2023
Trading Symbol	XYL23
Security Exchange Name	NYSE

Condensed Consolidated Income Statements (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Revenues	$ 1,364	$ 1,351	$ 2,636	$ 2,607
Cost of revenue	844	831	1,649	1,597
Gross profit	520	520	987	1,010
Selling, general and administrative expenses	314	304	618	605
Research and development expenses	53	53	105	103
Restructuring and asset impairment charges	7	3	7	9
Operating income	146	160	257	293
Interest expense	12	21	25	42
Other non-operating income (expense), net	2	(3)	1	(1)
Gain from sale of business	0	2	1	2
Income before taxes	136	138	234	252
Income tax expense	24	25	40	52
Net income	$ 112	$ 113	$ 194	$ 200
Earnings per share:
Basic (usd per share)	$ 0.62	$ 0.63	$ 1.07	$ 1.11
Diluted (usd per share)	$ 0.62	$ 0.62	$ 1.07	$ 1.10
Weighted average number of shares:
Basic (in shares)	180,156	180,106	180,193	180,186
Diluted (in shares)	180,650	181,349	180,835	181,411

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 112	$ 113	$ 194	$ 200
Other comprehensive income (loss), before tax:
Foreign currency translation adjustment	(41)	19	(44)	29
Net change in derivative hedge agreements:
Unrealized gain (loss)	(9)	4	(15)	(7)
Amount of loss (gain) reclassified into net income	3	1	5	(2)
Net change in post-retirement benefit plans:
Amortization of prior service credit	(1)	0	(1)	(1)
Amortization of net actuarial loss into net income	4	5	8	11
Other comprehensive income (loss), before tax	(44)	29	(47)	30
Income tax expense (benefit) related to items of other comprehensive income (loss)	27	1	30	15
Other comprehensive income (loss), net of tax	(71)	28	(77)	15
Comprehensive income	$ 41	$ 141	$ 117	$ 215

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 1,113	$ 1,349
Receivables, less allowances for discounts, returns and credit losses of $41 and $44 in 2022 and 2021, respectively	1,024	953
Inventories	852	700
Prepaid and other current assets	185	158
Total current assets	3,174	3,160
Property, plant and equipment, net	608	644
Goodwill	2,714	2,792
Other intangible assets, net	975	1,016
Other non-current assets	718	664
Total assets	8,189	8,276
Current liabilities:
Accounts payable	648	639
Accrued and other current liabilities	782	752
Short-term borrowings and current maturities of long-term debt	521	0
Total current liabilities	1,951	1,391
Long-term debt	1,879	2,440
Accrued post-retirement benefits	408	438
Deferred income tax liabilities	292	287
Other non-current accrued liabilities	456	494
Total liabilities	4,986	5,050
Commitments and contingencies (Note 16)
Stockholders’ equity:
Common Stock	2	2
Capital in excess of par value	2,111	2,089
Retained earnings	2,238	2,154
Treasury stock – at cost 15.8 shares and 15.2 shares in 2022 and 2021, respectively	(708)	(656)
Accumulated other comprehensive loss	(448)	(371)
Total stockholders’ equity	3,195	3,218
Non-controlling interests	8	8
Total equity	3,203	3,226
Total liabilities and stockholders’ equity	$ 8,189	$ 8,276

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowances for discounts, returns and credit losses	$ 41	$ 44
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	750,000,000.0	750,000,000.0
Common Stock, shares issued	195,900,000	195,600,000
Treasury Stock, shares	15,800,000	15,200,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Operating Activities
Net income	$ 194	$ 200
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	56	59
Amortization	62	65
Share-based compensation	18	17
Restructuring and asset impairment charges	7	9
Gain from sale of business	1	2
Other, net	6	6
Payments for restructuring	(5)	(18)
Changes in assets and liabilities (net of acquisitions):
Changes in receivables	(119)	(66)
Changes in inventories	(189)	(89)
Changes in accounts payable	40	36
Other, net	(37)	(11)
Net Cash – Operating activities	32	206
Investing Activities
Capital expenditures	(95)	(80)
Proceeds from sale of business	1	2
Proceeds from the sale of property, plant and equipment	3	0
Cash received from investments	4	0
Cash paid for investments	(7)	0
Other, net	10	9
Net Cash – Investing activities	(84)	(69)
Financing Activities
Repurchase of common stock	(52)	(68)
Proceeds from exercise of employee stock options	3	9
Dividends paid	(110)	(102)
Other, net	1	(1)
Net Cash – Financing activities	(158)	(162)
Effect of exchange rate changes on cash	(26)	(10)
Net change in cash and cash equivalents	(236)	(35)
Cash and cash equivalents at beginning of year	1,349	1,875
Cash and cash equivalents at end of period	1,113	1,840
Cash paid during the period for:
Interest	40	58
Income taxes (net of refunds received)	$ 42	$ 60

Background and Basis of Presentation	6 Months Ended
Background and Basis of Presentation	Jun. 30, 2022
Accounting Policies [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Background 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 17, "Segment Information", to the condensed consolidated financial statements for further segment background information. Except as otherwise indicated or unless the context otherwise requires, "Xylem," "we," "us," "our" and the "Company" refer to Xylem Inc. and its subsidiaries. Basis of Presentation The interim condensed 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. The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair statement of the financial position and results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 Annual Report") in preparing these unaudited condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes included in our 2021 Annual Report. 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 condensed consolidated 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 related macroeconomic disruption. The COVID-19 pandemic and related macroeconomic impacts have also caused increased uncertainty in estimates and assumptions affecting the condensed consolidated financial statements. Actual results could differ from these estimates. 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. For ease of presentation, the condensed consolidated financial statements included herein are described as ending on the last day of the calendar quarter.

Revenue

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

Disaggregation of Revenue

The following table illustrates the sources of revenue:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Revenue from contracts with customers	$	1,312	$	1,302	$	2,534	$	2,513
Lease Revenue	52		49		102		94
Total	$	1,364	$	1,351	$	2,636	$	2,607

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Water Infrastructure
Transport	$	432	$	414	$	825	$	784
Treatment	104		106		194		200

Applied Water*
Commercial Building Services	147		155		308		303
Residential Building Services	79		71		153		135
Industrial Water	204		188		394		369

Measurement & Control Solutions
Water	279		288		544		571
Energy	67		80		116		151



Total	$	1,312	$	1,302	$	2,534	$	2,513

*Items in the prior year footnote disclosures for Applied Water were reclassified to conform to the current classification.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Water Infrastructure
United States	$	165	$	142	$	312	$	265
Western Europe	190		190		376		363
Emerging Markets (a)	120		133		221		255
Other	61		55		110		101

Applied Water
United States	219		202		440		396
Western Europe	101		99		195		191
Emerging Markets (a)	79		81		159		159
Other	31		32		61		61

Measurement & Control Solutions
United States	212		224		393		437
Western Europe	59		69		128		143
Emerging Markets (a)	50		49		94		95
Other	25		26		45		47

Total	$	1,312	$	1,302	$	2,534	$	2,513

(a)Emerging Markets includes results from the following regions: Eastern Europe, the Middle East and Africa, Latin America and Asia Pacific (excluding Japan, Australia and New Zealand, which are presented in "Other")

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 January 1, 2021	$	117	$	166
Additions, net	78		99
Revenue recognized from opening balance	—		(93)
Billings transferred to accounts receivable	(74)		—
Other	—		(1)
Balance at June 30, 2021	$	121	$	171

Balance at January 1, 2022	$	125	$	164
Additions, net	63		97
Revenue recognized from opening balance	—		(75)
Billings transferred to accounts receivable	(61)		—
Other	(4)		(3)
Balance at June 30, 2022	$	123	$	183

(a)Excludes receivable balances, which are disclosed on the Condensed Consolidated Balance Sheets

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 June 30, 2022, the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied for contracts with performance obligations, amount to $498 million. We expect to recognize the majority of revenue upon the completion of satisfying these performance obligations in the following three years. 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.

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+ Details

Restructuring Charges

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring Charges

Restructuring and Asset Impairment Charges

Restructuring

From time to time, the Company will incur costs related to restructuring actions in order to optimize our cost base and more strategically position itself. During the three and six months ended June 30, 2022, we incurred restructuring charges of $6 million. We incurred these charges primarily as a continuation of our efforts 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 across all segments.

During the three and six months ended June 30, 2021, we recognized restructuring charges of $3 million and $8 million, respectively, of which $2 million and $6 million relate to actions previously announced in 2020. These charges included reduction of headcount across all segments and asset impairments within our Measurement & Control Solutions segment.

The following table presents the components of restructuring expense and asset impairment charges:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
By component:
Severance and other charges	$	6	$	4	$	6	$	8

Asset impairment	—		—		—		1

Reversal of restructuring accruals	—		(1)		—		(1)
Total restructuring charges	$	6	$	3	$	6	$	8
Asset impairment charges	1		—		1		1
Total restructuring and asset impairment charges	$	7	$	3	$	7	$	9

By segment:
Water Infrastructure	$	2	$	3	$	2	$	7
Applied Water	1		—		1		1
Measurement & Control Solutions	4		—		4		1

The following table displays a roll-forward of the restructuring accruals, presented on our Condensed Consolidated Balance Sheets within "Accrued and other current liabilities" and "Other non-current accrued liabilities", for the six months ended June 30, 2022 and 2021:


(in millions)	2022		2021
Restructuring accruals - January 1	$	7	$	29
Restructuring charges, net	6		8
Cash payments	(5)		(18)
Asset impairment	—		(1)

Restructuring accruals - June 30	$	8	$	18

By segment:
Water Infrastructure	$	1	$	3
Applied Water	—		1
Measurement & Control Solutions	4		11
Regional selling locations (a)	1		3
Corporate and other	2		—

(a)Regional selling locations consist primarily of selling and marketing organizations and related support services that incurred restructuring expense that 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 2022 and thereafter:


(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Corporate		Total







Actions Commenced in 2022:
Total expected costs	$	2	$	1	$	3	$	—	$	6

Costs incurred during Q1 2022	—		—		—		—		—
Costs incurred during Q2 2022	2		1		2		—		5

Total expected costs remaining	$	—	$	—	$	1	$	—	$	1

Actions Commenced in 2021:
Total expected costs	$	3	$	—	$	1	$	—	$	4
Costs incurred during 2021	3		—		—		—		3
Costs incurred during Q1 2022	—		—		—		—		—
Costs incurred during Q2 2022	—		—		—		—		—

Total expected costs remaining	$	—	$	—	$	1	$	—	$	1

The Water Infrastructure, Applied Water and Measurement & Control Solutions actions commenced in 2022 consist primarily of severance charges. The Water Infrastructure and Applied Water actions are complete and the Measurement & Control Solutions actions are expected to continue through the end of 2022.

The Water Infrastructure and Measurement & Control Solutions actions commenced in 2021 consist primarily of severance charges. The Water Infrastructure actions are complete and the Measurement & Control Solutions actions are expected to continue through the end of 2022.

During the second quarter of 2022, we also incurred charges of $1 million within the Measurement & Control Solutions segment, related to actions commenced prior to 2021.

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our quarterly provision for income taxes is measured using an estimated annual effective tax rate, adjusted for discrete items within periods presented. The comparison of our effective tax rate between periods is significantly impacted by the level and mix of earnings and losses by tax jurisdiction and discrete items. The income tax provision for the three months ended June 30, 2022 was $24 million resulting in an effective tax rate of 17.5%, compared to a $25 million expense resulting in an effective tax rate of 18.5% for the same period in 2021. The income tax provision for the six months ended June 30, 2022 was $40 million resulting in an effective tax rate of 17.0%, compared to a $52 million expense resulting in an effective tax rate of 20.7% for the same period in 2021. The effective tax rate for the three and six month periods ended June 30, 2022 was lower than the U.S. federal statutory rate primarily due to favorable earnings mix and tax settlement benefits, partially offset by the Global Intangible Low Taxed Income ("GILTI") inclusion. Unrecognized Tax Benefits 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. Xylem filed an appeal with the Administrative Court of Vaxjo, which rendered a decision adverse to Xylem in June 2022 for $80 million, consisting of the full tax assessment amount plus penalties and interest. Xylem intends to appeal this decision with the intermediate appellate court, the Administrative Court of Appeal (the “Court”). At this time, management, in consultation with external legal advisors, continues to believe it is more likely than not that Xylem will prevail on the proposed assessment and will continue to vigorously defend our position through the appellate process. The appeal to the Court is expected to take approximately one year; however, there can be no assurance as to the timing of the Court’s decision. Both parties will have the ability to seek appeal of the Court’s decision to the Supreme Administrative Court of Sweden. There can be no assurance that the final determination by the authorities will not be materially different than our position. As of June 30, 2022, we have not recorded any unrecognized tax benefits related to this uncertain tax position.

- 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.

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+ Details

Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

The following is a reconciliation of the shares used in calculating basic and diluted net earnings per share:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income (in millions)	$	112	$	113	$	194	$	200
Shares (in thousands):
Weighted average common shares outstanding	180,123		180,072		180,164		180,162
Add: Participating securities (a)	33		34		29		24
Weighted average common shares outstanding — Basic	180,156		180,106		180,193		180,186
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	438		897		513		845
Dilutive effect of restricted stock units and performance share units	56		346		129		380

Weighted average common shares outstanding — Diluted	180,650		181,349		180,835		181,411
Basic earnings per share	$	0.62	$	0.63	$	1.07	$	1.11
Diluted earnings per share	$	0.62	$	0.62	$	1.07	$	1.10

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

(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 will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance or market conditions at the end of the reporting period. See Note 13, "Share-Based Compensation Plans", to the condensed consolidated financial statements for further detail on the performance share units.


	Three Months Ended		Six Months Ended
	June 30,		June 30,
(in thousands)	2022	2021	2022	2021
Stock options	1,647	1,227	1,491	1,238
Restricted stock units	362	318	346	302
Performance share units	270	345	252	349

Inventories

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories

InventoriesThe components of total inventories are summarized as follows:


(in millions)	June 30, 2022		December 31, 2021
Finished goods	$	318	$	236
Work in process	71		58
Raw materials	463		406
Total inventories	$	852	$	700

Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2022 are as follows:


(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Total
Balance as of January 1, 2022	$	656	$	515	$	1,621	$	2,792
Activity in 2022


Foreign currency and other	(19)		(15)		(44)		(78)
Balance as of June 30, 2022	$	637	$	500	$	1,577	$	2,714

Other Intangible Assets

Information regarding our other intangible assets is as follows:


	June 30, 2022						December 31, 2021
(in millions)	Carrying Amount		Accumulated Amortization		Net Intangibles		Carrying Amount		Accumulated Amortization		Net Intangibles
Customer and distributor relationships	$	914	$	(473)	$	441	$	929	$	(456)	$	473
Proprietary technology and patents	198		(144)		54		201		(142)		59
Trademarks	138		(76)		62		141		(72)		69
Software	525		(274)		251		548		(303)		245
Other	20		(18)		2		21		(18)		3
Indefinite-lived intangibles	165		—		165		167		—		167
Other Intangibles	$	1,960	$	(985)	$	975	$	2,007	$	(991)	$	1,016

Amortization expense related to finite-lived intangible assets was $32 million and $62 million for the three and six-month periods ended June 30, 2022, respectively, and $33 million and $65 million for the three and six month periods ended June 30, 2021, respectively.

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2022

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 also 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 purchased notional amounts totaling $278 million and $301 million as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022, our most significant foreign currency derivatives included contracts to sell U.S. Dollar and purchase Euro, purchase Swedish Krona and sell Euro, sell British Pound and purchase Euro, purchase U.S. Dollar and sell Canadian Dollar, sell Canadian Dollar and purchase Euro, sell Australian Dollar and purchase Euro, and to purchase Polish Zloty and sell Euro. The purchased notional amounts associated with these currency derivatives are $112 million, $83 million, $30 million, $15 million, $14 million, $13 million and $11 million, respectively. As of December 31, 2021 the purchased notional amounts associated with these currency derivatives are $130 million, $88 million, $31 million, $14 million, $14 million, $13 million and $11 million, respectively.

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, third quarter of 2020, and second quarter of 2022 we entered into additional cross-currency swaps. The total notional amount of derivative instruments designated as net investment hedges was $1,587 million and $1,151 million as of June 30, 2022 and December 31, 2021, respectively.

Foreign Currency Denominated Debt

On March 11, 2016, we issued 2.250% Senior Notes of €500 million aggregate principal amount due March 2023.

On June 2, 2022, we de-designated the entirety of the outstanding balance of the €500 million 2.250% Senior Notes, or $533 million from the net investment hedge relationship. Previously, the entirety of the outstanding balance, or $563 million as of December 31, 2021, net of unamortized discount, was designated as a hedge of a net investment in certain foreign subsidiaries.

Fair Value Hedges of Foreign Exchange Risk

The de-designation of our 2.250% Senior Notes of €500 million resulted in exposure to fluctuations in the Euro-U.S. Dollar exchange rate. We use currency forward agreements to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. Currency forward agreements involve fixing the foreign currency exchange rate for delivery of a specified amount of foreign currency on a specified date.

On June 2, 2022, we entered into a currency forward agreement with a total notional amount of €500 million, designating the agreement as a fair value hedge of our Euro denominated notes. As of June 30, 2022, the total notional amount of the fair value hedge was $522 million.

Effectiveness of derivatives designated as fair value 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 Selling, general and administrative Expenses. Changes in the fair value of the 2.250% Senior Notes of €500 million related to spot exchange rates are also recorded in Selling, general and administrative expenses. Changes in the spot-forward differential and counterparty non-performance risk of the derivatives are excluded from the assessment of hedge effectiveness and will be recognized in Accumulated other comprehensive loss (AOCL). Amounts in AOCL are recognized in earnings, specifically Interest expense, using a systematic and rational method over the life of the hedging instrument.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Cash Flow Hedges
Foreign Exchange Contracts
Amount of gain (loss) recognized in OCI	$	(13)	$	4	$	(19)	$	(7)
Amount of (gain) loss reclassified from OCI into Revenue	2		1		4		(1)
Amount of (gain) loss reclassified from OCI into Cost of revenue	1		—		1		(1)

Net Investment Hedges
Cross-Currency Swaps
Amount of gain recognized in OCI	$	93	$	2	$	94	$	32
Amount of income recognized in Interest expense	7		5		13		10
Foreign Currency Denominated Debt
Amount of gain (loss) recognized in OCI	$	23	$	(6)	$	31	$	20

Fair Value Hedges
Foreign Exchange Contracts
Amount of gain recognized in OCI	$	4	$	—	$	4	$	—
Amount of (loss) recognized in Selling, general and administrative expenses	$	(11)	$	—	$	(11)	$	—
Amount recognized in Interest expense	$	(1)	$	—	$	(1)	$	—

As of June 30, 2022, $17 million of net losses on cash flow hedges are expected to be reclassified into earnings in the next 12 months.

As of June 30, 2022, no gains or losses on the net investment hedges are expected to be reclassified into earnings over their duration.

As of June 30, 2022, $4 million of net losses on the fair value hedges are expected to be reclassified into earnings in the next 12 months.

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:


(in millions)	June 30, 2022		December 31, 2021
Derivatives designated as hedging instruments
Assets
Cash Flow Hedges
Prepaid and other current assets	$	1	$	—
Net Investment Hedges
Other non-current assets	$	77	$	8
Liabilities
Cash Flow Hedges
Accrued and other current liabilities	$	(14)	$	(1)
Net Investment Hedges
Other non-current accrued liabilities	$	(1)	$	(26)
Fair Value Hedges
Accrued and other current liabilities	$	(8)	$	—

Our long-term debt, due in 2023, was de-designated from the hedging relationship in June 2022. The fair value of the long-term debt designated as a net investment hedge was $577 million as of December 31, 2021.

Accrued and Other Current Liabilities

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Accrued and Other Current Liabilities

Accrued and Other Current LiabilitiesThe components of total Accrued and other current liabilities are as follows:


(in millions)	June 30, 2022		December 31, 2021
Compensation and other employee-benefits	$	248	$	273
Customer-related liabilities	208		186
Accrued taxes	115		86
Lease liabilities	71		69
Accrued warranty costs	37		40
Other accrued liabilities	103		98
Total accrued and other current liabilities	$	782	$	752

Credit Facilities and Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Credit Facilities and Debt

Total debt outstanding is summarized as follows:


(in millions)	June 30, 2022		December 31, 2021


2.250% Senior Notes due 2023 (a)	522		564
3.250% Senior Notes due 2026 (a)	500		500
1.950% Senior Notes due 2028 (a)	500		500
2.250% Senior Notes due 2031 (a)	500		500
4.375% Senior Notes due 2046 (a)	400		400





Debt issuance costs and unamortized discount (b)	(22)		(24)

Total debt	2,400		2,440
Less: short-term borrowings and current maturities of long-term debt	521		—
Total long-term debt	$	1,879	$	2,440

(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 2023 was $525 million and $577 million as of June 30, 2022 and December 31, 2021, respectively. The fair value of our Senior Notes due 2026 was $487 million and $537 million as of June 30, 2022 and December 31, 2021 respectively. The fair value of our Senior Notes due 2028 was $446 million and $497 million as of June 30, 2022 and December 31, 2021, respectively. The fair value of our Senior Notes due 2031 was $419 million and $496 million as of June 30, 2022 and December 31, 2021, respectively. The fair value of our Senior Notes due 2046 was $367 million and $481 million as of June 30, 2022 and December 31, 2021, respectively.

(b)The debt issuance costs and unamortized discount are recognized as a reduction in the carrying value of the Senior Notes in the Condensed Consolidated Balance Sheets and are being amortized to interest expense in our Condensed 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. As of June 30, 2022, we are in compliance with all covenants for the Green Bond.

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 was 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 June 30, 2022, 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. As of June 30, 2022, the 2019 Credit Facility was undrawn and we are in compliance with all revolver 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 June 30, 2022 and December 31, 2021, 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 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 $522 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 June 30, 2022 and December 31, 2021, none of the Company's Euro commercial paper program was outstanding. We have the ability to continue borrowing under this program going forward in future periods.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

Post-retirement Benefit Plans

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Post-retirement Benefit Plans

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Domestic defined benefit pension plans:
Service cost	$	—	$	—	$	1	$	1
Interest cost	1		1		2		2
Expected return on plan assets	(1)		(1)		(3)		(3)

Amortization of net actuarial loss	—		1		1		2
Net periodic benefit cost	$	—	$	1	$	1	$	2
International defined benefit pension plans:
Service cost	$	4	$	3	$	7	$	7
Interest cost	3		3		7		6
Expected return on plan assets	(3)		(3)		(7)		(7)

Amortization of net actuarial loss	3		4		6		8

Net periodic benefit cost	$	7	$	7	$	13	$	14
Total net periodic benefit cost	$	7	$	8	$	14	$	16

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

The total net periodic benefit cost for other post-retirement employee benefit plans was less than $1 million, including net credits recognized into other comprehensive income of less than $1 million, for both the three and six months ended June 30, 2022 and 2021, respectively.

We contributed $10 million and $12 million to our defined benefit plans during the six months ended June 30, 2022 and 2021, respectively. Additional contributions ranging between approximately $7 million and $13 million are expected to be made during the remainder of 2022.

During the first quarter of 2020, the Company purchased a bulk annuity policy with an insurance company for its largest defined benefit plan in the U.K., 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 2022.

- Definition

The entire disclosure for retirement benefits.

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+ Details

Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Equity

Equity The following table shows the changes in stockholders' equity for the six months ended June 30, 2022:


	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Non-Controlling Interest		Total
Balance at January 1, 2022	$	2	$	2,089	$	2,154	$	(371)	$	(656)	$	8	$	3,226


Net income	—		—		82		—		—		—		82
Other comprehensive loss, net	—		—		—		(6)		—		—		(6)
Dividends declared ($0.30 per share)	—		—		(55)		—		—		—		(55)
Stock incentive plan activity	—		10		—		—		(6)		—		4
Repurchase of common stock	—		—		—		—		(45)		—		(45)
Balance at March 31, 2022	$	2	$	2,099	$	2,181	$	(377)	$	(707)	$	8	$	3,206


Net income	—		—		112		—		—		—		112
Other comprehensive income, net	—		—		—		(71)		—		—		(71)
Dividends declared ($0.30 per share)	—		—		(55)		—		—		—		(55)
Stock incentive plan activity	—		12		—		—		(1)		—		11

Balance at June 30, 2022	$	2	$	2,111	$	2,238	$	(448)	$	(708)	$	8	$	3,203

The following table shows the changes in stockholders' equity for the six months ended June 30, 2021:


	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Non-Controlling Interest		Total
Balance at January 1, 2021	$	2	$	2,037	$	1,930	$	(413)	$	(588)	$	8	$	2,976
Other	—		—		—		—		—		1		1
Net income	—		—		87		—		—		—		87
Other comprehensive loss, net	—		—		—		(13)		—		—		(13)
Dividends declared ($0.28 per share)	—		—		(50)		—		—		—		(50)
Stock incentive plan activity	—		12		—		—		(7)		—		5
Repurchase of common stock	—		—		—		—		(60)		—		(60)
Balance at March 31, 2021	$	2	$	2,049	$	1,967	$	(426)	$	(655)	$	9	$	2,946
Net income	—		—		113		—		—		—		113
Other comprehensive income, net	—		—		—		28		—		—		28
Dividends declared ($0.28 per share)	—		—		(51)		—		—		—		(51)
Stock incentive plan activity	—		14		—		—		(1)		—		13
Balance at June 30, 2021	$	2	$	2,063	$	2,029	$	(398)	$	(656)	$	9	$	3,049

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Share-Based Compensation Plans

6 Months Ended

Jun. 30, 2022

Share-based Payment Arrangement [Abstract]

Share-Based Compensation Plans

Share-based compensation expense was $9 million and $18 million during the three and six months ended June 30, 2022, respectively, and $8 million and $17 million during the three and six months ended June 30, 2021, respectively. The unrecognized compensation expense related to our stock options, restricted stock units and performance share units was $9 million, $35 million and $17 million, respectively, at June 30, 2022 and is expected to be recognized over a weighted average period of 2.0, 2.1 and 2.4 years, respectively. The amount of cash received from the exercise of stock options was $3 million and $9 million for the six months ended June 30, 2022 and 2021, respectively.

Stock Option Grants

The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2022:


	Share units (in thousands)	Weighted Average Exercise Price / Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022	1,827	$	64.12	6.1	102
Granted	306	86.76
Exercised	(58)	48.07
Forfeited and expired	(20)	90.49
Outstanding at June 30, 2022	2,055	$	67.69	6.2	$	32
Options exercisable at June 30, 2022	1,432	$	59.14	5.1	$	30
Vested and expected to vest as of June 30, 2022	1,980	$	66.91	6.1	$	31

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 the six months ended June 30, 2022 was $2.1 million.

Stock Option Fair Value

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 for 2022 grants:


Volatility	26.20		%
Risk-free interest rate	1.59		%
Dividend yield	1.38		%
Expected term (in years)	5.6
Weighted-average fair value / share	$	19.86

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

The following is a summary of restricted stock unit activity for the six months ended June 30, 2022. The fair value of the restricted share unit awards is determined using the closing price of our common stock on date of grant:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2022	484	$	88.47
Granted	323	86.42
Vested	(215)	84.40
Forfeited	(26)	91.34
Outstanding at June 30, 2022	566	$	88.72

ROIC Performance Share Unit Grants

The following is a summary of Return on Invested Capital ("ROIC") performance share unit grants for the six months ended June 30, 2022. The fair value of the ROIC performance share units is equal to the closing share price on the date of the grant:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2022	177	$	84.84
Granted	35	86.76


Forfeited (a)	(59)	75.49
Outstanding at June 30, 2022	153	$	88.89

(a) Includes ROIC performance share unit awards forfeited during the period as a result of the final performance condition not being achieved on vest date.

TSR Performance Share Unit Grants

The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the six months ended June 30, 2022:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2022	177	$	102.96
Granted	70	71.14
Adjustment for Market Condition Achieved (a)	22	89.62
Vested	(75)	89.62
Forfeited	(7)	87.54
Outstanding at June 30, 2022	187	$	100.64

(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 was 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 assumptions for 2022 grants:




Volatility	33.3	%
Risk-free interest rate	1.44	%

Revenue Performance Share Unit Grants

The following is a summary of our Revenue performance share unit grants for the six months ended June 30, 2022:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2022	—	$	—
Granted	35	86.76


Forfeited	(1)	86.76
Outstanding at June 30, 2022	34	$	86.76

The fair value of the Revenue performance share unit awards is determined using the closing price of our common stock on date of grant. The shares will vest contingent upon the achievement of a pre-set, three-year Revenue target.

Capital Stock	6 Months Ended
Capital Stock	Jun. 30, 2022
Equity [Abstract]
Capital Stock	Capital Stock For the three and six months ended June 30, 2022, the Company repurchased less than 0.1 million shares of common stock for $0.5 million and approximately 0.6 million shares of common stock for $52 million, respectively. For the three and six months ended June 30, 2021, the Company repurchased less than 0.1 million shares of common stock for $1 million and approximately 0.7 million shares of common stock for $68 million, respectively Repurchases include both share repurchase programs approved by the Board of Directors and repurchases in relation to settlement of employee tax withholding obligations due as a result of the vesting of restricted stock units. The details 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 stockholders and maintains our focus on growth. There were no shares repurchased under the program for the three months ended June 30, 2022. For the six months ended June 30, 2022, we repurchased 0.5 million shares for approximately $46 million. There were no shares repurchased under the program for the three months ended June 30, 2021. For the six months ended June 30, 2021, we repurchased 0.6 million shares for approximately $60 million. There are up to $182 million in shares that may still be purchased under this plan as of June 30, 2022. Aside from the aforementioned repurchase program, we repurchased less than 0.1 million shares and approximately 0.1 million shares for less than $1 million and approximately $6 million for the three and six months ended June 30, 2022, respectively, in relation to settlement of employee tax withholding obligations due as a result of the vesting of restricted stock units. Likewise, we repurchased less than 0.1 million shares and approximately 0.1 million shares for $1 million and $8 million for the three and six months ended June 30, 2021, respectively.

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive LossThe following table provides the components of Accumulated other comprehensive loss for the six months ended June 30, 2022:


(in millions)	Foreign Currency Translation		Post-retirement Benefit Plans		Derivative Instruments		Total
Balance at January 1, 2022	$	(101)	$	(268)	$	(2)	$	(371)
Foreign currency translation adjustment	(3)		—		—		(3)
Tax on foreign currency translation adjustment	(2)		—		—		(2)


Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	—		4		—		4





Income tax impact on amortization of post-retirement benefit plan items	—		(1)		—		(1)
Unrealized loss on derivative hedge agreements	—		—		(6)		(6)



Reclassification of unrealized gain on foreign exchange agreements into revenue	—		—		2		2



Balance at March 31, 2022	$	(106)	$	(265)	$	(6)	$	(377)
Foreign currency translation adjustment	(41)		—		—		(41)
Tax on foreign currency translation adjustment	(28)		—		—		(28)


Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	—		4		—		4
Income tax impact on amortization of post-retirement benefit plan items	—		(1)		—		(1)





Unrealized gain on derivative hedge agreements	—		—		(9)		(9)
Income tax benefit on unrealized gain on derivative hedge agreements	—		—		1		1
Reclassification of unrealized loss on foreign exchange agreements into revenue	—		—		2		2
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue	—		—		1		1

Balance at June 30, 2022	$	(175)	$	(262)	$	(11)	$	(448)

The following table provides the components of accumulated other comprehensive loss for the six months ended June 30, 2021:


(in millions)	Foreign Currency Translation		Post-retirement Benefit Plans		Derivative Instruments		Total
Balance at January 1, 2021	$	(86)	$	(330)	$	3	$	(413)

Foreign currency translation adjustment	10		—		—		10
Tax on foreign currency translation adjustment	(14)		—		—		(14)


Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	—		5		—		5


Income tax impact on amortization of post-retirement benefit plan items	—		(1)		—		(1)
Unrealized loss on derivative hedge agreements	—		—		(11)		(11)
Income tax benefit on unrealized loss on derivative hedge agreements	—		—		1		1

Reclassification of unrealized gain on foreign exchange agreements into revenue	—		—		(2)		(2)
Reclassification of unrealized gain on foreign exchange agreements into cost of revenue	—		—		(1)		(1)


Balance at March 31, 2021	$	(90)	$	(326)	$	(10)	$	(426)

Foreign currency translation adjustment	19		—		—		19
Tax on foreign currency translation adjustment	1		—		—		1

Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	—		5		—		5

Income tax impact on amortization of post-retirement benefit plan items	—		(2)		—		(2)
Unrealized gain on derivative hedge agreements	—		—		4		4

Reclassification of unrealized loss on foreign exchange agreements into revenue	—		—		1		1

Balance at June 30, 2021	$	(70)	$	(323)	$	(5)	$	(398)

Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

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.

See Note 4, "Income Taxes", of our condensed 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 $4 million as of June 30, 2022 and December 31, 2021 for these general legal matters.

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 June 30, 2022 and December 31, 2021, the amount of surety bonds, bank guarantees, insurance letters of credit, stand-by letters of credit as well as revenue and customs guarantees was $447 million and $415 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, 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 $4 million and $3 million as of June 30, 2022 and December 31, 2021 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. The table below provides changes in the combined current and non-current product warranty accruals over each period:


(in millions)	2022		2021
Warranty accrual – January 1	$	57	$	65
Net charges for product warranties in the period	11		17
Settlement of warranty claims	(12)		(18)
Foreign currency and other	(2)		(1)
Warranty accrual - June 30	$	54	$	63

Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Our business has three reportable segments: Water Infrastructure, Applied Water and Measurement & Control Solutions. 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 section of Note 1 in the 2021 Annual Report. The following table contains financial information for each reportable segment:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Revenue:
Water Infrastructure	$	589	$	569	$	1,122	$	1,078
Applied Water	429		414		854		807
Measurement & Control Solutions	346		368		660		722
Total	$	1,364	$	1,351	$	2,636	$	2,607
Operating Income (Loss):
Water Infrastructure	$	108	$	93	$	182	$	164
Applied Water	61		64		120		130
Measurement & Control Solutions	(5)		13		(15)		22
Corporate and other	(18)		(10)		(30)		(23)
Total operating income	$	146	$	160	$	257	$	293
Interest expense	$	12	$	21	$	25	$	42
Other non-operating income, net	2		(3)		1		(1)
Gain from sale of business	—		2		1		2
Income before taxes	$	136	$	138	$	234	$	252
Depreciation and Amortization:
Water Infrastructure	$	14	$	13	$	27	$	26
Applied Water	5		6		10		12
Measurement & Control Solutions	34		37		68		73
Regional selling locations (a)	4		4		9		9
Corporate and other	2		2		4		4
Total	$	59	$	62	$	118	$	124
Capital Expenditures:
Water Infrastructure	$	13	$	13	$	30	$	24
Applied Water	5		3		8		7
Measurement & Control Solutions	21		20		43		41
Regional selling locations (b)	5		5		10		8
Corporate and other	2		—		4		—
Total	$	46	$	41	$	95	$	80

(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.

- 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
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+ Details

Background and Basis of Presentation (Policies)	6 Months Ended
Background and Basis of Presentation (Policies)	Jun. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The interim condensed 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. The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair statement of the financial position and results of operations for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2021 ("2021 Annual Report") in preparing these unaudited condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes included in our 2021 Annual Report. 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 condensed consolidated 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 related macroeconomic disruption. The COVID-19 pandemic and related macroeconomic impacts have also caused increased uncertainty in estimates and assumptions affecting the condensed consolidated financial statements. Actual results could differ from these estimates. 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. For ease of presentation, the condensed consolidated financial statements included herein are described as ending on the last day of the calendar quarter.

Revenue (Tables)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table illustrates the sources of revenue:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Revenue from contracts with customers	$	1,312	$	1,302	$	2,534	$	2,513
Lease Revenue	52		49		102		94
Total	$	1,364	$	1,351	$	2,636	$	2,607

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Water Infrastructure
Transport	$	432	$	414	$	825	$	784
Treatment	104		106		194		200

Applied Water*
Commercial Building Services	147		155		308		303
Residential Building Services	79		71		153		135
Industrial Water	204		188		394		369

Measurement & Control Solutions
Water	279		288		544		571
Energy	67		80		116		151



Total	$	1,312	$	1,302	$	2,534	$	2,513

*Items in the prior year footnote disclosures for Applied Water were reclassified to conform to the current classification.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Water Infrastructure
United States	$	165	$	142	$	312	$	265
Western Europe	190		190		376		363
Emerging Markets (a)	120		133		221		255
Other	61		55		110		101

Applied Water
United States	219		202		440		396
Western Europe	101		99		195		191
Emerging Markets (a)	79		81		159		159
Other	31		32		61		61

Measurement & Control Solutions
United States	212		224		393		437
Western Europe	59		69		128		143
Emerging Markets (a)	50		49		94		95
Other	25		26		45		47

Total	$	1,312	$	1,302	$	2,534	$	2,513

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 January 1, 2021	$	117	$	166
Additions, net	78		99
Revenue recognized from opening balance	—		(93)
Billings transferred to accounts receivable	(74)		—
Other	—		(1)
Balance at June 30, 2021	$	121	$	171

Balance at January 1, 2022	$	125	$	164
Additions, net	63		97
Revenue recognized from opening balance	—		(75)
Billings transferred to accounts receivable	(61)		—
Other	(4)		(3)
Balance at June 30, 2022	$	123	$	183

(a)Excludes receivable balances, which are disclosed on the Condensed Consolidated Balance Sheets

Restructuring Charges (Tables)

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Components of restructuring and asset impairment charges

The following table presents the components of restructuring expense and asset impairment charges:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
By component:
Severance and other charges	$	6	$	4	$	6	$	8

Asset impairment	—		—		—		1

Reversal of restructuring accruals	—		(1)		—		(1)
Total restructuring charges	$	6	$	3	$	6	$	8
Asset impairment charges	1		—		1		1
Total restructuring and asset impairment charges	$	7	$	3	$	7	$	9

By segment:
Water Infrastructure	$	2	$	3	$	2	$	7
Applied Water	1		—		1		1
Measurement & Control Solutions	4		—		4		1

Restructuring Accruals


(in millions)	2022		2021
Restructuring accruals - January 1	$	7	$	29
Restructuring charges, net	6		8
Cash payments	(5)		(18)
Asset impairment	—		(1)

Restructuring accruals - June 30	$	8	$	18

By segment:
Water Infrastructure	$	1	$	3
Applied Water	—		1
Measurement & Control Solutions	4		11
Regional selling locations (a)	1		3
Corporate and other	2		—

Expected Restructuring Costs

The following table presents expected restructuring spend in 2022 and thereafter:


(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Corporate		Total







Actions Commenced in 2022:
Total expected costs	$	2	$	1	$	3	$	—	$	6

Costs incurred during Q1 2022	—		—		—		—		—
Costs incurred during Q2 2022	2		1		2		—		5

Total expected costs remaining	$	—	$	—	$	1	$	—	$	1

Actions Commenced in 2021:
Total expected costs	$	3	$	—	$	1	$	—	$	4
Costs incurred during 2021	3		—		—		—		3
Costs incurred during Q1 2022	—		—		—		—		—
Costs incurred during Q2 2022	—		—		—		—		—

Total expected costs remaining	$	—	$	—	$	1	$	—	$	1

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2022

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 net earnings per share:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net income (in millions)	$	112	$	113	$	194	$	200
Shares (in thousands):
Weighted average common shares outstanding	180,123		180,072		180,164		180,162
Add: Participating securities (a)	33		34		29		24
Weighted average common shares outstanding — Basic	180,156		180,106		180,193		180,186
Plus incremental shares from assumed conversions: (b)
Dilutive effect of stock options	438		897		513		845
Dilutive effect of restricted stock units and performance share units	56		346		129		380

Weighted average common shares outstanding — Diluted	180,650		181,349		180,835		181,411
Basic earnings per share	$	0.62	$	0.63	$	1.07	$	1.11
Diluted earnings per share	$	0.62	$	0.62	$	1.07	$	1.10


	Three Months Ended		Six Months Ended
	June 30,		June 30,
(in thousands)	2022	2021	2022	2021
Stock options	1,647	1,227	1,491	1,238
Restricted stock units	362	318	346	302
Performance share units	270	345	252	349

Inventories (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories


(in millions)	June 30, 2022		December 31, 2021
Finished goods	$	318	$	236
Work in process	71		58
Raw materials	463		406
Total inventories	$	852	$	700

Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2022

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 for the six months ended June 30, 2022 are as follows:


(in millions)	Water Infrastructure		Applied Water		Measurement & Control Solutions		Total
Balance as of January 1, 2022	$	656	$	515	$	1,621	$	2,792
Activity in 2022


Foreign currency and other	(19)		(15)		(44)		(78)
Balance as of June 30, 2022	$	637	$	500	$	1,577	$	2,714

Other Intangible Assets

Information regarding our other intangible assets is as follows:


	June 30, 2022						December 31, 2021
(in millions)	Carrying Amount		Accumulated Amortization		Net Intangibles		Carrying Amount		Accumulated Amortization		Net Intangibles
Customer and distributor relationships	$	914	$	(473)	$	441	$	929	$	(456)	$	473
Proprietary technology and patents	198		(144)		54		201		(142)		59
Trademarks	138		(76)		62		141		(72)		69
Software	525		(274)		251		548		(303)		245
Other	20		(18)		2		21		(18)		3
Indefinite-lived intangibles	165		—		165		167		—		167
Other Intangibles	$	1,960	$	(985)	$	975	$	2,007	$	(991)	$	1,016

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

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 Condensed Consolidated Income Statements and Statements of Comprehensive Income:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Cash Flow Hedges
Foreign Exchange Contracts
Amount of gain (loss) recognized in OCI	$	(13)	$	4	$	(19)	$	(7)
Amount of (gain) loss reclassified from OCI into Revenue	2		1		4		(1)
Amount of (gain) loss reclassified from OCI into Cost of revenue	1		—		1		(1)

Net Investment Hedges
Cross-Currency Swaps
Amount of gain recognized in OCI	$	93	$	2	$	94	$	32
Amount of income recognized in Interest expense	7		5		13		10
Foreign Currency Denominated Debt
Amount of gain (loss) recognized in OCI	$	23	$	(6)	$	31	$	20

Fair Value Hedges
Foreign Exchange Contracts
Amount of gain recognized in OCI	$	4	$	—	$	4	$	—
Amount of (loss) recognized in Selling, general and administrative expenses	$	(11)	$	—	$	(11)	$	—
Amount recognized in Interest expense	$	(1)	$	—	$	(1)	$	—

Fair values of foreign exchange contracts

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


(in millions)	June 30, 2022		December 31, 2021
Derivatives designated as hedging instruments
Assets
Cash Flow Hedges
Prepaid and other current assets	$	1	$	—
Net Investment Hedges
Other non-current assets	$	77	$	8
Liabilities
Cash Flow Hedges
Accrued and other current liabilities	$	(14)	$	(1)
Net Investment Hedges
Other non-current accrued liabilities	$	(1)	$	(26)
Fair Value Hedges
Accrued and other current liabilities	$	(8)	$	—

Accrued and Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Payables and Accruals [Abstract]

Accrued and Other Current Liabilities

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


(in millions)	June 30, 2022		December 31, 2021
Compensation and other employee-benefits	$	248	$	273
Customer-related liabilities	208		186
Accrued taxes	115		86
Lease liabilities	71		69
Accrued warranty costs	37		40
Other accrued liabilities	103		98
Total accrued and other current liabilities	$	782	$	752

Credit Facilities and Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Schedule of Credit Facilities and Long-Term Debt

Total debt outstanding is summarized as follows:


(in millions)	June 30, 2022		December 31, 2021


2.250% Senior Notes due 2023 (a)	522		564
3.250% Senior Notes due 2026 (a)	500		500
1.950% Senior Notes due 2028 (a)	500		500
2.250% Senior Notes due 2031 (a)	500		500
4.375% Senior Notes due 2046 (a)	400		400





Debt issuance costs and unamortized discount (b)	(22)		(24)

Total debt	2,400		2,440
Less: short-term borrowings and current maturities of long-term debt	521		—
Total long-term debt	$	1,879	$	2,440

- 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.

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+ Details

Post-retirement Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

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

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Domestic defined benefit pension plans:
Service cost	$	—	$	—	$	1	$	1
Interest cost	1		1		2		2
Expected return on plan assets	(1)		(1)		(3)		(3)

Amortization of net actuarial loss	—		1		1		2
Net periodic benefit cost	$	—	$	1	$	1	$	2
International defined benefit pension plans:
Service cost	$	4	$	3	$	7	$	7
Interest cost	3		3		7		6
Expected return on plan assets	(3)		(3)		(7)		(7)

Amortization of net actuarial loss	3		4		6		8

Net periodic benefit cost	$	7	$	7	$	13	$	14
Total net periodic benefit cost	$	7	$	8	$	14	$	16

Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of Stockholders Equity

The following table shows the changes in stockholders' equity for the six months ended June 30, 2022:


	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Non-Controlling Interest		Total
Balance at January 1, 2022	$	2	$	2,089	$	2,154	$	(371)	$	(656)	$	8	$	3,226


Net income	—		—		82		—		—		—		82
Other comprehensive loss, net	—		—		—		(6)		—		—		(6)
Dividends declared ($0.30 per share)	—		—		(55)		—		—		—		(55)
Stock incentive plan activity	—		10		—		—		(6)		—		4
Repurchase of common stock	—		—		—		—		(45)		—		(45)
Balance at March 31, 2022	$	2	$	2,099	$	2,181	$	(377)	$	(707)	$	8	$	3,206


Net income	—		—		112		—		—		—		112
Other comprehensive income, net	—		—		—		(71)		—		—		(71)
Dividends declared ($0.30 per share)	—		—		(55)		—		—		—		(55)
Stock incentive plan activity	—		12		—		—		(1)		—		11

Balance at June 30, 2022	$	2	$	2,111	$	2,238	$	(448)	$	(708)	$	8	$	3,203

The following table shows the changes in stockholders' equity for the six months ended June 30, 2021:


	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Non-Controlling Interest		Total
Balance at January 1, 2021	$	2	$	2,037	$	1,930	$	(413)	$	(588)	$	8	$	2,976
Other	—		—		—		—		—		1		1
Net income	—		—		87		—		—		—		87
Other comprehensive loss, net	—		—		—		(13)		—		—		(13)
Dividends declared ($0.28 per share)	—		—		(50)		—		—		—		(50)
Stock incentive plan activity	—		12		—		—		(7)		—		5
Repurchase of common stock	—		—		—		—		(60)		—		(60)
Balance at March 31, 2021	$	2	$	2,049	$	1,967	$	(426)	$	(655)	$	9	$	2,946
Net income	—		—		113		—		—		—		113
Other comprehensive income, net	—		—		—		28		—		—		28
Dividends declared ($0.28 per share)	—		—		(51)		—		—		—		(51)
Stock incentive plan activity	—		14		—		—		(1)		—		13
Balance at June 30, 2021	$	2	$	2,063	$	2,029	$	(398)	$	(656)	$	9	$	3,049

Share-Based Compensation Plans (Tables)

6 Months Ended

Jun. 30, 2022

Share-based Payment Arrangement [Abstract]

Summary of restricted stock activity


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2022	484	$	88.47
Granted	323	86.42
Vested	(215)	84.40
Forfeited	(26)	91.34
Outstanding at June 30, 2022	566	$	88.72

Summary of performance based share grants


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2022	177	$	84.84
Granted	35	86.76


Forfeited (a)	(59)	75.49
Outstanding at June 30, 2022	153	$	88.89

(a) Includes ROIC performance share unit awards forfeited during the period as a result of the final performance condition not being achieved on vest date.

TSR Performance Share Unit Grants

The following is a summary of our Total Shareholder Return ("TSR") performance share unit grants for the six months ended June 30, 2022:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2022	177	$	102.96
Granted	70	71.14
Adjustment for Market Condition Achieved (a)	22	89.62
Vested	(75)	89.62
Forfeited	(7)	87.54
Outstanding at June 30, 2022	187	$	100.64

Summary of the changes in outstanding stock options

The following is a summary of the changes in outstanding stock options for the six months ended June 30, 2022:


	Share units (in thousands)	Weighted Average Exercise Price / Share		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022	1,827	$	64.12	6.1	102
Granted	306	86.76
Exercised	(58)	48.07
Forfeited and expired	(20)	90.49
Outstanding at June 30, 2022	2,055	$	67.69	6.2	$	32
Options exercisable at June 30, 2022	1,432	$	59.14	5.1	$	30
Vested and expected to vest as of June 30, 2022	1,980	$	66.91	6.1	$	31

Stock option valuation assumptions

The following are weighted-average assumptions for 2022 grants:


Volatility	26.20		%
Risk-free interest rate	1.59		%
Dividend yield	1.38		%
Expected term (in years)	5.6
Weighted-average fair value / share	$	19.86

Performance-based shares valuation assumptions




Volatility	33.3	%
Risk-free interest rate	1.44	%

Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option

The following is a summary of our Revenue performance share unit grants for the six months ended June 30, 2022:


	Share units (in thousands)	Weighted Average Grant Date Fair Value / Share
Outstanding at January 1, 2022	—	$	—
Granted	35	86.76


Forfeited	(1)	86.76
Outstanding at June 30, 2022	34	$	86.76

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table provides the components of Accumulated other comprehensive loss for the six months ended June 30, 2022:


(in millions)	Foreign Currency Translation		Post-retirement Benefit Plans		Derivative Instruments		Total
Balance at January 1, 2022	$	(101)	$	(268)	$	(2)	$	(371)
Foreign currency translation adjustment	(3)		—		—		(3)
Tax on foreign currency translation adjustment	(2)		—		—		(2)


Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	—		4		—		4





Income tax impact on amortization of post-retirement benefit plan items	—		(1)		—		(1)
Unrealized loss on derivative hedge agreements	—		—		(6)		(6)



Reclassification of unrealized gain on foreign exchange agreements into revenue	—		—		2		2



Balance at March 31, 2022	$	(106)	$	(265)	$	(6)	$	(377)
Foreign currency translation adjustment	(41)		—		—		(41)
Tax on foreign currency translation adjustment	(28)		—		—		(28)


Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	—		4		—		4
Income tax impact on amortization of post-retirement benefit plan items	—		(1)		—		(1)





Unrealized gain on derivative hedge agreements	—		—		(9)		(9)
Income tax benefit on unrealized gain on derivative hedge agreements	—		—		1		1
Reclassification of unrealized loss on foreign exchange agreements into revenue	—		—		2		2
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue	—		—		1		1

Balance at June 30, 2022	$	(175)	$	(262)	$	(11)	$	(448)

The following table provides the components of accumulated other comprehensive loss for the six months ended June 30, 2021:


(in millions)	Foreign Currency Translation		Post-retirement Benefit Plans		Derivative Instruments		Total
Balance at January 1, 2021	$	(86)	$	(330)	$	3	$	(413)

Foreign currency translation adjustment	10		—		—		10
Tax on foreign currency translation adjustment	(14)		—		—		(14)


Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	—		5		—		5


Income tax impact on amortization of post-retirement benefit plan items	—		(1)		—		(1)
Unrealized loss on derivative hedge agreements	—		—		(11)		(11)
Income tax benefit on unrealized loss on derivative hedge agreements	—		—		1		1

Reclassification of unrealized gain on foreign exchange agreements into revenue	—		—		(2)		(2)
Reclassification of unrealized gain on foreign exchange agreements into cost of revenue	—		—		(1)		(1)


Balance at March 31, 2021	$	(90)	$	(326)	$	(10)	$	(426)

Foreign currency translation adjustment	19		—		—		19
Tax on foreign currency translation adjustment	1		—		—		1

Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	—		5		—		5

Income tax impact on amortization of post-retirement benefit plan items	—		(2)		—		(2)
Unrealized gain on derivative hedge agreements	—		—		4		4

Reclassification of unrealized loss on foreign exchange agreements into revenue	—		—		1		1

Balance at June 30, 2021	$	(70)	$	(323)	$	(5)	$	(398)

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Changes in product warranty accrual


(in millions)	2022		2021
Warranty accrual – January 1	$	57	$	65
Net charges for product warranties in the period	11		17
Settlement of warranty claims	(12)		(18)
Foreign currency and other	(2)		(1)
Warranty accrual - June 30	$	54	$	63

Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Financial information for each reportable segment


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions)	2022		2021		2022		2021
Revenue:
Water Infrastructure	$	589	$	569	$	1,122	$	1,078
Applied Water	429		414		854		807
Measurement & Control Solutions	346		368		660		722
Total	$	1,364	$	1,351	$	2,636	$	2,607
Operating Income (Loss):
Water Infrastructure	$	108	$	93	$	182	$	164
Applied Water	61		64		120		130
Measurement & Control Solutions	(5)		13		(15)		22
Corporate and other	(18)		(10)		(30)		(23)
Total operating income	$	146	$	160	$	257	$	293
Interest expense	$	12	$	21	$	25	$	42
Other non-operating income, net	2		(3)		1		(1)
Gain from sale of business	—		2		1		2
Income before taxes	$	136	$	138	$	234	$	252
Depreciation and Amortization:
Water Infrastructure	$	14	$	13	$	27	$	26
Applied Water	5		6		10		12
Measurement & Control Solutions	34		37		68		73
Regional selling locations (a)	4		4		9		9
Corporate and other	2		2		4		4
Total	$	59	$	62	$	118	$	124
Capital Expenditures:
Water Infrastructure	$	13	$	13	$	30	$	24
Applied Water	5		3		8		7
Measurement & Control Solutions	21		20		43		41
Regional selling locations (b)	5		5		10		8
Corporate and other	2		—		4		—
Total	$	46	$	41	$	95	$	80

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

Background and Basis of Presentation (Details)	6 Months Ended
Background and Basis of Presentation (Details)	Jun. 30, 2022
Accounting Policies [Abstract]
Number of operating segment	3

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 1,312	$ 1,302	$ 2,534	$ 2,513
Lease Revenue	52	49	102	94
Total	1,364	1,351	2,636	2,607
Water Infrastructure
Disaggregation of Revenue [Line Items]
Total	589	569	1,122	1,078
Water Infrastructure \| United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	165	142	312	265
Water Infrastructure \| Western Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	190	190	376	363
Water Infrastructure \| Emerging Markets
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	120	133	221	255
Water Infrastructure \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	61	55	110	101
Water Infrastructure \| Transport
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	432	414	825	784
Water Infrastructure \| Treatment
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	104	106	194	200
Applied Water
Disaggregation of Revenue [Line Items]
Total	429	414	854	807
Applied Water \| United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	219	202	440	396
Applied Water \| Western Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	101	99	195	191
Applied Water \| Emerging Markets
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	79	81	159	159
Applied Water \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	31	32	61	61
Applied Water \| Commercial Building Services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	147	155	308	303
Applied Water \| Residential Building Services
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	79	71	153	135
Applied Water \| Industrial Water
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	204	188	394	369
Measurement & Control Solutions
Disaggregation of Revenue [Line Items]
Total	346	368	660	722
Measurement & Control Solutions \| United States
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	212	224	393	437
Measurement & Control Solutions \| Western Europe
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	59	69	128	143
Measurement & Control Solutions \| Emerging Markets
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	50	49	94	95
Measurement & Control Solutions \| Other
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	25	26	45	47
Measurement & Control Solutions \| Water
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	279	288	544	571
Measurement & Control Solutions \| Energy
Disaggregation of Revenue [Line Items]
Revenue from contracts with customers	$ 67	$ 80	$ 116	$ 151

Revenue (Details) - USD ($) $ in Millions	6 Months Ended
Revenue (Details) - USD ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021
Change in Contract with Customer, Asset [Abstract]
Beginning balance	$ 117	$ 125
Additions, net	78	63
Billings transferred to accounts receivable	(74)	(61)
Other	0	(4)
Ending balance	121	123
Change in Contract with Customer, Liability [Abstract]
Beginning balance	166	164
Additions, net	99	97
Revenue recognized from opening balance	(93)	(75)
Other	(1)	(3)
Ending balance	$ 171	$ 183

Revenue (Narrative) (Details) $ in Millions	Jun. 30, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 498
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Expected timing of recognition	3 years

Restructuring Charges (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring cost incurred			$ 3		$ 8
Restructuring charges	$ 6		3	$ 6	8
Reversal of restructuring accruals	0		(1)	0	(1)
Measurement & Control Solutions
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4		0	4	1
2020 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring cost incurred	5	$ 0	$ 2		$ 6
2019 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring cost incurred	0	$ 0				$ 3
2019 Plan \| Measurement & Control Solutions
Restructuring Cost and Reserve [Line Items]
Reversal of restructuring accruals	1
Maximum
Restructuring Cost and Reserve [Line Items]
Restructuring cost incurred	$ 6			$ 6

Restructuring Charges (Restructuring Charges) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Restructuring Cost and Impairment Charge
Severance and other charges	$ 6	$ 4	$ 6	$ 8
Asset impairment	0	0	0	1
Reversal of restructuring accruals	0	(1)	0	(1)
Restructuring charges	6	3	6	8
Asset impairment charges	1	0	1	1
Total restructuring and asset impairment charges	7	3	7	9
Water Infrastructure
Restructuring Cost and Impairment Charge
Restructuring charges	2	3	2	7
Applied Water
Restructuring Cost and Impairment Charge
Restructuring charges	1	0	1	1
Measurement & Control Solutions
Restructuring Cost and Impairment Charge
Restructuring charges	$ 4	$ 0	$ 4	$ 1

Restructuring Charges (Accrual Rollfoward) (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Restructuring Reserve [Roll Forward]

Restructuring accruals - January 1

$ 7

$ 29

Restructuring charges, net

$ 6

$ 3

Cash payments

(5)

(18)

Asset impairment

(1)

Restructuring accruals - June 30

Water Infrastructure

Restructuring Reserve [Roll Forward]

Restructuring charges, net

Restructuring accruals - June 30

Applied Water

Restructuring Reserve [Roll Forward]

Restructuring charges, net

Restructuring accruals - June 30

Measurement & Control Solutions

Restructuring Reserve [Roll Forward]

Restructuring charges, net

Restructuring accruals - June 30

Regional Selling Locations

Restructuring Reserve [Roll Forward]

Restructuring accruals - June 30

^[1]

Corporate and Other

Restructuring Reserve [Roll Forward]

Restructuring accruals - June 30

$ 2

$ 0

$ 2

$ 0

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

Restructuring Charges (Estimated Restructuring Costs) (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended	12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring costs incurred during period			$ 3	$ 8
2020 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	$ 6
Restructuring costs incurred during period	5	$ 0	$ 2	$ 6
Total expected costs remaining	1
2019 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs					$ 4
Restructuring costs incurred during period	0	0			3
Total expected costs remaining					1
Operating Segments \| Water Infrastructure \| 2020 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	2
Restructuring costs incurred during period	2	0
Total expected costs remaining	0
Operating Segments \| Water Infrastructure \| 2019 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs					3
Restructuring costs incurred during period	0	0			3
Total expected costs remaining					0
Operating Segments \| Applied Water \| 2020 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	1
Restructuring costs incurred during period	1	0
Total expected costs remaining	0
Operating Segments \| Applied Water \| 2019 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs					0
Restructuring costs incurred during period	0	0			0
Total expected costs remaining					0
Operating Segments \| Measurement & Control Solutions \| 2020 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	3
Restructuring costs incurred during period	2	0
Total expected costs remaining	1
Operating Segments \| Measurement & Control Solutions \| 2019 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs					1
Restructuring costs incurred during period	0	0			0
Total expected costs remaining					1
Corporate \| 2020 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs	0
Restructuring costs incurred during period	0	0
Total expected costs remaining	0
Corporate \| 2019 Plan
Restructuring Cost and Reserve [Line Items]
Total expected costs					0
Restructuring costs incurred during period	$ 0	$ 0			0
Total expected costs remaining					$ 0

Income Taxes (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Income Taxes (Textuals) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income tax provision	$ 24	$ 25	$ 40	$ 52
Effective tax rate	17.50%	18.50%	17.00%	20.70%
Assessment for tax, penalties and interest			$ 80

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Earnings Per Share (Calculations for EPS) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Basic and diluted net earnings per share:

Net income attributable to Xylem (in usd)

$ 112

$ 113

$ 194

$ 200

Shares

Weighted average common shares outstanding

180,123

180,072

180,164

180,162

Add: Participating securities

^[1]

Weighted average common shares outstanding — Basic

180,156

180,106

180,193

180,186

Plus incremental shares from assumed conversions:

Weighted average common shares outstanding — Diluted

180,650

181,349

180,835

181,411

Basic earnings per share (usd per share)

$ 0.62

$ 0.63

$ 1.07

$ 1.11

Diluted earnings per share (usd per share)

$ 0.62

$ 1.07

$ 1.10

Stock Options

Plus incremental shares from assumed conversions:

Dilutive effect of common shares

^[2]

438

897

513

845

Restricted Stock

Plus incremental shares from assumed conversions:

Dilutive effect of common shares

^[2]

346

129

380

[1]

Restricted stock unit awards containing rights to non-forfeitable dividends that participate in undistributed earnings with common stockholders are considered participating securities for purposes of computing earnings per share.

[2]

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 will be included in the treasury stock calculation of diluted earnings per share upon achievement of underlying performance or market conditions at the end of the reporting period. See Note 13, "Share-Based Compensation Plans", to the condensed consolidated financial statements for further detail on the performance share units.

Earnings Per Share (Summary of Antidilutive Securities) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Stock Options
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	1,647	1,227	1,491	1,238
Restricted Stock
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	362	318	346	302
Performance Based Shares
Incremental shares from stock options and restricted stock:
Antidilutive securities (in shares)	270	345	252	349

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Inventories
Finished goods	$ 318	$ 236
Work in process	71	58
Raw materials	463	406
Total inventories	$ 852	$ 700

Goodwill and Other Intangible Assets (Goodwill Rollforward) (Details) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2022	$ 2,792
Foreign currency and other	(78)
Balance as of June 30, 2022	2,714
Water Infrastructure
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2022	656
Foreign currency and other	(19)
Balance as of June 30, 2022	637
Applied Water
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2022	515
Foreign currency and other	(15)
Balance as of June 30, 2022	500
Measurement & Control Solutions
Changes in the carrying value of goodwill by operating segment
Balance as of January 1, 2022	1,621
Foreign currency and other	(44)
Balance as of June 30, 2022	$ 1,577

Goodwill and Other Intangible Assets (Summary of Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Goodwill and Other Intangible Assets
Accumulated Amortization	$ (985)		$ (985)		$ (991)
Intangible Assets Gross, Carrying Amount	1,960		1,960		2,007
Intangible Assets, Net Intangibles	975		975		1,016
Amortization	32	$ 33	62	$ 65
Customer and distributor relationships
Goodwill and Other Intangible Assets
Carrying Amount	914		914		929
Accumulated Amortization	(473)		(473)		(456)
Net Intangibles	441		441		473
Proprietary technology and patents
Goodwill and Other Intangible Assets
Carrying Amount	198		198		201
Accumulated Amortization	(144)		(144)		(142)
Net Intangibles	54		54		59
Trademarks
Goodwill and Other Intangible Assets
Carrying Amount	138		138		141
Accumulated Amortization	(76)		(76)		(72)
Net Intangibles	62		62		69
Software
Goodwill and Other Intangible Assets
Carrying Amount	525		525		548
Accumulated Amortization	(274)		(274)		(303)
Net Intangibles	251		251		245
Other
Goodwill and Other Intangible Assets
Carrying Amount	20		20		21
Accumulated Amortization	(18)		(18)		(18)
Net Intangibles	2		2		3
Indefinite-lived intangibles
Goodwill and Other Intangible Assets
Accumulated Amortization	0		0		0
Indefinite-lived intangibles	$ 165		$ 165		$ 167

Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Finite-Lived Intangible Assets
Amortization expense related to finite-lived intangible assets	$ 32	$ 33	$ 62	$ 65

Derivative Financial Instruments (Effect of Deriative Instruments on Income Statement and Statement of Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	$ 9	$ (4)	$ 15	$ 7
Amount of gain reclassified from OCI into revenue	(1,364)	(1,351)	(2,636)	(2,607)
Reclassification out of Accumulated Other Comprehensive Income \| Foreign Exchange Contract \| Cash Flow Hedges
Derivative Financial Instruments
Amount of gain reclassified from OCI into revenue	2	1	4	(1)
Amount of (gain) loss reclassified from OCI into cost of revenue	1	0	1	(1)
Cash Flow Hedging [Member] \| Foreign Exchange Contract \| Cash Flow Hedges
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	(13)	4	(19)	(7)
Cash Flow Hedging [Member] \| Foreign Exchange Contract \| Fair Value Hedges
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	(4)	0	(4)	0
Cash Flow Hedging [Member] \| Cross Currency Swaps
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	93	2	(94)	32
Cash Flow Hedging [Member] \| Foreign Currency Denominated Debt
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	23	(6)	31	20
Interest Expense \| Cash Flow Hedging [Member] \| Foreign Exchange Contract \| Fair Value Hedges
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	1	0	1	0
Interest Expense \| Cash Flow Hedging [Member] \| Cross Currency Swaps
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	7	5	13	10
Selling, General and Administrative Expenses \| Cash Flow Hedging [Member] \| Foreign Exchange Contract \| Fair Value Hedges
Derivative Financial Instruments
Amount of gain (loss) recognized in OCI	$ 11	$ 0	$ 11	$ 0

Derivative Financial Instruments (Balance Sheet Location of Derivative Instruments) (Details) - Derivatives designated as hedging instruments - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Prepaid and other current assets
Derivatives, Fair Value
Assets	$ 1	$ 0
Other non-current assets
Derivatives, Fair Value
Assets	77	8
Accrued and other current liabilities \| Cash Flow Hedges
Derivatives, Fair Value
Liabilities	(14)	(1)
Accrued and other current liabilities \| Fair Value Hedges
Derivatives, Fair Value
Liabilities	(8)	0
Other non-current accrued liabilities
Derivatives, Fair Value
Liabilities	$ (1)	$ (26)

Derivative Financial Instruments (Details Textual) $ in Millions	6 Months Ended
	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Mar. 11, 2016 USD ($)	Mar. 11, 2016 EUR (€)
Derivative [Line Items]
Net losses expected to be reclassified in next 12 months	$ 17
Loss on fair value hedges expected to be reclassified	4
Foreign Exchange Contract
Derivative [Line Items]
Notional amount	278	$ 301
Derivatives designated as hedging instruments \| Sell USD Buy EUR
Derivative [Line Items]
Notional amount	112	130
Derivatives designated as hedging instruments \| Buy KR Sell EUR
Derivative [Line Items]
Notional amount	83	88
Derivatives designated as hedging instruments \| Sell GBP Buy EUR
Derivative [Line Items]
Notional amount	30	31
Derivatives designated as hedging instruments \| Sell CDN Buy EUR
Derivative [Line Items]
Notional amount	15	14
Derivatives designated as hedging instruments \| Buy USD Sell CDN
Derivative [Line Items]
Notional amount	14	14
Derivatives designated as hedging instruments \| Sell ASD Buy Euro
Derivative [Line Items]
Notional amount	13	13
Derivatives designated as hedging instruments \| Buy PLN Sell EUR
Derivative [Line Items]
Notional amount	11	11
Derivatives designated as hedging instruments \| Cross Currency Swaps
Derivative [Line Items]
Notional amount	$ 1,587	1,151
Long-term debt \| Derivatives designated as hedging instruments
Derivative [Line Items]
Net Investment Hedges		563
Senior Notes Due 2023, 2.250%
Derivative [Line Items]
Interest on notes due	2.25%
Long-term debt, fair value	$ 525	$ 577
Senior Notes Due 2023, 2.250% \| Senior Notes
Derivative [Line Items]
Notional amount	$ 522
Interest on notes due			2.25%	2.25%
Face amount			$ 533	€ 500,000,000

Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Accrued and Other Current Liabilities
Compensation and other employee-benefits	$ 248	$ 273
Customer-related liabilities	208	186
Accrued taxes	115	86
Lease liabilities	71	69
Accrued warranty costs	37	40
Other accrued liabilities	103	98
Total accrued and other current liabilities	$ 782	$ 752

Credit Facilities and Debt (Summary of Debt Outstanding) (Details) - USD ($)
$ in Millions

Jun. 30, 2022

Dec. 31, 2021

Jun. 26, 2020

Oct. 11, 2016

Credit Facilities and Long-Term Debt :

Debt issuance costs and unamortized discount

^[1]

$ (22)

$ (24)

Total debt

2,400

2,440

Less: short-term borrowings and current maturities of long-term debt

521

Long-term debt

$ 1,879

2,440

Senior Notes Due 2023, 2.250%

Credit Facilities and Long-Term Debt :

Interest rate

2.25%

Senior Notes Due

^[2]

$ 522

564

Long-term debt, fair value

$ 525

577

Senior Notes due 2026

Credit Facilities and Long-Term Debt :

Interest rate

3.25%

Senior Notes Due

^[2]

$ 500

500

Long-term debt, fair value

$ 487

537

Senior Notes Due Twenty Twenty Eight

Credit Facilities and Long-Term Debt :

Interest rate

1.95%

Senior Notes Due

$ 500

500

Long-term debt, fair value

$ 446

497

Senior Notes Due Twenty Thirty One

Credit Facilities and Long-Term Debt :

Interest rate

2.25%

Senior Notes Due

$ 500

500

Long-term debt, fair value

$ 419

496

Senior Notes due 2046

Credit Facilities and Long-Term Debt :

Interest rate

4.375%

Senior Notes Due

^[2]

$ 400

400

Long-term debt, fair value

$ 367

$ 481

[1]

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

[2]

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 2023 was $525 million and $577 million as of June 30, 2022 and December 31, 2021, respectively. The fair value of our Senior Notes due 2026 was $487 million and $537 million as of June 30, 2022 and December 31, 2021 respectively. The fair value of our Senior Notes due 2028 was $446 million and $497 million as of June 30, 2022 and December 31, 2021, respectively. The fair value of our Senior Notes due 2031 was $419 million and $496 million as of June 30, 2022 and December 31, 2021, respectively. The fair value of our Senior Notes due 2046 was $367 million and $481 million as of June 30, 2022 and December 31, 2021, respectively.

Credit Facilities and Debt (Textuals) (Details)

6 Months Ended

Jun. 26, 2020

USD ($)

Sep. 20, 2011

Jun. 30, 2022

USD ($)

Dec. 31, 2021

USD ($)

Jun. 03, 2019

EUR (€)

Mar. 05, 2019

USD ($)

Jan. 26, 2018

USD ($)

Oct. 11, 2016

USD ($)

Mar. 11, 2016

USD ($)

Mar. 11, 2016

EUR (€)

Senior Notes

Debt Instrument

Redemption price percentage

101.00%

Line of Credit [Member]

Debt Instrument

Face amount

$ 522,000,000

Senior Notes Due 2023, 2.250%

Debt Instrument

Fair value of senior notes due

$ 525,000,000

$ 577,000,000

Interest rate

2.25%

Senior Notes Due

^[1]

$ 522,000,000

564,000,000

Senior Notes Due 2023, 2.250% | Senior Notes

Debt Instrument

Interest rate

2.25%

Face amount

$ 533,000,000

€ 500,000,000

Senior Notes due 2026

Debt Instrument

Fair value of senior notes due

$ 487,000,000

537,000,000

Interest rate

3.25%

Senior Notes Due

^[1]

$ 500,000,000

500,000,000

Face amount

$ 500,000,000

Senior Notes due 2046

Debt Instrument

Fair value of senior notes due

$ 367,000,000

481,000,000

Interest rate

4.375%

Senior Notes Due

^[1]

$ 400,000,000

400,000,000

Face amount

$ 400,000,000

2019 Five-Year Revolving Credit Facility | Revolving Credit Facility

Debt Instrument

Term of debt

5 years

Debt instrument aggregate principal amount

$ 800,000,000

Permitted increases in Credit Facility borrowing base

200,000,000

Maximum permitted increases in Credit Facility borrowing base

$ 1,000,000,000

US Dollar Commercial Paper Program

Debt Instrument

Face amount

$ 600,000,000

Euro Commercial Paper Program

Debt Instrument

Face amount | €

€ 500,000,000

Senior Notes Due Twenty Twenty Eight

Debt Instrument

Fair value of senior notes due

$ 446,000,000

497,000,000

Interest rate

1.95%

Senior Notes Due

$ 500,000,000

500,000,000

Face amount

$ 500,000,000

Senior Notes Due Twenty Thirty One

Debt Instrument

Fair value of senior notes due

$ 419,000,000

496,000,000

Interest rate

2.25%

Senior Notes Due

$ 500,000,000

Face amount

$ 500,000,000

Green Bond | Senior Notes

Debt Instrument

Redemption price percentage

101.00%

[1]

Post-retirement Benefit Plans (Summary of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net periodic benefit cost:
Net periodic benefit cost	$ 7	$ 8	$ 14	$ 16
Domestic defined benefit pension plans
Net periodic benefit cost:
Service cost	0		1	1
Interest cost	1	1	2	2
Expected return on plan assets	(1)	(1)	(3)	(3)
Amortization of net actuarial loss	0	1	1	2
Net periodic benefit cost	0	1	1	2
International defined benefit pension plans
Net periodic benefit cost:
Service cost	4	3	7	7
Interest cost	3	3	7	6
Expected return on plan assets	(3)	(3)	(7)	(7)
Amortization of net actuarial loss	3	4	6	8
Net periodic benefit cost	$ 7	$ 7	$ 13	$ 14

Post-retirement Benefit Plans (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Employer contribution to defined benefit plan			$ 10	$ 12
Minimum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Additional contributions	$ 7		7
Maximum
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Other postretirement benefit expense	1	$ 1	1	1
Amortization of net actuarial loss	1	1	1	1
Additional contributions	13		13
Foreign Plan [Member]
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block
Amortization of net actuarial loss	$ 3	$ 4	$ 6	$ 8

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Equity - Summary of Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended					6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Dividends declared per share (usd per share)		$ 0.30	$ 0.30	$ 0.28	$ 0.28
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 3,206	$ 3,226		$ 2,946	$ 2,976	$ 3,226	$ 2,976
Other					(1)
Net income	112	82		113	87	194	200
Other comprehensive income (loss), net	(71)	(6)		28	(13)
Dividends declared	(55)	(55)		(51)	(50)
Stock incentive plan activity	11	4		13	5
Repurchase of common stock		(45)			(60)
Ending balance	3,203	3,206	$ 3,226	3,049	2,946	3,203	3,049
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	2	2		2	2	2	2
Ending balance	2	2	2	2	2	2	2
Capital in Excess of Par Value
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	2,099	2,089		2,049	2,037	2,089	2,037
Stock incentive plan activity	12	10		14	12
Ending balance	2,111	2,099	2,089	2,063	2,049	2,111	2,063
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	2,181	2,154		1,967	1,930	2,154	1,930
Other					0
Net income	112	82		113	87
Dividends declared	(55)	(55)		(51)	(50)
Ending balance	2,238	2,181	2,154	2,029	1,967	2,238	2,029
Accumulated Other Comprehensive Loss
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(377)	(371)		(426)	(413)	(371)	(413)
Other comprehensive income (loss), net	(71)	(6)		28	(13)
Ending balance	(448)	(377)	(371)	(398)	(426)	(448)	(398)
Treasury Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(707)	(656)		(655)	(588)	(656)	(588)
Stock incentive plan activity	(1)	(6)		(1)	(7)
Repurchase of common stock		(45)			(60)
Ending balance	(708)	(707)	(656)	(656)	(655)	(708)	(656)
Non-Controlling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	8	8		9	8	8	8
Other					(1)
Other comprehensive income (loss), net					0
Ending balance	$ 8	$ 8	$ 8	$ 9	$ 9	$ 8	$ 9

Share-Based Compensation Plans (Textuals) (Details) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award
Share-based compensation	$ 9.0	$ 8.0	$ 18.0	$ 17.0
Shares Awarded (in shares)			306
Stock-Based Compensation Plans (Textual) [Abstract]
Proceeds from exercise of employee stock options			$ 3.0	$ 9.0
Total intrinsic value of options exercised			2.1
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	9.0		$ 9.0
Weighted average period			2 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	35.0		$ 35.0
Weighted average period			2 years 1 month 6 days
Shares Awarded (in shares)			323
Performance Based Shares
Share-based Compensation Arrangement by Share-based Payment Award
Unamortized compensation expense	$ 17.0		$ 17.0
Weighted average period			2 years 4 months 24 days

Share-Based Compensation Plans (Summary of Stock Options Grant) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Summary of the changes in outstanding stock options
Outstanding, beginning of period (in shares)	1,827	1,827
Granted (in shares)		306
Exercised (in shares)		(58)
Forfeited (in shares)		(20)
Outstanding, end of period (in shares)		2,055
Options exercisable, ending of period (in shares)		1,432
Vested and expected, end of period (in shares)		1,980
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in usd per share)	$ 64.12	$ 64.12
Granted (in usd per share)		86.76
Exercised (in usd per share)		48.07
Forfeited (in usd per share)		90.49
Outstanding, end of period (in usd per share)		67.69
Options exercisable, end of period (in usd per share)		59.14
Vested and expected, end of period (in usd per share)		$ 66.91
Share-based Compensation Arrangement by Share-based Payment Award, Options, Weighted Average Remaining Contractual Term [Roll Forward]
Outstanding, weighted average remaining contractual term	6 years 1 month 6 days	6 years 2 months 12 days
Aggregate intrinsic value, outstanding		$ 32	$ 102
Options exercisable, end of period		5 years 1 month 6 days
Aggregate intrinsic value, exercisable		$ 30
Vested and expected to vest, end of period		6 years 1 month 6 days
Aggregate intrinsic value, vested and expected to vest		$ 31

Share-Based Compensation Plans (Stock Option Fair Value Assumptions) (Details) - Stock Options	6 Months Ended
	Jun. 30, 2022 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	26.20%
Risk-free interest rate	1.59%
Dividend yield	1.38%
Expected term (in years)	5 years 7 months 6 days
Weighted-average fair value / share (in usd per share)	$ 19.86

Share-Based Compensation Plans (Summary of Restricted Stock Unit Grants) (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Restricted Stock
Shares
Outstanding, beginning of period (in shares) \| shares	484
Granted (in shares) \| shares	323
Vested (in shares) \| shares	(215)
Forfeited (in shares) \| shares	(26)
Outstanding, end of period (in shares) \| shares	566
Weighted Average Grant Date Fair Value Per Share
Outstanding, beginning of period (in usd per share) \| $ / shares	$ 88.47
Granted (in usd per share) \| $ / shares	86.42
Vested (in usd per share) \| $ / shares	84.40
Forfeited (in usd per share) \| $ / shares	91.34
Outstanding, end of period (in usd per share) \| $ / shares	$ 88.72
REV Performance Shares
Shares
Outstanding, beginning of period (in shares) \| shares	0
Granted (in shares) \| shares	35
Forfeited (in shares) \| shares	(1)
Outstanding, end of period (in shares) \| shares	34
Weighted Average Grant Date Fair Value Per Share
Outstanding, beginning of period (in usd per share) \| $ / shares	$ 0
Granted (in usd per share) \| $ / shares	86.76
Forfeited (in usd per share) \| $ / shares	86.76
Outstanding, end of period (in usd per share) \| $ / shares	$ 86.76

Share-Based Compensation Plans Share-Based Compensation Plans (Summary of ROIC Performance Share Unit Grants) (Details) - Return on Invested Capital Performance-Based Shares [Member] - Performance Based Shares shares in Thousands	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Summary of performance share activity
Outstanding, beginning of period (in shares) \| shares	177
Granted (in shares) \| shares	35
Forfeited (in shares) \| shares	(59)
Outstanding, end of period (in shares) \| shares	153
Weighted Average Grant Date Fair Value Per Share
Outstanding, beginning of period (in usd per share) \| $ / shares	$ 84.84
Granted (in usd per share) \| $ / shares	86.76
Forfeited (in usd per share) \| $ / shares	75.49
Outstanding, end of period (in usd per share) \| $ / shares	$ 88.89

Share-Based Compensation Plans (Summary of Performance-Based Share Grants) (Details) - Total Shareholder Return Performance-Based Shares - Performance Based Shares shares in Thousands	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Summary of performance share activity
Outstanding, beginning of period (in shares) \| shares	177
Granted (in shares) \| shares	70
Adjustment for Condition Achieved (in shares) \| shares	22
Vested (in shares) \| shares	(75)
Forfeited (in shares) \| shares	(7)
Outstanding, end of period (in shares) \| shares	187
Weighted Average Grant Date Fair Value Per Share
Outstanding, beginning of period (in usd per share) \| $ / shares	$ 102.96
Granted (in usd per share) \| $ / shares	71.14
Adjustment for Condition Achieved (in usd per share) \| $ / shares	89.62
Vested (in usd per share) \| $ / shares	89.62
Forfeited (in usd per share) \| $ / shares	87.54
Outstanding, end of period (in usd per share) \| $ / shares	$ 100.64

Share-Based Compensation Plans (TSR Performance-Based Shares Fair Value Assumptions) (Details) - Total Shareholder Return Performance-Based Shares - Performance Based Shares shares in Thousands	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeited \| shares	(7)
Volatility	33.30%
Risk-free interest rate	1.44%
Forfeited \| $ / shares	$ 87.54

Share-Based Compensation Plans - Summary of REV Performance Share Unit Grants (Details) - REV Performance Shares shares in Thousands	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Shares
Outstanding, beginning of period (in shares) \| shares	0
Shares Awarded (in shares) \| shares	35
Forfeited \| shares	(1)
Outstanding, end of period (in shares) \| shares	34
Weighted Average Grant Date Fair Value Per Share
Outstanding, beginning of period (in usd per share) \| $ / shares	$ 0
Granted (in usd per share) \| $ / shares	86.76
Forfeited \| $ / shares	86.76
Outstanding, end of period (in usd per share) \| $ / shares	$ 86.76

Capital Stock (Textuals) (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
Capital Stock (Textuals) (Details) - USD ($) $ in Millions	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021	Aug. 24, 2015
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (less than $1 million)		$ 45.0		$ 60.0
Share Repurchase Programs
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares - less than 0.1 million)	100,000		100,000		600,000	700,000
Shares repurchased (less than $1 million)	$ 0.5		$ 1.0		$ 52.0	$ 68.0
2015 Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount							$ 500.0
Shares repurchased (in shares - less than 0.1 million)					500,000	600,000
Shares repurchased (less than $1 million)					$ 46.0	$ 60.0
Remaining authorized amount of repurchase	$ 182.0				$ 182.0
Settlement of Employee Tax Withholding Obligations
Equity, Class of Treasury Stock [Line Items]
Shares repurchased (in shares - less than 0.1 million)	100,000		100,000		100,000	100,000
Shares repurchased (less than $1 million)	$ 1.0		$ 1.0		$ 6.0	$ 8.0

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2022	Jun. 30, 2021
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance		$ (371)			$ (371)
Foreign currency translation adjustment	$ (41)		$ 19		(44)	$ 29
Ending balance	(448)				(448)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(106)	(101)	(90)	$ (86)	(101)	(86)
Foreign currency translation adjustment	(41)	(3)	19	10
Tax on foreign currency translation adjustment	(28)	(2)	1	(14)
Ending balance	(175)	(106)	(70)	(90)	(175)	(70)
Post-retirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(265)	(268)	(326)	(330)	(268)	(330)
Income tax impact on amortization of post-retirement benefit plan items	(1)	(1)	(2)	(1)
Ending balance	(262)	(265)	(323)	(326)	(262)	(323)
Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(6)	(2)	(10)	3	(2)	3
Unrealized gain (loss) on derivative hedge agreements	(9)	(6)	4	(11)
Income tax benefit on unrealized loss on derivative hedge agreements	1			1
Ending balance	(11)	(6)	(5)	(10)	(11)	(5)
Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(377)	(371)	(426)	(413)	(371)	(413)
Foreign currency translation adjustment	(41)	(3)	19	10
Tax on foreign currency translation adjustment	(28)	(2)	1	(14)
Income tax impact on amortization of post-retirement benefit plan items	(1)	(1)	(2)	(1)
Unrealized gain (loss) on derivative hedge agreements	(9)	(6)	4	(11)
Income tax benefit on unrealized loss on derivative hedge agreements	1			1
Ending balance	(448)	(377)	(398)	(426)	$ (448)	$ (398)
Other non-operating income \| Post-retirement Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	4	4	5	5
Other non-operating income \| Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amortization of prior service cost and net actuarial loss on post-retirement benefit plans into other non-operating income (expense), net	4	4	5	5
Revenue \| Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	2	2	1	(2)
Revenue \| Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements	2	$ 2	$ 1	(2)
Cost of Revenue \| Derivative Instruments
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements				(1)
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue	1
Cost of Revenue \| Total
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification of unrealized gain (loss) on foreign exchange agreements				$ (1)
Reclassification of unrealized loss on foreign exchange agreements into cost of revenue	$ 1

Commitments and Contingencies (Summary of Warranties) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Warranties
Warranty accrual – January 1	$ 57	$ 65
Net charges for product warranties in the period	11	17
Settlement of warranty claims	(12)	(18)
Foreign currency and other	2	1
Warranty accrual - June 30	$ 54	$ 63

Commitments and Contingencies (Details Textual) - USD ($) $ in Millions	Jun. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency Accrual		$ 4
Guarantee amounts	$ 447	415
Estimated environmental matters	$ 4	$ 3

Segment Information (Summary of Operations by Segment) (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2022

Jun. 30, 2021

Jun. 30, 2022

Jun. 30, 2021

Financial information for each reportable segment

Revenues

$ 1,364

$ 1,351

$ 2,636

$ 2,607

Operating income

146

160

257

293

Interest Expense

Other Nonoperating Income (Expense)

(3)

(1)

Gain from sale of business

Income before taxes

136

138

234

252

Depreciation and amortization

118

124

Capital expenditures

Water Infrastructure

Financial information for each reportable segment

Revenues

589

569

1,122

1,078

Operating income

108

182

164

Depreciation and amortization

Capital expenditures

Applied Water

Financial information for each reportable segment

Revenues

429

414

854

807

Operating income

120

130

Depreciation and amortization

Capital expenditures

Measurement & Control Solutions

Financial information for each reportable segment

Revenues

346

368

660

722

Operating income

(5)

(15)

Depreciation and amortization

Capital expenditures

Regional Selling Locations

Financial information for each reportable segment

Depreciation and amortization

^[1]

Capital expenditures

^[2]

Corporate and other

Financial information for each reportable segment

Operating income

(18)

(10)

(30)

(23)

Depreciation and amortization

Capital expenditures

$ 2

$ 0

$ 4

$ 0

[1]	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.
[2]	Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.

Segment Information (Textuals) (Details)	6 Months Ended
Segment Information (Textuals) (Details)	Jun. 30, 2022 Segment
Segment Information (Textual) [Abstract]
Number of reportable segments	3